KBL Annual Report-1

22nd Annual Report
2078/79
Photo Credit: Bipin Sthapit
www.kumaribank.com
Kumari Culture embraces everyone with a smile to

welcome, help, and appreciate them. In every path,
every way, we strive to be better and never give up.
Each day, we live and breathe this culture, and imbibe
it in our minds and our hearts.
We take every step together – for happiness and for

success. Moving forward everyday – we hold it as an
anthem that drives us forward.
We move forward in unison to create a new world, a

world of our culture, - where everyone is engulfed in a
comfortable space of their own.
Welcome to Kumari Culture!
1
22nd Annual Report 2078/79
TABLE OF CONTENTS
GENERAL OVERVIEW
01 About Kumari Bank 5
02 Vision & Mission Statement 7
03 Chairman’s Message 8
04 Group Photo - BOD 10
05 CEO’s Message 12
Group Photo
06 16
– Executive Management
Group Photo
07 18
– Province Chiefs, HODs
FINANCIAL OVERVIEW
01 Performance Review FY 2078-79 33
02 Financial Position Indicators 35
03 Financial Performance Indicators 39
04 Horizontal & Vertical Analysis 48
05 Market Capitalization 50
06 Market Price Sensitivity Analysis 51
07 Value Added Statement 52
08 Contribution towards Nepalese Economy 53
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PRODUCTS/SERVICES
01 Deposit Products 57
02 Deposit & Loan Mix 58
03 Loan Products 59
04 Digital Products 60
05 Treasury 62
06 Remittance as a Currency of Care 64
CORPORATE GOVERNANCE & MANAGEMENT PRACTICES

01 Corporate Governance 70
02 Capital Management 74
03 Risk Management 76
04 SWOT Analysis 82
05 Internal Control System and Assurance 84
06 Human Capital 86
07 On Combating Financial Threats 89
FINANCIAL INFORMATION
01 Annual Report of the BOD 95
02 SEBON Declaration 106
03 Audit Report of KBL 107
04 Financials 111
KBL SUBSIDIARIES 193
MILESTONES, CSR & AWARDS/ACHIEVEMENTS 237
KBL NETWORK 245
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GENERAL OVERVIEW
1. About Kumari Bank ................................................. 5
2. Vision & Mission Statement .................................... 7
3. Chairman’s Message .............................................. 8
4. Group Photo - BOD ............................................... 10
5. CEO’s Message .................................................... 12
6. Group Photo
Executive Management ........................................ 16
7. Group Photo
Province Chiefs, HODs........................................... 18
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ABOUT KUMARI BANK
Kumari Bank Limited, came into existence as the

fifteenth commercial bank of Nepal, starting its banking
operations from Chaitra 21, 2057 B.S (April 03, 2001)
with an objective of providing competitive modern
banking services in the Nepalese financial market.
The Bank has paid up capital of NPR 14.71 billion.
Kumari Bank Limited provides a wide-range of

modern banking services through 297 points of
representation located in various urban, semi-urban
and rural parts of the country, with 199 branches, 36
extension counters and 62 Branchless Banking Units.
The Bank has pioneered in providing modern banking

services like Internet Banking and Mobile Banking.
With the implementation of Core Banking Software,
FINACLE (Version 10), the Bank has been providing
a robust, ultra-modern banking platform for all
customers throughout the country.
The Bank has been offering both Domestic and

International Visa Debit and Credit Card, accessible
in all VISA linked ATMs in Nepal, India, Bhutan and
in other countries. It serves through 200 ATMs and
scores of POS terminals across the country. Along
with this, the Bank offers latest digital banking
services such as Mobile, Internet, and Viber Banking,
QR payments and online account opening.
The Bank is recognized as an innovative and fast

growing institution that always strives towards
customer satisfaction. It has transparent business
practices, professional management, good corporate
governance, and Total Quality Management as the
organizational mission.
The Bank acquired Kasthamandap Development

Bank Ltd., Paschimanchal Finance Co. Ltd., Mahakali
Bikash Bank Ltd. and Kankrebihar Bikash Bank Ltd.
on Asadh 2074 B.S (July, 2017); with an objective to
fulfill the directive forwarded by Nepal Rastra Bank
to attain the paid-up capital of NPR 8 billion. Further,
the Bank acquired Deva Bikas Bank Limited and joint
operation was started from Asadh 28, 2077 B.S (July
12, 2020). As of now, the Bank’s loan investment has
reached NPR 161 billion with deposit-base of NPR
176 billion.
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VISION & MISSION STATEMENT
MISSION
Our mission is to deliver innovative
products and services to our customers,
use these innovative products to achieve
financial inclusion, and do so by exemplifying
good corporate governance, proactive risk
management practices, and superior
corporate social
responsibility.
VISION
Our vision is to be the preferred financial
partner to our customers, a center of career
growth to our employees, and to maximize our
shareholder’s value, while contributing
to our nation’s financial sector
and to its economic
welfare.
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CHAIRMAN’S MESSAGE
Dear Stakeholders,
It is a privilege to write to you as the Chairman The incredible potential and determination of our
of the Board of Kumari Bank Limited. As the team to steer our organization to greater heights,
final preparations of our joint-operation with while abiding by our stated mission of “delivering
Nepal Credit & Commerce Bank Limited comes innovative products and services, to achieve
to a close, I envision a brighter future ahead for financial inclusion, while imbibing good corporate
our organization that has repeatedly proved its governance, proactive risk management practices,
resilience. and superior corporate social responsibilities,” is
a testament of our unwavering dedication to the
The FY 2020-21 was a good year for the Bank, highest standards of corporate excellence. I am
wherein we executed well on our strategic confident that we will see this vision-in-action
roadmap and demonstrated a strong financial throughout the imminent future of our Bank,
performance and incredible growth. Last year in as we continue to make steady strides ahead
my communication, I shared with you some of into the future.
the organizational strategies that can leverage our
growth by pursuing both organic and inorganic We are immensely grateful for the extraordinary
growth opportunities. I am happy to share with support from all our esteemed shareholders,
you that our upcoming merger with NCC Bank business partners and regulators, who have
Limited is a positive step in that direction. Upon engaged in close collaboration to find mutually
analysis of key financial indicators and other viable solutions, thereby invigorating our
performance metrics, I can confidently state that long-standing relationships and allowing us
our organization is set to achieve both cost and to continuously foster our common vision to
revenue synergies in the days to come. further develop Kumari Bank as a world-class
financial hub.
While the Bank is on the verge of one such
significant milestone, I am flooded with nostalgia Thank you all for your resilience and continued faith
of how this organization came to be. Kumari Bank in our vision, which has fueled our continued and
Limited, which has completed its 21 years, sprung sustainable growth. I, along with my colleagues on
from a vision that my father, the late Mr. Noor the board, see and truly appreciate your support
Pratap JB Rana had. The vision dreamt of during and I have utmost faith that you will welcome the
the late 1990s came into fruition in 2001 and since amalgamated team with open arms and extend
then – each year, every year – the faith and support your utmost solidarity for the continued success
of board members, stakeholders, and capable of the Bank.
leadership have solidified THAT idea and here we
stand TODAY! Sincerely,
I would like to extend my congratulations to Amir Pratap JB Rana

everyone in the team – we have set a precedence of Chairman
client-bank relation that extends beyond banking
and to interpersonal and inter–organizational
relationships. My heartfelt gratitude to all the
founding members and their deserving successors,
who set out to make Kumari Bank Limited one of
our nation’s most-preferred financial partners,
while adhering to the highest standards of
customer-care, accountability towards
stakeholders, and transparency in our dealings.
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www.kumaribank.com
We executed well on our

strategic roadmap and
demonstrated a strong
financial performance and
incredible growth.
BOARD OF DIRECTORS
Mr. Krishna Prasad Gyawali Dr. Prof. Ganesh Prasad Pathak

Director (Promoter Group) Independent Director
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k Mr. Amir Pratap JB Rana Ms. Anuradha Chaudhary Mr. Mahesh Prasad Pokharel
Chairman Director (Public Group) Director (Public Group)
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CEO’S MESSAGE
To capitalize on
today’s greatest
changes and to
identify emerging
trends, innovation
is more essential
than ever.
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www.kumaribank.com
Dear All,
While the FY 2019-20 saw the darkest period

of the pandemic, the last financial year was
BUILDING ON TECHNOLOGICAL RESILIENCE
the year of hope. Though the pandemic has Technology continues to remain both a strength as
not disappeared, the nationwide rollout of the well as an area of improvement for us. Strength, in
vaccine programme has meant that lives were the sense that, KBL could not have grown to be a
more secure, and coupled with precautions; Bank of this scale and increased our market share
some degree of normalcy was restored. With the consistently without it.
period of uncertainty mostly behind us, I believe
a more positive macroeconomic outlook can be Some of our major undertakings this year was
expected across various industries. While there in the form of digitalization of our operations.
are headwinds in the form of rising inflation, Workflow and content automation help improve
global power-shifts, conflicts and the subsequent and accelerate Bank’s document-processing
energy crisis, among several others, the Nepalese capacity, whether it be in the realm of loan
economy is still expected to grow by 5.84%, processing, payments, acceleration of trade-
according to the World Bank report. finance procedures, all of which improve the
overall customer experience. Digitization and
Geopolitical risks and social movements are automation in bank also improve regulatory
ongoing. New technologies are rapidly emerging. compliance through standardized communication
Public policies and the regulatory landscape are templates, automated file management, and
changing. Customer expectations are evolving. All removing the need for sensitive customer files to
of these factors have the potential to be disruptive. pass through staff email inboxes. For the same, we
Amidst such periods of uncertainty, Kumari Bank have partnered up with numerous FinTech vendors
Limited must be agile and adaptable and possess and the process of automation and digitalization of
the ingenuity and farsightedness to successfully overall Banking operations is well underway.
navigate a dynamic, complex and rapidly moving
business environment. On the Digital Banking front, the Bank acquired
Principal membership with VISA International
To capitalize on today’s greatest changes and to last year. Following that, we are now working to
identify emerging trends, innovation is more essential upgrade to our own Card Switch, which will help
than ever. Improving operations and optimizing provide better customer service and at the same
products/services is crucial but so is the way we time will also serve to generate additional avenue
develop and execute our long-term strategy. for fee-based income in the medium-term by way
of catering to not just our own customers, but the
Last year we began a future-defining project customers of other Financial Institutions. The Bank
by establishing a dedicated R&D and Business is also upgrading its current Mobile & Internet
Reengineering unit, that collected market and Banking Infrastructure, which will provide better
customer feedback on the challenges in Banking experience to the customers.
service delivery and the drawbacks on the
technological front. The powerful insights we Thanks to the progress we have made through
gained from these surveys, market research our technology investments, processes, data
and conversations have allowed us to develop a security and ICT governance, it is safe to say that
strategy and vision for what lies ahead—a belief we are rapidly strengthening our technological
that Kumari Bank Limited will continue to make infrastructure, which is commendable.
its mark in the Banking realm by delivering an
exceptional, differentiated customer experience COLLABORATION & TEAMWORK FOR
across its network.
SYNERGETIC OUTPUT
POSITIONING OURSELVES FOR THE FUTURE We believe every employee, every unit, whether
a Profit-Centre or a Cost-Centre, have equally
I find myself emphasizing the importance of three important contributions to enhance the overall
key focus areas for us to achieve sustainable business-base, profitability and brand-image.
growth. Improving on technological resilience, a Teamwork across various units improvises on our
clear focus on three Cs — Culture, Conscience problem-solving approach that helps us innovate
and Customer, will serve as the building-blocks for faster and helps attain higher productivity.
the future.
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WORKSPACE REENGINEERED DIVIDEND

Given the rapid pace of change, we believe the The Board has proposed a final dividend of 12.50%
successful organization of the future will have to to its shareholders at the 22nd Annual General
operate differently. In 2021, we re-engineered some Meeting. This is a commendable return, given the
of our important customer onboarding processes economic uncertainties and restrictions imposed
– namely, those around credit cards as well as on our business operations following the Covid-19
on customer-service, etc. Following the Covid-19 pandemic. Barring unforeseen circumstances, the
pandemic, the nature of work has also changed. annualized dividend going forward will certainly rise
Along with this, we instituted a hybrid work model in the upcoming year.
where employees in the ICT and Digital Banking
units had provisions to work remotely. We also GOING FORWARD
availed with flexible work arrangements to those
whose work could be completed from remote At the time of writing, the world seems ready to
settings. With these shifts, we are in the process to open up and we have gradually learnt to navigate
reconfigure our workspaces, improving occupancy the post Covid-19 scenario. At the same time,
footprint efficiencies. Similarly, we are in process geopolitics is casting some shadows, and the
to transform more workspaces to activity-based to macroeconomic policy pathways are uncertain. In
actually allow for greater ideation and interaction in such an environment, we have to continue to be
the next few years. watchful and nimble.
We take to heart that our business operations and

TRANSPARENCY, PERFORMANCE BASED REWARD risk-management framework is robust. Our focus
SYSTEM & WORKPLACE SAFETY on strengthening Corporate Governance, Risk
In the Human capital/reward space, transparency Management & Internal Audit is more resolute than
usually speaks to openness and candor around ever before.
career progression and pay opportunities.
Performance based reward system is an The inorganic transactions and investments we are
integral part of our employee motivation and set to make with the merger of NCC Bank Limited
talent-retention programs. The Bank awarded 489 will certainly strengthen our franchise, and position
number of promotions to deserving candidates us well to rise in the banking arena in Nepal. We
working in various levels at the Bank in the last expect payoff from these initiatives will materialize
FY in recognition of their exemplary contribution in the short to medium-term, and give us additional
towards Bank’s growth. In addition to this, we have engines of growth. Looking further out, given
a gender-balanced talent pool with female staff that technological changes could fundamentally
comprising of 40% of the total workforce. reshape the financial system, we must do what we
can to be ahead of the curve. In short, while 2021
We understand that workplace safety goes beyond was one of our best years ever, we will continue to
physical health and implementing safety measures. re-position ourselves as the Bank of the future.
It encompasses a healthy office atmosphere and
ensures that staff members come to work every I would like to conclude my message this year with
day knowing that they are secure, accepted and a heartfelt ‘Thank You’ to all my colleagues and
included. In realization of the same, we have all the stakeholders for this performance. Each
a Zero-Tolerance Policy against Workplace one of you have given your valuable inputs in the
Harassment in place which asserts that workplace challenging times. Words fail to amply convey my
bullying, racial or gender-based discrimination gratitude to you all.
and sexual harassment is not acceptable and will
lead to severe legal consequences. From the time Regards,
of onboarding, we make it clear that fostering a
culture of respect is a core value that every KBL Ram Chandra Khanal
employee must adhere to. Chief Executive Officer
INTERNATIONAL RECOGNITION
VISA International felicitated the Bank in the
Leaders’ Conclave Payments Innovation Awards in
the category: “Excellence in E-commerce Business
2022” for garnering highest e-commerce business
volume in the Nepalese card payment industry.
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www.kumaribank.com
While 2021 was one of

our best years ever,
we will continue to
re-position ourselves as
the Bank of the future.
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EXECUTIVE MANAGEMENT
Mr. Ram Chandra Khanal Mr. Kshitij Khadka

Chief Executive Officer Chief Business Officer
Mr. Bikas Khanal Mr. Anish Tamrakar

Chief Operating Officer Chief Digital Banking Officer
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www.kumaribank.com
Mr. Rohit Singh Mr. Chandan Karki

Chief Risk Officer Chief Business Officer
Mr. Ganesh Kumar K.C. Mr. Narayan Prasad Ghimire

Chief - Internal Audit Chief - Information and
Communication Technology
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CEO WITH TEAM PROVINCE
Mr. Manish Shrestha

Chief - Province 1
Mr. Roshan Kumar Shrestha

Chief - Madhesh Province
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Mr. Prabin Jha

Chief - Bagmati Province
(Inside Valley) A
Mr. Nabin Raj Poudel

(Inside Valley) B
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Mr. Bishnu Regmi

(Outside Valley)
Mr. Sudarshan Jung Rana

Chief - Gandaki Province
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Mr. Ram Mani Adhikari

Chief - Lumbini Province A
Mr. Deepak Adhikari

Chief - Lumbini Province B
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Mr. Himal Prasad Mudbhari

Chief - Karnali Province
Mr. Ajaya Ghimire

Chief - Sudurpaschim Province
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Executive Management with Head Office Team
KBL Women in Leadership
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HEAD OF DEPARTMENTS
Mr. Bibek Man Singh Shakya Mr. Bhusan Tandukar

Business Coordination & Corporate Credit &
Consumer Lending Project Financing
Mr. Aswin Babu Shrestha Ms. Preeti Shah

Finance & MIS High Net Worth Individual
and Company Secretary
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Mr. Bikranta Koirala Mr. Kiran Kumar Shah

Credit Administration and Legal AML/CFT
Mr. Unesh Manandhar Mr. Deepak Khanal

Central Logistics Central Operations
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Mr. Anup Shrestha Mr. Bhupendra Pandey

Treasury Front Office Recovery, NPA &
Debt-Service Management
Mr. Milan Kuinkel Mr. Suwash Khadka

Credit Risk Management Trade Operations
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Mr. Ishor Gurung Mr. Mandeep Bhattarai

SME, MSME & Card & ePayments
Priority Sector Lending
Mr. Himal Singh Basnet Ms. Anjana Mishra

Country Operations Retail Banking
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Ms. Renu Koirala Mr. Rabi Shanker Shrestha

Compliance & Policy Operation Risk,
Framework /Governance Market Risk & Treasury Mid Office
Mr. Anil Niroula Mr. Niraj Rai

Institutional Banking R&D and Business Process Re-engineering
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Mr. Rupendra Kumar Pandey Mr. Santosh Kumar Mahato

Information Security Officer Central Remittance
Mr. Bharat Dhungana Mr. Rajiv Bajracharya

Digital Banking Credit Monitoring & Reporting
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Ms. Pushpa Shrestha Ms. Reema Thapa

Human Resources Credit Operations
Mr. Udeet Bahadur Singh

Corporate Communication
& CSR
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www.kumaribank.com
FINANCIAL
OVERVIEW
31
1. Performance Review FY 2078-79 ........................ 33

2. Financial Position Indicators ............................... 35
3. Financial Performance Indicators ....................... 39
4. Horizontal & Vertical Analysis ............................. 48
5. Market Capitalization .......................................... 50
6. Market Price Sensitivity Analysis ....................... 51
7. Value Added Statement ....................................... 52
8. Contribution towards Nepalese Economy .......... 53
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Performance Review FY 2078-79

Deposit
F.Y. 2078-79 remained a year with a robust growth in terms of business volume compared to previous year. However there is shortfall
in targeted deposit of total of NPR 197.88 billion by 14.92 billion and reached NPR 182.96 billion. The shortfall in deposit target is
due to roadblock of liquidity crunch within the Banks and Financial Institutions (BFIs). The delay in disbursement of development
expenditures and slowdown in growth of remittances has also helped to deposit crisis. The uptrend was supported by increased
Term Deposits, followed by current deposits. The resulted increase is due to the attractive interest rates offered, effective marketing
and promotional strategies, other facilities extended, unique blend of deposit schemes, and other successful promotional campaigns.
However, the savings deposit varied than expected; as Nepalese deposit market is highly interest sensitive; due to which in the given
period, most of the saving deposits turned to term-deposits with short-term maturities. Although, we were able to grow the number
of saving accounts to 1,113,988.
Figures in Million
Particular Targeted (FY 2078-79) Actual (FY 2078-79) Variance Variance %
Term 108,531 118,548 10,017 8%
Saving 57,784 34,892 (22,892) -66%
Call 17,514 14,716 (2,798) -19%
Current 14,052 14,807 755 5%
Total 197,882 182,962 (14,920) -8%
Loan & Advances and Investment

We were able to extend total loans of NPR 159.44 billion this year which is shortfall by NPR 21.79 billion, less than targeted. The
shortfall in loan volume is due to constraint in loanable funds due to liquidity crisis in the economy. However the effective business,
marketing and promotional strategies, attractive interest rates and other services offered, loyal customer base, and so on has helped
the bank to increase the portfolio as compared to previous year. Likewise, we almost even managed to reach the targeted-investment
volume with a slight variation of NPR 3.84 billion only from the budget.
Figures in Million
Corporate 77,927 84,362 6,435 8%
SME 43,493 30,062 (13,431) -45%
Retail 50,740 36,598 (14,142) -39%
Deprived 9,079 8,421 (658) -8%
Total Loan 181,240 159,444 (21,796) -14%
Total Investment 38,852 35,006 (3,846) -11%
Profit & Loss

With an increased loan-volume than previous year during the year in review, the resultant increase in volume contributed towards an
excess interest income than previous year. Similarly, the higher interest expense was due to the surge in interest rate in deposit than
targeted due to liquidity crunch in the economy. Due to restricted opportunities for investment given tight liquidity, the investment rate
of return of the overall market is lower than expected, which had impacted in the interest income from investment.
As for the growth target relating to non-fund based business (LC, guarantees, etc), we were not able to reach the target, during the year
in review, but is expected to grow with growth of non-funded business. Credit Fees Income is on negative growth, but with gradual
increase in the business of the bank with ease in liquidity. Central Remittance Income is negative and the branch related remittance
business is also under negative growth, as the bank is yet to fully mobilize remittance unit at remit sourcing countries, which had impact
in the revenue related to remittance. Digital Banking Income has positive variance. Further, to boost business various schemes were
launched as free card issuance, cash back offers, and continuous branding in the digital front and expansion of business through digital
business, which further supported the growth of the digital banking related business. Bank is able to make steady base in the digital
banking business transaction, which eventually supported in the growth in the digital based income of the bank.
Share related Income / Dividend income has negative variance of Rs. 3.22 million, with active investment in good scripts with better
fundamentals and regular monitoring and trade; the bank is also able to attain healthy dividend income. This income is mainly attributable
to the favorable market condition that is prevalent in earlier months, but the current bearish trend in the market and fair value loss at the
end of the fiscal year had created negative variance. The changes pertaining to actual costs, in comparison to the HR- related costs
and operating expense varied; as the assumption during planning of budget was derived based on opening of branch network relatively
at the beginning of the fiscal year, but due to unavoidable factors the new setup were completed on mid or later part of the fiscal year,
which resulted in lower HR-related cost than budgeted. Impairment cost relating to loans and advances increased significantly than
projected which is due to growth in the volume of business along with liquidity scenario in the market. Also, for good representation of
risk-management in disbursed loans; Bank had provided additional provision charges under watch-list based on qualitative asset as
per NRB guidelines. Such cushion provision will provide more control over risk-factors associated with Bank lending. To conclude with,
the bottom line, i.e. profit, remained lower than targeted i.e. by 15%, due to increased costs and low fee-based income than targeted.
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Figures in Millions
Interest income 15,685 18,355 2,670 15%
Interest expense 9,076 12,138 3,062 25%
Net interest income 6,609 6,217 (392) -6%
Net Fee and Commission Income 1,321 818 (503) -61%
Other Operating and trading income 834 906 72 8%
Total Operating Income 8,765 7,941 (823) -10%
Human Resource Expense 2416 1934 (482) -25%
Operating Expense 1481 1219 (262) -22%
Operating profit before LLP 4,868 4,789 (79) -2%
Loan Loss Provision (LLP) 177 812 635 78%
Non operating income 0 16 16 100%
Profit before bonus 4,692 3,993 (699) -17%
Provision for staff bonus 469 399 (70) -17%
Provision for tax 1267 1014 (253) -25%
Net profit 2,956 2,573 (376) -15%
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Financial Position Indicators

Equity
Equity is the value of the business left to owners paying off the liabilities. Total equity is the residual interest of the owners towards
the asset after subtracting the value of all the liabilities. The amount accumulated in equity can be from the money originally invested
and all the other investments that are made in the company after the initial payment and through the earnings that Bank had retained
over a period of time through its operations.
With the part of time & growth of business, need of capital is further assessed. Bank has been able to increase equity through issue of
shares (bonus or right) and on the other hand, also retained the amount for further investment. As prescribed by Nepal Rastra Bank ,
Banks are required to maintain mandatory as well as other reserves. In addition to capital contributed by the equity holders, the amount
set aside from the profit or surpluses to reserve belongs to the owners that helps in further strengthening the financial position of the
Bank. Therefore, accumulated profit every year is transferred to such reserves which further increase the equity of the Bank .
Equity 21.00
15,000
Billion
12,000
9,000
In Millions
6,000
3,000
FY 74/75 FY 75/76 FY 76/77 FY 77/78 FY 78/79
Figures in Millions
Particulars FY 74/75 FY 75/76 FY 76/77 FY 77/78 FY 78/79
Reserves 1,795 2,095 2,851 3,678 4,330
Retained earnings 1,527 884 1,318 1,247 1,873
Share premium 55 55 571 89 89
Share capital 7,163 8,686 12,520 13,878 14,711
Looking five years back at its equity history; the Bank has gradually increased its equity size. From NPR 10.54 billion in FY 2074/75,
the equity base is NPR 21 billion in FY 2078/79, i.e. increase in equity-base is aiding the Bank's business expansion ( 99.26% of
growth within a five-year period).Over the year, Bank has acquired other BFIs which had supported in the growth of equity base of
the bank. Further the increase in equity in 2076-77 is also due to acquisition of Deva Bikas Bank Limited.
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14.71
Billion
15,000 13,878
Paid up capital 12,520 14,711
Paid up capital of bank was NPR 14.71 12,000
billion on FY 2078-79. Paid up capital of
the Bank, also considered as measure of
9,000
In millions
financial strength and stability has been
8,686
increasing over the years with the growth
of the business. Over the years, Bank has 6,000 7,163
been issuing bonus and right shares and
has also been able to meet the minimum
3,000
paid-up capital threshold prescribed by
Nepal Rastra Bank.
0
147.11
Million
138.78
125.20 147.11
Total Number of Shares
Total number of shares remained 147.11
million as on FY 2078-79, in which for
In millions
Financial Year 2078-79 only 12.50% cash

dividend has been declared. Hence there is 86.86
no increase in total number of share for the 71.63
Financial Year 2079-80.
Public and Promoter Shares

51% 49%
As on Asadh end 2079, Bank has a total General
share capital of NPR 14.71 billion, ownership Promoters
of which rests with Promoter and Public Public
shareholders. Ownership of NPR 7.50 billion
rests with the public shareholders and NPR
7.21 billion with the promoters.
Particulars No. of Shares Amount in '000

General Public 72,103 7,210,282
Promoters 75,009 7,500,902
Total 1,471,12 14,711,184
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6.30
Billion
Reserve and Surplus 6,000
6,291
They are the appropriation of profit or other
surplus to further financially strengthen 5,600
the financial position of the Bank for any 4,748
In millions
unforeseen losses/claims that may arise 5,014
in future. Bank has reserve and surplus of
4,200
NPR 6.30 billion as on FY 2078/79. The
Reserves, except reserves as per regulatory 2,800 3,142
3,033
requirement can be utilized for distribution
of dividend. 1,400
182.96
Deposit Billion
Bank has managed to maintain a deposit 200,000 182,962
of NPR 182.96 billion in FY 2078-79 with
157,178
a growth of 16.40%, compared to NPR
160,000
157.17 billion in FY 2077-78. Deposit mix
as of FY 2078-79 constituted NPR 118.54
In millions
billion (64.79%) as fixed deposit, NPR 120,000

34.89 billion (19.08%) as saving, NPR 14.71 124,220
billion (8.04%) as call deposit and NPR 80,000
14.80 billion (8.09%) as current deposits. 84,403
69,651
It is in increasing trend over the years with
increasing business volume. Deposit alone 40,000
contributes to the highest portion of the
Bank’s liability i.e. 95.74% of total liability 0
of the Bank comprises of deposit liability as
on FY 2078-79.
159.44
Billion
Loan and Advance 160,000 143,772
Bank holds a total loan portfolio of NPR 159,444
159.44 billion on FY 2078-79 with a 10.90% 128,000 115,134
growth achievement, compared to NPR
143.77 billion in the previous year. Segment-
96,000
In millions
wise loan and advance as of Ashad end

2079 constitute NPR 84.36 billion (52.91%)
towards corporate loan, NPR 36.59 billion 64,000 76,584
(22.95%) as retail loan, NPR 30.06 billion 62,741
(18.86%) as SME loan and NPR 8.42 billion 32,000
(5.28%) as deprived loan.
37
23.42
Billion
Investment 25,000 23,073 23,420
Another important business segment of
banking is the treasury. Investment of 20,000 17,661
bank in FY 2078-79 totaled NPR 23.42
billion. There has been a growth of 1.50%
15,000
In millions
compared to the previous year of investment
of NPR 23.07 billion.
9,023
10,000
9,342
5,000
212.10
Billion
Total Assets 250,000
Total Assets includes every current and non- 212,108
current asset having an economic value, 189,783
200,000
which provides economic benefits to the
Bank. Total Assets has increased from NPR
150,000
In millions
189.78 billion to NPR 212.10 billion in FY

2078-79 depicting the total increase in size 145,972
of 11.76%. The major proportion of total 100,000 82,723
105,311
assets is constituted by loan and advance
worth NPR 159 billion (75% of total assets).
50,000
38
www.kumaribank.com
Financial Performance Indicators

6.21
Billion
Net Interest Income (NII) 8,000
Net interest income is a financial
performance measure that reflects the 6,217
6,400
difference between the revenue generated 5,078
from a bank's interest-bearing assets and
4,800
In millions
expenses associated with paying off its
3,573
interest-bearing liabilities. During FY 2078-
79, NII amounted to NPR 6.21 billion, which 3,200
was 5.07 billion during previous year with a 2,870
growth of 22.45%.
1,600 2,006
Other Operating Income 1.86

Other operating income of the Bank reached
Billion
a total of NPR 1869 million with a growth 2,000 1,869
of 14%, compared to NPR 1634 million 1,634
in the previous year. It includes fee and
1,600
commission income of 962 million (52%),
trading income of 377 million (20%) and
1,200
In millions
other operating income of 527 million (28%).

Out of fee and commission income, loan
administration fee alone covers 30% of the 800 646 900
fee-based income. Similarly, trading gain 810
and loss on foreign exchange transaction is
included under the trading gain. Likewise, 400
other operating income constitutes majorly
of the, dividend (49%), gold and silver 0
related income (6%), foreign exchange
revaluation gain (5%) and other operating
income of the Bank.
2.58
Billion
Net Profit 3,000
Bank has managed to earn a net profit of 2,580
NPR 2.58 billion during FY 2078-79. In the 2,400
previous year, Bank’s net profit was NPR 1,971
1.97 billion with a growth achievement of
1,800
In millions
31%. Business growth and expansion has

resulted in the profit growth of the Bank. 1,230
1,200 1,046
1,159
600
39
3.55
Billion
Operating Expense 4,000
3,552
Operating expense has reached NPR 3.55
3,164
billion in FY 2078-79 with a growth of 3,200
12.25%, compared to the previous year.
With the increased number of branches
2,400
In millions
and provincial offices, and relocation of
branches, the overall operational expenses 2,290
have also increased. Total operating 1,600 1,229
expenses of NPR 3.55 billion constitutes 1,654
the personnel expense of NPR 2.33 billion
800
(66%), other operating expense of NPR 683
million (19%) and NPR 535 million (15%) of
depreciation and amortization expense. 0
17.54
Earning Per Share (EPS) 20
17.54
EPS depicts per rupee earning that can be
made from each of its stock. An important 16 14.54 14.81 14.20
financial measure that indicates the
profitability of the Bank, it is obtained by
dividing the company’s net income by the 12
12.08
In Nrs.
total number of outstanding shares. EPS of

the bank since the last three years hovers 8
around 15% on average. Slight fluctuations
in EPS were noticed due to increment in the
4
stock raised to meet the minimum capital
requirement.
0
Market Value Per Share (MPS)

Market Value Per Share denotes the price
that a stock can be readily bought for or sold
in the current market place. Often denoted 191
by “going price”, it reached NPR 191 during
the end of FY 2078/79, which was NPR 400 371
371 at the end of FY 2077/78, depicting a
49% negative growth in the share price on
320
year to year closing price basis. Contrary to
the rise in price during FY 2077-78 of our
220
Bank, the overall share market has been 240 199
In Nrs.
experiencing a rough time and the price has

been in a declining trend over the years. 160 186 191
Overall market has been demonstrating its
volatile nature to the utmost. The “bullish”
(appreciating) trend share market in Nepal 80
has become “bearish” (depreciating) these
days. Reaching over 3198.60 points at its 0
peak, it has now plummeted to around 2009
points. One of the reasons could be the
inability to meet the desired developmental
works by government (slow spending),
increasing imports, and stringent monetary
policy with regards to Margin Lending.
40
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10.89
Price Earning Ratio (P/E Ratio) 30
26.13
The P/E ratio helps investors determine the
market value of a stock as compared to 24
the company's earnings. A high P/E could
mean that a stock' is priced high relative
to its earnings and is possibly overvalued. 18 14.85
13.68
Conversely, a low P/E might indicate that 15.39
the current stock is priced low relative to its 12
earnings. Bank has the P/E ratio of 10.89 as 10.89
on FY 2078-79 with 26.13 on FY 2077-78,
6
which is low compared to market average
indicating the stock price is undervalued to
some extent. 0
12.50%
Dividend 16%
14.00%
With the increased number of shares
12.50%
through the issuance of right and bonus
shares, the outstanding share capital tends 12%
to change, due to which the dividend
pattern of the Bank also changes. The 10.53%
timing and effect of capitalization of such 8% 8.50% 8.67%
bonus and right shares tend to affect the
dividend distributed, due to which we have
experienced a fluctuating trend on dividend. 4%
Dividend for FY 2078/79 is 12.5% which
is 44% higher than 8.67% dividend in the
previous year. 0%
11.59%
Interest Income/ Loans and Advances 15%

The ratio depicts yield on loans and 11.96%
advances i.e. interest income earning 11.59%
12%
on loan and advances. The ratio is in
increasing trend and has reached 11.59 % 10.91%
in FY 2078/79, which was 8.93% during 9%
9.23% 8.93%
previous year with a growth of 29.70%. The
possible increase is due to the increase in 6%
the interest rates along with growth of the
Bank’s business volume.
3%
0%
41
54.45%
Employee Expense/ Total Operating
Expense 60%
The ratio indicates the employees cost
contribution to the total operating expense. 56% 54.45%
There is a decremental trend in the ratio 53.23% 52.84%
due to increments in other operating costs 51.37%
52%
at a higher rate than that of employee
expense increment. The ratio is 54.45%
in FY 2078/79, which was 52.84% during 48%
previous year with an increase of 3.04%. 47.26%
With the increased number of branches 44%
and provincial offices, and relocation of
branches, the overall operational expenses
40%
is in increasing trend with comparatively
lower increments in personnel expenses.
6.63%
Interest Expense/Total Deposit and 10%

Borrowings
The ratio indicates the total interest expense 8% 7.30%
incurred by the Bank for obtaining funds 6.85% 6.63%
through deposits and borrowings. Higher
rate indicates higher interest offered to the 6%
accountholders and borrowers for collection 5.64%
of fund. Due to the liquidity crisis faced during 4% 4.79%
the year, higher interest rates (upto 13%) were
offered to customers, due to which Cost of
2%
Fund increased during the year. The Interest
Expense to Total Deposit and Borrowings
reached 6.63% during FY 2078-79 which 0%
was 4.79% in the previous year.
Exchange Fluctuation Gain/Total 5.33%

Income
This ratio indicates the contribution of
exchange income on total income of the 10%
Bank. With the increase in investment 8.04%
7.81%
(treasury business), the volume of trading 8%
and revaluation gain has been increasing.
During FY 2078/79, such exchange gain 6.68%
6%
contribution to total income amounted to 6.21%
5.33 % with 6.68% percent contribution 5.33%
during FY 2077-78, signaling a 20.19% 4%
negative growth compared to the previous
year, due to decline in the volume of LC 2%
business the FOREX related income is also
under negative variance than expected. Also,
with restriction by NRB on NDF, the forex 0%
income is not to the level as expected
42
www.kumaribank.com
20.65%
Staff Bonus/Total Employee 30%

Expenses 25.25%
The ratio explains the percentage of 24%
employee expense that is provided as bonus 23.68% 20.03%
to employees. The percentage is tentatively 20.65%
around an average of 20%, no such highs 18%
and lows, compared to the last few years, 15.59%
signaling a proportionate bonus expense in 12%
comparison to the total employee expense
through the years.
6%
0%
1.63%
2.0%
Net Profit/Loans & Advances 1.62% 1.63%
The ratio depicts the net profit earned on
1.6% 1.67% 1.38%
loans and advances granted. The ratio is
1.63% during FY 2078/79 as compared to
1.38% during FY 2077/78. The fluctuation 1.2%
is due to improportional changes in net
profit in response to change in loans and 1.01%
0.8%
advances.
0.4%
0.0%
1.22%
2.0%
Net Profit/ Total Assets
The ratio depicts the net profit earned on
1.6%
total assets. The ratio is 1.22% during FY
2078/79 as compared to 1.04% during 1.17% 1.22%
FY 2077/78. The fluctuation is due to 1.2% 1.04%
1.26%
improportional changes in net profit in
response to change in Total Asset. 0.8%
0.76%
0.4%
0.0%
43
Capital Adequacy Ratio

Capital adequacy ratio (CAR) is a 12.63%
measurement of a Bank's available capital
expressed as a percentage of a Bank's risk- 20%
weighted credit exposures. Adequate capital
fund protects depositors and promotes 15.35%
16%
stability and efficiency of financial systems. 13.36%
The Tier 1 capital can absorb losses without
a Bank being required to cease trading, and 12% 13.71%
12.63%
Tier 2 Capital can absorb losses in the event 11.75%
of a wind-up. Bank has maintained the CAR 8%
as prescribed by Nepal Rastra Bank. As on
FY 2078/79, bank has total CAR of 12.63%.
The ratio is in a fluctuating trend due to 4%
change in the Capital fund compared to the
change in RWE (major on loan and advance). 0%
As the regulatory requirement of capital
adequacy ratio of the bank is 11%, the bank
is well above the regulatory requirement.
1.11%
Non-Performing Loans/Total Loans 1.5% 1.39%

A Non-Performing Asset (NPA) includes
the portfolio in respect of which the 1.2% 1.11%
1.05%
interest and/or installment of principal has
remained due for a specified period of time
0.9% 1.01% 0.96%
and considered NPA as prescribed by the
regulatory authority. Bank has streamlined
its NPL ratio through continuous monitoring 0.6%
and several recovery options in place, as
per the Recovery Guideline.
0.3%
0.0%
Non-Performing Loan (NPL) of the Bank

Total Non-Performing loans incresed from 0.96% to 1.11% during FY 2078/79. With a proper recovery plan, we shall further reduce
the NPL level of the Bank. Although the volume of lending has increased by 11%, the Bank is able to control the extent of NPL.
FY 2078-79 FY 2077-78
Amount Amount
Particulars Outstanding Percent Particulars Outstanding Percent
(Million) (Million)
Substandard 466.48 26.45% Substandard 441.77 32.15%
Doubtful 176.04 9.98% Doubtful 90.17 6.56%
Bad 1,121.37 63.57% Bad 842.13 61.29%
Grand Total 1,763.90 Grand Total 1,374.08
NPL Percentage 1.11% NPL Percentage 0.96%
26.45% 32.15%
Substandard Substandard
63.57% 61.29%
Bad Bad
9.98%
Doubtful 6.56%
Doubtful
44
www.kumaribank.com
10.08%
Base Rate 15%

Base rate constitutes all cost of funds, cost
of liquidity (CRR and SLR) and operating 11.60%
12% 10.82%
costs. It is the minimum rate Banks have 10.08% 10.08%
to charge their customers seeking loanable
fund. Banks add a premium to the base 9%
rate to derive the total rate of interest on 7.90%
a particular type of loan facility. During FY 6%
2078-79, base rate was increased from
7.90% to 10.08% (average BR for the Q4).
3%
0%
1.22%
Return on Assets 1.5%

Return on assets (ROA) is a financial ratio 1.27% 1.22%
1.17%
that shows the percentage of profit a 1.2%
company earns in relation to its overall 1.04%
resources that is commonly defined as net
income divided by total assets. Bank has 0.9%
the ROA ratio of 1.22% as on FY 2078-79, 0.76%
compared to 1.04% in FY 2077-78 with 0.6%
increase of 17.12% during the year.
0.3%
0.0%
12.28%
Return on Equity (ROE) 15%

Return on Equity (ROE) signifies how 12.28%
good the company is in generating returns 12% 10.50% 10.43%
on the investment it has received from
its shareholders. Bank has the ROE of
12.28% as on FY 2078-79 end, compared 9% 9.93%
to 10.43% in FY 2077-78 with a growth of
17% achieved during the year. 6% 6.71%
3%
0%
45
86.58%
Credit to Deposit Ratio 93% 92.19%

This ratio is about how much a bank lends 90.99%
out of the deposits it has maintained. 91%
Higher ratio indicates effective utilization 89.55%
of core funds on lending, however, it could 90.11%
also indicate a higher reliance on deposits 89%
for lending and vice-versa. The ratio is in
decreasing trend due to NRB Restrictions 87%
and use of average for the monthly data. 86.58%
This signifies utmost utilization of the
85%
collected deposits.
83%
4.07%
Spread Rate 5%
Interest rate spread is what the bank charges 4.07% 4.07%
on a loan compared to its cost of fund. As 4%
on FY 2078/79, interest spread remained
4.07%, which is 30% higher than that of FY 3.54%
2077/78 of 3.13%. The reasons for higher 3%
3.12% 3.13%
rate is due to the increase in interest rates
charged and increment on business volume 2%
of the Bank.
1%
0%
197
194 197
190
Number of Branches 200
With the business growth and expansion,
Bank has expanded its branch-network to 160
197 as on FY 2078/79. A further expansion
Number of Branches
has led the branch-network count to reach

199 till the reporting period. 120
106
80 89
40
46
www.kumaribank.com
1845
1881
Total Number of Employees 2000 1781 1845
With the increased number of branches
and provincial offices, total human capial 1600
of bank in current year is 1845 staffs which
Number of Employees
was 1881 in last year.
1200
1043
800
796
400
24.32%
Operating Profit to Paid up Capital 30%

Ratio 24.32%
Operating profit to Paid-up Capital ratio, 24% 21.66%
commonly known as, Return on Capital 20.32%
Employed, signifies how good the company
is in generating returns on the investment it 18%
18.95%
received from its shareholders as capital.
On an average 24.32% of return is being 12% 13.47%
generated through deployment of capital
fund.
6%
0%
47
Horizontal and Vertical Analysis

Statement of Financial Position Horizontal and Vertical Analysis
Horizontal Analysis Vertical Analysis
Particulars Ashad end 2079 Ashad end 2078
Variance Variance 2078/79
Assets
Cash and cash equivalent 17,609,892,391 7,580,241,082 132% 8.30%
Due from Nepal Rastra Bank 5,475,310,681 8,486,453,288 -35% 2.58%
Placement with Bank and Financial Institutions 1,949,476,858 4,840,711,695 -60% 0.92%
Derivative financial instruments - - - -
Other trading assets - - - -
Loan and advances to B/FIs 5,846,262,217 5,123,681,172 14% 2.76%
Loans and advances to customers 152,562,929,780 137,897,925,002 11% 71.93%
Investment securities 22,815,085,583 22,697,941,963 1% 10.76%
Current tax assets 454,701,291 266,729,922 70% 0.21%
Investment in susidiaries 420,000,000 220,000,000 91% 0.20%
Investment in associates 185,017,596 155,017,596 19% 0.09%
Investment property 144,491,994 128,112,878 13% 0.07%
Property and equipment 1,179,754,479 1,258,559,299 -6% 0.56%
Goodwill and Intangible assets 161,441,291 197,573,361 -18% 0.08%
Deferred tax assets - - - -
Other assets 3,304,074,229 939,456,216 252% 1.56%
Total Assets 212,108,438,392 189,792,403,473 100.00%
Liabilities
Due to Bank and Financial Instituions 6,194,529,106 14,731,924,737 -58% 2.92%
Due to Nepal Rastra Bank 1,345,585,620 5,088,973,668 -74% 0.63%
Derivative financial instruments 39,334,195 3,267,738 1104% 0.02%
Deposits from customers 176,767,665,556 145,838,231,009 21% 83.34%
Borrowing - - - 0.00%
Current Tax Liabilities - - - 0.00%
Provisions 2,500,000 2,334,810 7% 0.00%
Deferred tax liabilities 75208206 155,212,668 -52% 0.04%
Other liabilities 3,685,702,222 2,084,796,959 77% 1.74%
Debt securities issued 2995797489 2995439826 0% 1.41%
Subordinated Liabilities - - - 0.00%
Total Liabilities 191,106,322,395 170,900,181,415 90.10%
Equity
Share capital 14,711,183,326 13,878,474,836 6% 6.94%
Share premium 88,804,041 88,804,041 0% 0.04%
Retained earnings 1,872,567,427 1,247,097,056 50% 0.88%
Reserves 4,329,561,203 3,677,846,125 18% 2.04%
Non-controlling interest - - - -
Total equity 21,002,115,997 18,892,222,058 9.90%
Total liabilities and equity 212,108,438,392 189,792,403,473 100%
Horizontal Analysis:
A reasonable growth rate of 11% was achieved with regard to loan and advance (to customers and BFIs) during FY 2078-79.
Placement made during the year were normally less than 3 months and therefore categorized under cash and cash equivalents;
resulting increment in cash and cash equivalent by 132% and decline in placement. Current tax asset this year impacted from
higher provision for tax with increase in profit. Decrease of Intangible Asset is due to the depreciation charged on existing asset,
with no such significant procurement on software and other intangible assets this year. Deferred Tax Liabilities decreased with the
increase in various deductible temporary differences under tax and accounting; the deductible being on higher side than taxable
temporary differences resulted increase in deferred tax asset significantly. Deposit in total have increased by 21% during this year is
bifurcated under Deposit from Customers, due to BFI, due to Nepal Rastra Bank. Increase in share capital is due to capitalization of
bonus shares for FY 2077-78. Reserve has increased with the increase in different reserves; general reserve, exchange equalization
reserve, regulatory and other reserves. With the distribution of dividends, retained earnings declined to some extent. The substantial
difference under Derivative liabilities is due to netting off the derivative asset and liability previous year which has been grossed up
this year.
Vertical Analysis:
Almost 74% of total assets has been composed by loan and advances, followed by investment securities and cash & cash equivalent
contributing 8.30% each on total assets of bank. Investment Securities comprise of 10.76% of total asset of the bank, due from
Nepal Rastra Bank comprising 3% of total assets of bank. Current tax assets, deferred tax assets, PPE, goodwill, other assets in total
comprise almost 2.76% of total assets of bank.
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Statement of Financial Performance Horizontal and Vertical Analysis

Horizontal Analysis Vertical Analysis
Particulars Ashad end 2079 Ashad end 2078
Variance Variance 2078/79
Interest income 18,355,159,241 12,776,387,133 44% 100.00%
Interest expense 12,137,993,244 7,698,873,522 58% 66.13%
Net interest income 6,217,165,997 5,077,513,611 22% 33.87%
Fee and commission income 962,856,296 828,201,496 16% 5.25%
Fee and commission expense 144,683,738 71,371,197 103% 0.79%
Net fee and commission income 818,172,558 756,830,299 8% 4.46%
Net interest, fee and commission income 7,035,338,555 5,834,343,910 21% 38.33%
Net trading income 377,867,068 420,833,394 -10% 2.06%
Other operating income 527,950,068 390,023,547 35% 2.88%
Total operating income 7,941,155,691 6,645,200,852 20% 43.26%
Impairment charge/(reversal) for loans and other losses 812,100,287 475,280,357 71% 4.42%
Net operating income 7,129,055,404 6,169,920,495 16% 38.84%
Operating expense
Personnel expenses 2,332,987,934 2,023,918,383 15% 12.71%
Other operating expenses 683,386,361 856,905,482 -20% 3.72%
Depreciation & Amortisation 535,205,469 283,304,555 89% 2.92%
Operating Profit 3,577,475,641 3,005,792,074 19% 19.49%
Non operating income 18,320,846 33,895,859 -46% 0.10%
Non operating expense 1,981,949 290,729 582% 0.01%
Profit before income tax 3,593,814,538 3,039,397,204 18% 19.58%
Income tax expense 1,014,004,706 1,068,667,046 -5% 5.52%
Current Tax 1,029,422,733 929,312,008 11% 5.61%
Deferred Tax (15,418,027) 139,355,038 -111% -0.08%
Profit for the year 2,579,809,832 1,970,730,158 31% 14.05%
Horizontal Analysis:
With the increase in loan and advance and deposits, Interest income and expense increased by 44% and 58% respectively during
FY 2078-79. Fee and Commission income and expense increased proportionately with 16%. Due to decline in home currency, forex
income decreased with a negative growth of 10% reflected under trading income. The increase in the number of employees during
the period justified for the increase in personnel cost by 15%. Although, with the expansion of business volume and number of
branches, operation cost and depreciation declined by 6.43% during the year. To sum up, profit increased by 31% during the year
from 1.97 billion to 2.57 billion.
Vertical Analysis:
Assuming the principal revenue for banks, interest income has been considered a base value for vertical analysis of income and
expenses part. Fee and commission income comprise 5%, net trading income 2%, operating and non-operating income comprising
0.1% of total interest income. Observing on the expense part, highest contributor is the interest expense covering 66% of the total
interest income, followed by 12% of personnel expense, 6.64% of operating expense, and 5.52% of tax expense.
49
Market Capitalization
With the expansion of business, as a part of capital requirement and equity maintenance, we have been issuing bonus and right
shares in addition to the initial share capital issue through IPO (Initial Public Offering) at the time of establishment of bank. Depending
on the share price and number of shares, market capitalization of bank shows an increasing trend. As on FY 2078-79, total market
value reached NPR 28.09 billion. Market price has been fluctuating with ups and downs trend depending on the market scenario.
Years No. Of Listed Share Closing Price Market Capitalization (in million)
FY 74/75 80,767,278 199 16,073
FY 75/76 86,855,731 220 19,108
FY 76/77 125,200,495 186 23,287
FY 77/78 138,784,748 371 51,489
FY 78/79 147,111,833 191 28,098
60,000 400
52,500 350
45,000 300
37,500 250
30,000 200
22,500 150
15,000 100
7,500 50
0 0
FY 74/75 FY 75/76 FY 76/77 FY 77/78 FY 78/79

Market Capitalization 16,073 19,108 23,287 51,489 28,098
Closing Price 199 220 186 371 191
Market Price reached NPR 191 on end of FY 2078/79 which was NPR 371 on end of FY 2074-75 which depicts 49% negative
growth in the share price. As per the regulatory requirement, Bank was able to attain the paid-up capital of NPR 8 billion; through
acquisitions; issuance of right-shares and bonus shares. This increase in number of shares along with positive perception of the
people towards the Bank in the market; Due to slowdown in economic activities due to soaring interest rates on banks' lending,
dwindling confidence of majority of investors towards the market and persistent liquidity crunch the country's stock exchange market
is also going through a bearish trend during the FY 2078-79 the market capitalization decreased by NPR 23,390 million, which is a
negative growth of 45% than that of FY 2077/78.
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Market Price Sensitivity Analysis

Using the constant growth model, market price sensitivity has Current Year Dividend (Per Share in NPR) 12.5
been analysed with assumptions used as under:
Expected Growth rate 5%
Expected Return (ke) 12%
Gordon Growth Formula
Closing Market Price 191
Value of Stock= Do (1+g)/(ke-g)
where,
Do = Value of dividend received this year
g = Growth rate
ke = Discount rate
Expected Return Expected price of stock

6% 226
7% 275
8% 349
9% 328
10% 263
11% 219
12% 191
13% 164
14% 146
15% 131
16% 15% 400

349 14%
14% 328 13% 350
12%
12% 275 11% 300
263
10% 226 250

10%
8% 9% 200
219
8% 191
6% 7% 150
164
6% 146
4% 131 100
2% 50
0% 0
From the chart above, with the higher expected return (discount rate used), the intrinsic market price tends to fall. Assuming the
constant growth rate of 5% every year, the share price tends to fall. By comparing the intrinsic market price with the actual market
price (that depends on market demand and supply), we can determine if the share price is undervalued or overvalued. If the intrinsic
price is greater than the actual market price, the share price is overvalued and vice versa. From the chart above, it is known that the
expected price of the stock will be highest i.e. 349 at expected return of 8%. Similarly when the expected return reaches 15%, with a
constant growth assumption of 5%, the share prices falls to lowest NPR 131. Further at the expected return of 10%, the share price
will be at equilibrium i.e. Rs. 263.
51
Value Added Statement

Value Added Statement is a financial statement that depicts wealth created by an organization and how the wealth is distributed
among various stakeholders. Various stakeholders comprise of the employee, shareholders, government, creditors and the wealth
retained in the business. It is the profit then generated by the collective efforts of management, employees, capital and the utilization
of its capacity that is distributed amongst its various stakeholders. Organization can survive without earning profits, but cannot
survive without adding value. Therefore, the optimized profit is less important than the optimized added value of an organization. This
value added is the reward for employees and as well as the creditors (providers of capital) of an organization.
Figures in Million
Particulars Amount
Net Interest income 6,217
Non-interest income 1,869
Cost of services (excluding personnel,
683 21%
depriciation and amortization expenses)
Retained Earning 35%
Total value Added 7,403 by Bank Personnel expense
Less: Provision and Allowance 812 to employees/staff
Net Value Added 6,591
28%
Personnel expense to employees/staff 2,333 Dividend to 15%
Tax and other expense paid to government 1,014 shareholders Tax and other
expense paid to
Dividend to shareholders 1,839 government
Retained earning by Bank 1,405
Number of shares 147
Value Added Per share 45
Number of Employees (in actual figures) 1,845
Value added per Employee 3.57
Number of branches (in actual figure) 197
Value added per branch 33.45
Net Value addition creation during the year amounted to NPR 6,591 million. 35% of the value was applied towards the employees,
followed by dividend to shareholders which stands to 28% of value creation. Furthermore, 15% of value creation has been paid as
tax and other charges and 21% has been retained by Bank for reinvestment.
Market Value Added Figures in million

Economic Value Added Figures in million
Particulars Amount
Particulars Amount
Net Profit (A) 2,579
Total number of shares 147
Total Shareholder Fund 14,711
Market Price per share (Ashad end closing
191 Cost of Capital* 10%
price)
Total Market Value 28,098 Capital Charge (B) 1,471
Total Book Value 21,002 Economic Value Added (A-B) 1,109
*the expected cost of capital assumed to be 10% which is
Market Value Added 7,096 higher than the return on government bonds
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Contribution towards Nepalese Economy

Contribution of Banking to Economy
Banking and related financial activities make a significant contribution to the overall economy of a country. Banks play pivotal role in
creation of deposit funds by enhancing saving habit and ease in the transaction of business. Thus created deposit fund are used for
credit disbursement for growth of the economy. It facilitates new investments, which contribute to further economic growth. Banking
sector one of the major contributor in the entire GDP of the nation. Not only deposit creation and mobilization; banks have a large
stake in society as they play important role in employment market, infrastructure development; social as well as economic growth
of the people. Various banking services through expanded reach of banks and financial institutions in every nooks and corners have
made financial access to people from different regions easily accessible. Also, in addition to such services, banking sector plays a
major role in providing employment opportunities.
Contribution
by Banks
and Financial
Towards Institutions
Towards
Employment
GDP
Generation
Through Towards
Financial Government
Access Through Revenue
Banking
Services
Contribution of Kumari Bank to Economy
Contribution to National GDP

Apart from service contribution to the national economy; the banking sector one of the major contributor in the entire GDP of the
nation. In the fiscal year 2078/79, Commercial banks earned a total of Rs. 74 Arba (as per unaudited interim reports published
by commercial banks). The profit earned by 26 commercial banks is 2% of the entire GDP of Nepal. 4% of the total profit of the
commercial banks of Nepal is earned by Kumari Bank; thereby Kumari Bank contributes through profit by almost 0.06% in the entire
GDP of Nepal, which is a significant contribution to the national economy.
53
98%
Contribution from
Other Sector
96.21%
Other Commercial
Banks
3.79%
2% Kumari Bank
Commercial Bank's
Contribution
Contribution towards Government Revenue

The Profit of the bank is derived after deduction of income tax, at present the tax rate is at 30%. Taxation, being one of the major
source of government revenue, banks contribute to the revenue through direct taxation on income source. Advance tax is paid on
installment basis by banks as prescribed by Income Tax Act. During the fiscal year 2078/79 alone, the Bank contributed Rs. 1,160
million as income tax payment to the Government of Nepal. Apart from income tax from profit, the bank also abides by taxation rules
and regulation of the nation, whereby in the fiscal year 2078/79 alone, Bank deposited Rs. 1,124 million as its tax-liability through Tax
Deduction at Source (TDS), reverse VAT and other taxes to the central government. Apart from central level taxes, the Bank has also
paid Rs. 273 lacs to local level government of Nepal through various registration and taxes.
Figures in Million
Fiscal Year Income Tax Tax Deduction At Sources and Reverse Vat
2078/79 1,160 1,124
2077/78 830 874
2076/77 730 761
2075/76 560 629
2074/75 440 456
Contribution through Financial Access

Kumari Bank, since its inception in 2001, has generated ample working opportunitites to qualified and dedicated Nepalese citizens.
At present, the Bank has employed 1,907 employees in its various service points. Apart from direct employment generation, the Bank
has been creating employment opportunities indirectly through requisition of required goods and services, to the extent possible,
with first priority to the domestic vendors, thereby enhancing the economic growth of the society at large.
(based on NRB monthly statistical data of Mid July 2022)
Kumari Bank Coverage Coverage
Particulars Commercial Banks Total BFIs
Limited Commercial Banks (Total BFIs)
No. of Branches 5,009 6,394 197 3.93% 3.08%
No. of Deposit Accounts 38,892,532 44,971,969 1,322,181 3.40% 2.94%
No. of Loan Accounts 1,491,767 1,829,044 33,857 2.27% 1.85%
No. of Branchless Banking 1,526 1,548 54 3.54% 3.49%
No. of Mobile Banking 16,091,464 18,307,255 772,091 4.80% 4.22%
No. of Internet Banking 1,279,475 1,684,310 45,473 3.55% 2.70%
No. of ATMs 4,235 4,602 191 4.51% 4.15%
No. of Debit, Credit Cards 10,513,207 10,856,357 225,295 2.14% 2.03%
Contribution through Employment-Generation

Kumari Bank, since its inception in 2001, has generated ample working opportunitites to qualified and dedicated Nepalese citizens.
At present, the Bank has employed 1,907 employees in its various service points. Apart from direct employment generation, the Bank
has been creating employment opportunities indirectly through requisition of required goods and services, to the extent possible,
with first priority to the domestic vendors, thereby enhancing the economic growth of the society at large.
Contribution via Banking and financial services

Kumari Bank, which has been in service since 2001, is the first bank to provide electronic Banking solution in the domestic banking
sector. It gave rise to the beginning of a new era in the Nepalese Banking industry. It has been rendering innovative, modern Banking
services to its customers via its extensive branch and ATM locations throughout the country in the form of mobile Banking, Viber
Banking, Missed Call Service, ABBS, etc.
Besides these direct contributions, we have also been rigorously involved in Corporate Social Responsibility. Such contributions
generally include philanthropy, volunteer efforts and contributions to projects and activities that benefit certain section of the society;
especially the underprivileged and marginalized sections of our society, with the prime intent to enhance the overall economic, social
or environmental standing of the society/community, we operate in.
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PRODUCTS/
SERVICES
24/7 SUPPORT
SOLUTION POSITIVE KNOWLEDGE
FRIENDLY QUALITY
55
1. Deposit Products ................................................. 57

2. Deposit & Loan Mix .............................................. 58
3. Loan Products ...................................................... 59
4. Digital Products ................................................... 60
5. Treasury ............................................................... 62
6. Remittance as a Currency of Care ...................... 64
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Deposit Products
Some of our latest deposit products/services are discussed as under:
Kumari Dhanabriddhi Recurring Deposit:

Kumari Bank Limited introduced a special ‘Dhanbriddhi Recurring Times’ (DRT)
Deposit scheme, which allows clients to increase their initial investment amount
by 5 to 100 times in various tenure. DRT caters disciplined clients having
consistent income who wish to enjoy the power of compounding and lump sum
return at maturity.
Under DRT scheme, clients can invest one time seed amount initially ranging from
Ten Thousand to Ten Lakhs. Subsequently one can invest 10 % of seed amount on
recurring monthly basis that can be automated via Standing Instruction or have an
option of depositing manually as well.
Deposit Multiple Tenure

5 Times 2 years 8 months 3 days
10 Times 5 years 1 month 11 days
20 Times 7 years 5 days
The bank is confident that this scheme will facilitate clients having low to high-income
group to secure their future through wealth maximization.
Kumari Jeevan Beema Muddati Khata:

For the first time in Nepal, Kumari Bank announced ‘Kumari Jeevan Beema Muddati Khata’ with dual benefit of optimum return and
safety of life insurance up to 1 Crore. However, the Bank does not charge any additional fee for term life insurance facility. Under this
plan, clients can increase their investment amount by 2 to 10 times in various tenure and further can enjoy the benefit of life insurance
for such tenures.
Under this scheme, customers in the age group of 18 to 50 years are eligible for dual benefits whereas other age groups are eligible
for optimum return only. The Bank has collaborated with Mahalakshmi Life Insurance Company for this scheme.
Insurance
S.N Product Types Final Amount Product Duration Coverage
Duration
1 Kumari Jeevan Beema 2X Muddati Khata 2 Times of principal Amount 6 Years 2 Months 20 Days 7 years
4 Kumari Jeevan Beema 5X Muddati Khata 5 Times of principal Amount 14 Years 5 Months 10 Days 15Years
5 Kumari Jeevan Beema 6X Muddati Khata 6 Times of principal Amount 16 Years 1 Month 17 Years
6 Kumari Jeevan Beema 7X Muddati Khata 7 Times of principal Amount 17 Years 8 Months 18 Years
7 Kumari Jeevan Beema 8X Muddati Khata 8 Times of principal Amount 18 Years 8 Months 19 Years
8 Kumari Jeevan Beema 9X Muddati Khata 9 Times of principal Amount 19 Years 8 Months 18 Days 20 Years
9 Kumari Jeevan Beema 10X Muddati Khata 10 Times of principal Amount 20 Years 8 Months 21 years
Kumari Remit IPO Saving Account:

Kumari Bank Limited launched Kumari Remit IPO Savings Account
with optimum interest rates for Nepali people who are working abroad.
Nepalese migrant workers can participate in the issuance of 10 %
primary shares (IPO) reserved for them. Application for primary shares
can be made by opening a remit IPO savings account based on work
permit, valid visa and passport.
The Bank has an arrangement of opening account through any of its

network or via online application.
57
Deposit & Loan Mix

As of Ashadh end 2079
Total Deposit Mix 8.1%

Current Deposit
Amount in million 8%
Deposit Type Amount Call Deposit
Term 118,548
19.1%
Saving 34,892 Saving Deposit 64.8%
Call 14,716 Term Deposit
Current 14,807
Total Loan Mix

Amount in million
5.3%
23% Deprived
Loan Type Amount Retail Loan Sector Loan
Corporate 84,362
52.9%
SME 30,062 18.8% Corporate Loan
Retail 36,598 SME Loan
Deprived Sector 8,421
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Loan Products
Retail Loans
Consumer Loans: schemes is there in place to protect you and your family from
Consumer lending is defined as revolving and non-revolving unexpected cash shortfall with minimal processing charges,
credit extended to individuals for household, family, and other expert counselling, competitive interest rates and a hassle-free
personal expenditures. Kumari bank has been providing loans at experience.
competitive interest rates with faster loan processing schedules
to its consumer segment. Consumer lending products are offered KBL Education Loan
through all branch offices. Within this segment, the Bank offers Good education is a stepping- stone to a highflying career to
a range of products and has been introducing various attractive every student. The rising cost of higher education has become
schemes within those products on regular basis. a big cause of worry for students and parents. Education Loan
provides loan facilities to help students to achieve their ambition
KBL Home Loan: to pursue higher education in Nepal as well as abroad. KBL
Kumari Bank aims to fulfill the dream of its customers to own Education Loan covers Tuition fee as per invoice/prospectus of
a house by providing KBL Home loan at a competitive interest the educational institution, tentative accommodation expenses,
rate. Our bank provides various facilities for funding for new one way air ticket cost and foreign exchange for travel as per
construction, repairs as well as home improvements and help NRB Directives.
establishing ownership to land via its KBL Home loan schemes
to help secure people’s fundamental human right to housing. KBL Margin Lending
Margin Lending is financing individuals or companies against
KBL Auto Loan/ Hire Purchase Loan: securities of shares. This is a hassle-free and easy loan scheme,
Owning a dream vehicle, whether new or pre-owned does not have where any individual/companies who/which hold shares and
to burn a hole in your pockets or be a pipe dream anymore! Whether stock of companies listed in Nepal Stock Exchange can avail loan
it is a car that you seek for family commutes or a commercial against the security of such shares. This is an instant solution of
vehicle to enhance your professional capacity. KBL Auto loan/ Hire cash is required within a short period with simple documentation
Purchase loan has it all covered. Now, you do not need to have and processing.
substantial amount of saving that you can pay for a car at once,
you can borrow funds and choose affordable and flexible payment KBL Personal Loan for Professionals
options to make monthly payments on your vehicles. An exclusive product is intend to cater the financial need of
Nepalese individuals, i.e. Salaried Individuals and professional
KBL Personal Overdraft Loan residing in Nepal and is a non-collateral EMI and Overdraft
This product offers overdraft limit to clients against mortgage of based loan, which is in consonance with NRB Directives.
land and building within the threshold of regulatory framework.
It is a product to meet your immediate and contingent fund Loan against Fixed Deposit
needs. Whether you are salaried, self-employed or a high We also provide short-term financing against the FD receipt of
net-worth individual or professional, KBL Personal Overdraft our Bank.
59
Digital Products
QR Merchants
Internet Kumari
Banking 3D-Secure
Cards
Kumari
Kumari Smart
Missed Call
(Mobile
Service
Banking)
Cards and Kumari Viber
Electronic Banking
Banking
Internet Banking one of the most-secure and capable means of processing EMV
Kumari Bank Limited is the first bank to introduce Internet card transactions and serve customers 365 days a year. Further
banking in Nepal. Internet banking is an outgrowth of traditional extension of ATMs in various locations inside and outside the
PC banking. It uses the internet as the delivery channel by which Kathmandu Valley is still under Kumari Bank’s immediate
to conduct banking activities such as fund-transfers, utility-bill business-plan.
payments, viewing current and saving account balances,
payment of mortgages, etc. An internet-banking customer Kumari Smart (Mobile Banking)
accesses his or her accounts from a browser-software that runs Kumari Smart is the latest mobile-banking app of Kumari
internet banking programs resident on the bank’s World Wide Bank Limited. It offers a plethora of digital payment options
Web server. along with a dashboard view of the customer’s Bank account.
With a secure and user-friendly interface, it provides a quick,
It provides accounts balances and some transactional secure and convenient fund transfer facility within and between
capabilities to customers, from across the globe via Internet different Banks. Likewise, it can be accessed anytime and
connection. Users can perform Intra and inter-bank transactions, anywhere within Nepal; however, the mobile must have internet/
mobile top-up facility and third party merchant-bill payments data connectivity. Its fast and real time transactions provide a
such as restaurants, schools, colleges, etc. We employ an hassle-free Banking facility.
OTP-secured or 2-factor verification via SMS/email to maintain
the integrity of customer-data as well as safeguard privacy of The various range of payment services supported by Kumari
such electronic transactions. Smart include utility bill payments: NEA bill-payment, TV
bill-payment, all major Internet Service Providers’ bill payment,
Cards and Electronic Banking telephone and drinking water payments, etc. Similarly, Insurance
We are one of the principal members of VISA Worldwide Inc. payments of various life and non-life companies can be made
We offer a range of services in cards which includes issuance of via Kumari Smart. Likewise, movie-tickets of all major halls
VISA Domestic Debit and Credit Cards and the VISA International can be paid for through Kumari Smart via Fonepay. Customers
Credit card, whereas on the acquiring end, we process all type ranging from individuals, NGOs/INGOs, development agencies
of VISA domestic and international cards. We were the pioneers and corporate houses can enjoy a plethora of services like
to introduce the concept of electronic banking in Nepal. Kumari fund transfer, account-balance view, printing and downloading
Bank has employed ‘state-of-the-art’ technology to provide account statements, payment of credit-card bills, NTC
online payment services through our credit, debit and prepaid prepaid and postpaid bills, NTC/Ncell/Smart Cell top-up, load
cards under VISA brand to the account holders and non-account Khalti/E-sewa/IME Pay and other wallets. Other features of
holders. We issue EMV chip-based contactless debit and Kumari Smart includes card details, domestic remittance, FD
credit cards, which is accepted in all VISA ATM/POS terminals Requests and many more. Kumari Smart is an ultra-secure
enabling customers to pay using Tap & Pay feature. Kumari Bank transaction platform with the implementation of two-factor
has a network of 200 ATMs across the country. These ATMs are authentication (2FA).
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Kumari 3D-Secure Cards Kumari Foneloan Service

Kumari Bank offers a secured internet payment solution for VISA Kumari Foneloan is a digital lending service offered by Kumari
cardholders (debit and credit) for secure online transactions. 3D Bank to provide small short-term loans instantly to it’s customers
Secure is a new service from Kumari Bank Limited in association through their Kumari Smart mobile banking app. Customer need
with Visa that lets users shop online securely with your existing to use Kumari Smart mobile banking app to register and apply
Bank Credit & Debit Card, which may be used on merchant for foneloan. Loan approval happens automatically and the loan
websites that subscribe to services of “Verified by Visa” (VbV). amount is deposited to customer’s account instantly, with whole
With VbV service our customers can authenticate themselves at process completed within few minutes. These pre-approved
the time of any purchase/s by entering their OTP. We believe this loans are available to banking customers deemed eligible by an
KBL 3D secure system will enable cardholders to purchase from automated analytics system as per the criteria set by the bank.
online stores without being worried for their cards’ data being Be it for cash emergencies, meeting regular needs or fulfilling
stolen or being used by anyone other than themselves. ones wishes, foneloan is readily and instantly available to banking
customers, anytime anywhere. The maximum loan limit is NPR
100,000.00 under one month module and up to NPR 200,000.00
Kumari Missed Call Service under EMI module maximum upto 12 months. Further, EMI
Kumari Missed Call Banking is a free service from the Bank wherein foneloan have feature of Buy now Pay later (BNPL) whereby
customers can get their account balance, mini statement and top customers can make a purchase by scanning QR on merchants
up (Rs.50 & Rs.100) their mobile phones just by giving a Missed accepting fonepay and pay later on installments of 3, 6, 9 or 12
Call. With the objective to provide more tech-friendly services to its months as per the eligibility.
rural customer base, Kumari Bank started its Missed Call banking
services. Pursuant to this, customers’ banking details are only a QR Payments
missed call away from our banking support unit, which they can Kumari Bank is offering QR services to our valued clients for
easily avail by giving a missed call to the Bank’s provided numbers. receiving payments from different networks like Fonepay, Firstpay
The rate at which newly commercialized technologies get adopted and Nepal Pay. Customers can simply scan the QR code and
by consumers is getting faster, which means that organizations make payments directly from their accounts or wallets on our
should also be among the early adopters of new technology, merchants. QR services have made easy for our merchants to
relevant to their business, so as to gain market-leadership, better receive payments from different network customers with no
business outcomes, including revenue growth and greater profit boundary restrictions as our merchants can receive payments
margins. Early adoption of such innovations helps Kumari Bank from Wechat Pay and Ali Pay. Such convenient cross border QR
stay ahead of the curve. Likewise, its customers get early exposure payment will definitely aid in tourism sector as well.
to new technology and various perks of early adoption including
thought/technology-leadership, early investment opportunities
and creative freedom to experiment and revolutionize.
61
Treasury
Treasury is one of the integral functions of the bank whose Hedging Exchange Rate
major responsibilities are management of the Bank’s Liquidity, The department offers customers a hedge against adverse
Foreign Currency Book, Investment Book, bullion desk and movement in exchange rate in their underlying foreign currency
Corresponding Relationship of the Bank within the regulatory receivables/payables by offering different structured contracts.
parameters issued by Nepal Rastra Bank (NRB). Treasury has The Bank stands ready to hedge the risk of its clients in any
moved beyond its conventional approach of managing and currency for the required term at a competitive pricing.
monitoring the bank’s fund position and overall asset liability
position to a role where it is involved directly in profit centered Sales Agent and Market Maker for Bond
business activities. The Bank is a market maker for primary and secondary market
transaction of National Savings Bond, Citizen Saving Bond and
With state-of the-art dealing room equipped with Refinitiv Eikon, secondary market transaction of Foreign Employment Savings
FX Trading, Messaging, Trading Platform of International Banks Bonds. The Bank is a sales agent for primary issue of Foreign
and has access to competitive prices and liquidity at all times. The Employment Savings Bond.
Bank is a member of Foreign Exchange Dealers Association of
Nepal (FEDAN) and works in coordination with Foreign Exchange Customers can contact their nearby branches to purchase/
Department of Nepal Rastra Bank. The Treasury Department of sell National Savings Bond, Citizen Saving Bond and Foreign
the Bank offers the following services to its valued customers: Employment Savings Bonds in the primary and secondary
market.
Competitive Exchange Rates Quoting
The department provides competitive exchange rates in different Bullion Dealing
currencies for cash purchase/sell or for trade/remittance inwards The Bullion Desk under the Treasury Department sells gold to
and outwards. The exchange rates are uploaded in the Bank’s registered traders as per the guidelines of Nepal Rastra Bank.
website to facilitate buy/sell of foreign currency. Any exchange Clients can buy these precious metals at competitive prices, with
rate above USD 2,000 equivalent are to be booked via respective delivery made available instantly.
Relationship Officer by the customers, for which the Bank shall
quote live dealing rates based on market liquidity. Correspondent Banking
Treasury, on behalf of the bank, maintains a correspondent
relationship with reputed financial institutions across the globe
to facilitate remittance and international businesses like LCs,
Guarantees for its valued customers.
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Investments
Other
34.99
Billions Development
Investments Bonds
2.78 18.16
Billions Billions
Income Income
256.06 Million Interbank 963.80 Million
Treasury Bills
Lending
11.38 2.67
Billions Billions
Income Income
72.72 Million 80.17 Million
Data of Treasury related Function
Particulars Local (Number) Foreign (Number) Total No. of Transaction

Bullion Transaction 366 - 366
Placement 161 195 356
Borrowing 432 - 432
Forward Deal 775 - 775
Forex 432 431 863
NDF 0 86 86
SLF 64 - 64
Repo 5 - 5
Reverse Repo 1 - 1
Deposit Collection 1 - 1
63
Remittance as a Currency of Care

Remittance is an important factor of economic development in Nepal and Kumari Remit is continuously evolving as a One Stop
has emerged as a backbone of Nepal’s economy in the last two decades Solution platform and has associated with following
majorly contributing factor to increasing household income as well as domestic Money Transfer/ BFIs.
country’s GDP. Nepal received remittance amounting to NPR 904 billion
in the first 11 months of FY 2021/22, which translates into a remittance a. Western Union Money Transfer
to GDP ratio of 35.88 percent (NRB). Consequently, Nepal is seemingly b. Money Gram
a remittance-based country with remittance inflow alone amounting to c. IME Ltd.
more than a quarter of the country’s GDP. d. Prabhu Money Transfer Pvt. Ltd.
e. City Xpress Money Transfer Pvt. Ltd.
Kumari Remit is a dedicated online state-of-the-art web-based platform f. GME Remit Pvt. Ltd.
oriented to transfer funds efficiently and securely in domestic and g. I Pay Remit Pvt. Ltd.
international market. Some of the core strengths of Kumari Remit are h. Samsara Remit Pvt. Ltd.
outlined as follows: i. Nepal Remit Pvt. Ltd.
j. Remi to Nepal Pvt. Ltd.
1. Robust Payout Locations : More than 16,000+ locations all across Nepal k. E-Sewa Money Transfer Pvt. Ltd
2. 24*7 Real Time Processing of Bank Deposit for any Banks of Nepal. l. Easy Link Remittance Pvt. Ltd.
3. Dedicated Remittance Customer Care Support m. JME Remit Pvt. Ltd.
4. SMS notification service to Beneficiary upon receiving of remittance n. Bhat Bhateni Money Transfer Pvt. Ltd.
from Kumar Remit channel. o. Prithivi Remit (Nepal Investment Bank Limited)
5. Kumari Remit payments can be received from Kumari Smart Mobile p. Sunrise Remit (Sunrise Bank Limited)
Banking Service. q. Civil Remit (Civil Bank Limited)
6. Online, highly Secured, user friendly remit system with Real Time r. Mega Remit (Mega Bank Nepal Limited)
processing of remit transactions. s. Nic Asia Remit (NIC Asia Bank Limited)
t. Sanima Xpress (Sanima Bank Limited)
Kumari Remit has collaborated with different international Exchanges & u. Century Remit (Century Commercial Bank Limited)
Money Transfers around the globe to deliver its seamless service. v. Garima Remit (Garima Bikas Bank Limited)
S.N Counterparty Corridor w. Muktinath Remit (Mukatinath Bikas Bank Limited)
1 Bank Al Bilad Kingdom of Saudi Arabia x. Jyoti Remit (Jyoti Bikas Bank Limited)
2 Max Money Sdn. Bhd. Malaysia y. Lumbini Remit (Lumbini Bikas Bank Limited)
3 Belhasa Global Exchange United Arab Emirates
4 Orient Exchange United Arab Emirates
5 Horizon Exchange United Arab Emirates
6 STB Union Limited Israel
7 Queen Bee Capital Japan
8 Al Zaman Exchange W.LL States of Qatar
9 Small World Financial Services
10 Paysend PLC Global Money Transfer
11 GCC Exchange UK Ltd Organizations.
12 Instant Cash FZE
CURRENCY OF CARE
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CORPORATE GOVERNANCE
& MANAGEMENT PRACTICES
65
1. Corporate Governance........................................... 70
2. Capital Management............................................. 74
3. Risk Management.................................................. 76
4. SWOT Analysis ...................................................... 82
5. Internal Control System and Assurance ............. .84
6. Human Capital ...................................................... 86
7. On Combating Financial Threats .......................... 89
66
People’s participation is the
essence of Good Governance.
- Narendra Modi
Organizational
BOARD OF DIRECTORS
RISK MANAGEMENT COMMITTEE AML/CFT COMMITTEE
CHIEF EXECUTIVE OFFICER
CHIEF RISK CHIEF HUMAN RESOURCE & CHIEF BUSINESS CHIEF BUSINESS
OFFICER BUSINESS SUPPORT OFFICER 1 OFFICER 2
HEAD - CREDIT RISK HEAD - HUMAN HEAD - CORPORATE HEAD - DIGITAL

CREDIT & PROJECT HEAD - RESOURCES
MANAGEMENT RESOURCE MARKETING
FINANCING
LEARNING & HEAD - CENTRAL
HEAD - OPERATION RISK HEAD - SME/MSME RETAIL BANKING
DEVELOPMENT REMITTANCE
& PRIORITY SECTOR
LENDING
HEAD - MARKET RISK & INSTITUTIONAL
HR ADMINISTRATION HEAD - TREASURY
TREASURY MID OFFICE HEAD - BUSINESS BANKING
COORDINATION &
HEAD - CREDIT CONSUMER LENDING LENDING BUSINESS - HIGH NET WORTH
HEAD - AML/CFT
OPERATION PROVINCE 7 INDIVIDUAL
HEAD - CORPORATE
INFORMATION SECURITY HEAD - TRADE COMMUNICATION & CSR
OFFICER (ISO) OPERATIONS
RESOURCE -
HEAD - COMPLIANCE & HEAD - R&D AND OUTSIDE VALLEY
POLICY FRAMEWORK BUSINESS PROCESS
RE-ENGINEERING
HEAD - GOVERNANCE
HEAD - CREDIT
MONITORING & REPORTING
HEAD - CREDIT
ADMINISTRATION
CHIEF OF PROVINCE - CHIEF OF PROVINCE - CHIEF OF PROVINCE -

CHIEF OF PROVINCE - CHIEF OF PROVINCE -
BAGMATI A (INSIDE BAGMATI B (INSIDE BAGMATI C (OUTSIDE
PROVINCE 1 MADHESH PROVINCE
VALLEY) PROVINCE VALLEY) PROVINCE VALLEY PROVINCE)
BRANCH MANAGERS BRANCH MANAGERS BRANCH MANAGERS BRANCH MANAGERS BRANCH MANAGERS
68
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Structure
COMPANY SECRETARY
EMPLOYEE SERVICE & AUDIT COMMITTEE

BENEFITS COMMITTEE
CEO'S OFFICE
CHIEF OPERATING OFFICER CHIEF DIGITAL BANKING OFFICER
HEAD - CENTRAL HEAD - CARD &

CHIEF - ICT HEAD - FINANCE & MIS CHIEF - INTERNAL AUDIT
OPERATIONS ePAYMENTS
HEAD - CENTRAL HEAD - DIGITAL TREASURY BACK

ICT DEVELOPMENT
LOGISTICS BANKING OFFICE
BRANCH EXPANSION ICT INFRASTRUCTURE

RELOCATION & STRATEGY & MIS
& SECURITY
SPECIAL PROJECT
ICT OPERATION
HEAD - COUNTRY RECONCILATION
SUPPORT
OPERATIONS
CENTRAL CLEARING & HEAD - LEGAL

COLLECTION
HEAD - RECOVERY,
CENTRAL VAULT MPA & DEBT SERVICE
MANAGEMENT
SWIFT & CENTRAL

PROCESSING
CHIEF OF PROVINCE - CHIEF OF PROVINCE - CHIEF OF PROVINCE - CHIEF OF PROVINCE - CHIEF OF PROVINCE -
GANDAKI PROVINCE LUMBINI A PROVINCE LUMBINI B PROVINCE KARNALI PROVINCE SUDURPASCHIM PROVINCE
BRANCH MANAGERS BRANCH MANAGERS BRANCH MANAGERS BRANCH MANAGERS BRANCH MANAGERS
69
CORPORATE GOVERNANCE
Kumari Bank, as a public limited company and a financial institution, has always given utmost importance to highest standards of
corporate governance and moral conduct. The Bank is committed to absolute compliance with the ethics prescribed by Company’s
Act, Bank and Financial Institutions Act, Unified Directives issued by Nepal Rastra Bank, and the Bank’s corporate governance
policy. As a Board, we believe that a strong corporate governance framework and culture translates to a strong company that delivers
the most value for the investments of its shareholders.
The Bank gives utmost importance to corporate governance at all levels. The Board carries out active oversight and supervises
and controls the Bank, however, it doesn’t interfere in the Bank’s day-to-day management. We are committed to more than just
meeting the regulatory and legal requirements, but also towards adoption of best business and proactive risk management practices,
transparency, and disclosure to all the stakeholders. The entire Kumari Bank family abides by its principles of corporate governance
including fulfilment of assigned responsibilities in the best interests of the Bank, secrecy-maintenance of the material information,
avoidance of conflict-of-interest, clarity in delegation of authority, professionalism, team spirit, and exceptional customer-service.
Good corporate governance is one of the key prerequisites to a successful organization, and we understand it well. All our activities
are in line with the said-understanding and commitment. Our corporate governance philosophy is heavily guided by our own internal
need to set the highest standards as a good corporate citizen.
The Bank has established a culture of best practices in corporate governance. Good corporate governance has been an integral
part of the Bank’s policy in order to safeguard the interest of its shareholders and stakeholders, and for providing the highest level
of service to its customers. Well-defined and enforced corporate governance provides a structure that is beneficial to everyone
concerned via ensuring that the enterprise adheres to accepted ethical standards and best practices as well as to formal laws. Given
the importance of financial intermediation in an economy, the public and the market have a high degree of sensitivity to any difficulties
potentially arising from any corporate governance shortcomings in Banks. The Bank is committed to be governed by the highest
standards of corporate governance. Compliance with the applicable rules and regulations of the country, and with the directives/
circulars/guidelines issued by various regulatory authorities, shall be the utmost priority of the Bank, and the Bank shall ensure robust
compliance thereto, in word as well as in spirit.
SHAREHOLDING STRUCTURE
Particulars No. of Shares Amount (NPR)
Authorized Capital (Ordinary Shares of Rs. 100 each) 150,000,000.00 15,000,000,000.00
Issued Capital (Ordinary Shares of Rs. 100 each) 147,111,833.26 14,711,183,326.16
Paid-Up Capital (Ordinary Shares of Rs. 100 each) 147,111,833.26 14,711,183,326.16
ORDINARY SHARE OWNERSHIP

Particulars Amount Percentage Holding
Domestic Ownership - -
Nepal Government - -
“A” class licensed institutions - -
Other licensed institutions - -
Other institutions 1,630,768,289.35 11.09%
Public 13,080,415,036.81 88.91%
Other - -
Foreign Ownership - -
Total 14,711,183,326.16 100.00%
CAPITAL STRUCTURE
Particulars No. of Shares Capital Structure (%) Paid-Up Amount (NPR)
Promoter Shareholders 75,009,017.51 50.99% 7,500,901,751.14
General Public Shareholders 72,102,815.75 49.01% 7,210,281,575.02
Total 147,111,833.26 100.00% 14,711,183,326.16
SHAREHOLDING STRUCTURE OF DIRECTORS

Name No. of Shares Shareholding (%)
Amir Pratap JB Rana – Chairman 5,290,581 3.60%
Krishna Prasad Gyawali – Director, Promoter Group 1,267,618 0.86%
Mahesh Prasad Pokharel – Director, Public Group 67,266 0.05%
Anuradha Chaudhary – Director, Public Group 44,831 0.03%
Ganesh Prasad Pathak – Professional/Independent Director - -
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BOARD COMMITTEES & MANAGEMENT COMMITTEES

1. AUDIT Committee
The audit committee provides oversight of the financial reporting process, the audit process, the Bank’s system of internal
controls and compliance with laws and regulations. It also co-ordinates with the treasury to verify the Bank’s financial status and
position. The committee is composed of the following:
S.N. Name Status in the Organization Status in the Committee
1 Ms. Anuradha Chaudhary Director – Public Group Coordinator
2 Prof. Dr. Ganesh Prasad Pathak Independent Director Member
3 Ganesh Kumar KC Chief – Internal Audit Member Secretary
2. Employee Service and Benefits Committee

The Employee Service & Benefits Committee is committed towards proper plan and execution of human resources functioning.
Policies, procedures, and oversight of the action taken/to be taken in relation to the employees of the Bank, rests on this
committee. The committee is composed of the following:
1 Mahesh Prasad Pokharel Director Coordinator
2 Ram Chandra Khanal Chief Executive Officer Member
3 Pushpa Shrestha Head – Human Resources Member Secretary
4 Aswin Babu Shrestha Head – Finance and MIS Member
3. Risk Management Committee

1 Krishna Prasad Gyawali Director Coordinator
2 Anuradha Chaudhary Director Member
3 Bikas Khanal Chief Operating Officer Member
4 Rohit Singh Chief Risk Officer Member Secretary
4. AML/CFT Committee
1 Prof. Dr. Ganesh Prasad Pathak Independent Director Coordinator
3 Rohit Singh Chief Risk Officer Member
Head – Compliance & Policy Framework/
4 Renu Koirala Member
Governance
5 Kiran Kumar Shah Head – AML/CFT Member Secretary
5. Other Management Committees

i) Assets-Liabilities Committee/Pricing (ALCO)
1 Ram Chandra Khanal Chief Executive Officer Chairperson
3 Anish Tamrakar Chief Digital Banking Officer Member
4 Kshitij Khadka Chief Business Officer Member
6 Chandan Karki Chief Business Officer Member
7 Bhusan Tandukar Head – Corporate Credit & Project Financing Member
9 Anup Shrestha Head – Treasury Member Secretary
The committee members are subject to change, depending on the presence of other invitees - as deemed appropriate by
the Chief Executive Officer.
ii) Procurement Committee

This committee has been put in place to ensure all of Bank’s procurement activities are conducted in line with accepted
purchasing practices and appropriate rules and regulations. Its purpose has been to establish thresholds and classifications
of procurement actions, establish the necessary controls, including those for delegations of authority, and shall issue
administrative instructions for purposes necessary to protect the integrity of the procurement process and the interest of
the Bank. The committee consists of the following members:
1 Bikas Khanal Chief Operating Officer Chairperson
2 Deepak Khanal Head – Central Operations Member
4 Unesh Manandhar Head – Central Logistics Member Secretary
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iii) Banking Business & Service Excellence Committee

The Banking Business & Service Excellence Committee is a high level committee of the Bank which is formed for review and
discussion of overall functioning of the Bank, viz Business, Operations, Services (including products), Risk Management
and have a bird-eye view on the overall Banking business. This committee has been set up to review and discuss the
Bank’s overall position in terms of service, business, operations, market position, profitability and review the execution
process of the Banking activities for smooth and prompt Banking services. The Bank’s BBSEC committee consists of:
1 Ram Chandra Khanal Chief Executive Officer Chairperson
3 Anish Tamrakar Chief Digital Banking Officer Member
6 Ganesh Kumar KC Chief – Internal Audit Member
7 Narayan Ghimire Chief – Information Technology Member
8 Chandan Karki Chief Business Officer Member
9 Deepak Khanal Head – Central Operations Member
10 Bibek Man Singh Shakya Head – Business Coordination & Consumer Lending Member
11 Bhusan Tandukar Head – Corporate Credit & Project Financing Member
12 Milan Kuinkel Head – Credit Risk Management Member
13 Ishor Gurung Head – SME Lending Member
14 Mandeep Bhattarai Head – Card & Digital Payments Member
15 Pushpa Shrestha Head – Human Resources Member
16 Bikranta Koirala Head – Credit Administration & Legal Member
17 Aswin Babu Shrestha Head – Finance & MIS Member Secretary
18 Anup Shrestha Head – Treasury Front Office Member
iv) CSR Committee

The Bank’s CSR committee consists of:
1 Ram Chandra Khanal Chief Executive Officer Chairman
4 Udeet Bahadur Singh Head – Corporate Communication & CSR Member Secretary
v) Labor Relations Committee (LRC)

The purpose of the Labor Relations Committee is to discuss and resolve any question related to the collective agreement
and labor conditions within the Bank. The Bank’s labor relations committee shall render necessary advice to the Board
and the HR sub-committee in the matters relating to Bank’s internal HR by-laws and policies and also in matters relating
to timely amendment in those policies. The nomination of the representative members on behalf of the employees is done
by Bank’s Employee Union and the committee currently consists of:
1 Bikas Khanal Chief Risk Officer Chairperson
3 Pushpa Shrestha Head – Human Resources Member
4 Aswin Babu Shrestha Head – Finance & MIS Treasurer
5 Sharad Dev Joshi RM – Credit Risk Management Member
6 Rumi Karmacharya RM – Putalisadak Member
7 Nardhoj Malla Governance Unit Member
8 Sudarshan Phuyal RM – Gongabu Member Secretary
9 Damodar Upadhyay Central Logistics Unit Member
Indicators of Corporate Governance Compliance

 Defined Corporate Culture & Values Defined Corporate Statutory
 Dynamic System of Risk Management Culture & Values Compliance
 Statutory Compliance
 Clear-defined BOD responsibilities and codes of conduct
 Disclosure and Transparency
Dynamic
 Performance Management & Internal Controls Disclosure
System of Risk and
Management Transparency
Indicators
of Corporate
Governance
Compliance Clearly
Performance
defined Board
Management
Responsibilites
& Internal
and codes of
Controls
conduct
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COMPOSITION OF BOARD OF DIRECTORS

1. Amir Pratap JB Rana – Chairman
2. Krishna Prasad Gyawali – Director, Promoter Group
3. Mahesh Prasad Pokharel – Director, Public Group
4. Anuradha Chaudhary – Director, Public Group
5. Ganesh Prasad Pathak – Professional/Independent Director
MONITORING AND REVIEW OF STATUS OF CORPORATE GOVERNANCE

Our Corporate Governance Framework includes an engaged Board of Directors with a diverse range of skills and experience supported
by an effective Board Committee structure. It involves a system of clear and transparent communication with our shareholders. Similarly,
a strong risk management and assurance processes and culture exist, within the organization. Our core values and behaviors and
supporting policies underpin the way we behave and meet our strategic objectives. Kumari Bank group is committed to conducting its
business in an ethical, fair and transparent manner, in accordance with high standards of corporate governance.
The Board, together with the management team, leads by example. We have a robust corporate governance framework in place and
we are committed to fostering a culture of compliance that values personal and corporate integrity, accountability and continuous
improvement.
The Bank has the following tiers to monitor and review the status of corporate governance :
 Audit Committee
 AML/CFT Committee
 Employee Service & Benefits Committee
 Risk Management Committee:
1. Credit Risk Management
2. Operations Risk Management
3. Liquidity Risk Management
4. Market Risk Management
 Other Committees:
1. ALCO
2. Procurement Committee
3. MANCO
4. BBSE Committee
5. Labor Relations Committee
6. Position Fulfillment Committee
ROLES AND RESPONSIBILITIES OF THE BOARD

 Decision on the long-term objectives of the Bank
 Decision on the credit and investment policies of the Bank
 Approval of the strategies necessary to achieve these objectives, bearing in mind the activities of competitors and potential
competitors and the risks inherent in these strategies.
 Approval of authorities and powers delegated to the Chairman, Board of Directors, Board Committees, and Chief Executive Officer
 Approval of the Bank’s annual budget.
 Review and approval of material-related party transactions that are not in the ordinary course of business.
 Approval of the establishment of any subsidiary company.
 Ensuring that the Bank manages risk effectively by:
• Determining and approving the Bank’s risk appetite (the extent and categories of risk which the Board regards as acceptable
for the Bank to bear)
• Approving the Bank’s risk management framework (embracing principles, policies, methodologies, systems, and internal
controls and structure of responsible unit)
• Monitoring the Bank’s aggregate risk exposures and return on risk taken
 Ensuring executive management of the Bank :
• Establishes and maintains appropriate systems to plan and control bank operations and risks and to comply with relevant
legislation and regulations
• Provides regular and sufficient information to the Board to enable it to discharge its monitoring duties in relation to these
matters
• Implements disclosure policies and procedures that comply with regulatory requirements
 Recommendation of final dividend payments
 Approval of the adoption of any significant change in accounting policies or practice
 Approval of the applicable policies of the Bank
 Appointment of the Independent Director
 Ensuring that the Board has the appropriate number and quality of directors to fulfill its responsibilities
 Constitution of committees of the Board with terms of reference as necessary
 Ensuring the forward planning of the main executive appointments within the organization
 Approval of the appointment, dismissal, and remuneration of the executives of the Bank one level below the Board
 Approval of the appointment and removal of the Head of lnternal Audit Department and the Company Secretary
 Approval and review of the corporate governance policy/framework of the Bank policy/framework of the Bank
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Capital Management
Realizing the significance of capital for ensuring the safety and Basel III reforms are the response of the Basel Committee on
soundness of the Banks and the Banking system, at large, Banking Supervision (BCBS) to improve the Banking sector’s
Nepal Rastra Bank (NRB) has developed and enforced capital ability to absorb shocks arising from financial and economic
adequacy requirement based on international practices with stress, whatever the source, thus reducing the risk of spill over
an appropriate level of customization based on domestic from the financial sector to the real economy. Basel III reforms
state of market developments. With a view of adopting the strengthen the Bank -level i.e. micro prudential regulation,
international best practices, NRB has already issued the Basel III with the intention to raise the resilience of individual Banking
implementation action plan and expressed its intention to adopt institutions in periods of stress. The macro prudential aspects
the Basel III framework, albeit in a simplified form. of Basel III are largely enshrined in the capital buffers. Both the
buffers i.e. the capital conservation buffer and the countercyclical
"International Convergence for Capital Measurements and buffer are intended to protect the Banking sector from periods of
Capital Standards: Revised Framework" alias Basel II under excess credit growth.
Pillar 1, provides three distinct approaches for computing
capital requirements for credit risk and three other approaches Capital Conservation Buffer
for computing capital requirements for operational risk. These The capital conservation buffer (CCB) is designed to ensure that
approaches for credit and operational risk are based on Bank’s build up capital buffers during normal times (i.e. outside
increasing risk sensitivity and allow Banks to select an approach periods of stress) which can be drawn down as losses are incurred
that is most appropriate to the stage of development of Bank's during a stressed period. The requirement is based on simple
operations. The product and services offered by the Nepalese capital conservation rules designed to avoid breaches of minimum
Banks are still largely conventional, in comparison with other capital requirements. Outside the period of stress, Banks should
economies. This coupled with the various inherent limitations of hold buffers of capital above the regulatory minimum.
our system like the limitation of credit rating practices makes the
advanced approaches like Internal Ratings Based Approach or
even Standardized Approach impractical and unfeasible. Thus, at
this juncture, this framework prescribes Simplified Standardized
Approach (SSA) to measure credit risk while Basic Indicator
Approach and an indigenous Net Open Position Approach for
measurement of Operational Risk and Market Risk respectively.
The Bank manages its capital position so its capital is more

than adequate to support its business activities and to maintain
capital, risk and risk appetite commensurate with one another.
Additionally, we seek to maintain safety and soundness at
all times, even under adverse scenarios, take advantage of
organic growth opportunities, meet obligations to creditors
and counterparties, maintain ready access to financial markets,
continue to serve as a credit intermediary, remain a source of
strength for our subsidiaries, and satisfy current and future
regulatory capital requirements. Capital management is
integrated into our risk and governance processes, as capital is
a key consideration in the development of our strategic plan, risk
appetite and risk limits.
We conduct an Internal Capital Adequacy Assessment Process

(ICAAP) on a periodic basis. The ICAAP is a forward- looking
assessment of our projected capital needs and resources,
incorporating earnings, balance sheet and risk forecasts under
baseline and adverse economic and market conditions. We utilize
periodic stress tests to assess the potential impacts to our balance
sheet, earnings, regulatory capital and liquidity under a variety
of stress scenarios. We perform qualitative risk assessments to
identify and assess material risks not fully captured in our forecasts
or stress tests. We assess the potential capital impacts of proposed
changes to regulatory capital requirements. Management assesses
ICAAP results and provides documented quarterly assessments of
the adequacy of our capital guidelines and capital position to the
Board or its committees. We periodically review capital allocated
to our businesses and allocate capital annually during the strategic
and capital planning processes.
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Counter Cyclical Buffer Implementation of Buffer

During the period of downturn preceded by excess credit Every commercial Banks are required to adhere to the Capital
growth, losses incurred in the Banking sector can be extremely Adequacy Framework 2015. Banks are required to maintain a
large which can destabilize the Banking sector and spark a capital conservation buffer of 2.5%, comprised of Common
vicious circle, whereby problems in the financial system that can Equity Tier 1 capital, above the regulatory minimum capital
contribute to a downturn in the real economy that then feeds requirement of 8.50%. Capital conservation buffer of 2.5%
back on to the Banking sector. These interactions highlight the is required to be maintained and required to maintain at least
particular importance of the Banking sector building up additional 2.5% of RWE, comprising of Common Equity Tier 1 Capital, as
capital defenses in periods where the risks of system-wide stress Countercyclical buffer by the end of FY 2080/81.
are growing markedly. The countercyclical buffer aims to ensure
that Banking sector capital requirements take account of the Kumari Bank Debenture
macro-financial environment in which Banks operate. Therefore, Bank has already issued 2 debenture i.e 10.25% Kumari Bank
excess aggregate credit growth is judged to be associated with Debenture 2086 and 11% KBL Debenture 2089 till date with a
a build-up of system-wide risk to ensure the Banking system has term of 10 years each which will be part of supplementary capital
a buffer of capital to protect it against future potential losses. of the bank. Bank is also planning to raise funds by issuing
10.5% KBL Debenture 2089 with a term of 10 years which will
be included in mobilization of sources. Subordinated term debt
fully paid up with a maturity of 5 years or above is eligible for
inclusion in the capital adequacy calculations, thereby further
strengthening the Capital Adequacy of Bank.
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Risk Management
Risk is a probability or threat of damage, injury, liability, loss borrowers as a % of total loan is accounted at 27.28% for the
or any other negative occurrence that is caused by external or FY 2078/79 as against 27.76% in the FY 2077/78, 27.28%
internal vulnerabilities that may be avoided through preemptive in the F/Y 2076/77, 29.37% in the F/Y 2075/76 and 27.42%
action. in the FY 2074/75 year. This shows that the exposure is
gradually shifting towards Retail/SME from being overly
The Bank has identified various risk categories which has impact tilted towards the top corporate borrowers a few years back,
on the performance of the Bank. The risk is well defined as although in current year the concentration increased. The
the appetite of the Bank to address risks attached to Banking sudden increase in source of fund had prompted the Bank
business and areas affecting the business of the Bank as credit, to go for sudden increase in portfolio but the management is
operation, market and other risks. committed for more SMEs and Retails in the days to come.
More than 50% of the total Bank’s portfolios fall under the
The three line of defense are in place whereby, the risk funded limit of NPR 50 million, more than 30% fall under the
management of the Bank is placed with high degree of control bracket of NPR 0-10 million. The NPL level is at 1.11% as on
over possible threats to the system and Banking mechanism. Ashad End 2079 which was at 0.96% as on FY 2077/78 and
1.39% as on Ashad 2077, this showed better signs in terms
The business units, apart from serving needs of customer of recovery of the loan portfolio even though there is slight
have developed a mechanism to mitigate risk factors. Over the increase in NPL this year.
business units, Bank has Risk units’ viz. Credit Risk Department,  Credit Administration & Control Department, Head Office
Operation Risk Department, Market Risk & Treasury Mid Office prepares the following Exception/Irregularity reports
Department, AML/ CFT Department, ISO, Governance Unit; which Periodic working capital statement not obtained within
serves good shield for risk mitigation and prevention. Finally, Bank approved time frame
has its own in-house internal audit department, which functions  Accounts with drawing power deficit
independently to assess risk. Currently, Bank has already started  Inspection report of borrowers
audit process with perspective of risk, as Risk Based Audit is the  Insurance expired/ insufficient coverage through system
prime focus area of internal audit of the Bank. automatically on daily basis.
 Financial statements not submitted status
The Bank has defined credit, market and operation risks as the  CFR expiry status
important factors which may give impact to the capital adequacy  Margin Call Report (on daily basis)
of the Bank.  Reporting to Karja Suchana Kendra Ltd. about credit
facilities of loan client (on weekly basis)
a) Credit Risk  Reporting/notification of deferral/pending documents
There is a separate department, Credit Risk Management (automated system email on daily basis)
(CRM) which is responsible for assessing the risks
associated with Bank’s funded and non-funded credit Sector Wise/ Concentration Exposure
exposure. The Bank has introduced the
system of providing risk code to each
exposure at the level of relationship officer
which is rechecked at CRM desk. The Bank
has implemented Credit Policy Guideline
with clearly defined authority limits in place.
Credit related circulars guided by the Credit
Policy Guidelines, based on changes in
regulatory provisions, emerging market
scenario, internal and external observations
are issued in a timely manner to promote
uniformity of understanding and working
across all levels.
In addition to classification of sectors as per

NRB definition, Bank has also separately
maintained an Internal classification of
sectors in accordance with risk perspective
(based on inputs received from business
units) primarily to cap lending in a particular
sector of the economy.
The limits for investment and credit

exposures to domestic and international
financial institutions are reviewed annually.
Different parameters like CD ratio, Liquid
assets, NPL, ROA and CAR are taken
into account and ranked accordingly. The
Deprived Sector Lending (DSL) stood at a
5.47% of the total loan, which is well above
the NRB 5% threshold.
The lending concentration on top 50
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 Non Food Production Related 14.61%

 Wholesaler & Retailer related loan 12.47%
 Construction related 5.24%
 Agriculture, Forestry & Beverage Production Related 11.50%
 Finance, Insurance and Real Estate 5.81%
 Consumption Loans 7.95%
 Electricity, Gas and Water 6.15%
 Transport, Communication and Public Utilities 5.23%
 Hotel or Restaurant 5.41%
 Metal Products, Machinery & Electronic Equipment & Assemblage 4.88%
 Mining, Fishery Related 0.86%
 Others 19.88%
11.50% 5.81%
5.24%
12.47% 7.95%
6.15%
14.61% 5.23%
5.41%
4.88%
19.88%
0.86%
Sectorwise Loan Exposure

Figures in Million
Particulars Total Loan Outstanding Percentage of Loan Outstanding

Non Food Production Related 23,291 14.61%
Wholesaler & Retailer related loan 19,881 12.47%
Construction related 8,348 5.24%
Agriculture, Forestry & Beverage Production Related 18,339 11.50%
Finance, Insurance and Real Estate 9,266 5.81%
Consumption Loans 12,681 7.95%
Electricity, Gas and Water 9,804 6.15%
Transport, Communication and Public Utilities 8,346 5.23%
Hotel or Restaurant 8,629 5.41%
Metal Products, Machinery & Electronic Equipment & Assemblage 7,787 4.88%
Mining, Fishery Related 1,367 0.86%
Others 31,703 19.88%
Total 159,444 100.00%
NRB has prescribed minimum percentage of lending towards Priority Sector Lending to the overall banking industries and as
per the requirement, it is 12% for Agriculture, 6% altogether for Hydropower/ Energy sector, 11% for MSME sector and 5% for
Deprived Sector for commercial banks. In this backdrop, the Bank is left with no choice but to increase its lending in the priority
sector to meet the NRB prescribed ceiling. Though NRB has provided relaxation to meet the prescribed target within Poush
end 2079, bank is determined to meet the regulatory requirement before mentioned period amidst current liquidity situation and
continuously raise effort to fulfill the target set through country circular which instruct on bank’s focus, towards building our
portfolio in the sectors of MSME/ Agriculture/ Energy by bringing down our exposure in Corporate /Real Estate/ Margin Lending/
Personal Lending. The aim is to achieve the regulatory requirement as well as build a diversified lending portfolio. Hence, all
the branches and business units are guided to realign the portfolio mix; and any amount of downsize in Corporate/Real Estate/
Margin Lending/ Personal Lending to be utilized towards productive sector lending.
Bank has implemented Environment and Social Risk Management Policy 2021 during the FY 2078/79.The purpose of
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Environment and Social Risk Management Policy 2021 is deposit portfolio. To gradually manage the concentration
to establish a consistent approach of the Bank regarding risk, the Bank has targeted the top 20 institutional deposit
understanding, assessing, and considering environmental, mark at 25% of total deposit portfolio by the FY 2079/80,
social and climatic risks related to the business activities which was 28.61% in previous year. The Bank has been
of the customers of bank. This policy defines framework launching deposit products bundled with various schemes
regarding lending philosophy, culture, criteria, authority/ and is expected to introduce new deposit products with
control, modus-operandi and all other relevant issues to added measures to increase the retail deposit portfolio in the
environmental and social risk to bring uniformity in lending days to come. The importance of Branch expansion cannot
activities ensuring prudent lending practices within the Bank be undermined and the Bank is in process to add some new
in line with regulatory requirements. branches, which is expected to improve the Bank’s deposit
mix/base.
Similarly, Guidelines on Environment and Social Risk
Management has been issued in pursuant to the Environment The Bank has comfortable liquidity ratio and no immediate
and Social Risk Management Policy. The guideline on negative liquidity risks are observed. Our Liquidity ratio
Environment and Social Risk Management (ESRM) has as at FY 2078/79 stood at 24.81%. The structural liquidity
been developed in concurrence with Nepal Rastra Bank’s gap analysis shows the positive overall cumulative liquidity
Guideline on Environmental and Social Risk Management gap, and such negative gap starts from the bucket of 181-
(ESRM) for Banks and Financial Institutions-2022. 270 days and 271- 365 days. As 75% of the Bank’s FD is
maturing within 270 days, generally such maturing FDs are
b) Market Risk replaced with new FDs. The Bank is very much conscious
The market risks (interest rate, liquidity and foreign about unpredictable nature of liquidity situation of Nepalese
exchange) are reviewed by the various committees of economy. As a part of its risk mitigating strategy, liquidity
the Bank. The ALCO/ pricing committee represented by scenario is closely monitored by all related units, formally/
key units of the Bank regularly discusses monitors and informally discussed and market information timely
reviews the Bank’s specific and overall market situation of disseminated at all appropriate levels. Further, adequate
liquidity, interest rates, pricing, products and other matters investments are made on most liquid form of assets.
pertaining to Market Risks. Likewise Foreign exchange risk
is monitored and managed on a daily basis guided by the The Bank has always taken a cautious approach in relation
Treasury manuals and circulars (internal and regulatory both) to mitigating exchange risk arising from currency rate
that has adequately set the FCY limits to each individual. fluctuations. While NRB permits net open position within
Similarly, the Bank computes and analyzes the weighted 30% of the Core capital, we have confined ourselves to within
average interest rate spread periodically in the manner and 5% of the Core capital as on Asadh End 2079. As much as
form prescribed by NRB. Besides, ALCO/pricing committee possible, the Bank desires not to remain in open position,
is vigilant towards any adverse market movements and however in situations when Bank’s books are closed at open
incidents and takes appropriate and timely actions in the position, adequate authorization from different hierarchy
Bank, wherever required. levels are required as defined in the delegation of treasury
limits and authorities manual.
The Bank is exposed to high funding risk or concentration Interest rate risk is perceived to be high as it is directly linked
risk as 20 large institutional deposits hold 32.76% of our with managing the liquidity portfolio of the Bank and also
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assumes high significance as far as overall profitability of the related deficiencies are regularly raised and put to RMC and
Bank is concerned. Since we have high proportion of fixed management. Meeting of different functions within risk unit is
deposits, in the situation when interest rates in market falls conducted on a regular basis to discuss on various operation,
our lending rates would not be competitive with the market credit, IT, market and reconciliation related issues and risks.
rate. In this situation, our interest rate spread reduces which Major deficiencies observed in password handling, CCTV,
ultimately impacts on overall profitability and/or we could IT setup, security and networking, contingency management
not lend in the market as our lending rates would be higher framework, DR drill, policies review and requirement are put
due to already committed high cost deposit mainly caused to RMC and the management for their attention.
by high proportion of fixed deposits. As interest income
accounts for approximately 80% of the total income of our d) Other risks
Bank, we are sensitive to interest rate risk due to the high i. Information Technology & Card
proportion of fixed deposits. The bank has its own IT policy. IT functions have been
segregated into IT operation, IT development, and IT
The Bank has been cautiously making investments in infrastructure, wherein IT operation focuses more on
secondary market. Last year, the Bank has made significant core banking and other applications of the bank, IT
gain on share trading. Investments are made as per Bank’s development focuses on new solution development in IT,
Investment Policy. and IT infrastructure focuses on hardware, networking,
and other IT technologies. The bank has a strong IT
c) Operation Risk operation and security infrastructure, of which a few are
The Bank has formulated operation guidelines and procedures described below.
covering the various areas of operation. This year the Bank
set the target to review all the policies and guidelines by the The bank has server redundancy and link redundancy
end of the year. A country circular was issued from CEO to continue banking operations in the case of system
office instructing all the units to forward all the policies and failure. Many software applications have been developed
guidelines to Risk unit and get it reviewed by the unit before to smoothly handle the internal operations of the bank. It
approval and implementation. Several policies and guidelines has strong security systems to protect customer data at
were reviewed by respective department and were finalized the data center (DC) and disaster recovery (DR) site. In
after further review by Risk unit. Some of the policies and view of the unforeseen risk in the ICT sector and in line
guidelines are in process of review. Various operations with the NRB IT Guidelines, the bank has appointed an
related circulars based on changes in regulatory provisions, information security officer (ISO) for the management of
emerging incidents in the Banking industry, technological IT risks.
developments, internal and external observations are issued
in a timely manner to promote uniformity of understanding For desktop and server login, a multifactor authentication
and working across all levels. system (including a one-time password, or OTP) has
been implemented. In the case of server login, there
The Bank has formulated an Operations Risk Framework is a hardware token that generates an OTP for login.
and Key Risk Indicators are already in place. Operation OTP systems provide a mechanism for logging on to a
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network or service using a unique password that can and maintained in Bank’s HR related software. This
only be used once, as the name suggests. The bank information is periodically updated whenever there is
has deployed a privileged access management system change. HR Committee of the Bank is functional as per
that helps us make sure that the IT team has only the its own TOR which is in accordance with the guideline
necessary levels of access to do their jobs and also to issued by NRB. The Bank has Disciplinary and Corporate
identify malicious activities. The bank has deployed a Governance Committee that meets on a regular basis to
remote desktop manager that helps IT administrators discuss on various HR related issues.
remotely access and troubleshoot user desktops from a
central console. It keeps track of all activities carried out. HR is making progressive effort on the growth and
We have implemented a comprehensive computer development of its manpower. The
virus protection mechanism on middleware, ATM Bank is strictly following the NRB’s
machines, and application servers. We have deployed regulation on requirement of
strong cryptography to protect customer PINs, user training; so the staffs at various
passwords, and other sensitive data. Since information levels have
security is not a one-time activity and cannot be attained training
gained by just purchasing and installing suitable both inland and
hardware or software, we have institutionalize foreign. Bank
processes to regularly assess the security has a practice of
health of the organization, detect
vulnerabilities, and fix them.
We have implemented a
vulnerability management
system to detect and
identify vulnerabilities
associated with the bank's
system. The vulnerability
patching process is ongoing.
The SOC (Security Operation

Center) acts like the hub or central
command post, taking in telemetry
from across an organization's IT
infrastructure, including its networks,
devices, appliances, and information
stores, wherever those assets
reside. The bank has used the SOC
service from the third-party service
provider. The SOC team monitors
the entire IT infrastructure. The
SOC team does daily, weekly, and
monthly reporting to the IT and ISO conducting exit interview to the outgoing staffs to
teams. Any suspicious events are immediately notified receive feedback on the areas that needs improvement.
to the IT and ISO teams. Efforts have always remained on training people as per
organization need. The manpower need is on the rise
The Bank has upgraded the existing magnetic stripe coupled with the growth in Bank’s size. Hiring of trainee
based card to chip based card to prevent the risks level staffs (both at assistant level as well as officer level)
associated with skimming and cloning and for added at regular intervals should enable the Bank to build
security. Credit Card of the Bank is chip based card foundation for strong lower level base as well as middle
with magnetic stripe, which is provided to the customers level management. Succession planning and filling in
since start of the Credit Card Service by the Bank. This key vacant positions has always remained a challenge
has ensured proper and secured transactions in Credit as staffs with the required technical skills always seem
Card. The card switch is also in the deployment phase to have higher bargaining power. However, the Bank is
and will go live soon. concerned about the career planning/growth of staffs at
every level.
In line with digitization of the Banking business, the
Bank has started Mobile application based QR payment iii. AML (Anti Money Laundering)
mechanism and Viber Banking system to disseminate As per the Bank’s policy, since we are dealing in simpler
information to customers in digitized module. Omni business profile, we have assigned “Low”, “Medium”
Channel, Channel Manager, and Business Process & “High Risk” to our account relationships based on
Automation are in the deployment phase for digital our assessment. For this a ML/TF Risk Rating Matrix
transformation. guideline for Customer Risk Assessment is in place.
Each relationship is assessed for their perceived risk
ii. Human Resource using the Customer Due Diligence/ Risk Rating Form
The Bank has Personnel Policy Guideline and other that has been specifically designed for this purpose.
policies and circulars to streamline human resource The Risk rating score is further reviewed by the Branch
activities in the Bank. There has been regular monitoring Compliance Officer. We have recently put live, customer
of transactions in staffs’ account. Adequate information sanction screening system to automate name screening
of all the staffs is taken at the time of recruitment for purpose of identifying customer who are PEPs or
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in the Sanction list. All accounts are screened against

Politically Exposed persons (PEP) and sanctions/negative
list database at the time of Customer On boarding as
well as these accounts are monitored daily in database.
The Bank has also installed AML Solution “CPFDS” for
transaction monitoring and alert generation. With this our
AML defenses has enhanced further.
PEP status, negative list notifications and High Risk

Customers & Industries carry dominant Risk factor and
are thus accorded High Risk classification by default
regardless of other risk factors that would have been
considered in the Risk rating process.
The Bank 's internal risk assessment of its customer

base in terms four significant business risk categories
viz. business or profession, Geographical location
(countries we do business with), customer including
PEP's, product and services, transactions or delivery
channel are suggestive of the following:
 Nepalese residents account for nearly 99.85% of the
customer base who collectively hold around 99.87%
of the total deposit portfolio. E-Banking is the difficulty in identifying the faceless
 The High Risk customers account for 0.29% of the customer doing the transaction. While these services
total customers which represents a minimal segment clearly have practical advantages for clients in terms
of the population. PEP, NGO's, NPO’s, high risk of convenience, they make it more difficult to detect
business etc. are included in this segment. High Risk laundering activities because some of the traditional
customers hold nearly 1.5 % of the total deposit methods of supervision cannot be applied. On the
portfolio. other hand, new technology and change in customer
 There are 347 identified PEPs with us as at FYE banking habits warrants robust security measures
2078/79, who hold a meager NPR 277 million of to thwart cyber-attacks. Adequate transaction
the total deposits portfolios. The Bank has not thresholds are in place for electronic Banking
maintained any account for foreign PEPs. transactions.
 The Bank has not maintained any account for  The Bank has implemented SWIFT Sanction filter for
non-resident customers belonging to "monitored its Sanctions Compliance. With this our AML/ CFT
jurisdictions" as per FATF Public Statement. The defenses have enhanced considerably. Besides, the
Bank has now maintained a list of prohibited Bank does not provide any Private Banking services
jurisdictions including list of high risk jurisdictions and also prohibits payable through account and
in terms of corruption/ bribery, crime and poor AML nested account services, which are prone to Money
controls. laundering.
 As far as geographic risk is concerned, nearly
69.36% of the deposit is concentrated in the
Kathmandu valley. The remaining deposit is held at
Urban and Rural Branches.
 Of the total customer base, 90% of the customers
are availing E-Banking / Internet Banking services.
This is indicative of slow but steady shift of customer
preference for cash less and paper less banking
transaction. The main Money Laundering concern in
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SWOT Analysis
STRENGTH
 Clearly Defined Organizational Structure.
 Public trust.
 Extensive Branch Network.
 Diversified Products and Services.
 Strong Internal Control Framework
and Code of Conduct.
 Adequate physical assets.
 Increasing trend in profitability.
 Good mix of young, energetic employees
with guidance from experienced employees.
 Emphasis on culture of innovation and
creativity.
 Innovative streak in financial technology
adoption.
STRENGTH WEAKNESS
WEAKNESS
 Implementation of sustainable branding
practices.
 Enhanced management and human
capital development required for Bank's
continued growth.
 Inadequate women-force at the Bank's
Executive level.
 Need to have its own office premises for
conduction of its Banking activities.
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OPPORTUNITY
 Possibility of an enhanced financial access among the
untapped population through its extensive Banking network.
 Possibility of the business expansion in agriculture, tourism
and infrastructure sector.
 Opportunity for rapid-adoption of Information Communication
Technology (ICT) along with Digitization.
 Opportunity of investing in high yield segments for high value
creation.
 Value Creation and enhancement by automation and
digitization.
 Implementation of Mobile Tellers.
OPPORTUNITY THREAT
THREAT
 Economic and Political Dynamics.
 Tough Competition in the Banking industry.
 Challenges in implementing different compliance issues.
 Increasing threats in cyber security and increasing cost
in IT management.
 Rapid changes in technology, financial as well as
economic scenario.
 High operational risk in the Banking realm due to
increasing dependency on technology and complexity of
transactions.
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Internal Control System and

Assurance
Banks commonly undertake a wide range of activities. However, in respect of the assets they hold that belong to other
Banks continue to have in common the basic activities of deposit persons. This may give rise to liabilities for breach of trust.
taking, borrowing, lending, settlement, trading and treasury They, therefore, need to establish operating procedures and
operations. They have custody of large amounts of monetary internal controls designed to ensure that they deal with such
items, including cash and negotiable instruments, whose assets only in accordance with the terms on which the assets
physical security has to be safeguarded during transfer and while were transferred to the Bank. They engage in a large volume
being stored. They also have custody and control of negotiable and variety of transactions whose value may be significant.
instruments and other assets that are readily transferable in This ordinarily requires complex accounting and internal control
electronic form. The liquidity characteristics of these items systems and widespread use of Information Technology (IT).
make Bank’s vulnerable to misappropriation and fraud. Banks
therefore need to establish formal operating procedures, well- Last but not the least, they ordinarily operate through networks
defined limits for individual discretion and rigorous systems of of branches and departments that are geographically dispersed.
internal control. This necessarily involves a greater decentralization of authority
and dispersal of accounting and control functions, with
They operate with very high leverage (that is, the ratio of capital consequential difficulties in maintaining uniform operating
to total assets is low), which increases Banks’ vulnerability to practices and accounting systems, particularly when the branch
adverse economic events. Likewise, they have assets that network transcends national boundaries. This is where the need of
can rapidly change in value and whose value is often difficult adequate system of inspection, monitoring and financial controls
to determine. Consequentially a relatively small decrease in come in. The audit committee, management, and the independent
asset values may have a significant effect on their capital and auditor all have distinct roles.
potentially on their regulatory solvency.
The audit committee is familiar with the processes and controls
Similarly, they generally derive a significant amount of their management has put in place and understand whether those
funding from short-term deposits (either insured or uninsured). processes and controls are designed and operating effectively.
A loss of confidence by depositors in a Bank’s solvency may The audit committee works with management, the internal
quickly result in a liquidity crisis. Banks have fiduciary duties auditors, and the independent auditor to gain the knowledge
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needed to provide appropriate oversight of various Banking Internal Audit function of Bank provides assurance to the board
operations. Likewise, the audit committee is also responsible that the organization risk management process are managing
for overseeing the entire financial reporting process. It is risks effectively in relation to the appetite. The approach followed
familiar with the processes and controls that management is not about auditing risks but about auditing the management
has established and determine whether they were designed of risk and therefore focus is on the processes applied by the
effectively. The audits of financial statements and consolidated management team which includes identifying the assurance and
financial statements as well as any assertions made in respect prioritizing the area on which the board requires the objective
to its Banking activities in its financial statements are taken into assurance. Audit department categorizes and prioritizes and
consideration throughout the auditing process. links risk to different assignments and draws up a periodic
plan accordingly and reports to the management and audit
In a nutshell, audit function of the Bank is to assess, to highlight committee. Audit committee gives assurance to the board if
and mitigate the risks that are unique to the Banking operations. management has identified, assessed and responded to risks
above and below the risk appetite or not.
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Human Capital
Being a service industry, management of people and creation for our stakeholders. Banking industry is expected to
management of risk are two key challenges for Banks. Banking take a quantum leap forward and therefore, the growth requires
has been and will always be a “People Business”. Business an enormous talent pool. We are always ready to hire the bunch
needs along with efficient risk management is not possible in the of people of different caliber and potentiality and place them in
absence of efficient and skilled manpower. such a way to get maximum output through the efficiency they
show while delivering service.
In this time and age, the very survival of the Banks depends on
customer satisfaction, which is highly dependent on being able Human Resources Department (HRD) plays an essential role in
to meet the customer expectations. Therefore, we articulate handling the employee-centered activities of an organization.
and emphasize the core values to attract and retain customer Human Resources Department of the Bank monitors and ensures
segments, which is nevertheless not possible without human that Bank’s HR policies are interpreted consistently across the
resource. Sound, reliable, innovative values needs to be organization. We create a cordial environment to achieve our
emphasized through concrete actions and it would be the Bank’s vision where employees can thrive and are enabled to deliver
human resource that would deliver this. sustainable organizational performance. People with different
backgrounds, education, skills and experiences are given
Keeping in mind the immense support from one of the most opportunities to serve our organization and create a sustainable
valuable organizational resources i.e. the human resource, we value for organization. We abide by principles of transparency in
always try to distinguish ourselves by creating our own niches recruitment, ethical work culture, open communication, objective
or images, especially in transparent situations with a high level career development and fair remuneration and performance
of competitiveness. We have continued to lay great emphasis on based pay within the Bank. We are committed to workforce
acquiring the right people, retaining/ developing the right people, diversity and have been providing equal employment opportunity
managing people and correctly handling the exit of people to to deserving candidates through fair recruitment practices.
attain global standards in productivity, thereby maximizing value
Particulars 073/74 074/75 075/76 076/77 077/78 078/79 AVERAGE

Number of employees 755 796 1,043 1,781 1,881 1,845 1,350
Number of employees per
10 8 9 10 10 9 9
branch (on an average)
Per employee business
128.78 166.32 154.35 134.39 159.99 185.59 154.91
(million)
Per employee income
1.36 1.78 1.91 1.21 1.85 2.37 1.75
(million)
Per employee cost in
0.55 0.81 0.75 0.68 0.90 1.05 0.79
million
Per employee Net Profit
0.88 1.31 1.18 0.65 1.05 1.40 1.08
in million
(FY 077/78) (New Joinees) (Retirees + Left) Total No. of Staff

1881 44 80 (FY 078/79)
1881
(Male Staff) (Female Staff)

1106 739
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KBL Medical Fund: vital for us to be a Bank that achieves sustainable growth and
Every employee under permanent-enrollment at the Bank success. The Code sets out our standards of behavior and
receives an annual medical allowance, equivalent to one month conduct to which we expect our people to adhere. Our Codes
of his or her basic-remuneration up to a fixed-sum. The said- of Conduct are at the heart of everything we do. Its success
sum is credited into the respective medical-staff accounts. depends on all employees using their judgment to navigate what
Staffs have to present relevant medical-bills along with doctor’s is sometimes a complex regulatory environment and seeking
prescriptions for re-imbursement of medical-expenses, at advice as appropriate. It also highlights that critical matters
the time of medical claim. The staff-medical accounts are should be escalated promptly and appropriately. The Code is
only operated by the Human Resources department and all designed to ensure that we conduct ourselves ethically – with
the unutilized medical balance are credited to their respective integrity, and in accordance with Kumari Bank’s policies and
accounts post retirement. Furthermore, employees can also procedures as well as the laws and regulations applicable across
utilize advance from their medical fund in case of emergency. the country. It is not meant to be referred to simply, as a set of
rules for specific situations, but as a general guide, underpinning
KBL Retirement Fund: a simple but basic principle – that we ought to do well by doing
A retirement fund refers to the monetary contribution to a GOOD and what is right. It articulates what our Bank stands for
retirement-plan of an individual or a group of individuals. A and what we want our comprehensive culture to be.
regularly contributed retirement plan/scheme can aid employees
to lead a relatively comfortable life, with adequate funds to meet Voice against Workplace Harassment
their necessary expenses, post retirement. The Bank has a
retirement fund unit, wherein 10% contribution is made by the
employee and further 10% is matched by the employer, which
equates to a total of 20% monthly contribution to Employee
Provident Fund (EPF). EPF is an autonomous provident-fund
management organization on behalf of the Government of Nepal
for all the government, public and private sector employees.
No. of Employees during the beginning of FY 2078/79 = 1881

Joined during FY 2078/79 = 44
Retired during FY 2078/79 = 80
Total number of employees at the end of FY 2077/78 = 1845
KBL Gratuity Fund:

The gratuity policy is a way for organizations to appreciate the
services provided by their employees towards the company.
We have a separate gratuity-fund management unit, called the
Kumari Bank Employee Retirement Fund, which is managed
and overseen collectively by the Employee Service & Benefits
Committee, Labor Relations Committee and the KBL Employee  Workplace Conflicts - Disagreements and disputes
Union. The contribution and benefits are awarded as per the KBL between employees happen all the time. Often, these are the
employee guidelines as a one-time gratuity payout to employees results of ineffective communication. An HR department or
who have either resigned or are nearing retirement. This is vital employee relations manager will never please everyone, but
to keeping employees happy and engaged. if frequent conflicts come up, low morale builds up within the
workforce and the issues will only get worse unless resolved.
Staff Loan Facilities:
We have some staff-loan schemes in place to help our employees  Workplace Bullying - When a simple conflict escalates
meet their personal/social/financial obligations because our into bullying, the consequences of letting this take place
employees are one of the crucial factors of business-success. at workplace are low employee performance, increased
Therefore, their well-being is of prime priority to us. Basically, the absenteeism, and bad brand reputation (not to mention legal
following loan-schemes are made available to the staffs: action). We recognize the adverse repercussions of not
 Staff Home Loan Scheme addressing such complaints, and therefore, we take such
 Staff Overdraft Scheme bullying reports seriously and launch investigations and take
 Staff Personal Loan Scheme action as required. We have zero tolerance on employee
 Staff Motorbike Loan Scheme harassment and have policy at hand to address such issues,
if/when they arise.
Other than these listed-loan facilities, various allowances such
as relocation/outstation allowance, evening and holiday counter  Workplace Safety - Promoting and immediately addressing
allowance, Teller-risk, Inchargeship, Leave fare allowance, workplace safety issues is a top employee relations concern
Bonus, Insurance and a few other allowances and incentives are here at Kumari Bank. Performance based work culture, work
awarded to eligible staffs, as per the employee-welfare schemes place safety, open communication and employee well-being
and the approval of the Board and the management, in line with is a top priority here at Kumari Bank.
the labor-laws of the country.
Adaptive Work Culture Policy
On the Culture of Voicing Concerns The past year has seen a paradigm shift in work culture of
We have a responsibility to our clients, investors, vendors, various organizations across the globe. The Covid-19 pandemic
communities and employees. Earning and maintaining the trust has compelled many employers to ask their employees to work
of these stakeholders is fundamental. We can only do this by from home. This has given rise to the need for an adaptive
always acting with integrity and holding ourselves to high work culture policy to provide greater flexibility to employees to
standards. Acting in accordance with our code of conduct is choose their work location or workplace.
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Although, this framework is already in place for some units within Developing Relations
the Bank, i.e. IT & Digital Banking department, it is yet to be An employee relations strategy is a way to create balance between
implemented organization-wide. Remote work is the future of many an organization and its employees by creating an environment
organizations and the HR sub-committee and the Central Logistics conducive to each’s needs. Employers expect productivity and
unit at Kumari Bank are working in tandem to draft an adaptive performance; while employees expect acknowledgement and
work policy, workforce & office space redesign as a whole. appreciation.
Regular Orientations and Trainings In order to realize this, the Human Resources department
When an employee joins the workforce, they are likely to have organizes various team-building activities such as Walkathon/s,
pre-conceived ideas about what is expected of them, and office picnics, corporate parties and interactive trainings
are likely to be anxious about making a good first impression. throughout the year, which creates a friendly atmosphere
Often, those ideas are based either on prior experience, on for staff members to relax and build relationships outside of
word-of-mouth, or on information the new employees have office/work settings. Such events also serve as a platform for
gathered through the media or public domain. However, expression of one’s talents and also teaches employees ways
these sources will be of no use to the new employees, if their of collaboration and coordination. Similarly, they also enhance
expectations are not at par with reality. employee engagement which has direct positive correlation to
workplace productivity.
That is exactly where the intervention of the Human Resources
department is required. The Bank’s Human Resources unit Employee Motivation Programs
conducts regular orientation sessions for the new joinees. These As part of employee motivation and rewards program, the
sessions serve to introduce new hires to their jobs, colleagues Bank conducted 105 different trainings in the FY 2077/78, and
and the organization. Such sessions will also inform the new 1682 staffs benefitted from it. The training sessions addressed
joinees about the company culture, how they fit into it, and how various specific soft skill-training topics as well as enhancement
they can contribute towards realization of organizational goals. of leadership qualities and, to strengthen technical knowledge
This way, the new employees will have basic organizational pertaining to the job. Employees are regularly rewarded through
information to be prepared for their new team, department and increments and promotion to keep them motivated.
roles within the company.
Furthermore, the Bank has awarded 489 number of promotions
Such sessions help new hires better adapt to the company to deserving candidates working in various levels at the
culture. The sooner the workforce understands company roles Bank, in recognition of their exemplary contribution towards
and procedures and have in-person interactions, the faster they Bank’s growth. We encourage a culture of open communication,
will become ready to work and contribute in meaningful ways. where employees can freely express their ideas and share
At Kumari Bank, we believe this will help us retain valuable talent grievances, if any with the senior management.
within the organization for longer periods. Regular trainings is being
provided to working staff to enhance their knowledge ands skills.
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On Combating Financial Threats

Financial crime is defined as crime that is specifically committed
against property. It often involves an unlawful conversion of the
ownership of property for one’s own personal use and benefit.
These crimes are almost always committed for the personal benefit
of the criminal, and they involve an illegal conversion of ownership
of the property that is involved. Financial crimes can occur in
many different forms and takes place across the globe. Some of
the most common crimes faced in the financial sector are money
laundering, terrorist financing, fraud, tax evasion, embezzlement,
forgery, counterfeiting, and identity theft. These crimes are
committed every single day, and governments across the globe
are constantly prosecuting financial criminals while searching for
ways to mitigate the prevalence of such heinous crimes.
Such crimes involve activities like identity-theft, credit and debit

card frauds, tax-evasion, forgery, embezzlement, etc and extend
to computer crime, elder abuse, burglary, armed robbery, and
even violent crimes such as robbery or murder. Financial crimes
may be carried out by individuals, corporations, governments,
and even entire economies.
We need to keep money laundering and financial crimes in

check because of its detrimental effects to our community. As
an industry built on the proceeds of corruption and crime, it
bears detrimental effects to the integrity and foundation of a law-
governed, righteous society. It has been a pivotal issue in the Criminals involved in money-laundering also provide financing to
global arena for several decades now, with authorities constantly terrorist-activities generally use very sophisticated techniques,
looking for new ways to track down and prevent financial crime, which are often difficult to detect and catch. Both of these crimes
and criminals continuously developing innovative tactics in order are often international, as money launderers and terrorist financiers
to stay ahead. As a responsible and aware citizen, it is critical to rely on trans-border movement of such funds to facilitate their
understand what financial crime is and how it works. plans. Moreover, it is very common for these criminals to make
use of corrupt connections in government and businesses, etc.
The two most prevalent types of financial crime faced today are these could include financial institution employees, accountants,
money laundering and terrorist financing. While the term “money government officials, and other service providers.
laundering” is fairly straightforward, terrorist financing is bit more
complicated. In essence, though, money laundering is simply In order to mitigate these unlawful and detrimental practices,
the act of disguising funds/proceeds, obtained from predicate the Bank employs a strict framework to screen and mitigate the
offence. Cartels and mafia groups are some of the most incorporation of such dirty-money (illegitimate and undisclosed
prominent money launderers in popular news media, but money sources of fund) through proper KYC procedures and transaction
laundering can also extend beyond organized crime-groups to monitoring. The co-ordinated approach of the Bank’s Operations
inconspicuous money-mules and instant payment mechanisms. and Compliance unit along with other departments renders it
possible. At the initial phase of account-opening, post collection
We need to keep anti-money laundering endeavors in check of an individual’s data, the individual/potential customer details
because it injures the basic foundations of the comprehensive goes through a Sanction and PEP (Politically Exposed People)
financial industry. Unchecked money laundering changes the search in an international database through a screening-
demand for money, risks to Bank soundness, contamination software called Accuity Web.
effects on legal financial transactions, and increased volatility
of international capital flows and exchange rates due to “Name Screening refers to the process of determining whether
unanticipated cross-border asset transfers. Also, as it rewards any of the Bank’s existing or potential customers are part of
corruption and crime, successful money laundering damages any blacklists or regulatory lists.” Once the name gets through
the integrity of the entire society and undermines democracy the initial searches, the risk-profiling of the customers is done.
and the rule of the law. This ensures that PEP and high-risk customers can be vigilantly
monitored at all times, once they’ve entered the mainstream
As a safe-keeper and mobilizer of public funds, Banks need to financial system. This ensures that the identity of the customer
maintain high-standards of integrity, transparency and good does not match with any person with known criminal-background
faith to ensure public-faith and sustainability of the entire or with banned entities such as terrorist individuals or terrorist
Banking realm. Hence, banks and financial institutions have organizations. Under the Bank’s risk-mitigation framework,
exercised prompt implementation of anti-money laundering and various policies, procedures and framework for identification
financial terrorism combat mechanisms. It is imperative that of particularly high-risk customers from Money Laundering and
Banks adhere to principles of accountability, transparency and Reputation Risk Perspective (e.g. Politically Exposed Persons
compliance with all regulatory requirements and disclosures. (PEPs), persons, entities located in high risk locations, etc.) as
It is of utmost importance to gain public trust as well as the well as conduction of enhanced due diligence in dealings with
confidence of the government and all regulatory bodies. customers under the listed categories.
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Name screening is used to identify such individuals and profile  Counter parties to the cross-border transactions (i.e. remitters,
their risks in the Bank’s records through the use of CPFDS beneficiaries, intermediary banks, other intermediaries,etc.) in
(Customer Profiling and Fraud Detection System) software. Upon remittance or trade transactions are screened.
completion of the name-screening, risk-profiling takes place and  High-risk customers or suspicious transactions reviews are
an enhanced customer due-diligence (ECDD) is done. Besides subject to enhanced due diligence and vigilant monitoring.
the KYC details of the direct customer, additional documents are
collected, analyzed and input into the system. International operating guidelines dictate that less than 5% of our
customers can fall under the high-risk category. If the rate exceeds
Further documents for ECDD include: the prescribed rate, chances of business ties with international
1. Details of immediate family members (Parents, Spouse and alliances and Nostro Banks being severed arises, resulting in
children) reputational as well as business-risk. As of date, less than 1% of
2. Evidence of Income-Source our total customers are profiled as high-risk customers.
3. Proof of Verified Address
Nostro dealings are sensitive-cases because foreign alliances
We implement the Three Lines of Defense model wherein screening, are strict about deviations from prescribed regulations and
risk-assessment and control through the Bank’s branches, even minute deviations can result in massive business losses.
relationship officers and the customer care and grievance-handling The details of the BOD members and select-members with
unit is the first line of defense. Similarly, the various risk controls considerable authority/influence over the organizational activities
and compliance oversight unit put in place by the management
are the second line of defense. This line-of-defense provides
policies, frameworks, tools, techniques and support to enable risk
and compliance to be managed in the first line, conducts effective
monitoring, and helps ensure consistency in parameters of risk-
measurement. Likewise, within this framework, independent
assurance via internal audit acts as the third line of defense.
Audit controls, which lie outside the risk management processes

of the first two lines of defense, ensure that the first two lines
operate effectively and advise on how they could be enhanced.
Tasked by and in direct reporting line to the Board/Audit
committee, they provide an evaluation, through a risk-based
approach, on the effectiveness of governance, risk management,
and internal control to the organization’s governing body
and senior management. It can also give assurance to sector
regulators and external auditors that appropriate controls and
processes are in place and are operating effectively.
The key-methods being currently used to combat such financial

crimes is extensive monitoring and reporting of suspicious
cases through use of sophisticated-technologies. The use of
sophisticated technology and global databases have made
it easier to catch criminals in the act as it allows financial
professionals to quickly gather, organize, and view data
regarding accounts and dubious transactions.
GoAML basically refers to a software/screening portal devised

by our regulatory body, Nepal Rastra Bank, which helps us
input, report and record all relevant data and information related
to a suspicious transaction or a customer, including the details
of depositor, beneficiary or third-party involved in a financial
transaction. Procedures like sifting through lists of Politically
Exposed Persons and other individuals who are at high-risk of
committing financial crimes, and compilation of such information
in an organized and comprehensive manner help us prevent
easy-integration of such proceeds-of-crime into the legitimate
financial system. Generally, money-laundering or terrorist-
financing is done in the following manner:
Extreme vigilance and care is taken, during each phase of every

transaction to prevent or disrupt the mechanism-listed above.
Proper frameworks regarding timely and regular updation and
disclosure of our KYC details to the NRB are in place along with
a few other cautionary measures:
 New customers are screened at the time of account-opening.
 Screening of legacy customers, i.e. screening of the bank’s
existing customers is done at regular intervals.
 Employees are screened as a part of their pre-recruitment
process, besides routine-screening of the existing employees.
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are updated annually in the records sent to existing and new concern, if proper risk-assessment and internal controls are to be
Nostro alliances. The documents include details such as: maintained and adhered to. The Risk and Compliance unit oversees
 Academic/Educational Qualifications these procedures, in coordination with other departments of the
 Details of business/es (if any) Bank. We are committed to ensure financial integrity, transparency
 KYC Documents and rigorous adoption of AML/CFT guidelines and frameworks to
 Details of immediate family members help retain the integrity of our financial systems.
 Evidence of Income-Source
 Proof of Verified Address Furthermore, our clearly defined roles and responsibilities across
the organization helps keep conflict of interest in check. This
Besides, regular disclosures to our correspondent Bank and is crucial, because such circumstances lead to compromised
the regulatory bodies, we also obtain updated information and professional judgements or actions and impacts the integrity of
relevant disclosures from our alliances, before venturing into any decision-making. By containing conflicts of interest via clearly
business collaborations. We recognize that proper disclosures defined organizational roles and framework risk-governance, we
of the company’s culture, governance, organizational structure, at Kumari Bank strengthen compliance and ethics and induce a
executive management team and management policies is a dual- culture of accountability throughout the organization.
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FINANCIAL
INFORMATION
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FINANCIAL INFORMATION
1. Annual Report of the BOD .....................................95
2. SEBON Declaration .............................................106
3. Audit Report of KBL ............................................107
4. Financials ...........................................................111
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ANNUAL REPORT OF BOARD OF DIRECTORS

22nd ANNUAL GENERAL MEETING
Dear Shareholders,
We would like to cordially welcome all shareholders, invited representatives, auditors, journalists, and staff on behalf of the Board of
Directors present here today at the 22nd Annual General Meeting (AGM) of Kumari Bank Ltd.
In this 22nd Annual General Meeting (AGM) of the Bank, we would like to present you with the financial statement for the FY 2078/79.
Together with the annual report, we shall make here a brief presentation on the achievements of this Bank in the current FY and the
plans for the future. Upon learning the mixed experiences of the past, we have completed 22 years of our inception by employing the
challenges and opportunities in the Bank's favor as the time demands. We always nurture the objectives to render quality services
to our customers, to give optimum returns to the investors, to maintain good governance and moral conduct within the institution,
and to fully comply with the laws and rules put in place by the nation. We extend our sincerest thanks to those who have helped and
wished our best, directly or indirectly, in the successful realization of these goals. This Bank has succeeded in becoming a successful
and strong institution due to the invaluable support and partnership of people like you. We express our trust that even in the days to
come; you will be equally contributing towards the progress of the Bank.
The major financial indicators till the date of preparation of the balance sheet are as follows:
1. Review of the Financial Indicators of previous years

Table 1: Financial Synopsis of the Bank in the past 5 years.
Amount in Million
Paid-up Capital 7,163.39 8,685.57 12,520.04 13,878.47 14,711.18
Deposits 69,651.22 84,403.34 124,220.03 157,177.86 182,962.19
Loans and Advances 62,740.97 76,584.77 115,133.98 143,772.00 159,444.13
Investments 9,022.93 9,341.56 17,660.63 23,072.96 23,420.09
Fixed Assets (Net) 544.76 759.49 1,590.90 1,456.13 1,341.19
Total Assets 82,723.55 105,311.48 145,971.94 189,792.40 212,108.43
Net Interest Income 2,006.02 2,869.95 3,573.19 5,077.51 6,217.16
Other Income 637.89 809.81 900.08 1,633.78 1,723.98
Operating Expenses 1,228.75 1,653.64 2,289.58 3,191.38 3,551.56
Operating Profit/(Loss) before Loan Loss Provision 1,420.41 1,994.26 2,147.86 3,481.07 4,369.57
Net Profit 1,046.49 1,230.37 1,158.50 1,970.73 2,579.80
Non-Performing Loan Ratio (%) 1.05 1.01 1.39 0.96 1.11
The Bank's financial indicators of the past years have been positive, systematic, and progress-oriented. In recent years, non-
performing assets have become very manageable, while the bank's business activities are growing at a limited rate with proper
assessment of risk. Due to the unpredictable ups and downs of Nepal's financial market, political environment, industry, etc.,
we have always been making the concept that we should have balanced and sustainable growth in our business.
Compared to 2077/78, loans, deposits, and investments have increased by 10.90 %, 16.40 %, and 1.50 % respectively in FY
2078/79 and those figures have reached Rs. 159 billion 440 million, Rs. 182 billion 960 million and Rs 23 billion 420 million
respectively. Likewise, the net interest income increased by 22.45 % to Rs. 6 billion 210 million while operating expenses increased
by 11.29 % to Rs 3.55 billion. In FY 2078/79, operating profit before loan loss provisions increased by 25.52 % to Rs. 4.36 billion.
In this way in FY 2077/78, Net profit was Rs. 1.97 billion. In FY 2078/79, it increased by 30.91 % and reached Rs. 2.57 billion.
Here are charts of some key financial indicators of the bank for the last five years.
Amount in Million
Paid-up Capital Reserves & Surplus
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Capital Adequacy Ratio (%) Non Performing Loan Ratio (%)
Deposits Loans and Advances
Investments Total Assets
Net Interest Income Other Operating Income
Operating Expenses Operating Profit Before

Loan Loss Provision
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Net Profit
2. Review of International and National Economy:

Due to the economic recession, the global economy, which is relaxed and stable, is gradually improving and dynamic in recent
years, but the Covid-19 epidemic that has spread globally since the beginning of 2020 has caused a humanitarian crisis as well
as economic problems around the world and its effects are still being felt. Meanwhile, before the impact of the Covid epidemic
subsided, economic activities have been affected worldwide due to the war between Russia and Ukraine. There has been
a significant increase in the prices of petroleum products and food items. Global trade activity and capital flows have been
affected. This has added challenges to the global economy that is recovering from the effects of Covid-19, which is expected
to increase poverty, unemployment, and income inequality.
The direct and indirect effects of the changes in the world economy have also affected the Nepalese economy. In the context
of Nepal, due to the pressure on price and external sector stability and the shrinking of investable resources, a challenge has
been created in the direction of achieving a high economic growth rate along with the revival of the economy. In the FY 2078/79,
the average inflation seems to remain within the target range, but due to the increase in the price of fuel and food items, high
inflation in neighboring countries including the world, disruption in the supply system, and the weakening of the Nepali currency
against the US dollar, inflation has started to increase recently.
Due to the country's weak production capacity and increasing consumption trend, it is estimated that the share of imports in
the gross domestic product will reach 40% in the FY 2078/79. In addition to the objective account, the service account deficit
is also increasing. The current account deficit is seen to reach around 13% of the GDP. A big difference has appeared between
the foreign currency entering the country through the export of goods and services, remittances inflow, foreign investment, and
foreign aid mobilization and the foreign currency going out of the country through the import of goods and services. The growing
trend of imports and the decrease in foreign exchange reserves have created pressure on external sector management. As the
foreign exchange reserves decrease due to the current account and current account deficit, there is pressure on the liquidity of
the banking system as well as an increase in the interest rate.
In a country like Nepal with a small and import-based open economy, sustainable economic growth can only be achieved
by maximum utilization of financial resources if external sector stability can be ensured. A country that has adopted a fixed
exchange rate as a policy constraint and the external sector is under pressure, it is inevitable to balance the monetary expansion.
Based on the theoretical interrelationship, when the monetary sector expands, it can expand the internal demand, increase the
current account deficit and further weaken the external sector. Keeping in mind the above-mentioned theoretical basis and the
challenges seen in macroeconomic stability, the policy should be formulated keeping the pressure on the external sector mainly
due to the pressure on prices and the increasing current account and current account deficit.
Due to the Russia-Ukraine war, it is seen that the growth rate of the world economy will decline. According to the International
Monetary Fund, the growth rate of the world economy, which expanded by 6.1 % in 2021, is seen to be limited to 3.6 % in 2022.
The Fund forecasts that the growth rate of developed economies will be limited to 3.3 % in 2022 compared to 5.2 % in the
previous year, and the growth rate of emerging and developing economies will be limited to 3.8 % in 2022 compared to 6.8 %
in the previous year.
The International Monetary Fund has forecast that the average inflation rate of developed countries in the past decade is 1.5
% and will reach 5.7 % in 2022. Similarly, in emerging and developing countries, the average inflation rate for the past decade
is 5.1 %, and the fund forecasts that it will reach 8.7 % in 2022. The International Monetary Fund has forecast that the growth
rate of world trade volume, which expanded by 10.1 % in 2021, will be limited to 5.0 % in 2022.
Most countries have adopted expansionary monetary and financial policies to face the challenges seen in the world economy.
Despite the decline in the growth rate of the economy and the increase in prices seen in the world economy due to the
uncertainty created by the Covid-19 crisis and the Russia-Ukraine war, many countries have adopted moderate monetary and
financial policies to facilitate economic activities.
The mentioned scenario seen in the national economy of the country is also seen to have an impact on the bank's business.
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Gross Domestic Product

According to the Central Statistics Department, the real gross domestic product growth rate in the FY 2077/78 is 4.25 % at
basic prices. In the FY 2078/79, such a growth rate is projected to be 5.84 % in the basic price. In the FY2078/79, the ratio of
gross domestic savings to gross domestic product is estimated to be 9.27 % and the ratio of total national savings is estimated
to be 31.95 %. In the previous FY, these ratios were 7.71 % and 33.30 % respectively. In the FY 2078/79, the ratio of total fixed
capital formation to gross domestic product is estimated to be 29.37 %. In the previous FY, this ratio was 29.85 %.
Inflation
In Jestha 2079, the annual point of consumer inflation was 8.56 %. In the eleven months of the FY 2078/79, the average
consumer inflation is 6.09 %. In the same period of the previous year, such inflation was 3.60 %.
Services
The services include wholesale and retail trade, hotels and restaurants, transportation, communication and storage, financial
intermediation, real estate and business services, public administration and defense, education, health, and other community
and personal service sectors. In FY 2077/78, the service sector's contribution to the gross domestic product is on an average
of 61%.
Foreign Trade, Remittance Flow, Current Account and Balance of Payments

The total export in the 11 months of FY 2078/79 increased by 53.3% to NPR 185 billion 840 million, while the total imports
increased by 27.5% to reach NPR 1763 billion 220 million. As such, in the review period, the total trade deficit had surged by
25% as compared to the previous year, thereby reaching NPR 1577 billion 390 million. In other words, the size of imports is
bigger than the size of exports thereby contributing to surge in total trade deficit.
The remittance inflow in the 11 months of the previous year has surged by 12.6%. The remittance volume in the 11 months of
FY 2078/79 amounted to USD 7.51 billion, which is an increase of 1.5% from the same review-period last year. The number of
workers migrating for foreign employment after the containment of Covid-19 pandemic has had a direct effect in the surge in
remittance flow in the review year.
The loss in current account stands at NPR 595 billion 730 million in the first 11 months of the year in review, while the balance
of payments stands at NPR 269 billion 810 million. The current account deficit was NPR 298 billion 110 million and the balance
deficit was 15.150 billion for the same period of the previous year.
Foreign Exchange Reserves

As compared to Ashadh end last year, the total foreign exchange reserve has depreciated by 6.64% by the end of Ashadh end
of FY 2078/79, with purchase rate for 1 USD reaching NPR 127.51.
The total forex reserve stood at NPR 1207 billion 800 million (USD 9 billion 450 million) in the FY 2078/79. Based on the imports
of 2077/78, the foreign exchange reserves currently maintained in the Banks is predicted to be sufficient to fund the imports in
goods and services for 6.73 months.
Government Expenditure, Revenue and Internal Debt Mobilization

According to the public statement from the Office of the Controller and Auditor General, the current expenditure of the Federal
Government stood in the FY 2078/79 stood at NPR 961 billion 470 million, capital expenditure at NPR 216 billion 370 million
and expenditure on financial management at NPR 118 billion 40 million with a total of NPR 1296 billion 240 million having been
spent. Likewise, revenue collection stood at NPR 1067 billion 960 million during the period in review.
In the FY 2078/79, the Government of Nepal mobilized a total internal debt of NPR 231 billion 300 million and the principal
payments of NPR 47 billion 330 million alongside net domestic debt of 183.97 billion, which accounts for 4.8% of the GDP.
As of Ashadh end 2079, the total internal debt of the Government of Nepal had increased by 22.9% at NPR 984 billion 280
million, compared to the figure of NPR 800 billion 320 million for the same period last year.
Deposit Collection
In the eleven months of the FY 2078/79, the deposit mobilization of banks and financial institutions has increased by 5.7%,
which amounts to Rs. 266 billion. During the same period of the previous year, deposit mobilization amounted to Rs. 588 billion.
Banks and Financial institutions in the first eleven months of FY 2078/79 issued debentures of Rs. 23 billion 380 million. In the
same period of the previous financial year, Banks and Financial institutions issued debentures of Rs. 37 billion and 100 million.
Credit Flow
In the eleven months of the FY 2078/79, the loans disbursed by Banks and financial institutions have increased by 13.5 %,
which equals to Rs.553 billion, compared to the same period last year. During the same period of the previous year, the amount
of loans disbursed came to be Rs. 799 billion. The average non-performing loan ratio of Commercial Banks in Chaitra 2078 was
1.32 %, the same ratio was 1.49 % for Development Banks and 7.0 % for Finance companies. By the end of Ashadh 2078,
these ratios were at 1.41 %, 1.30 %, and 6.19 % respectively.
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Capital and Capital Fund Adequacy

At the end of Ashadh 2079, the paid-up capital of banks and financial institutions increased by 11.47 % compared to Ashadh
2078 and reached Rs. 407 billion 780 million. Similarly, during this period, there was an increase of 10.79% in the capital fund
reaching the figure of Rs. 618 billion 790 million.
By the end of Ashadh 2079, the capital adequacy ratio of Commercial Banks stood at 13.53 %, the same ratio stood at 13.10%
for Development Banks, and 17.75% for Finance companies. By the end of Ashadh 2078, these ratios stood at 14.13%,
13.14%, and 22.04% respectively.
Liquidity Management
In the FY 2078/79, there was liquidity flow worth Rs. 9702 billion 410 million in the market. The said-liquidity flow comprised of
repo worth Rs. 476 billion 390 million, direct purchase of Rs. 55 billion 920 million, and SLF worth Rs. 9170 billion 110 million.
Interest Rate
The weighted average interest rate of 91-day treasury bills in Ashadh 2078 was 4.55 % and the weighted average interbank
rate among commercial banks was 6.66 % in Ashadh 2078. These rates were 10.66 % in Ashadh 2079 and 9.39 % in Jestha
2079 respectively.
In Jestha 2078, the weighted average interest rate of Commercial Banks' loans was 8.46 % and the weighted average interest
rate of deposits was 4.72 %. In Ashadh 2079, the weighted average interest rate of loans was 11.54 % and the weighted
average interest rate of deposits was 7.34 %.
Merger/Acquisition
After NRB encouraged Banks and Financial Institutions to go for mergers and acquisitions, a total of 245 banks and financial
institutions had undergone for mergers and acquisitions and by the end of Ashadh 2079, the number of BFIs shrank to 67. In
the FY 2078/79, one of the Commercial Banks acquired another commercial bank and began its joint-operations.
In the meantime, in accordance with Nepal Rastra Bank's merger policy, Kumari Bank also underwent merger process with
Nepal Credit and Commerce Bank Ltd. On September 26th of the current year with the intent of enhancing its competitive edge
in the Nepali Banking sector, and the agreement regarding the merger has been completed. After the merger of Kumari Bank
and Nepal Credit and Commerce Bank, the integrated entity will be operated under the name of Kumari Bank Limited. As a
result of this merger, the Bank will become stronger and the shareholders on both sides will mutually benefit and this move is
expected to have a positive impact in the Nepali Banking sector and the country's economy, as a whole.
Branch Expansion
Financial access has increased with the expansion of branches of banks and financial institutions. The number of branches of banks
and financial institutions increased from 10,683 at the end of Ashadh 2078 to 11,528 at the end of Ashadh 2079. During the period,
the population per bank branch decreased from 2,844 to 2,532. Commercial bank branches have expanded to 752 local levels.
Capital Market
The NEPSE index, which stood at 2883.41 at the end of Ashadh 2078, has remained at 2009.46 at the end of Ashadh 2079.
Similarly, at the end of Ashadh 2078, the market capitalization was Rs. 4010 billion 960 million; at the end of Ashadh 2079, it was
Rs. 2869 billion 340 million.
Instrumental diversification has started in the securities market as Commercial Banks have been encouraged to mobilize financial
instruments by issuing long-term bonds. In the eleven months of the FY 2078/79, 7 commercial banks have received approval for
debenture issuance worth Rs.10 billion 880 million, while one of the Development Banks has received approval to issue debenture
worth Rs.400 million with the total permitted bonds issuance equaling Rs. 11 billion 280 million. By the end of May 2079, financial
instruments worth Rs. 123 billion 760 million have been mobilized through bonds issued from Banks and Financial Institutions.
In addition, permission has been granted for the public issue of debenture securities worth Rs. 28 billion 150 million, including
mutual funds worth Rs. 6 billion 900 million, ordinary shares worth Rs. 6 billion 510 million, and rights shares worth Rs. 3 billion
46 million.
(Source: - Nepal Rastra Bank - Based on monetary policy for the FY 2079/80)
3. Review of the Performance of the Bank for the FY 2078/79 and opinion on what to do in the Future:
Analyzing the financial statements of the review period, it is clear that the bank's business is continuously increasing in a
balanced manner. Thus, due to the increase in transactions, the size of the bank's balance sheet last year, compared to an
11.75 % increase in the present financial year to reach Rs. 2012 billion 100 million 840 thousand.
A. Capital Management: The current paid-up capital of the bank is Rs.14 billion 710 million.
B. Deposits: Deposits increased by 16.40 % during the review period compared to the previous FY and total deposits reached
Rs. 182 billion 962 million 100 thousand at the end of 2079.
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Table 2: Comparative position of bank deposits.

Amount in Million
Percent of Total Percent of Total Increased Increase in
Deposits FY 2078/79 FY 2077/78
Deposits (%) Deposits (%) Amount Percent
Current 14,806 8.09 25,384 16.15 (10,578) (71.44)
Savings 34,892 19.07 40,655 25.87 (5,763) (16.52)
Call 14,716 8.04 10,678 6.79 4,038 27.44
Fixed 118,548 64.79 80,461 51.19 38,087 32.13
Total 182,962 100 157,178 100 25,784 14.09
C. Loans, Equity, and Surplus: At the end of FY 2077/78, the total loan of this bank was Rs. 143 billion 770 million at the
end of the review year with an increase of 10.90 %. The said-figure has reached Rs. 159 billion 444 million. The bank has
been diversifying its loans by providing personal loans, educational loans, SME loans, agricultural and productive-sector
loans, deprived sector loans, corporate loans, and development project loans. During the review period, the ratio of non-
performing loans to the total loans of the bank is 1.11 %. Despite the increase in loan investment in the year under review,
a significant amount of problematic loans have been recovered. But as per the instructions of Nepal Rastra Bank, the non-
performing loan ratio of the bank have increased in comparison to last year. We would like to inform you here that the Bank
is proactively working to make the non-performing loans of the bank more regularized.
D. Investment: Following the bank's objective of earning returns from the overall resources while maintaining balanced
liquidity, the bank's policy of investing in risk-free assets (treasury bills, development bonds, etc.) issued by the Government
of Nepal and Nepal Rastra Bank has been continued. The bank has been cautiously investing in local and international
currency markets and shares and bonds of various institutions, Rs. 2.22 billion in Treasury Bills of the Government of Nepal
and Rs. 19.12 billion in development bonds. The total investment of the bank equates to an approximate figure of Rs. 23
billion 420 million 100 thousand at the end of FY 2078/79. The bank has also invested in the shares of some organizations.
E. Profit: In the year under review, along with the increase in the overall business of the bank, there has been a good increase
in all avenues of income. In addition, during the year under review, the increase in operating expenses has been contained
to 11.29% and some non-performing loans have been recovered. Compared to FY 2077/78, interest income from loans and
investments have increased by 43.66% to Rs. 18 billion 350 million in FY 2078/79, while the interest expense has surged by
57.65% to Rs. 12 billion 130 million. Thus, in FY 2078/79, the net interest income of the bank experienced an increase of 22.45
% to reach Rs. 6 billion 210 million. Fees and commission income received by the bank for loans and other services increased
by about 8.10% and reached Rs. 810 million, while the foreign exchange income decreased by 10.20% to Rs. 370 million.
As such, the total operating income of the bank in FY 2078/79 stood at Rs. 7 billion 940 million, which is an increase of about
19.50% compared to the previous year. Similarly, if we look at staff expenses and overall operating expenses of the bank, the
figures have increased by 15.27% and 6.87% to Rs. 2 billion 330 million and Rs. 1 billion 210 million respectively. Likewise,
in FY 2078/79, the bank's operating profit before loan loss provision increased by 25.52% compared to the previous FY and
reached a figure of Rs. 4 billion 36 million in FY 2077/78. The net profit of this bank was Rs. 1 billion 970 million 700 thousand,
which saw a surge of 30.91% to reach a figure of Rs. 2 billion 57 million in FY 2078/79.
F. Contribution to Government Revenue: The bank had contributed Rs. 830 million as corporate tax paid in the previous
year, which in FY 2078/79 amounts to Rs. 1.16 billion of corporate tax payment.
G. Products and Services: Kumari Bank has been developing its products and services on time keeping in mind the changes in
technology and the needs of its customers. Currently, the bank offers services such as Kumari Dhanabriddhi Savings Account,
Kumari Gajjab Savings Account, Kumari Remit Savings Account, Kumari Parivar Suraksha Savings Account, Citizen Savings
Account, Kumari Swasth Jeevan Savings Account, Share Demat Account, ASBA System, Internet, and Mobile Banking,
Prepaid cards and various other savings accounts with attractive features. The bank has been providing remittance services
in collaboration with a total of 40 remittance companies. Out of which 14 are international companies and 26 are national
companies. The bank has more than 2,500 remittance agents and more than 16,000 remittance payout locations.
This bank is constantly striving to deliver its products and services easily to its customers. This bank has been providing
services to its beneficial customers and as per their needs in the current competitive market. It is well known that this bank
has been providing various types of latest and modern products and services since its inception. The bank has succeeded
in making a unique position in the financial market by using modern technology in the services it provides. Our Visa Electron
and Dollar Debit Cards are accessible in Nepal, India, and all over the world through Visa's network and Kumari Fonepay
has been providing credit services using the latest technology.
H. Branch Expansion: The bank has opened an additional 3 branches and brought 20 extension counters into operation
in this financial year. At present, the bank has 48 branches inside Kathmandu Valley and 151 branches with total of 199
branches. Similarly, the bank currently has 36 extension counters and a total of 195 Automated Teller Machines (ATMs)
operating throughout the country.
I. Corporate Governance: We have always given high priority to corporate governance and ethical conduct. As a profit oriented
organization, the majority of shareholders and depositors, qualities such as discipline and ethical behavior are crucial. Being
aware of the fact that corporate governance is the guiding principle of the bank's administrative operations, the board of
directors are constantly promoting strong and transparent corporate governance in all other activities of the bank.
J. Risk Management: A separate risk management committee is in place to identify the inherent risks in the bank and timely
management of future risks.
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Policy guidelines have also been created and implemented for the management of numerous risks that have occurred and
are likely to occur in connection with banking transactions. The bank has taken a policy to strengthen and make the internal
control system more effective by properly managing the credit, operational, market, and other risks inherent in its business.
Arrangements have been made to prepare and implement the necessary policies, rules, and circulars in various subjects
related to credit management, customer identification, stress test, credit protection, and daily transactions.
i. Credit Risk Management: A separate credit risk management department has been set up in the bank for the timely
identification of credit-related risks. Before disbursing the loan, this department makes a detailed study of all the risks
related to the loan, the standards set by the regulatory body, and the compliance with the internal policy rules of the bank,
including the sectoral and concentrated risk of the borrower. This department studies the current situation and predicts
the risks that may come in the future and based on that, recommends amending the internal policy rules of the bank,
reorganizes the loan portfolio, and also determines the classification of loans, loan sectors, debtors, etc. based on the risk.
ii. Operational Risk Management: Operational risk is always present in banking transactions. With the development
of technology comes new risks, which cannot be eliminated. To properly manage such risks, the bank's policies and
rules and internal control system should be tight and sound. For operational risk management, the bank has a separate
operational risk management department. This department has been timely identifying potential risks related to the
bank's internal system, process, and manpower; providing necessary opinions, suggestions, and consultations for
their mitigation. All activities related to the operation of the bank are based on the prescribed rules and clearly defined
procedures and workflows. Due to this, we are confident that operational risk is properly managed.
iii. Liquidity Risk Management: Taking the experience of the unexpected fluctuations in liquidity experienced in the past
and the impact on the net interest income of the bank as an experience, a detailed study of the current and future
liquidity conditions was carried out, and accordingly the bank collected deposits, determined interest rates in the short
and long term. Timely investment strategies have been made. The Bank's internal Asset Liability Committee (ALCO/
Pricing Committee) reviews this type of risk.
iv. Market Risk Management: The bank is always aware of the elements related to market risk and the bank regularly
analyzes such elements and formulates the corresponding strategy. To minimize the risk that may occur due to changes
in the foreign exchange rate, the bank has made a policy and procedure to regularly monitor the situation of foreign
exchange. In addition, the market interest rate is also regularly reviewed and the necessary policy rules are made. The
Bank's internal Asset Liability Committee (ALCO/Pricing Committee) reviews this type of risk.
K. Corporate Social Responsibility: As a responsive and responsible corporate citizen, Kumari Bank continues to accord
crucial importance to our CSR undertakings and engagement. The Bank makes special contributions in multiple sectors,
with core-focus in 4 areas, briefly discussed as under:
i. Education
 The Bank has established a Kumari Education Fund, as a gesture of support for attainment of higher education
of living Goddess, ‘Kumari’, residing at Kumari Ghar, Basantapur. Bank makes an annual contribution of NPR
100,000.00 into the account.
 Kumari Bank has extended financial-assistance to several public schools in remote areas of the country for the
school’s infrastructural enhancement.
 The Bank has extended financial-support in the form of educational scholarships to 2 deserving students, who
belong to economically challenged families, and are enrolled at Shree Satya Sai Vidya Ashram, Pokhara. The said-
scholarship covers full annual educational expenses of the said-students.
 On the occasion of the Bank’s 21st anniversary, several financial and banking literacy sessions were conducted by
the Head-Office unit and the branches, across Nepal.
 The Bank has extended financial-support of NPR 452,000.00 for video-production on the subject of "drug abuse"
to increase public awareness on the topic, with the intention of combating such fatal social issues. The said-video
featured “Maha Jodi” and was jointly-produced in collaboration with other BFIs as a public service.
ii. Health:
 Kumari Bank Ltd conducted a health camp in the Bhojpur area keeping in mind the health of the customers and
residents.
 Bank rendered financial-assistance worth NPR 10 lakhs to facilitate smooth operations of primary healthcare hospitals
providing free primary medical services in remote areas of Nepal, namely in the Jajarkot and Sindhupalchowk region.
 Bank organized a free Antigen test camp to detect Covid-19 for its frontline employees and the local denizens.
 Bank provided financial-support to the Snakebite Treatment Center at Rapti, Sunsari in collaboration with the local
committee and the Nepali Army.
iii. Heritage:
 In view of fostering local traditions and customs, Bank provides frequent financial-assistance for conduction of
various local jatras, festivals and pujas organized by the local community.
 Dhulikhel branch set up a water and juice-distribution stall for the devotees attending the local Nava Durga Puja,
which is annually celebrated in a grand-manner in the region.
 Bank has rendered financial-support for the structural reform of local temples and places of worship, as its
contribution to encourage the preservation of our Culture and Heritage.
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iv. Environment:
 Bank organized an afforestation-drive in collaboration with the Rotary Club of Kathmandu West at various places,
in proximity to the Bank branches.
 Bank has also extended financial support to Society for the Prevention of Cruelty to Animals Nepal (SPCA), an
organization committed towards protection and care of stray and abandoned animals.
In addition to the activities outlined above, the Bank has rendered financial and in-kind support to various campaigns related
to disaster-preparedness, disaster management, rehabilitation of historic ruins, places of worships and several fundraisers
pertaining to noble causes, on its own or in collaboration with the local governing bodies, youth clubs, NGOs and INGOs.
L. Sub-committees formed by the Board of Directors:

As part of our internal control system, culture and good corporate governance and to ensure timely realization of the Bank’s
goals and objectives, staying compliant to the prevailing laws and policies adopted by the Bank, the following committees
and sub-committees are currently active in the Bank:
i. Audit Committee :
Pursuant to Section 164 of the Companies Act, an audit committee led by the director Ms. Anuradha Chaudhary and
comprising of director Professor Dr. Ganesh Prasad Pathak and the Bank’s Chief of Internal Audit, as the member-
secretary, is in place. The Internal Audit department of the bank directly reports to this committee.
ii. Employee Service & Benefits Committee :

In order to formulate plans, policies and guidelines in the functions of human resource selection, recruitment,
appointment, career growth, training, services and pension of employees and to present them for approval from the
Board of Directors, a Human Resource Sub-committee led by director Mr. Mahesh Prasad Pokharel and comprising of
the Chief Executive Officer, Head- Human Resources and Head – Finance & MIS as its members, is in place.
iii. Risk Management Committee :

In order to correctly identify the risks inherent in the Bank and to formulate needful policies and rules, a Risk Management
Committee, led by director Mr. Krishna Prasad Gyawali and comprising of director Ms. Anuradha Chaudhary, Chief
Operating Officer and Chief Risk Officer, as its members is in place.
iv. AML/CFT Committee :

In order to frame needful policies and framework on internal liability and segregation of responsibilities regarding system of
risk-assessment, identification of risk-bearing customers and on updates of our monitoring systems, a money laundering
prevention led by director, Prof. Dr. Ganesh Prasad Pathak, comprising of Chief Operating Officer, Chief Risk Officer,
Head – Compliance and Policy Framework/Governance and Head – AML/CFT as its members, in its place.
v. Other committees at the Management Level:

In addition to the above-committees, several committees such as the Management Committee, ALCO/Pricing
Committee, Procurement Committee, Business Business and Service Excellence Committee, CSR committee, etc. led
by the Chief Executive Officer are also in place to facilitate effective discharge of the Bank’s functions. Similarly, the
Labor Relations committee, Position Fulfillment Committees, Discipline and Performance Appraisal Committee are also
active in the Bank. The officials of the said-committees are not awarded any additional allowances, remuneration or
other perks.
M. Human Resources: The main role of employees is in the overall progress of the bank. The bank has a staff policy to
provide training at home and abroad to increase the efficiency, business efficiency, managerial skills, and productivity of
the manpower working in the bank and to appoint people with good qualifications and business ability when recruiting
employees. The bank has focused its attention on improving the efficiency of existing manpower and training new recruits.
As a result, we are confident that there will be a balance between the bank's risk and return in the future as well. At the end
of the review period, a total of 1845 employees are working in the bank on a permanent and contractual basis. During the
review period, our employees also participated in various trainings, sports and social activities.
N. Goals and Programs for the Current Year:
The financial plan of the bank for the current Fiscal Year are as follows:
In the current fiscal year, the bank's loans and investments is planned to increase by 13.09% and 60.34%
respectively to Rs. 180 billion 310 million and Rs. 37 billion 550 million. Also, the total deposits of the bank
is planned to increased by 6.33% to Rs.194 billion 540 million. Similarly, Bank's net interest income is planned to
increase by 18.42% and other operating expenses by 8.17% to Rs. 7 billion 360 million and Rs. 3 billion 840 million
respectively. In this way, the bank's operating profit before loan loss provisions is planned to increase by 17.43%
to Rs. 5 billion 130 million. In the year under review, the non-performing loan ratio of the bank increased slightly from the
previous year and stood at 1.11%. Efforts are being made to recover non-performing loans in the current year. In this way, the
net profit of the bank is expected to increase by 28% in the current year to Rs. 3 billion 302 million.
This bank is planning to improve and maintain the quality of the bank's assets to increase the productivity of the bank's
employees, to make the bank profitable, and to provide accessible and quality services to the customers to make the bank
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healthy and strong. The action plan of this bank is to contribute to the improvement of the financial sector by developing
modern services and facilities to make the lives of customers simple and easy, to bring the population without financial
access within the banking circle, and to support the overall economic development of the country by providing loans to
small and medium businesses. Keeping in view the situation of the country, expanding more branches, introducing Kumari
mobile banking in areas where banks are not present, providing banking services through branchless banking services,
expanding technology and services, and providing competitive banking services, etc. are also part of the plan in the current
fiscal year.
4. Industrial and Commercial Relations of the Company:

The bank maintained cordial business relations with all the industrial and commercial parties associated with it. The bank has
been cooperating with all parties related to the business, customers, shareholders, well-wishers, various banks and financial
institutions, and other industrial and business associations based on transparency while continuing its business activities.
The management and board of directors of the organization are determined to maintain strong business relations abiding
by the belief that their business relations should be agile, sound, and relevant. While preparing and implementing its policies
and regulations, the bank has been preparing them keeping in mind the commercial aspects and far-reaching effects and
implementing them in an agile, transparent and professional manner.
5. Changes in the Board of Directors and the reason for it:

There has been no change in the Board of Directors during the year under review. There is a robust board of directors of five
people including an independent director.
6. Major Factors Affecting Business:

In the year under review, due to the situation of lack of liquidity after the global epidemic of COVID-19, the commercial activities
of the bank had a direct negative impact. However, there are still problems such as the liquidity situation of the market, which
is changing in an unpredicted manner, lack of timely government expenditures, and there is a shortage of skilled workers in
the industrial sector. The main source of the development of the banking sector is the development of other industrial and
business sectors of the country, which, although there are some signs of improvement, the lack of liquidity and the impact on
foreign exchange reserves have harmed the economy in the year under review. These various things have a direct impact on
the commercial activities of the bank.
7. Response of the Board of Directors to the Audit Report:

Apart from the general comments found in the details of the regular business of the bank, no specific adverse comments were
found in the audit report. The bank management has also been instructed to implement the suggestions and advice given by
the auditor. When the financial statements of FY 2078/79 were approved by Nepal Rastra Bank on 28th of Ashoj, 2079, we have
attached the comments and instructions received in the annual report booklet, which also have been instructed to the bank
management for improvement and required implementation.
8. Amount Recommended for Distribution of the Dividend:

In FY 2078/79, the Bank proposed a cash dividend (including tax) of 12.5% i.e., Rs. 1 billion 838 million 897 thousands and
9 hundred and fifteen.
9. Details of Forfeited Shares:

As of this reporting period, no shares have been forfeited.
10. Advances made by the Bank and its Subsidiaries:

The progress made by the bank and its subsidiary companies has been disclosed in various sections of this report.
11. Major Transactions completed by the Bank and its Subsidiaries in the FY 2078-79 and any Significant
changes in the Company's Transactions during that Period:
The capital of Kumari Capital Limited, a subsidiary company of the bank, has been increased by Rs 200 million and the bank
has increased its investment. Apart from that, there was no significant change in the subsidiary company and there was no
significant change in the bank's business except for the things mentioned in this report.
12. Information Provided by the Basic Shareholders of the Bank: N/A

13. Details of Share Ownership held by Directors and Officers of the Company in the previous FY and the
information received by the company from them if they were involved in the company's share trading:
N/A
14. Information regarding the personal interest of any director and his relatives in the contracts related to
the Bank:
No knowledge of such with the Bank.
15. Details of Repurchased Shares:

N/A
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16. Information regarding the internal control system:

There is a separate department related to maintaining the internal control system in the bank. The department is proactive to
minimize the bank's credit, operational, and market risk exposures. The effectiveness of the internal control system is regularly
reviewed by the Internal Audit department as part of Bank's audit.
17. Details regarding the total management expenses of the bank:

The details of management expenses of bank for FY 2078-79 are as follows:-
Employee expenses are Rs 2,332,987,934 (Two billion Three Hundred Thirty-Two million Nine Hundred Eighty-Seven Thousand
Nine Hundred Thirty-Four Only).
Other Operating Expenses Rs 1,218,591,830 (One billion Two Hundred Eighteen Million Five Hundred Ninety-One Thousand
Eight Hundred Thirty Only).
The details of the total management expenses of the bank are mentioned in Schedule 4.36, 4.37, and 4.38 of the annual report
of the bank.
18. Information regarding Audit Committee:

During the review period, according to section 164 of the Company Act, there is an audit committee in place led by the Bank's
non-executive director Ms. Anuradha Chaudhary and comprising of independent director, Prof. Dr. Ganesh Prasad Pathak as
member and Chief - Internal Audit, Mr. Ganesh Kumar K.C, serving as the member secretary. The Internal Audit department
of the bank reports directly to this committee. In the FY 2078/79, 12 meetings of the said committee have been held. Apart
from the member secretary, the other members of this committee have been given meeting allowances similar to those given
to the members of the board of directors. The activities of this committee are in full compliance with the NRB guidelines and
provisions in the Company Act. In the internal audit report, there has not been any mention of significant deviations, other than
minor discrepancies in the bank's operations. The audit committee reviews the internal control system of the bank and gives
suggestions related to its compliance to the management regularly and regularly informs the board of directors. According to
the suggestions given by the audit committee, the bank management is regularly improving its operations.
19. The director, managing director, Chief Executive Officer, the prominent shareholder of the bank or his
relative or the firm, company, or organized organization he is involved in has not paid any amount to
the bank:
No.
20. Salaries, Allowances, and benefits paid to directors, managing directors, Chief Executive Officer, and
officials:
A. Directors:
Directors of this bank are given a meeting allowance at the rate of Rs.12,000 to the chairman and Rs.10,000 to the chairman
for participating in the committee and sub-committee meetings formed by the committee as provided in the regulations. In
addition, the chairman and members of the board of directors have been given Rs. 12,000/- per month for communication
and newspaper facilities. Apart from that, the bank has not provided any other facility to the directors. A total amount of Rs.
35,36,000 has been paid for directors' meeting allowance, communication, and newspaper facilities in FY 078-79.
B. Chief Executive Officer and senior executives, annual salary, allowances, and facilities for 2078/79:
Amount in Rs.
Chief Executive
Deposits Senior Executives
Officer
Salary 9,548,188 11,476,694
Allowances 1,687,711 3,539,353
Provident Fund 954,818 1,147,669
Vehicle Maintenance - 5,627,018
Medical expenses (Annual + Accumulated) - 727,783
Dashain Allowances 1,065,680 1,434,986
Leave (Annual + Accumulated) 4,063,736 2,845,321
Gratuity 243,362 2,657,344
Employee Bonus 3,992,481 5,098,773
Other (Retirement Fund) 18,359,588 10,883,059
Total 39,915,567 45,438,000
The salaries and allowances mentioned above are of the Chief Executive Officer to the assistant general manager level. Salaries
and allowances received by the employees who have left the bank in 2078-79 and the compensation package of those who
have been newly recruited during their tenure are also included.
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Note: Mr. Anuj Mani Timilsina remained as the Acting Chief Executive Officer till 24th Magh, 2078 and thereafter Mr. Ram Chandra
Khanal took over as the officiating CEO. He was appointed as the Bank's new Chief Executive Officer on 13th Baishakh, 2079.
Apart from the salary and allowance mentioned above, the following facilities are also provided: -
A. Vehicle loan, fuel, and maintenance allowance with driver facility from chief executive officer to assistant general manager
and vehicle loan, fuel, and maintenance allowance to other managerial officers according to the vehicle policy of the bank.
B. Vehicle purchase, real estate purchase loan, and personal loan to all permanent officers according to the bank's human
resources policy.
C. Mobile phone facility as per the bank's human resource policy.
D. According to the policy of the bank, the collective life insurance of the employees has also been done.
21. Dividends due to shareholders:

Out of the cash dividend, the dividend that is yet to be paid by the shareholders till the end of 2079 is Rs.11,99,16,698. Its
details are as follows.
Deposits Amount in Rs.
Kumari Bank Limited 108,263,240
Dividend yet to be claimed by acquired BFIs (Kasthamandap Development Bank Limited, Mahakali
1,851,941
Bikash Bank Limited, Paschimanchal Finance Limited, Kankrebihar Development Bank Limited)
Dividend yet to be claimed by acquired BFI (Deva Bikash Bank) 9,801,515
Total Dividend yet to be claimed 119,916,698
22. Details of purchase or sale of assets as per Section 141 of Companies Act, 2063: None.
23. Details of transactions between associated companies according to Section 175 of the Companies Act,
2063: None.
24. Other matters to be disclosed in the report of the board of directors following the Companies Act, 2063
and prevailing laws: None.
25. Other things: None.
Acknowledgment:
Our respected shareholders, customers, officials of Nepal Rastra Bank, Company Registrar's Office, Nepal Securities Board, Nepal
Stock Exchange Ltd., CDS and Clearing Ltd. We express our heartfelt thanks to all the related parties and the general public for
their direct and indirect support. We would also like to thank the external (statutory) auditor Mr. Joshi and Bhandari, Chartered
Accountants who performed the audit work on time and provided reasonable business suggestions to the bank. Also, we would like
to express our special thanks to the bank management and employees who have devoted their time and effort to the progress of
the bank. In the end, once again, by imbibing the mantra that the bank and the customer are two sides of the same coin, this bank
has succeeded in reaching its current heights due to the immense love and trust of our valued customers and in the future, we will
continue to love and develop strong relationships between our customers. We express our sincerest gratitude to them.
Thank You.
On behalf of the Board of Directors,
Mr. Krishna Prasad Gyawali Mr. Amir Pratap J B Rana

(Director) (Chairman)
Date: 2079/06/30 B.S.
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SEBON Declaration
Annual Report Concerning Rule 26(2) of the Securities Registration and Issuance Rules, 2016
1. Report of the Board of Directors: Attached to the Annual Report.

2. Auditor's Report: Attached to the Annual Report.
3. Audited Financial Statements: Attached to the Annual Report.
4. Details of Legal Proceedings:
(a) If any case has been filed by the bank or against the bank :
Except for some cases related to the loans issued by the bank in the course of its daily business, there are currently no cases
of any kind that will cause additional financial burden to the bank.
(b) If any case has been filed or has been filed by the founder or director of the bank or against the founder or director for
disobeying the prevailing rules or committing a criminal offense :
The bank has not received any information in this regard.
(c) If any case has been filed against any founder or director for committing a financial crime :
The Bank has not received any information in this regard.
5. Analysis of share transactions and progress of organized organizations:

(a) Opinion of the bank management regarding the transaction of the bank's shares in the securities market :
Since the share price and transaction are determined by open market operations, the bank does not have any special opinion
in this regard.
(b) The maximum, minimum, and final price of this bank's shares in FY 2078-79 as well as the total number of traded shares and
the trading day.
Total
Highest price Lowest price Final price of
Total Total No. of transaction
Particulars of shares in of shares in shares
Transaction shares traded days in each
NPR NPR in NPR
trimester
First Trimester (Last day of Asoj, 2078) 413 281 288 64,898 2,913,110 57
Second Trimester (Last day of Poush, 2078) 293.70 223 271 28,197 4,244,551 59
Third Trimester (Last day of Chaitra, 2078) 296.50 217 222 24,397 5,436,318 58
Fourth Trimester (Last day of Ashadh, 2079) 228 187.20 191 16,601 5,296,024 64
6. Problems and challenges:

(a) Problems and Challenges
(1) Internal: -
 To maintain efficient and skilled manpower.
 Increasing operating expenses.
 Reduce inherent risk and improve operational efficiency.
(2) External: -
 Economic and political situation of the country
 Lack of an investment-friendly environment.
 Competitive banking market.
 Lack of adequate banking liquidity.
 Health, business, and social hardships caused by the Corona epidemic and other health-related reasons.
(b) Strategies adopted by the management to address such problems and challenges:
 Correct identification of the capabilities of bank staffs and help develop their skills and competency.
 Expenditures to be made in an economic manner after thorough need-analysis and identification.
 To develop innovative products and services, as per the changing customer needs, preferences and market fluctuations.
 Price-determination of interest-sensitive assets and liabilities, as per the market liquidity scenario.
 Loan-diversification and timely proper management of non-performing loans.
 Analysis of inherent risks in banking transactions, preparing an action plan to address such, and ensuring its appropriate implementation.
7. Good Corporate Governance:

The Board of directors is liable and accountable for enforcement of good corporate governance in the bank, at the highest
level. The Bank recognizes it as one of the guiding principles for all its administrative proceedings. The Board of directors is
continually involved in developing a transparent and robust corporate governance framework and ensuring its implementation
throughout the organization. Various committees and sub-committees are in place for timely identification, diversification,
prevention and mitigation of various risks, associated with the internal as well as external factors and to materialize the prevailing
policies, guidelines, and laws of the bank. The scope of operations of various departments such as : Credit, Operations, and
Risk management which run the risk of inter-departmental conflict of interest are well-bifurcated, with a view to enforce a robust
system of good governance at the highest level at the Bank, the NRB circulars and directives are fully adhered to.
8. Details regarding twenty percent or more difference between the projected and audited details in the prospectus:
No information available
9. Particulars relating to special events or circumstances relating to sub-rule (5) of rule 22:
- There has been no change in the Board of Directors of the bank during the year under review.
- At present, the bank has a Board of Directors of 5 people including an independent director.
- No other such special events or circumstances have been observed during the year under review.
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Statement of Financial Position

As on 32nd Ashad 2079
Group Bank
Particular Note
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Assets
Cash and cash equivalent 4.1 17,724,374,394 7,591,048,102 17,609,892,391 7,580,241,082
Due from Nepal Rastra Bank 4.2 5,475,310,681 8,486,453,288 5,475,310,681 8,486,453,288
Placement with Bank and Financial Institu-
4.3 1,949,476,858 4,840,711,695 1,949,476,858 4,840,711,695
tions
Derivative financial instruments 4.4 - - - -
Other trading assets 4.5 - - - -
Loan and advances to B/FIs 4.6 5,846,262,217 5,123,681,172 5,846,262,217 5,123,681,172
Loans and advances to customers 4.7 152,562,929,781 137,897,925,002 152,562,929,781 137,897,925,002
Investment securities 4.8 23,196,679,434 22,875,627,748 22,815,085,583 22,697,941,963
Current tax assets 4.9 457,139,696 266,729,922 454,701,292 266,729,922
Investment in susidiaries 4.10 - - 420,000,000 220,000,000
Investment in associates 4.11 504,062,448 369,233,513 185,017,596 155,017,596
Investment property 4.12 144,491,994 128,112,878 144,491,994 128,112,878
Property and equipment 4.13 1,194,497,624 1,269,227,483 1,179,754,479 1,258,559,299
Goodwill and Intangible assets 4.14 163,212,113 198,985,021 161,441,291 197,573,361
Deferred tax assets 4.15 - - - -
Other assets 4.16 3,320,846,636 955,962,980 3,304,074,229 939,456,216
Total Assets 212,539,283,876 190,003,698,803 212,108,438,392 189,792,403,473
Liabilities
Due to Bank and Financial Instituions 4.17 6,028,947,435 14,623,378,395 6,194,529,106 14,731,924,737
Due to Nepal Rastra Bank 4.18 1,345,585,620 5,088,973,668 1,345,585,620 5,088,973,668
Derivative financial instruments 4.19 39,334,195 3,267,738 39,334,195 3,267,738
Deposits from customers 4.20 176,767,665,556 145,838,231,009 176,767,665,556 145,838,231,009
Borrowing 4.21 - - - -
Current Tax Liabilities 4.9 - - - -
Provisions 4.22 2,500,000 2,334,810 2,500,000 2,334,810
Deferred tax liabilities 4.15 71,471,646 155,828,712 75,208,206 155,212,668
Other liabilities 4.23 3,940,045,081 2,166,943,538 3,685,702,222 2,084,796,959
Debt securities issued 4.24 2,995,797,489 2,995,439,829 2,995,797,489 2,995,439,826
Subordinated Liabilities 4.25 - - - -
Total Liabilities 191,191,347,022 170,874,397,700 191,106,322,395 170,900,181,415
Equity
Share capital 4.26 14,711,183,326 13,878,474,836 14,711,183,326 13,878,474,836
Share premium 4A 88,804,041 88,804,041 88,804,041 88,804,041
Retained earnings 4B 2,212,774,212 1,480,948,035 1,872,567,427 1,247,097,056
Reserves 4.27 4,335,175,275 3,681,074,192 4,329,561,203 3,677,846,125
Total equity attributable to equity holders 21,347,936,854 19,129,301,103 21,002,115,997 18,892,222,058
Non-controlling interest - - - -
Total equity 21,347,936,854 19,129,301,103 21,002,115,997 18,892,222,058
Total liabilities and equity 212,539,283,876 190,003,698,803 212,108,438,392 189,792,403,473
Contingent liabilities and commitment 4.28 37,331,900,478 44,272,185,842 37,331,900,478 44,272,185,842
Net assets value per share 145.11 137.83 142.76 136.13
Ram Chandra Khanal Amir Pratap JB Rana Krishna Prasad Gyawali

Chief Executive Officer Chairman Director
Aswin Babu Shrestha Mahesh Prasad Pokharel Anuradha Chaudhary

Head- Finance & MIS Director Director
Dr. Ganesh Prasad Pathak

Director As per our report of even date
FCA Prabhu Ram Bhandary

Managing Partner
Date: 22 August 2022 Joshi & Bhandary
Place: Tangal, Kathmandu Chartered Accountants
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Statement of Profit or Loss

For the year ended 32nd Ashad 2079
Group Bank
Particular Note
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Interest income 4.29 18,389,616,329 12,793,002,002 18,355,159,241 12,776,387,133
Interest expense 4.30 12,137,978,793 7,698,859,070 12,137,993,244 7,698,873,522
Net interest income 6,251,637,536 5,094,142,931 6,217,165,997 5,077,513,611
Fee and commission income 4.31 962,856,296 828,201,496 962,856,296 828,201,496
Fee and commission expense 4.32 144,683,738 71,371,197 144,683,738 71,371,197
Net fee and commission income 818,172,558 756,830,299 818,172,558 756,830,299
Net interest, fee and commission income 7,069,810,094 5,850,973,231 7,035,338,555 5,834,343,910
Net trading income 4.33 377,867,068 420,833,394 377,867,068 420,833,394
Other operating income 4.34 673,162,414 514,069,691 527,950,068 390,023,547
Total operating income 8,120,839,576 6,785,876,316 7,941,155,691 6,645,200,852
Impairment charge/(reversal) for loans and
4.35 812,100,287 475,280,357 812,100,287 475,280,357
other losses
Net operating income 7,308,739,289 6,310,595,959 7,129,055,404 6,169,920,495
Operating expense
Personnel expenses 4.36 2,352,194,304 2,037,803,896 2,332,987,934 2,023,918,383
Other operating expenses 4.37 699,395,490 870,126,244 683,386,361 856,905,482
Depreciation & Amortisation 4.38 537,311,627 284,533,640 535,205,469 283,304,555
Operating Profit 3,719,837,868 3,118,132,180 3,577,475,641 3,005,792,074
Non operating income 4.39 18,320,846 33,895,859 18,320,846 33,895,859
Non operating expense 4.40 1,981,949 290,729 1,981,949 290,729
Profit before income tax 3,736,176,765 3,151,737,309 3,593,814,538 3,039,397,204
Income tax expense 4.41 1,023,401,014 1,077,337,646 1,014,004,706 1,068,667,046
Current Tax 4.41 1,043,203,275 937,476,851 1,029,422,733 929,312,008
Deferred Tax 4.41 (19,802,261) 139,860,795 (15,418,027) 139,355,038
Profit for the year 2,712,775,752 2,074,399,664 2,579,809,832 1,970,730,158
Profit attributable to:
Equity holders of the Bank 2,712,775,752 2,074,399,664 2,579,809,832 1,970,730,158
Non-controlling interest - -
Earnings per share
Basic earnings per share 18.44 14.95 17.54 14.20
Diluted earnings per share 18.44 14.95 17.54 14.20




Managing Partner
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Statement of Comprehensive Income

Group Bank
Particular Note
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Other comprehensive income, net of
income tax
a) Items that will not be reclassified to
profit or loss
Gain /(losses) from investments in equity
(231,208,644) 243,497,142 (231,208,644) 243,497,142
instruments measured at fair value
Gain /(losses) on revaluation - - - -
Actuarial gains/(loss) on defined benefit plans 15,920,532 (189,257,364) 15,920,532 (189,257,364)
Income tax relating to above items 64,586,434 (16,271,933) 64,586,434 (16,271,933)
Net other comprehsive income that will
(150,701,679) 37,967,845 (150,701,679) 37,967,845
not be reclassified to profit or loss
b) Items that are or may be classified to
profit or loss
Gain /(losses) on cash flow hedge - - - -
Exchange gain/ (losses) (arising from trans-
- - - -
lating financial assets of foreign operation)
Income tax relating to above items - - - -
Reclassify to profit or loss - - - -
Net other comprehsive income that are
or may be reclassified to profit or loss
c) Share of other comprehensive income of
- - - -
associate accounted as per equity method
Other comprehensive income for the
(150,701,679) 37,967,845 (150,701,679) 37,967,845
period, net of income tax
Total comprehensive income for the year 2,562,074,073 2,112,367,508 2,429,108,153 2,008,698,002
Total comprehensive income attributable

to:
Equity holders of the Bank 2,562,074,073 2,112,367,508 2,429,108,153 2,008,698,002
Non-controlling interest - -
Total comprehensive income for the year 2,562,074,073 2,112,367,508 2,429,108,153 2,008,698,002




Managing Partner
113
Statement of Cash Flows

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Cash Flows From Operating Activities
Interest received 18,344,461,618 12,857,599,894 18,316,644,889 12,849,430,032
Fees and other income received 962,856,296 852,839,719 962,856,296 822,620,181
Divided received - - - -
Receipts from other operating activities 717,871,167 801,576,304 668,074,112 801,576,304
Interest paid (11,836,936,759) (7,362,913,448) (11,836,936,759) (7,362,913,448)
Commission and fees paid (163,890,108) (46,103,586) (144,683,738) (38,901,965)
Cash payment to employees (2,415,375,686) (1,858,764,058) (2,399,577,579) (1,844,878,546)
Other expense paid (1,728,705,487) (1,135,001,746) (1,728,677,237) (1,128,810,858)
Operating cash flows before changes in operating
3,880,281,040 4,109,233,079 3,837,699,983 4,098,121,700
assets and liabilities
(Increase)/Decrease in operating assets
Due from Nepal Rastra Bank 3,011,142,606 (2,664,933,174) 3,011,142,606 (2,664,933,174)
Placement with bank and financial institutions 2,891,234,836 (3,988,264,052) 2,891,234,836 (3,988,264,052)
Other trading assets (35,000,000) - - -
Loan and advances to bank and financial institutions (722,581,045) (1,327,468,433) (722,581,045) (1,327,468,433)
Loans and advances to customers (14,665,004,779) (27,180,665,433) (14,665,004,779) (27,180,665,433)
Other assets (2,492,359,974) (573,652,412) (2,326,103,661) (479,208,470)
Increase/(Decrease) in operating liabilities
Due to bank and financial institutions (8,537,395,630) 7,256,031,081 (8,537,395,630) 7,256,031,081
Due to Nepal Rastra Bank (3,743,388,048) 4,863,618,264 (3,743,388,048) 4,863,618,264
Deposit from customers 30,929,434,547 29,291,197,813 30,929,434,547 29,291,197,813
Borrowings - - - -
Other liabilities 1,950,928,502 310,907,378 1,778,631,791 233,595,923
Net cash flow from operating activities before tax paid 12,467,292,055 10,096,004,108 12,453,670,600 10,102,025,216
Income taxes paid (1,233,167,331) (875,494,930) (1,217,394,103) (867,754,069)
Net cash flow from operating activities 11,234,124,724 9,220,509,178 11,236,276,497 9,234,271,148
Cash Flows From Investing Activities
Purchase of investment securities (586,446,865) (10,089,845,429) (357,093,537) (10,014,602,265)
Receipts from sale of investment securities 52,683,580 150,169,529 9,949,916 81,372,433
Purchase of property and equipment (465,355,871) (165,088,693) (456,400,648) (158,204,992)
Receipt from the sale of property and equipment 2,037,479 - - -
Purchase of intangible assets 36,132,070 9,258,220 36,132,070 9,258,220
Receipt from the sale of intangible assets - - - -
Purchase of investment properties - - - -
Receipt from the sale of investment properties (16,379,116) (67,764,545) (16,379,116) (67,764,545)
Interest received 6,618,085 8,459,458 - -
Dividend received 258,263,916 43,854,596 256,063,870 43,481,365
Net cash used in investing activities (712,446,720) (10,110,956,864) (527,727,445) (10,106,459,785)
Cash Flows From Financing Activities
Receipt from issue of debt securities - - - -
Repayment of debt securities - - - -
Receipt from issue of subordinated liabilities - - - -
Repayment of subordinated liabilities - - - -
Receipt from issue of shares 200,000,000 - - -
Dividends paid (388,555,278) (402,381,558) (370,555,278) (394,381,558)
Interest paid (308,342,465) (307,499,993) (308,342,465) (307,499,993)
Other receipt/payment (310) - - -
Net cash from financing activities (496,898,053) (709,881,551) (678,897,743) (701,881,551)
Net increase (decrease) in cash and cash equivalents 10,024,779,950 (1,600,329,237) 10,029,651,309 (1,574,070,188)
Cash and cash equivalents at Shrawan 1, 2078 7,699,594,444 9,191,377,339 7,580,241,082 9,154,311,271
Effect of exchange rate fluctuations on cash and cash
equivalents held
Cash and cash equivalents at Ashad end 2079 17,724,374,394 7,591,048,102 17,609,892,391 7,580,241,082

Dr. Ganesh Prasad Pathak As per our report of even date
Director
Managing Partner
114
Statement of changes in equity
Bank
Attributable to equity holders of the Bank Non-
Particular Exchange controlling Total equity
Share Pre- General Regulatory Fair value Revaluation Retained Other Re- interest
Share Capital Equalisation Total
mium Reserve Reserve Reserve Reserve Earning serve
Reserve
Balance at Shrawn 1, 2077 12,520,049,469 571,628,069 2,211,30,181 46,944,090 473,705,682 (10,967,274) 69,419,000 1,317,542,681 68,546,772 17,268,173,670 - 17,268,173,670
Adjustment/Restatement - - - - - - - - - - - -
Adjusted/Restated balance at
12,520,049,469 571,628,069 2,211,305,181 46,944,090 473,705,682 (10,967,274) 69,419,000 1,317,542,681 68,546,772 17,268,173,670 - 17,268,173,670
Shrawn 1, 2077
Comprehensive income for
- - - - - - - - - - - -
the year
Profit for the year - - - - - - - 1,970,730,157 - 1,970,730,157 - 1,970,730,157
Other comprehensive income,
- - - - - - - - - - - -
net of tax
Gain/ (losses) from investments
in equity instruments measured - - - - - - - 170,447,999 - 170,447,999 - 170,447,999
at fair value
Gain /(losses) on revaluation - - - - - - - - - - - -
Actuarial gain /(losses) on
- - - - - - - (132,480,155) - (132,480,155) - (132,480,155)
defined benefit plans
Gain /(losses) on cash flow
- - - - - - - - - - - -
hedge
Exchange gain/ (losses) (arising
from translating financial assets - - - - - - - - - - - -
of foreign operation)
Total comprehensive income
- - - - - - - 2,008,698,001 - 2,008,698,001 - 2,008,698,001
for the year
Gain/ (losses) on disposal
of investments in equity - -
instruments at FVOCI
Transfer to reserve during the
- (482,824,028) 394,146,031 297,987 66,620,880 192,818,583 - (348,707,285) 187,379,775 9,731,943 - 9,731,943
year
Transfer from reserve during
- - - - - (22,370,583) - 22,370,583 - - - -
the year
Transactions with owners,
- - -
directly recognised in equity
Share issued - - - - - - - - - - - -
Share based payments - - - - - - - - - - - -
Dividends to equity holders - - - - - - - - - - - -
Bonus shares issued 1,358,425,367 - - - - - - (1,358,425,367) - - - -
Cash dividend paid - - - - - - - (394,381,558) - (394,381,558) - (394,381,558)
Ohers(from Acquisition) - - -
Total contributions by and
1,358,425,367 - - - - - - - (394,381,558) - (394,381,558)
distributions (1,752,806,925)
Balance at Ashad end 2078 13,878,474,836 88,804,041 2,605,451,213 47,242,077 540,326,562 159,480,726 69,419,000 1,247,097,056 255,926,547 18,892,222,057 - 18,892,222,057
115
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Bank
116
Reserve
Balance at 1 Shrawan 2078 13,878,474,836 88,804,041 2,605,451,213 47,242,077 540,326,562 159,480,726 69,419,000 1,247,097,056 255,926,547 18,892,222,057 - 18,892,222,057
Adjustment/Restatement - - - - - - - 51,341,060 - 51,341,060 - 51,341,059.70
13,878,474,836 88,804,041 2,605,451,213 47,242,077 540,326,562 159,480,726 69,419,000 1,298,438,115 255,926,547 18,943,563,117 - 18,943,563,117
1 Shrawn 2078
- - - - - - - - - - - -
the year
Profit for t he year - - - - - - - 2,579,809,832 - 2,579,809,832 - 2,579,809,832
- - - - - - - - - - - -
net of tax

in equity instruments measured - - - - - - - (161,846,051) - (161,846,051) - (161,846,051)
at fair value
- - - - - - - 11,144,372 - 11,144,372 - 11,144,372
- - - - - - - - - - - -
hedge
- - - - - - - 2,429,108,153 - 2,429,108,153 - 2,429,108,153
for the year
- - 515,961,966 6,213,423 (89,429,544) (167,626,456) - (651,715,074) 386,595,688 4 - 4
year
- - - - - - - - - - -
the year
- -
Share issued - - - - - - - - - - - -
Dividends to equity holders - - - - - - - - - - -
Bonus shares issued 832,708,490 - - - - - - (832,708,490) - - - -
Ohers (From Acquisition) - - -
832,708,490 - - - - - - - (370,555,278) - (370,555,278)
Balance at Ashad end 2079 14,711,183,326 88,804,041 3,121,413,179 53,455,500 450,897,019 (8,145,731) 69,419,000 1,872,567,427 642,522,235 21,002,115,996 - 21,002,115,996
Bank
Reserve
Balance at Shrawn 1, 2077 12,520,049,469 571,628,069 2,212,321,284 46,944,090 473,705,682 (10,967,274) 69,419,000 1,457,834,505 68,648,382 17,409,583,207 - 17,409,583,207
Adjustment/Restatement - - - - - - - 12,680 - 12,680 - 12,680
12,520,049,469 571,628,069 2,212,321,284 46,944,090 473,705,682 (10,967,274) 69,419,000 1,457,847,185 68,648,382 17,409,595,887 - 17,409,595,887
Shrawn 1, 2077
- - - - - - - - - - - -
the year
Profit for the year - - - - - - - 2,074,460,786 - 2,074,460,786 - 2,074,460,786
- - - - - - - - - - - -
net of tax
in equity instruments measured - - - - - - - 170,447,999 - 170,447,999 - 170,447,999
at fair value
- - - - - - - (132,480,155) - (132,480,155) - (132,480,155)
- - - - - - - - - - - -
hedge
- - - - - - - 2,112,428,631 - 2,112,428,631 - 2,112,428,631
for the year
in equity instruments measured - - - - - - - - - -
at fair value
- (482,824,028) 396,155,444 297,987 66,620,880 192,818,583 - (350,817,639) 187,480,716 9,731,943 - 9,731,943
year
- - - - - (22,370,583) - 22,370,583 - - - -
the year
- - - - - - - - - - - -
Share issued - - - - - - - - - - - -
Bonus shares issued 1,358,425,367 - - - - - - (1,358,425,367) - - - -
Ohers (from acquisiton) - - -
1,358,425,367 - - - - - - - (402,381,557) - (402,381,557)
Balance at Ashad end 2078 13,878,474,836 88,804,041 2,608,476,728 47,242,077 540,326,562 159,480,726 69,419,000 1,481,021,837 256,129,099 19,129,374,905 - 19,129,374,905
117
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Bank
118
Reserve
Balance at 1 Shrawan 2078 13,878,474,836 88,804,041 2,608,476,728 47,242,077 540,326,562 159,480,726 69,419,000 1,481,021,837 256,129,099 19,129,374,905 - 19,129,374,905
Adjustment/Restatement - - - - - - - 45,043,151 - 45,043,151 - 45,043,151
13,878,474,836 88,804,041 2,608,476,728 47,242,077 540,326,562 159,480,726 69,419,000 1,526,064,988 256,129,099 19,174,418,056 - 19,174,418,056
1 Shrawn 2078
- - - - - - - - - - - -
the year
Profit for t he year - - - - - - - 2,712,775,752 - 2,712,775,752 - 2,712,775,752
- - - - - - - - - - - -
net of tax

in equity instruments measured - - - - - - - (161,846,051) - (161,846,051) - (161,846,051)
at fair value
- - - - - - - 11,144,372 - 11,144,372 - 11,144,372
- - - - - - - - - - - -
hedge
- - - - - - - 2,562,074,073 - 2,562,074,073 - 2,562,074,073
for the year
- - 518,131,062 6,213,423 (89,429,544) (167,626,456) - (654,101,081) 386,812,598 3 - 3
year
- - - - - - - - - - - -
the year
- - - - - - - - - - - -
Share issued - - - - - - - - - - - -
Bonus shares issued 832,708,490 - - - - - - (832,708,490) - - - -
Ohers (From Acquisition) - - - - - - - - - - -
832,708,490 - - - - - - - (388,555,278) - (388,555,278)
Balance at Ashad end 2079 14,711,183,326 88,804,041 3,126,607,790 53,455,500 450,897,019 (8,145,731) 69,419,000 2,212,774,212 642,941,697 21,347,936,853 - 21,347,936,853
www.kumaribank.com
Notes to the Financial Statements

Year ended 16th July 2022
1. Bank
1.1 General
Kumari Bank Limited (hereinafter referred to as “The Bank”) is a public limited company, incorporated on 10th December
1999 and domiciled in Nepal. The corporate office of the Bank is located at Tangal, Kathmandu, Nepal. The Bank carries
out commercial banking activities and other financial services in Nepal under the license from Nepal Rastra Bank (NRB),
the Central Bank of Nepal, as “Ka Class” (Class A) licensed financial institution. The Bank is listed in Nepal Stock Exchange
Limited for public trading of stocks.
1.2 Financial Statements

The Financial Statement of Bank for the year ended 16 July, 2022 comprises Statement of Financial Position, Statement
of Profit or Loss, Statement of Other Comprehensive Income, Statement of Changes in Equity, Statement of Cash Flows,
Notes to the Financial Statements, Significant Accounting Policies of the Company.
1.3 Principal Activities and Operations

Bank
The principal activities of the Bank are to provide full-fledged wide range of commercial banking services including, agency
services, trade finance services, card services, e-commerce products and services, remittance and bullion trading services
to its customers, provided through wide branch networks, extension counters, ATMs with latest technological banking
support services.
Subsidiary and Associates

Ownership as on:
Subsidiary Principal Activities 16th July 15th July
2022 2021
The Subsidiary is opened to provide merchant/investment banking services
Kumari Capital such as Management of public offerings, portfolio management, underwriting of
100% 100%
Limited securities, management of mutual fund schemes, depository participant's service
under Central Depository Service (CDS) and other merchant banking services.
The Subsidiary is opened to provide the brokerage services on the request
K.B.L Securities
of clients. However, on FY 2019/20, license has not been obtained and final 100% 100%
Limtied
approval from Securities Board of Nepal is under process
Ownership as on:
Associate Principal Activities 16th July 15th July
2022 2021
The Associate is of the bank is microfinance banking institute with license to
National
operate as a D class financial institution from Nepal Rastra Bank. The Principal
Microfinance
Activity of the associate is to provide one window financial solutions to the 15% 15%
Bittiya Sanstha
customers with wide range of banking product and services customized to the
Limited
requirement of remote area customer needs.
The Associate of the bank is microfinance banking institute with license to operate
First Microfinance as a “D” class financial institution from Nepal Rastra Bank. The Principal Activity
Laghu Bittiya of the associate is to provide one window financial solutions to the customers 4% 4%
Sanstha Limited with wide range of banking product and services customized to the requirement
of remote area customer needs.
Mero Microfinance as a “D” class financial institution from Nepal Rastra Bank. The Principal Activity
Bittiya Sanstha of the associate is to provide one window financial solutions to the customers 7% 7%
Limited with wide range of banking product and services customized to the requirement
The Associate is a General Insurance company incorporated under Nepal
General Insurance Company Act 1964 and the Insurance Act 1968 of Nepal. The principal activity of
7% 7%
Company Limited the associate is to provide non-life insurance services like property, health and
risk coverages.
as a “D” class financial institution from Nepal Rastra Bank. The Principal Activity
Aviyan Laghubitta
of the associate is to provide one window financial solutions to the customers 16% 16%
Bittiya Sanstha Ltd
with wide range of banking product and services customized to the requirement
The Associate of the bank is a 5 MW solar PV power plant in Gandaki Province,
Solar Farm Pvt. Ltd which was commissioned in September 2021.The Farm is the first on-grid solar IPP 9% -
to secure a 25- year power purchase agreement with Nepal Electricity Authority.
119
2. BASIS OF PREPARATION
2.1. Statement of Compliance
The Financial Statements of Bank for the year ended 16th July, 2022 comprising Statement of Financial Position, Statement
of Profit or loss and Other Comprehensive Income, Statement of Changes in Equity, Statement of Cash Flows and Notes
to the Financial Statements (including Significant Accounting Policies), have been prepared in accordance with Nepal
Financial Reporting Standards (hereafter referred as NFRS), laid down by the Institute of Chartered Accountants of Nepal
and in compliance with the requirements of all applicable laws and regulations.
The bank has applied certain carve-outs which are as described in Notes to Accounts.
2.2. Reporting Period and Approval of Financial Statements

a) Reporting Period
The Bank has prepared the financial statements in accordance with NFRS depicting financial performance for FY 2021/22
and financial position of 16th July 2022 and the comparatives of FY 2020/21.
b) Responsibility for Financial Statements

The preparation and presentation of Financial Statements including consolidated financial statements is the responsibility
of the Board of Directors as per the governing provisions.
c) Approval of Financial Statements by Directors

The accompanied Financial Statements have been authorized to issue by the Board of Directors vide its resolution dated
30th September 2022 and recommended for its approval by the Annual General Meeting of the shareholders.
2.3. Functional and Presentation Currency

The Financial Statements of Bank and Group are presented in Nepalese Rupees (Rs.), which is the currency of the primary
economic environment in which the Bank operates. There was no change in Bank’s presentation and functional currency
during the year under review.
2.4. Use of Estimates, Assumptions and Judgments

The preparation of Financial Statements in conformity with Nepal Financial Reporting Standards requires the management
to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts
of assets, liabilities, income and expenses. Actual results may differ due to these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized
in the period in which the estimate is revised and in any future periods affected.
The most significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have most
significant effect in the Financial Statements are as follows:
2.4.1 Going Concern

The Directors have made an assessment of Bank’s ability to continue as a going concern and satisfied that it has
the resources to continue in business for the foreseeable future. Furthermore, the Board is not aware of any material
uncertainties that may provide significant doubt upon Bank’s ability to continue as a going concern and they do not
intend either to liquidate or to cease operations of it. Therefore, the Financial Statements continue to be prepared on
the going concern basis.
2.5. Discounting
When the realization of assets and settlement of obligation is for more than one year, the Bank considers the discounting
of such assets and liabilities where the impact is material. Various internal and external factors have been considered for
determining the discount rate to be applied to the cash flows of company.
Service fees charged by the bank on loans and advances unless immaterial or impracticable to determine reliably is to be
considered for computation of Effective Interest Rate. However, bank has opted the Carve-out (optional) pronounced by
Institute of Chartered Accountants of Nepal (ICAN) on 10th November 2018; as per the notice issued by ICAN regarding
the extension of a year time for its implementation.
Defined Benefit Plan; that includes gratuity has been determined by considering discount rate as the average yield on
government bonds issued during the period having maturity of five years or more.
2.6. Materiality and Aggregation

In compliance with Nepal Accounting Standard - NAS 01 (Presentation of Financial Statements), each material class of
similar items is presented separately in the Financial Statements. Items of dissimilar nature or functions too are presented
separately unless they are immaterial. Financial Assets and Financial Liabilities are offset and the net amount reported in
the Statement of Financial Position only when there is a legally enforceable right to offset the recognized amounts and there
is an intention to settle on a net basis, or to realize the assets and settle the liability simultaneously. Income and expenses
are not offset in the Statement of Profit or Loss unless required or permitted by an Accounting Standard.
120
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2.7. Comparative Information

The Financial Statement of the Bank provides comparative information in respect of previous periods. The accounting
policies have been consistently applied by Bank with those of the previous financial year in accordance with NAS 01
Presentation of Financial Statements, except those which had to be changed as a result of application of the new NFRS
or expiry of the carve out period. Further, comparative information is reclassified wherever necessary to comply with the
current presentation. The changes in comparative have been duly disclosed in 5.33 of notes.
3. SIGNIFICANT ACCOUNTING POLICIES

The accounting policies set out below have been applied consistently to all periods presented in these Financial Statements, and
deviations if any have been disclosed accordingly.
3.1. Basis of Measurement

The Financial Statements of Bank have been prepared on the historical cost basis, except for the following material items
in the Statement of Financial Position:
 Available for sale investments (quoted) are measured at fair value.
 Liabilities for defined benefit obligations are recognized at the present value of the defined benefit obligation less the
fair value of the plan assets.
 Financial assets and financial liabilities held at amortized cost are measured using a rate that is a close approximation
of effective interest rate opting the available Carve Out pronounced by Institute of Chartered Accountants of Nepal.
3.2. Basis of consolidation
a. Business Combinations and Goodwill

Business combinations are accounted for using the acquisition method as per the requirements of Nepal Financial
Reporting Standard - NFRS 03 (Business Combinations). The Bank measures goodwill as the fair value of the consideration
transferred including the recognized amount of any non-controlling interest in the acquiree, less the net recognized amount
(generally fair value) of the identifiable assets acquired and liabilities assumed, all measured as of the acquisition date.
When the excess is positive, this will result into goodwill. Nepal Rastra Bank does not allow recognition of goodwill.
Therefore, goodwill created is disclosed as charged to capital adjustment account as per Central Bank’s directive.
b. Non-controlling interest (NCI)

Non-controlling interest (NCI), also known as minority interest, is an ownership position whereby a shareholder owns less
than 50% of outstanding shares and has no control over decisions.
Since, the subsidiaries are 100% owned, there is no case of NCI for the bank.
c. Subsidiaries
Subsidiaries are entities that are controlled by the Bank. The Bank is presumed to control an investee when it is exposed
or has rights to variable returns from its involvement with the investee and has the ability to affect those returns through
its power over the investee. At each reporting date the Bank reassesses whether it controls an investee if facts and
circumstances indicate that there are changes to one or more elements of control mentioned above.
The Financial Statements of Subsidiaries are fully consolidated from the date on which control is transferred to the Bank and
continue to be consolidated until the date when such control ceases. The Financial Statements of the Bank’s Subsidiaries
are prepared for the same reporting period as per the Bank, using consistent accounting policies.
The cost of acquisition of a Subsidiary is measured as the fair value of the consideration, including contingent consideration,
given on the date of transfer of title. The acquired identifiable assets, liabilities are measured at their fair values at the date of
acquisition. Subsequent to the initial measurement, the Bank continues to recognize the investments in Subsidiaries at cost.
When a Subsidiary is acquired or sold during the year, operating results of such Subsidiary is included from the date of
acquisition or to the date of disposal.
This Subsidiary of the Bank has been incorporated in Nepal.
d. Associates
An associate is an entity over which the investor has significant influence. Significant influence is the power to participate
in the financial and operating policy decisions of the investee without the power to control or jointly control those policies.
An associate company, in its broadest sense, is a corporation in which a parent company possesses a stake. Usually, the
parent company owns only a minority stake of the corporation, as opposed to a subsidiary company, where a majority
stake is owned. The accounting treatment for consolidation of associates is as per Equity method while it is shown at cost
in the standalone financial statement of the bank as per NAS 27.
e. Loss of Control
When the Bank loses control over a Subsidiary, it derecognizes the assets and liabilities of the former subsidiary from the
consolidated statement of financial position. The Bank recognizes any investment retained in the former subsidiary at its
fair value when control is lost and subsequently accounts for it and for any amounts owed by or to the former subsidiary in
accordance with relevant NFRSs. That fair value shall be regarded as the fair value on initial recognition of a financial asset in
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accordance with relevant NFRS or, when appropriate, the cost on initial recognition of an investment in an associate or joint
venture. The Bank recognizes the gain or loss associated with the loss of control attributable to the former controlling interest.
f. Transaction elimination on consolidation

Intra group balances and transactions, any unrealized income and expenses arising from intra group transactions, are
eliminating in preparing the consolidated financial statements. Unrealized gains/losses arising from transactions with equity
accounted investees are eliminated against the investments to the extent of group interest of investee.
3.3. Cash and cash equivalent
Cash and Cash Equivalents include cash in hand, balances with banks, placements with banks and money at call and
at short notice with original maturity less than three months from the date of acquisition date that are subject to an
insignificant risk of changes in their fair value, and are used for short term commitments.
Details of the Cash and Cash Equivalents are given in Note 4.1 to the Financial Statements.
3.4. Financial Assets and financial liabilities
a. Recognition
All financial assets and liabilities are initially recognized on the trade date, i.e. the date that Bank becomes a party to the
contractual provisions of the instrument. This includes ‘regular way trades. Regular way trade means purchases or sales
of financial assets that required delivery of assets within the time frame generally established by regulation or convention
in the market place.
The classification of financial instruments at the initial recognition depends on their purpose and characteristics and the
management’s intention in acquiring them.
b. Classification and Measurement

Financial Assets
All financial instruments are measured initially at their fair value plus transaction costs that are directly attributable to
acquisition or issue of such financial instruments except in the case of such financial assets and liabilities at fair value through
profit or loss, as per the Nepal Accounting Standard - NAS 39 (Financial Instruments: Recognition and Measurement).
Transaction cost in relation to financial assets and financial liabilities at fair value through profit or loss are dealt with the
Statement of Profit or Loss.
Classification and Subsequent Measurement of Financial Instruments

Classification and Subsequent Measurement of Financial Assets
At the inception, a financial asset is classified into one of the following:
a. Financial assets at fair value through profit or loss
i. Financial assets held for trading
ii. Financial assets designated at fair value through profit or loss
b. Held to Maturity Financial Assets
c. Financial Assets available for Sale
d. Loans and Receivables from Customers
The subsequent measurement of financial assets depends on their classification.
Financial Assets at Fair Value through Profit or Loss

A financial asset is classified as fair value through profit or loss if it is held for trading or is designated at fair value through
profit or loss.
i. Financial Assets Held for Trading

Financial assets are classified as held for trading if they are acquired principally for the purpose of selling or repurchasing in
the near term or holds as a part of a portfolio that is managed together for short-term profit or position taking. This category
also includes derivative financial instruments entered into by Bank that are not designated as hedging instruments in hedge
relationships as defined by Nepal Accounting Standards NAS 39 (Financial Instruments: Recognition and Measurement).
Financial assets held for trading are recorded in the Statement of Financial Position at fair value. Changes in fair value are
recognized in ‘Other Operating income’. Dividend income is recorded in ‘Net trading income’ when the right to receive the
payment has been established.
Bank evaluates its held for trading asset portfolio, other than derivatives, to determine whether the intention to sell them
in the near future is still appropriate. When Bank is unable to trade these financial assets due to inactive markets and
management’s intention to sell them in the foreseeable future significantly changes, Bank may elect to reclassify these
financial assets.
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Financial assets held for trading include instruments such as government securities and equity instruments that have been
acquired principally for the purpose of selling or repurchasing in the near term.
ii. Financial Assets Designated at Fair Value through Profit or Loss

Bank designates financial assets at fair value through profit or loss in the following circumstances:
 Such designation eliminates or significantly reduces measurement or recognition inconsistency that would otherwise
arise from measuring the assets
 The assets are part of a group of Financial assets, financial liabilities or both, which are managed and their performance
evaluated on a fair value basis, in accordance with a documented risk management or investment strategy
 The asset contains one or more embedded derivatives that significantly modify the cash flows that would otherwise
have been required under the contract.
Financial assets designated at fair value through profit or loss is recorded in the Statement of Financial Position at fair
value. Changes in fair value are recorded in ‘Net gain or loss on financial instruments designated at fair value through profit
or losses’ in the Statement of Profit or Loss. Interest earned is accrued under ‘Interest income’, using the effective interest
rate method, while dividend income is recorded under ‘Other operating income’ when the right to receive the payment has
been established.
The Bank has not designated any financial assets upon initial recognition as designated at fair value through profit or loss.
Held to Maturity Financial Assets

Held to Maturity Financial Assets are non-derivative financial assets with fixed or determinable payments and fixed
maturities which the Bank has the intention and ability to hold to maturity. After the initial measurement, held to maturity
financial investments are subsequently measured at amortized cost using the effective interest rate, less impairment. The
amortization is included in ‘Interest income’ in the Statement of Profit or Loss. The losses arising from impairment of such
investments are recognized in the Statement of Profit or Loss.
Financial Assets Available for Sale

Available for sale financial assets include equity and debt securities. Equity Investments classified as ‘Available for Sale’ are
those which are neither classified as ‘Held for Trading’ nor ‘Held till Maturity’. Debt securities in this category are intended
to be held for an indefinite period of time and may be sold in response to needs for liquidity or in response to changes in
the market conditions.
After initial measurement, available for sale financial investments are subsequently measured at fair value. Unrealized
gains and losses are recognized directly in equity through ‘Other comprehensive income / expense’ in the ‘Available
for sale reserve’. Where Bank holds more than one investment in the same security, they are deemed to be disposed
of on weighted average basis. Interest earned whilst holding ‘Available for sale financial investments’ is reported as
‘Interest income’ using the effective interest rate. Dividend earned whilst holding ‘Available for sale financial investments’
are recognized in the Statement of Profit or Loss as ‘other operating income’ when the right to receive the payment has
been established. The losses arising from impairment of such investments are recognized in the Statement of Profit or Loss
under ‘Impairment charge for loans and other losses’ and removed from the ‘Available for sale reserve’.
In the normal course of business, the fair value of a financial instrument on initial recognition is the transaction price (that
is, the fair value of the consideration given or received).
Loans and Receivables from Customers

Loans and receivables include non-derivative financial assets with fixed or determinable payments that are not quoted in
an active market, other than:
 Those that the Bank intends to sell immediately or in the near term and those that the Bank, upon initial recognition,
designates as fair value through profit or loss
 Those that the Bank, upon initial recognition, designates as available for sale
 Those for which the Bank may not recover substantially all of its initial investment through contractual cash flows, other
than because of credit deterioration.
Loans and Advances mainly represent loans and advances to customers, Banking and Financial Institutions. After initial
measurement, loans and receivables are subsequently measured at amortized cost using a rate that closely approximates
effective interest rate, less allowance for impairment. Within this category, loans and advances to the customers have been
recognized at amortized cost using the method that very closely approximates effective interest rate method opting the
Carve Out pronounced by Institute of Chartered Accountants of Nepal (ICAN); implementation of which has been extended
for a year till 2022/23 by ICAN through notice issued by regarding the implementation of EIR. The amortization is included
in ‘Interest Income’ in the Statement of Profit or Loss. The losses arising from impairment are recognized in ‘Impairment
charge / reversal for loans and other losses’ in the Statement of Profit or Loss.
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Financial Liabilities
Classification and Subsequent Measurement of Financial Liabilities
At the inception, Bank determines the classification of its financial liabilities. Accordingly, financial liabilities are classified as:
a. Financial liabilities at fair value through profit or loss
i. Financial liabilities held for trading
ii. Financial liabilities designated at fair value through profit or loss
b. Financial liabilities at amortized cost
Financial Liabilities at Fair Value through Profit or Loss

Financial Liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities
designated upon initial recognition as fair value through profit or loss. Subsequent to initial recognition, financial liabilities
at fair value through profit or loss are measured at fair value and changes therein are recognized in profit or loss.
i. Financial Liabilities Held for Trading

Financial liabilities are classified as held for trading if they are acquired principally for the purpose of selling or repurchasing in
the near term or holds as a part of a portfolio that is managed together for short-term profit or position taking. This category
includes derivative financial instrument entered into by Bank that are not designated as hedging instruments in hedge
relationships as defined by Nepal Accounting Standard - NAS 39 (Financial Instruments: Recognition and Measurement).
ii. Financial Liabilities Designated at Fair Value through Profit or Loss

Bank designates financial liabilities at fair value through profit or loss at following circumstances:
 Such designation eliminates or significantly reduces measurement or recognition inconsistency that would otherwise
arise from measuring the liabilities.
 The liabilities are part of a group of Financial assets, financial liabilities or both, which are managed and their performance
evaluated on a fair value basis, in accordance with a documented risk management or investment strategy
 The liability contains one or more embedded derivatives that significantly modify the cash flows that would otherwise
have been required under the contract.
Financial Liabilities at Amortized Cost

Financial instruments issued by Bank that are not classified as fair value through profit or loss are classified as financial
liabilities at amortized cost, where the substance of the contractual arrangement results in Bank having an obligation either
to deliver cash or another financial asset to another Bank, or to exchange financial assets or financial liabilities with another
Bank under conditions that are potentially unfavorable to the Bank or settling the obligation by delivering variable number
of Bank’s own equity instruments.
After initial recognition, such financial liabilities are subsequently measured at amortized cost using the effective interest
rate method. Amortization is included in ‘Interest Expenses’ in the Statement of Profit or Loss. Gains and losses are
recognized in the Statement of Profit or Loss when the liabilities are derecognized.
Reclassification
i. Reclassification of Financial Instruments ‘At fair value through profit or loss’,
Bank does not reclassify derivative financial instruments out of the fair value through profit or loss category when it is held
or issued.
Non-derivative financial instruments designated at fair value through profit or loss upon initial recognition is not reclassified
subsequently out of fair value through profit or loss category.
ii. Reclassification of ‘Available for sale’ Financial Instruments

Bank may reclassify financial assets out of available for sale category as a result of change in intention or ability or in rare
circumstances that a reliable measure of fair value is no longer available.
iii. Reclassification of ‘Held to Maturity’ Financial Instruments

As a result of a change in intention or ability, if it is no longer appropriate to classify an investment as amortized at cost,
Bank may reclassify such financial assets as at fair value through OCI and re- measured at fair value. Any difference
between the carrying value of the financial asset before reclassification and fair value is recognized in equity through other
comprehensive income.
c. De-recognition
De-recognition of Financial Assets

Bank derecognizes a financial asset (or where applicable a part of financial asset or part of a group of similar financial
assets) when:
 The rights to receive cash flows from the asset have expired; or
 Bank has transferred its rights to receive cash flows from the asset or
 Bank has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-
through’ arrangement and either Bank has transferred substantially all the risks and rewards of the asset or it has neither
transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
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De-recognition of Financial Liabilities

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expired. Where an
existing financial liability is replaced by another from the same lender on substantially different terms or the terms of an
existing liability are substantially modified, such an exchange or modification is treated as de-recognition of the original
liability and the recognition of a new liability.
The difference between the carrying value of the original financial liability and the consideration paid is recognized in profit
or loss.
Offsetting of Financial Instruments

Financial assets and financial liabilities are offset and the net amount presented in the Statement of Financial Position
when and only when Bank has a legal right to set off the recognized amounts and it intends either to settle on a net basis
or to realize the asset and settle the liability simultaneously. Income and expenses are presented on a net basis only when
permitted under NFRSs or for gains and losses arising from a group of similar transaction such as in trading activity.
Amortized Cost Measurement

The Amortized cost of a financial asset or liability is the amount at which the financial asset or liability is measured at initial
recognition, minus principal repayments, plus or minus the cumulative amortization using the effective interest method of
any difference between the initial amount recognized and the maturity amount, minus any reduction for impairment.
Fair Value Measurement

‘Fair value’ is the price that would be received to sell an asset or paid to transfer a liability (exit price) in an orderly transaction
between market participants at the measurement date. The fair value measurement is based on the presumption that the
transaction to sell the asset or transfer the liability takes place either:
 In the principal market for the asset or liability or
 In the absence of principal market, in the most advantageous market for asset or liability.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the
fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement
as a whole:
Level 1 Valuation technique using quoted market price: financial instruments with quoted prices for identical instruments
in active markets.
Level 2 Valuation technique using observable inputs: financial instruments with quoted prices for similar instruments in
active markets or quoted prices for identical or similar instruments in inactive markets and financial instruments
valued using models where all significant inputs are observable.
Level 3 Valuation technique with significant unobservable inputs: financial instruments valued using valuation techniques
where one or more significant inputs are unobservable.
Level 1
When available, the Bank measures the fair value of an instrument using quoted prices in an active market for that instrument
or dealer price quotations, without any deduction for transaction costs.
A market is regarded as active if quoted prices are readily and regularly available and represent actual and regularly
occurring market transactions on an arm’s length basis.
Level 2
If a market for a financial instrument is not active, then the Bank establishes fair value using a valuation technique. Valuation
techniques include using recent arm’s length transactions between knowledgeable, willing parties (if available), reference
to the current fair value of other instruments that are substantially the same, discounted cash flow analysis and option
pricing models.
The chosen valuation technique makes maximum use of market inputs, relies as little as possible on estimates specific
to the Group, incorporates all factors that market participants would consider in setting a price, and is consistent with
accepted economic methodologies for pricing financial instruments.
Level 3
Certain financial instruments are recorded at fair value using valuation techniques in which current market transactions
or observable market data are not available. Their fair value is determined using a valuation model that has been tested
against prices or inputs to actual market transactions and using the Bank’s best estimate of the most appropriate model
assumptions.
The fair value of a demand deposit is not less than the amount payable on demand, discounted from the first date on which
the amount could be required to be paid.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic
benefits by using the asset in its highest best use or by selling it to another market participant that would use the asset in
its highest and best use.
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The Bank recognizes transfers between levels of the fair value hierarchy as of the end of the reporting period during which
the change has occurred.
d. Impairment
At each reporting date, Bank assesses whether there is any objective evidence that a financial asset or group of financial
assets not carried at fair value through profit or loss is impaired. A financial asset or group of financial assets is deemed
to be impaired if and only if there is objective evidence of impairment as a result of one or more events, that have occurred
after the initial recognition of the asset (an ‘incurred loss event’) and that loss event (or events) has an impact on the
estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.
Objective evidence of impairment may include: indications that the borrower or a group of borrowers is experiencing
significant financial difficulty; the probability that they will enter bankruptcy or other financial reorganization; default or
delinquency in interest or principal payments; and where observable data indicates that there is a measurable decrease in
the estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults.
Impairment of Financial Assets carried at Amortized Cost

For financial assets carried at amortized cost, such as amounts due from banks, held to maturity investments etc., Bank first
assesses individually whether objective evidence of impairment exists for financial assets that are individually significant
or collectively for financial assets that are not individually significant. In the event, Bank determines that no objective
evidence of impairment exists for an individually assessed financial asset, financial assets in a group with similar credit risk
characteristics are collectively assesses for impairment. However, assets that are individually assessed for impairment and
for which an impairment loss is or continues to be recognized are not included in a collective assessment of impairment.
If there is an objective evidence that an impairment loss has been incurred, the amount of the loss is measured as the
difference between the assets’ carrying amount and the present value of estimated future cash flows (excluding future
expected credit losses that have not yet been incurred). The carrying amount of the asset is reduced through the use of
an allowance account and the amount of the loss is recognized in the income statement. Interest income continues to be
accrued on the reduced carrying amount and is accrued using the rate of interest used to discount the future cash flows
for the purpose of measuring the impairment loss.
If a loan has a variable interest rate, the discount rate for measuring any impairment loss is the current rate closely
approximates effective interest rate. If the Bank has reclassified trading assets to loans and advances, the discount rate
for measuring any impairment loss is the new closely approximates effective interest rate determined at the reclassification
date. The calculation of the present value of the estimated future cash flows of collateralized financial assets reflects the
cash flows that may result from foreclosure less costs for obtaining and selling the collateral, whether or not foreclosure
is probable.
Impairment of Financial Assets – Loans and Advances

The Bank review it’s individually significant loans and advances at each statement of financial position date to assess
whether an impairment loss should be recorded in the income statement. The bank has conducted objective evidence test
for individual impairment through different parameters like inability to meet loan agreements, substantial drop in profits/
turnover, significant adverse cash flows, significant adverse net worth situation, problematic borrower financial position,
etc. Mainly, management judgment is required in the estimation of the amount and timing of the expected future cash flows
for determination of the impairment loss.
These estimates are based on assumptions about a number of factors and actual results may differ, resulting in future
changes to the impairment allowance.
Loans and advances that have been assessed individually and found to be not impaired and all individually insignificant
loans and advances are then assessed collectively, in groups of assets with similar risk characteristics, to determine
whether provision should be made due to incurred loss events for which there is objective evidence, but the effects of
which are not yet evident. The collective assessment takes in to account data from the loan portfolio such as levels of
arrears, credit quality, portfolio size etc. and judgments based on current economic conditions.
Loans and advances have been impaired as the higher of amount derived as per the norms prescribed by Nepal Rastra
Bank for loan loss provision and amount determined as per paragraph 63 of NAS 39, as per Carve-out pronounced by
Institute of Chartered Accountants of Nepal on 20th September 2018.
The impairment loss on loans and advances is disclosed in Note 4.6 and 4.7 to the financial statements.
Individually Assessed Financial Assets

The criteria used to determine whether there is objective evidence of impairment include and not limited to:
 Known Cash Flow difficulties experienced by the borrowers:
 Past due contractual payments of either principal or interest;
 Breach of loan covenants or conditions;
 The probability that the borrower will enter bankruptcy or other financial reorganization; and
 A significant downgrading in credit rating by an external credit rating agency.
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If there is objective evidence that an impairment loss on financial assets measured at amortized cost has been incurred,
the amount of the loss is measured by discounting the expected future cash flows of a financial asset at its original
effective interest rate and comparing the resultant present value with the financial asset’s current carrying amount. The
impairment allowances on individually significant accounts are reviewed more regularly when circumstances require. This
normally encompasses re-assessment of the enforceability of any collateral held and the timing and amount of actual and
anticipated receipts. Individually assessed impairment allowances are only released when there is reasonable and objective
evidence of reduction in the established loss estimate. Interest on impaired assets continues to be recognized through the
unwinding of the discount.
Loans together with the associated allowance are written off when there is no realistic prospect of future recovery and
all collateral has been realized or has been transferred to the Bank. If, in a subsequent year, the amount of the estimated
impairment loss increases or decreases because of an event occurring after the impairment was recognized, the previously
recognized impairment loss is increased or reduced by adjusting the allowance account. If a future write off is later
recovered, the recovery is credited to the impairment charges for loans and other losses.
When impairment losses are determined for those financial assets where objective evidence of impairment exists, the
following common factors are considered:
 Bank’s aggregate exposure to the customer;
 The viability of the customer’s business model and their capacity to trade successfully out of financial difficulties and
generate sufficient cash flows to service debt obligations;
 The amount and timing of expected receipts and recoveries;
 The extent of other creditors ‘commitments ranking ahead of, or pari-pasu with the Bank and the likelihood of other
creditors continuing to support the company;
 The realizable value of security and likelihood of successful repossession;
Collectively Assessed Financial Assets

Impairment is assessed on a collective basis in two circumstances:
 To cover losses which have been incurred but have not yet been identified on loans subject to individual assessment;
and
 For homogeneous groups of loans that is not considered individually significant.
Incurred but not yet identified impairment

Individually assessed financial assets for which no evidence of loss has been specifically identified on an individual basis
are grouped together according to their credit risk characteristics for the purpose of calculating an estimated collective
loss. This reflects impairment losses that the bank has incurred as a result of events occurring before the reporting date,
which the Bank is not able to identify on an individual loan basis and that can be reliably estimated.
These losses will only be individually identified in the future. As soon as information becomes available which identifies
losses on individual financial assets within the group, those financial assets are removed from the group and assessed on
an individual basis for impairment.
The collective impairment allowance is determined after taking into account:

 Historical Loss Experience in portfolios of similar credit risk; and
 Management’s experienced judgment as to whether current economic and credit conditions are such that the actual
level of inherent losses at the reporting date is like to be greater or less than that suggested by historical experience.
Homogeneous groups of Financials Assets

Statistical methods are used to determine impairment losses on a collective basis for homogenous groups of financial
assets. Losses in these groups of financial assets are recorded on an individual basis when individual financial assets are
written off, at which point they are removed from the group.
Bank uses the following method to calculate historical loss experience on collective basis:
After grouping of loans on the basis of homogeneous risks, the Bank uses net flow rate method. Under this methodology
the movement in the outstanding balance of customers into default categories over the periods is used to estimate the
amount of financial assets that will eventually be irrecoverable, as a result of the events occurring before the reporting date
which the Bank is not able to identify on an individual loan basis.
Under this methodology, loans are grouped into ranges according to the number of days in arrears and statistical analysis
is used to estimate the likelihood that loans in each range will progress through the various stages of delinquency and
ultimately prove irrecoverable.
Current economic conditions and portfolio risk factors are also evaluated when calculating the appropriate level of
allowance required covering inherent loss. These additional macro and portfolio risk factors may include:
 Recent loan portfolio growth and product mix
 Unemployment rates
 Gross Domestic Production (GDP)Growth
 Inflation
 Interest rates
 Changes in government laws and regulations
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 Property prices
 Payment status
But, the amount of provision to be created against Loans and Advances shall be higher of the following two amounts:
i) Impairment calculated as per Impairment Assessment Methodology as described above or,
ii) Loan Loss Provision calculated as per the provisions of Unified Directives issued by Nepal Rastra Bank.
Reversal of Impairment
If the amount of an impairment loss decreases in a subsequent period and the decrease can be related objectively to an
event occurring after the impairment was recognized, the excess is written back by reducing the financial asset impairment
allowance account accordingly. The write-back is recognized in the Statement of Profit or Loss.
Write-off of Financial Assets measured at Amortized Cost

Financial assets (and the related impairment allowance accounts) are normally written off either partially or in full, when
there is no realistic prospect of recovery. Where financial assets are secured, this is generally after receipt of any proceeds
from the realization of security.
Impairment of Rescheduled Loans and Advances

Where possible, the Bank seeks to restructure loans rather than to take possession of collateral. This may involve extending
the payment arrangements and the agreement of new loan conditions. Once the terms have been renegotiated, any
impairment is measured using the original EIR as calculated before the modification of terms and the loan is no longer
considered past due. Management continually reviews renegotiated loans to ensure that all criteria are met and that future
payments are likely to occur. The loans continue to be subject to an individual impairment assessment, calculated using
the loan’s original effective interest rate (EIR).
Collateral Valuation
The Bank seeks to use collateral, where possible, to mitigate its risks on financial assets. The collateral comes in various
forms such as cash, securities, letters of credit/guarantees, real estate, receivables, inventories, other non-financial assets
and credit enhancements such as netting agreements. The fair value of collateral is generally assessed, at a minimum, at
inception and based on the guidelines issued by the central bank (Nepal Rastra Bank). Non-financial collateral, such as real
estate, is valued based on data provided by third parties such as independent valuator and audited financial statements.
Collateral Repossessed or Where Properties Have Devolved To the Bank

Legally Repossessed Collateral represents Non-Financial Assets acquired by the Bank in settlement of the overdue loans.
The assets are initially recognized at fair value when acquired. The Bank’s policy is to determine whether a repossessed
asset is best used for its internal operations or should be sold. The proceeds are used to reduce or repay the outstanding
claim. The immovable property acquired by foreclosure of collateral from defaulting customers, or which has devolved on
the Bank as part settlement of debt, has not been occupied for business use.
These assets are shown as Legally Repossessed Collateral under “Investment Property.”
Impairment of Financial Assets – Available for Sale

For financial investments measured at fair value through OCI, Bank assesses at each reporting date whether there is
objective evidence that an investment is impaired.
In the case of debt instruments, Bank assesses individually whether there is objective evidence of impairment based on the
same criteria as financial assets carried at amortized cost. However, the amount recorded for impairment is the cumulative
loss measured as the difference between the amortized cost and the current fair value, less any impairment loss on
that investment previously recognized in the Income Statement. Future interest income is based on the reduced carrying
amount and is accrued using the rate of interest used to discount the future cash flows for the purpose of measuring the
impairment loss. If, in a subsequent period, the fair value of a debt instrument increases and the increase can be objectively
related to a credit event occurring after the impairment loss was recognized, the impairment loss is reversed through the
Income Statement.
In the case of equity investments classified as fair value through OCI, the impairment is adjustment through fair value
movement.
Bank writes-off certain financial investments when they are determined to be uncollectible.
3.5. Trading Assets

Financial assets such as government securities, equity etc. held for short term with an intention to trade have been
classified as trading assets. Trading assets are measured at fair value with any changes in fair value being recognized in
Profit or Loss.
3.6. Derivative assets and derivative liabilities

Derivative financial instruments such as forward foreign exchange contracts are valued using a valuation technique with
market observable inputs. The most frequently applied valuation technique is forward pricing model which incorporates
various inputs including foreign exchange spot and forward premiums.
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Forward contracts are the contracts to purchase or sell a specific quantity of a financial instrument, a commodity, or
a foreign currency at a specified price determined at the outset, with delivery or settlement at a specified future date.
Settlement is at maturity by actual delivery of the item specified in the contract, or by a net cash settlement.
All freestanding contracts that are considered derivatives for accounting purposes are carried at fair value on the statement
of financial position regardless of whether they are held for trading or non-trading purposes. Changes in fair value on
derivatives held for trading are included in net gains/ (losses) from financial instruments in fair value through profit or loss
on financial assets/ liabilities at fair value through profit or loss.
3.7. Property and Equipment

Recognition
Property, plant and equipment are tangible items that are held for use in the production or supply of services, for rental
to others or for administrative purposes and are expected to be used during more than one period. The Bank applies the
requirements of the Nepal Accounting Standard - NAS 16 (Property, Plant and Equipment) in accounting for these assets.
Property, plant and equipment are recognized if it is probable that future economic benefits associated with the asset will
flow to the entity and the cost of the asset can be measured reliably measured.
The freehold land and buildings of the bank are measured at cost and not reflected at fair value and no revaluation has
been carried at the reporting date.
Fixed assets except land are stated at acquisition cost less accumulated depreciation. Acquisition cost includes
expenditures that are directly attributable to the acquisition of the assets.
Measurement
An item of property, plant and equipment that qualifies for recognition as an asset is initially measured at its cost. Cost
includes expenditure that is directly attributable to the acquisition of the asset and cost incurred subsequently to add to,
replace part of an item of property, plant & equipment. The cost of self-constructed assets includes the cost of materials
and direct labor, any other costs directly attributable to bringing the asset to a working condition for its intended use and
the costs of dismantling and removing the items and restoring the site on which they are located. Purchased software that
is integral to the functionality of the related equipment is capitalized as part of computer equipment. When parts of an
item of property or equipment have different useful lives, they are accounted for as separate items (major components) of
property, plant and equipment.
Assets with a value less than Rs. 10,000 are charged off as a revenue expense irrespective of its useful life in the year of
purchase.
Leasehold improvements are capitalized at cost and amortized over the period of five years. The amount of amortization
is charged as revenue expenses.
Cost Model
Property and equipment is stated at cost excluding the costs of day–to–day servicing, less accumulated depreciation
and accumulated impairment in value. Such cost includes the cost of replacing part of the equipment when that cost is
incurred, if the recognition criteria are met.
Revaluation Model
The Bank has not applied the revaluation model to the any class of freehold land and buildings or other assets. Such
properties are carried at a previously recognized GAAP Amount.
However, the assets transferred from the acquisition of Deva Bikas Bank Limited is recognized at Fair Value of the assets
and liabilities at the date of acquisition due to which the land transferred from Deva Bikas Bank is recognized at revalued
amount which is close to fair value.
Subsequent Cost
The subsequent cost of replacing a component of an item of property, plant and equipment is recognized in the carrying
amount of the item, if it is probable that the future economic benefits embodied within that part will flow to the Bank and it
can be reliably measured. The cost of day to day servicing of property, plant and equipment are charged to the Statement
of Profit or Loss as incurred.
De-recognition
The carrying amount of an item of property, plant and equipment is derecognized on disposal or when no future economic
benefits are expected from its use. The gain or loss arising from de-recognition of an item of property, plant and equipment
is included in the Statement of Profit or Loss when the item is derecognized. When replacement costs are recognized in
the carrying amount of an item of property, plant and equipment, the remaining carrying amount of the replaced part is
derecognized. Major inspection costs are capitalized. At each such capitalization, the remaining carrying amount of the
previous cost of inspections is derecognized. The gain or losses arising from de-recognition of an item of property, plant
and equipment is included in profit or loss when the item is derecognized.
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Depreciation
Depreciation is calculated by on the basis of useful life of the asset on cost or carrying value of property, plant & equipment
other than freehold land.
The depreciable amount of an item of property, plant and equipment is allocated on systematic basis over its useful life,
under written down value method of depreciation except for Leasehold properties and is depreciated as follows:
Estimated Useful Life of Asset (Years) Estimated Useful Life of Asset (Years)
Asset Category
FY 2078/79 FY 2077/78
Buildings 40 Years 40 Years
Vehicles 10 Years 10 Years
Office Equipment 8 Years 8 Years
Furniture & Fixtures (Metal & Wooden) 8 Years 8 Years
Computer Hardware 8 Years 8 Years
Battery 6 Years 6 Years
Leasehold Properties 5 Years 5 Years

Salvage Value is assumed to be 10% of the cost of the asset in case of asset depreciated on Diminishing Value Method.
Depreciation on newly acquired property and equipment are charged from the next month of booking. Depreciation of
property and equipment ceases when it is derecognized at the time of its disposal. For the expenses allowance for tax
purpose; depreciation is provided as per Income Tax Act. The differences in the calculation of depreciation as per financial
and as per Income tax act is taken up for calculation of deferred tax.
Changes in Estimates
The asset’s residual values, useful lives and methods of depreciation are reviewed, and adjusted if appropriate, at each
financial year end.
Capital Work in Progress

These are expenses of capital nature directly incurred in the construction of buildings, major plant and machinery and
system development, awaiting capitalization. Capital work-in-progress would be transferred to the relevant asset when it
is available for use, i.e. when it is in the location and condition necessary for it to be capable of operating in the manner
intended by management. Capital work-in-progress is stated at cost less any accumulated impairment losses.
3.8. Intangible Assets

Recognition
An intangible asset is an identifiable non-monetary asset without physical substance, held for use in the production or
supply of goods or services, for rental to others or for administrative purposes. An intangible asset is recognized if it is
probable that the future economic benefits that are attributable to the asset will flow to the entity and the cost of the asset
can be measured reliably. An intangible asset is initially measured at cost. Expenditure incurred on an intangible item that
was initially recognized as an expense by the Bank in previous annual Financial Statements or interim Financial Statements
are not recognized as part of the cost of an intangible asset at a later date.
Computer Software
Cost of purchased licenses and all computer software costs incurred, licensed for use by the Bank, which are not integrally
related to associated hardware, which can be clearly identified, reliably measured, and it’s probable that they will lead to
future economic benefits, are included in the Statement of Financial Position under the category ‘Intangible assets’ and
carried at cost less accumulated amortization and any accumulated impairment losses.
Acquired computer software licenses are capitalized on the basis of cost incurred to acquire and bring to use the specific
software and are amortized over their useful life estimated as 5 years from the date of acquisition.
Subsequent Expenditure
Expenditure incurred on software is capitalized only when it is probable that this expenditure will enable the asset to
generate future economic benefits in excess of its originally assessed standard of performance and this expenditure can
be measured and attributed to the asset reliably. All other expenditure is expensed as incurred.
Amortization of Intangible Assets

Intangible Assets, except for goodwill, are amortized on a straight–line basis in the Statement of Profit or Loss from the
date when the asset is available for use, over the best of its useful economic life based on a pattern in which the asset’s
economic benefits are consumed by the bank. Amortization methods, useful lives, residual values are reviewed at each
financial year end and adjusted if appropriate. The Bank assumes that there is no residual value for its intangible assets.
Asset Category For the year ended 16th July 2022 For the year ended 15th July 2021
Computer Software 5 years 5 years
De-recognition of Intangible Assets

The carrying amount of an item of intangible asset is derecognized on disposal or when no future economic benefits are
expected from its use. The gain or loss arising on de recognition of an item of intangible assets is included in the Statement
of Profit or Loss when the item is derecognized.
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3.9. Investment Property

Investment property is property (land or a building or part of a building or both) held (by the owner or by the lessee under a
finance lease) to earn rentals or for capital appreciation or both but not for sale in the ordinary course of business.
Measurement
Investment property is accounted for under Fair Value in the Financial Statements. In the absence of information related
to market price of the properties, the amount outstanding at the time of settlement of loan has been considered as the fair
value of the asset.
De-recognition
Investment properties are derecognized when they are disposed of or permanently withdrawn from use since no future
economic benefits are expected. Transfers are made to and from investment property only when there is a change in use.
When the use of a property changes such that it is reclassified as Property, Plant and Equipment, its fair value at the date
of reclassification becomes its cost for subsequent accounting.
3.10. Income Tax

The Bank is subject to income tax and judgment is required to determine the total provision for current, deferred and
other taxes due to the uncertainties that exist with respect to the interpretation of the applicable tax laws, at the time of
preparation of these Financial Statements.
As per Nepal Accounting Standard- NAS 12 (Income Taxes) tax expense is the aggregate amount included in determination
of profit or loss for the period in respect of current and deferred taxation. Income Tax expense is recognized in the
statement of Profit or Loss, except to the extent it relates to items recognized directly in equity or other comprehensive
income in which case it is recognized in equity or in other comprehensive income. The Management periodically evaluates
positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It
establishes provisions where appropriate on the basis of amounts expected to be paid to tax authorities.
Current Tax
Current tax assets and liabilities consist of amounts expected to be recovered from or paid to Inland Revenue Department
in respect of the current year, using the tax rates and tax laws enacted or substantively enacted on the reporting date and
any adjustment to tax payable in respect of prior years.
Deferred Tax
Deferred tax is provided on temporary differences at the reporting date between the tax bases of assets and liabilities and
their carrying amounts for financial reporting purposes. Deferred tax liabilities are recognized for all taxable temporary
differences except:
 Where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that
is not a business combination, and at the time of transaction, affects neither the accounting profit nor taxable profit or
loss.
 In respect of taxable temporary differences associated with investments in subsidiaries, where the timing of the reversal
of the temporary differences can be controlled and is probable that the temporary differences will not reverse in the
foreseeable future.
Deferred tax assets are recognized for all deductible temporary differences, carried forward unused tax credits and unused
tax losses (if any), to the extent that it is probable that the taxable profit will be available against which the deductible
temporary differences, carried forward unused tax credits and unused tax losses can be utilized except:
 Where the deferred tax asset relating to the deductible temporary differences arising from the initial recognition of an
asset or liability in a transaction that is not a business combination, and at the time of transaction, affects neither the
accounting profit nor taxable profit or loss.
 In respect of deductible temporary differences associated with investments in Subsidiaries, deferred tax assets are
recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and
taxable profit will be available against which the temporary difference will be utilized.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is probable
that sufficient profit will be available to allow the deferred tax asset to be utilized. Unrecognized deferred tax assets are
reassessed at each reporting date and are recognized to the extent that it has become probable that future taxable profit
will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is
realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the
reporting date.
Current and deferred tax assets and liabilities are offset only to the extent that they relate to income taxes imposed by the
same taxation authority.
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3.11. Deposits, debt securities issued and subordinated liabilities

Deposits, debt securities issued and subordinated liabilities are the Bank’s sources of funding. Deposits include non-
interest bearing deposits, saving deposits, term deposits, call deposits and margin deposits. The estimated fair value
of deposits with no stated maturity period is the amount repayable on demand. The fair value of fixed interest bearing
deposits is considered as the interest receivable on these deposits plus carrying amount of these deposits. The fair value of
debt securities issued is also considered as the carrying amount of these debt securities issued. Sub-ordinate liabilities are
liabilities subordinated, at the event of winding up, to the claims of depositors, debt securities issued and other creditors.
3.12. Provisions, Commitments and Contingencies

A provision is recognized if, as a result of a past event, the Bank has a present legal or constructive obligation that can
be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. The
amount recognized is the best estimate of the consideration required to settle the present obligation at the reporting date,
taking in to account the risks and uncertainties surrounding the obligation at that date. Where a provision is measured
using the cash flows estimated to settle the present obligation, its carrying amount is determined based on the present
value of those cash flows. A provision for onerous contracts is recognized when the expected benefits to be derived by
the Bank from a contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision
is measured as the present value of the lower of the expected cost of terminating the contract and the expected net cost
of continuing with the contract.
Before a provision is established, the Bank recognizes any impairment loss on the assets associated with that contract. The
expense relating to any provision is presented in the Statement of Profit or Loss net off any reimbursement.
All discernible risks are accounted for in determining the amount of all known liabilities. Contingent liabilities are possible
obligations whose existence will be confirmed only by uncertain future events or present obligations where the transfer of
economic benefit is not probable or cannot be reliably measured. Contingent liabilities are not recognized in the Statement
of Financial Position but are disclosed unless they are remote.
The Bank receives legal claims against it in the normal course of business. Management has made judgments as to the
likelihood of any claim succeeding in making provisions. The time of concluding legal claims is uncertain, as is the amount
of possible outflow of economic benefits.
3.13. Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to Bank and the revenue can be
reliably measured. The following specific recognition criteria must also be met before revenue is recognized.
Interest Income
Interest income is recognized in profit or loss for all interest-bearing instruments on an accrual basis using the method
which is approximately the same with effective interest method as allowed by carve-out on NFRS. The effective interest
rate is the rate that exactly discounts the expected estimated future cash payments and receipts through the expected life
of the financial asset or liability. Where financial assets have been impaired, interest income continues to be recognized on
the impaired value, based on the original effective interest rate.
Bank has adopted the guideline issued by Nepal Rastra bank issued on July 2019 for the recognition of Interest Income
i.e. the criteria for suspension of interest income and cessation of accrued Interest which requires cessation of recognition
interest income for loans which are significantly impaired i.e. bad. As on Asadh End 2079 the bank has ceased acquisition
of interest amounting to NPR 3,306,179 related to bad loan which was NPR. 217,849,182 as on Asadh End 2078.
Fee and Commission Income

Fees earned for the provision of services over a period of time are accrued over the period, which include service fees and
commission income. The bank has availed the option provided as per carve out of NFRS for transaction cost to be included
in computing effective interest rate.
Dividend Income
Dividend income is recognized when the right to receive payment is established.
Net Trading Income

Net trading income comprises gains less losses relating to trading assets and liabilities, and includes all realized interest,
dividend on financial assets held for trading and foreign exchange differences as wells as unrealized changes in fair value
of trading assets and liabilities.
Net income from other financial instrument measured at fair value through Profit or Loss
Trading assets such as equity shares and mutual fund are recognized at fair value through profit or loss. No other financial
instruments are designated at fair value through profit or loss. The bank has no income under the heading net income from
other financial instrument at fair value through profit or loss.
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3.14. Interest expense

For financial liabilities measured at amortized cost, interest expense is recognized using the EIR to the extent material and
practicable. EIR is the rate that exactly discounts estimated future cash payments through the expected life of the financial
liabilities or a shorter period, where appropriate, to the net carrying amount of the financial liability.
3.15. Employee Benefits

Employee benefits include:
 Short-term employee benefits such as the following, if expected to be settled wholly before twelve months after the end
of the annual reporting period in which the employees render the related services:
i. Wages, salaries and social security contributions;
ii. Paid annual leave and paid sick leave;
iii. Profit sharing and bonuses, and
iv. Non-monetary benefits (such as medical care, housing, cars and free or subsidized goods or services) for
current employees;

Short term employee benefits are measured on an undiscounted basis and are expensed as the related service is
provided. A liability is recognized for the amount expected to be paid under short term cash bonus or profit sharing
plans if the Bank has present legal or constructive obligation to pay this amount as a result of past service provided by
the employee and the obligation can be estimated reliably.
 Post-employment benefits, such as the following:
i. Retirement benefits ( E.g.: pensions, lump sum payments on retirement); and

ii. Other post-employment benefits such as post-employment life insurance and post-employment medical care;
 Other long term employee benefits and

 Termination benefits
1. Post employments benefits

Defined Contribution Plans
A defined contribution plan is a post-employment benefit plan under which the Bank makes fixed contribution into a
separate Bank account (a fund) and will have no legal or constructive obligation to pay further contributions even if the fund
does not hold sufficient assets to pay all employee benefits relating to employee services in the current and prior periods
as defined in Nepal Accounting Standards – NAS 19 (Employee Benefits).
The contribution payable by the employer to a defined contribution plan in proportion to the services rendered to Bank
by the employees and is recorded as an expense under ‘Personnel Expense’ as and when they become due. Unpaid
contributions are recorded as a liability under ‘Other Liabilities’ in Notes 4.23.
Bank contributed 10% of the salary of each employee to the Employees’ Provident Fund. The above expenses are identified
as contributions to ‘Defined Contribution Plans’ as defined in Nepal Accounting Standards – NAS 19 (Employee Benefits).
Defined Benefit Plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. Accordingly, staff gratuity
has been considered as defined benefit plans as per Nepal Accounting Standards – NAS 19 (Employee Benefits).
 Gratuity
An actuarial valuation is carried out every year to ascertain the full liability under gratuity.
Bank’s obligation in respect of defined benefit obligation is calculated by estimating the amount of future benefit that
employees have earned for their service in the current and prior periods and discounting that benefit to determine its
present value, then deducting the fair value of any plan assets to determine the net amount to be shown in the Statement of
Financial Position. The value of a defined benefit asset is restricted to the present value of any economic benefits available
in the form of refunds from the plan or reduction on the future contributions to the plan. In order to calculate the present
value of economic benefits, consideration is given to any minimum funding requirement that apply to any plan in Bank. An
economic benefit is available to Bank if it is realizable during the life of the plan, or on settlement of the plan liabilities.
The Gratuity recognition each year is as per the bank’s employee bye laws which stipulates for recognition of gratuity
provision / payment as per the latest staff basic remuneration; multiplied by the eligible number of years.
Bank determines the interest expense on the defined benefit liability by applying the discount rate used to measure
the defined benefit liability at the beginning of the annual period. The discount rate is the average yield on government
bonds issued during the period having maturity dates approximating to the terms of Bank’s obligations.
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The increase in gratuity liabilities attributable to the services provided by employees during the year ended 16th July,
2022 (current service cost) has been recognized in the Statement of Profit or Loss under ‘Personnel Expenses’ together
with interest expense under the Interest Expense of bank. Bank recognizes the total actuarial gain/(loss) that arises in
computing Bank’s obligation in respect of gratuity in other comprehensive income during the period in which it occurs.
Other long term employee benefits

Other long term employee benefits are all employee benefits other than short term employee benefits, post-employment
benefits and terminal benefits.
 Unutilized Accumulated Leave

Bank’s policy related to the accumulation of the leave states for accumulation of total 150 days leave (60 days annual
leave and 90 days medical leave), payable on gross salary of the staff on the date of encashment. Thus the liability
of the bank is provisioned as per the latest staff remuneration for the leave accumulated, Bank’s liability towards
the accumulated leave is treated as short term employee benefit and additional cost resulting every year from the
accumulation is charged to profit and loss account as per the definition of short term employee benefit of NAS 19.
3.16. Leases
The determination of whether an arrangement is a lease or it contains a lease, is based on the substance of the arrangement
and requires an assessment of whether the fulfillment of the arrangement is dependent on the use of a specific asset or
assets and the arrangement conveys a right to use the asset.
Finance Lease
Agreements which transfer to counterparties substantially all the risks and rewards incidental to the ownership of assets,
but not necessarily legal title, are classified as finance lease.
When Bank is the lessor under finance lease, the amounts due under the leases, after deduction of unearned interest income,
are included in, ‘Loans& receivables from other customers’, as appropriate. Interest income receivable is recognized in ‘Net
interest income’ over the periods of the leases so as to give a constant rate of return on the net investment in the leases.
When Bank is a lessee under finance leases, the leased assets are capitalized and included in ‘Property, Plant and Equipment’
and the corresponding liability to the lessor is included in ‘Other liabilities’. A finance lease and its corresponding liability
are recognized initially at the fair value of the asset or if lower, the present value of the minimum lease payments. Finance
charges payable are recognized in ‘Interest expenses’ over the period of the lease based on the interest rate implicit in the
lease so as to give a constant rate of interest on the remaining balance of the liability.
Operating Lease
All other leases are classified as operating leases. When acting as lessor, Bank includes the assets subject to operating
leases in ‘Property, plant and equipment’ and accounts for them accordingly. Impairment losses are recognized to the
extent that residual values are not fully recoverable and the carrying value of the assets is thereby impaired. Lease payments
under an operating lease are recognized as an expense as per NFRS 16 under Depreciation charge on right of use of assets
and interest expense on lease liability basis over the lease term.
3.17. Foreign currency translation

All foreign currency transactions are translated into the functional currency, which is Nepalese Rupees, using the exchange
rates (i.e. mid-rate) prevailing at the dates when the transactions were affected.
Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to Nepalese Rupees
using the spot foreign exchange rate ruling at that date and all differences arising on non-trading activities are taken to
‘Other Operating Income’ in the Statement of Profit or Loss. The foreign currency gain or loss on monetary items is the
difference between amortized cost in the functional currency at the beginning of the period, adjusted for effective interest
and payments during the period, and the amortized cost in foreign currency translated at the rates of exchange prevailing
at the end of the reporting period.
Non-monetary items in a foreign currency that are measured in terms of historical cost are translated using the exchange
rates as at the dates of the initial transactions. Non-monetary items in foreign currency measured at fair value are translated
using the exchange rates at the date when the fair value was determined.
Foreign exchange differences arising on the settlement or reporting of monetary items at rates different from those which
were initially recorded are dealt with in the Statement of Profit or Loss.
3.18. Financial guarantee and loan commitments

Contingent Liabilities are possible obligations whose existence will be confirmed only by uncertain future events or present
obligations where the transfer of economic benefits is not probable or cannot be reliably measured as defined in the Nepal
Accounting Standard- NAS 37 (Provisions, Contingent Liabilities and Contingent Assets).
To meet the financial needs of customers, the Bank enters into various irrevocable commitments and contingent liabilities.
These consist of financial guarantees, letter of credit and other undrawn commitments to lend. Letters of credit, guarantees
and acceptances commit the Bank to make payments on behalf of customers in the event of a specific act, generally
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related to the import or export of goods. They carry a similar credit risk to loans. Operating lease commitments of the
Bank (as a lessor and as a lessee) and pending legal claims against the Bank to form part of commitments of the Bank.
Contingent liabilities are not recognized in the Statement of Financial Position but are disclosed unless they are remote. But
these contingent liabilities do contain credit risk and are therefore form part of the overall risk of the Bank.
Financial guarantees are initially recognized in the Statement of Financial Position (within ‘other liabilities’) at fair value,
being the premium received. Subsequent to initial recognition, the Bank’s liability under each guarantee is measured at the
higher of the amount initially recognized less cumulative amortization recognized in the Statement of Profit or Loss, and the
best estimate of expenditure required to settle any financial obligation arising as a result of the guarantee.
Any increase in the liability relating to the financial guarantees is recorded in the Statement of Profit or Loss under
‘Impairment Charges for Loans & other losses’. The premium received is recognized in the Statement of Profit or Loss
under ‘Net fees and commission income’ on a straight line basis over the life of the guarantee; except for the commission
income up to Rs. 1,00,000, which is recognized as realized irrespective of the period of guarantee.
3.19. Share capital and reserves

Share capital and reserves are different classes of equity claims. Equity claims are claims on the residual interest in the
assets of the entity after deducting all its liabilities. Changes in equity during the reporting period comprise income and
expenses recognized in the statement of financial performance; plus contributions from holders of equity claims, minus
distributions to holders of equity claims.
3.20. Earnings per share including diluted

Bank presents basic and diluted Earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing
the profit and loss attributable to ordinary equity holders of Bank by the weighted average number of ordinary shares
outstanding during the period. Diluted EPS is determined by adjusting both the profit and loss attributable to the ordinary
equity holders and the weighted average number of ordinary shares outstanding, for the effects of all dilutive potential
ordinary shares, if any.
Earnings per share is calculated and presented in consolidated statement of profit or loss.
3.21. Segment Reporting

An operating segment is a component of an entity:
 that engages in business activities from which it may earn revenues and incur expenses (including revenues and
expenses relating to transactions with other components of the same entity),
 whose operating results are regularly reviewed by the entity’s chief operating decision maker to make decisions about
resources to be allocated to the segment and assess its performance, and
 for which discrete financial information is available.
The bank has identified the key segments of business on the basis of nature of operations that assists the Executive
Committee of the bank in decision making process and to allocate the resources. It will help the management to assess the
performance of the business segments. The business segments identified are Banking (including loan, deposit and trade
operations), Payment solutions (Cards), Remittance, and Treasury.
3.22. Employee Bonus

Employee bonus shall be calculated at the rate of 10% of Net Profit as per Bonus Act.
3.23. Dividend on Ordinary Shares

Dividend on ordinary shares are recognized as a liability and deducted from equity when they are approved by the
Bank’s shareholders. Dividend for the year that is approved after the reporting date is disclosed as an event after the
reporting date.
3.24. Cash Flow Statement

The cash flow statement has been prepared using ‘The Direct Method’, whereby gross cash receipts and gross cash
payments of operating activities, finance activities and investing activities have been recognized.
3.25. Comparative Figures

The comparative figures and phrases have been rearranged wherever necessary to conform to the current year’s
presentation. The changes in comparative figures are presented in 5.45.
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4.1 Cash and cash equivalent

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Cash in hand 5,731,591,928 4,521,496,675 5,731,591,928 4,521,496,675
Balances with B/FIs 2,069,101,209 1,304,719,363 1,954,619,206 1,293,912,343
Money at call and short notice 8,132,775,849 300,098,630 8,132,775,849 300,098,630
Other 1,790,905,408 1,464,733,434 1,790,905,408 1,464,733,434
Total 17,724,374,394 7,591,048,102 17,609,892,391 7,580,241,082
Cash and cash equivalent is measured in its carrying value. Balance with BFIs include balance maintained at various banks
and financial institutions. Other items in cash and cash equivalent includes interbank placements and other investments
with maturity above 7 days and within 3 months, based on original maturity.
4.2 Due from Nepal Rastra Bank

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Statutory balances with NRB 5,389,187,988 8,416,635,234 5,389,187,988 8,416,635,234
Securities purchased under resale agreement - - - -
Other deposit and receivable from NRB 86,122,693 69,818,054 86,122,693 69,818,054
Total 5,475,310,681 8,486,453,288 5,475,310,681 8,486,453,288
Balance with Nepal Rastra Bank is measured in its carrying amount. Balance with NRB is principally maintained as a part
of regulatory cash reserve ratio required by NRB. Other deposit and receivables from NRB includes balance at NRB in
foreign currency.
4.3 Placements with Bank and Financial Instituitions

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Placement with domestic B/FIs (0) 6,077,715 (0) 6,077,715
Placement with foreign B/FIs 1,949,476,858 4,834,633,980 1,949,476,858 4,834,633,980
Less: Allowances for impairment - - - -
Total 1,949,476,858 4,840,711,695 1,949,476,858 4,840,711,695
Placement with domestic as well as foreign BFIs with original maturities more than three months from the purchase date
are presented above.
4.4 Placements with Bank and Financial Instituitions

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Held for trading - - - -
Interest rate swap - - - -
Currency swap - - - -
Forward exchange contract - - - -
Others - - - -
Held for risk management - - - -
Other - - - -
Total - - - -
The Forward Exchange Contracts are derivative products used by the bank for hedging purpose as a regular treasury
activities. The gross derivative assets and derivative liabilities are netted off and shown separately in the financial statements
as derivative assets or liabilities as a part of risk management.
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4.5 Other trading assets

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Teasury bills - - - -
Government bonds - - - -
NRB Bonds - - - -
Domestic Corporate bonds - - - -
Equities - - - -
Other - - - -
Total - - - -
Pledged - - - -
Non-pledged - - - -
4.6 Loan and advances to B/FIs

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Loans to microfinance institutions 5,923,071,510 5,191,017,360 5,923,071,510 5,191,017,360
Other - - - -
Less: Allowances for impairment 76,809,293 67,336,188 76,809,293 67,336,188
Total 5,846,262,217 5,123,681,172 5,846,262,217 5,123,681,172
Loans to microfinance institutions

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Loans to microfinance institutions 5,908,407,158 5,179,706,751 5,908,407,158 5,179,706,751
Accrued Interest 14,664,353 11,310,609 14,664,353 11,310,609
Total 5,923,071,510 5,191,017,360 5,923,071,510 5,191,017,360
Loan and advances provided to microfinance financial institution are presented under this head.

4.6.1 Allowances for impairment
Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Balance at Shrawan 1 67,336,188 38,335,845 67,336,188 38,335,845
Impairment loss for the year: 9,473,105 29,000,343 9,473,105 29,000,343
Charge for the year 9,473,105 29,000,343 9,473,105 29,000,343
Recoveries/reversal - - - -
Amount written off - - - -
Others(From Acquistion) - - - -
Balance at Ashad end 76,809,293 67,336,188 76,809,293 67,336,188
4.7 Loans and advances to customers

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Loan and advances measured at amortized cost 156,411,479,464 140,943,847,503 156,411,479,464 140,943,847,503
Less: Impairment allowances 3,848,549,683 3,045,922,502 3,848,549,683 3,045,922,502
Collective impairment 1,322,094,578 997,645,837 1,322,094,578 997,645,837
Individual impairment 2,526,455,105 2,048,276,665 2,526,455,105 2,048,276,665
Net amount 152,562,929,781 137,897,925,002 152,562,929,781 137,897,925,002
Loan and advances measured at FVTPL - - - -
Total 152,562,929,781 137,897,925,002 152,562,929,781 137,897,925,002
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 considered
for impairment. Accrued Interest Receivable on loans have been considered under Loans and Advances measured at
Amortized Cost. Loan to employees provided according to the Employee Bylaws of the bank is presented under this head,
which is also measured at amortized cost.
137
4.7.1 Analysis of loan and advances - By Product

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Product
Term loans 57,167,646,364 43,463,105,880 57,167,646,364 43,463,105,880
Overdraft 30,257,614,214 22,907,066,105 30,257,614,214 22,907,066,105
Trust receipt/Import loans 1,799,046,412 9,746,463,057 1,799,046,412 9,746,463,057
Demand and other working capital loans 42,116,275,988 35,578,415,417 42,116,275,988 35,578,415,417
Personal residential loans 5,332,484,640 5,859,886,649 5,332,484,640 5,859,886,649
Real estate loans 1,332,704,101 1,535,117,430 1,332,704,101 1,535,117,430
Margin lending loans 2,600,737,363 4,890,777,505 2,600,737,363 4,890,777,505
Hire purchase loans 4,327,739,698 4,481,832,924 4,327,739,698 4,481,832,924
Deprived sector loans 8,307,072,954 7,804,466,958 8,307,072,954 7,804,466,958
Bills purchased 3,579,827 65,051,620 3,579,827 65,051,620
Staff loans 2,117,542,563 1,686,827,863 2,117,542,563 1,686,827,863
Other 290,822,680 2,260,109,957 290,822,680 2,260,109,957
Sub total 155,653,266,803 140,279,121,366 155,653,266,803 140,279,121,366
Interest receivable 758,212,661 664,726,137 758,212,661 664,726,137
Grand total 156,411,479,464 140,943,847,503 156,411,479,464 140,943,847,503
4.7.2 Analysis of loan and advances - By Currency

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Nepalese rupee 153,462,547,666 134,742,251,262 153,462,547,666 134,742,251,262
Indian rupee - - - -
United State dollar 2,948,931,798 6,201,596,241 2,948,931,798 6,201,596,241
Great Britain pound - - - -
Euro - - - -
Japenese yen - - - -
Chinese yuan - - - -
Other - - - -
Total 156,411,479,464 140,943,847,503 156,411,479,464 140,943,847,503
4.7.3 Analysis of loan and advances - By Collateral

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Secured
Movable/immovable assets 146,844,302,361 130,694,339,811 146,844,302,361 130,694,339,811
Gold and silver 1,700,430 10,775,786 1,700,430 10,775,786
Guarantee of domestic B/FIs 4,578,079,781 5,233,806,852 4,578,079,781 5,233,806,852
Government guarantee 165,124,940 165,233,563 165,124,940 165,233,563
Guarantee of international rated bank - - - -
Collateral of export document 2,962,419 1,600,156 2,962,419 1,600,156
Collateral of fixed deposit receipt 2,446,359,373 290,109,068 2,446,359,373 290,109,068
Collateral of Governement securities 48,714,755 18,849,768 48,714,755 18,849,768
Counter guarantee - - - -
Personal guarantee 569,611,088 569,424,403 569,611,088 569,424,403
Other collateral 1,754,624,317 3,959,708,097 1,754,624,317 3,959,708,097
Subtotal 156,411,479,464 140,943,847,503 156,411,479,464 140,943,847,503
Unsecured - - - -
Grand Total 156,411,479,464 140,943,847,503 156,411,479,464 140,943,847,503
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4.7.4 Allowances for impairment

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Specific allowances for impairment
Balance at Shrawan 1 2,048,276,665 1,377,741,515 2,048,276,665 1,377,741,515
Impairment loss for the year:
Charge for the year 478,178,440 670,535,150 478,178,440 670,535,150
Recoveries/reversal during the year - - - -
Write-offs - - - -
Exchange rate variance on foreign currency
- - - -
impairment
Other movement - -
Balance at Ashad end 2,526,455,105 2,048,276,665 2,526,455,105 2,048,276,665
Collective allowances for impairment
Balance at Shrawan 1 997,645,837 1,221,900,973 997,645,837 1,221,900,973
Impairment loss for the year:
Charge/(reversal) for the year 324,448,741 (224,255,135) 324,448,741 (224,255,135)
Exchange rate variance on foreign currency
- - - -
impairment
Other movement - - -
Balance at Ashad end 1,322,094,578 997,645,837 1,322,094,578 997,645,837
Total allowances for impairment 3,848,549,683 3,045,922,502 3,848,549,683 3,045,922,502
4.8 Investment securities

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Investment securities measured at amortized cost 21,683,362,894 21,449,503,815 21,350,479,894 21,291,982,815
Investment in equity measured at FVTOCI 1,464,605,689 1,146,514,307 1,464,605,689 1,126,349,521.53
Investment in equity measured at FVTPL 48,710,851 279,609,626 279,609,626
Total 23,196,679,434 22,875,627,748 22,815,085,583 22,697,941,963
The total investment of the bank in the financial instruments is presented under this account head in two categories;
investment securities measured at amortized cost and investment in equity measured at fair value through other
4.8.1 Investment securities measured at amortized cost

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Debt securities - - - -
Government bonds 19,125,176,546 18,596,091,320 19,125,176,546 18,596,091,320
Government treasury bills 2,225,303,348 2,695,891,495 2,225,303,348 2,695,891,495
Nepal Rastra Bank bonds - - - -
Nepal Rastra Bank deposits instruments - - - -
Other 332,883,000 157,521,000 - -
Less: specific allowances for impairment - - - -
Total 21,683,362,894 21,449,503,815 21,350,479,894 21,291,982,815
4.8.2 Investment in equity measured at fair value through other comprehensive income
Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Equity instruments
Quoted equity securities 1,371,460,270 1,146,514,307 1,322,749,420 970,220,730
Unquoted equity securities 141,856,269 156,128,791 141,856,269 156,128,791
Total 1,513,316,539 1,302,643,098 1,464,605,689 1,126,349,522
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4.8.3 Information relating to investment in equities

Group Bank
Particular FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Cost Fair Value Cost Fair Value Cost Fair Value Cost Fair Value
Investment in Quoted Equity
Ajod Insurance Limited ( AIL )
12,466 Ordinary Shares of Rs. 100 each, fully paid 10,675,237 5,584,768 11,261,890 10,692,576 10,675,237 5,584,768 11,254,130 10,684,446
Ordinary Shares 124,66Kitta of Rs. 100 each
Api Power Company Ltd. (API)
2 Ordinary Shares of Rs. 100 each, fully paid - 489 850,000 806,806 - 489 - 806
Bonus Shares 2 Kitta of Rs. 100 each
Arun Valley Hydropower Development Co. Ltd (AHPC)
5,027,532 2,991,952 1,073,850 960,000 - - - -
8,402 Ordinary Shares of Rs. 100 each, fully paid
Butwal Power Co. Ltd.(BPCL)
1 Ordinary Shares of Rs. 100 each, fully paid - 322 - 506 - 322 - 506
Everest Bank Limited (EBL)
2,673,370 1,808,680 780,000 738,000 - - - -
Everest Insurance Co.Ltd. (Promoter)EICPO
Of 2,236 Ordinary Shares of Rs. 100 each, fully paid 223,600 832,187 223,600 1,209,414 223,600 832,187 223,600 1,209,414
Everest Insurance Co.Ltd.(EIC)
1 Ordinary Shares of Rs. 100 each, fully paid
- 500 - 749 - 500 - 749
Ordinary Shares 0 Kitta of Rs. 100 each
Forward Microfinance Laghubitta Bittiya Sanstha
Limited ( FORWAD )
24,900 28,620 1,654,334 1,662,000 - 2,385
Global IME Bank Limited
466,349 441,000
Global IME Laghubitta Bittiya Sanstha Ltd.(GILB)
18,860 15,588 - 2,815 - - - 2,815
Himalayan General Insurance Co.Ltd.(HGI)
- 3,640 1,699,645 1,541,376 - 3,640 - 5,376
Hydroelectricity Investment and Development
Company Limited (HIDCLPO) 10,010,000 10,010,000 - - - - - -
Jyoti Bikas Bank Limited
42,182 95,600
Kamana Sewa Bikas Bank Limited(KSBBL)
2,328,158 1,487,775 1,122,000 1,160,000 - - - -
Kisan Lagubitta Bittiya Sanstha Limited (KLBSL)
16,230 10,703 - 3,480 - - - 3,480
Laxmi Laghubitta Bittiya Sanstha Ltd.(LLBS)
16,293 Ordinary Shares of Rs. 100 each, fully paid 39,080,611 37,310,970 36,737,392 35,158,370
Liberty Energy Company Limited (LEC)
172,977 102,668 - - - - - -
Life Insurance Co. Nepal(LICN)
17,447,577 13,284,020 56,087,908 58,891,932 17,447,577 13,284,020 56,087,908 58,891,932
Ordinary Shares 9,388 Kitta of Rs. 100 each
Lumbini General Insurance Company Limited-
Promoter(LGILPO)
122,287 Ordinary Shares of Rs. 100 each, fully paid 8,750,400 40,476,997 8,750,400 38,549,584 8,750,400 40,476,997 8,750,400 38,549,584
Bonus Shares 34,783 Kitta of Rs. 100 each
Mahuli Laghubitta Bittiya Sanstha Limited (MSLB)
29,765 25,410 895 2,180 - - 895 2,180
Mero Microfinance Laghubitta Bittiya Sanstha
Limited ( MERO )
2 Ordinary Shares of Rs. 100 each, fully paid - 1,694 - - - 1,694 - -
Mirmire Microfinance Development Bank Ltd
(MMFDB) 13,295 11,550 - - - - - -
Mithila LaghuBitta Bittiya Sanstha Limited (MLBBL)
19,927 17,771 - 4,690 - - - 4,690
Mountain Hydro Nepal Limited (MHNL)
1,317,321 689,520 - - - - - -
National Hydro Power Company Limited
670,000 620,000
National Life Insurance Co. Ltd (NLICL)
2,529,636 1,373,260 - - - - - -
Nepal Life Insurance Co. Ltd.(NLIC)
1,405,409 606,564 406,831 404,909 - 747 - -
0 Ordinary Shares of Rs. 100 each,
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Group Bank
Nepal Life Insurance Co. Ltd.(NLIC)
1,405,409 606,564 406,831 404,909 - 747 - -
0 Ordinary Shares of Rs. 100 each,
Nerude Laghubita Bikas Bank Limited (NLBBL)
- 115,280 - - - 115,280 - -
NIC Asia Bank Ltd. (NICA)
9,031,540 7,234,224 - - - - - -
Nirdhan Utthan Laghubitta Bittiya Sanstha
Limited (NUBL) 1,610,500 1,433,096 1,744,207 1,611,200 - - - 11,200
Ngadi Group Power Limited(NGPL)
- 297 - - - 297 - -
NLG Insurance Co. Ltd. (Promoter)
Of 0 Ordinary Shares of Rs. 100 each, fully paid - - 1,809,078 1,850,740 - - 1,809,078 1,850,740
NMB Bank Limited
529,960 519,200
NMB Microfinance Bittiya Sanstha Ltd (NMBMF)
10,040 8,251 - 1,429 - - - 1,429
Nepal Telecom(NTC)
126,645,175 123,798,510 126,645,175 123,798,510
Prabhu Bank Limited
457,136 447,956
Prabhu Insurance Limited(PRIN)
- 239,680 1,009,825 1,034,880 - 239,680 47,643 47,040
Premier Insurance Co. Ltd.(PIC)
1,151 Ordinary Shares of Rs. 100 each, fully paid - 1,346,670 - 1,346,670
Prime Commercial Bank Ltd (PCBL)
217,890 138,330 172,469 215,550 - - - -
Reliance Life Insurance Limited (RLI)
2,074,998 1,172,500 - - - - - -
Ridi Hydropower Development Company Ltd (RHPC)
6,818,283 6,818,283 - - - - - -
Sanima Mai Hydropower Ltd (SHPC)
894,000 612,000 - - - - - -
Siddhartha Insurance Ltd.(SIL)
- 72,856 - - - 72,856 - -
Surya Life Insurance Company Limited(SLICL)
- 387 - 327,310 - 387 - 327,310
Shikhar Insurance Co. Ltd (SICL)
15,000 121,050 - - - - - -
Siddhartha Bank Limited (SBL)
6,831,776 4,508,337 - - - - - -
Singati Hydro Energy Limited (SHEL)
1,973,991 1,058,505 - - - - - -
Standard Chartered Bank Limited (SCB)
40,680 35,667 - - - - - -
Swabalamban Laghubitta Bittiya Sanstha Limited
(SWBBL)
- 335
12 Ordinary Shares of Rs. 100 each, fully paid 12,830 13,194 - - - -
- -
Ordinary Shares 0Kitta of Rs. 100 each
National Microfinance Bittiya Sanstha Ltd.(NMFBS)
2 Ordinary Shares of Rs. 100 each, fully paid - 3,870 - - - 3,870 - -
0 Ordinary Shares of Rs. 100 each
Union Life Insurance Company Limited (ULI)
1,422,741 1,301,480 - - - - - -
Vijaya laghubitta Bittiya Sanstha Ltd (VLBS)
12,940 10,340 - 1,819 - - - 1,819
Mutual Fund:
Citizens Mutual Fund(CMF-1)
27,472,878 23,931,600 27,574,888 34,338,368 27,472,878 23,931,600 27,574,888 34,338,368
Of 2,719,500 ordinary share of Rs.10
Citizens Mutual Fund-II(CMF-II)
7,000,000 7,084,000 7,000,000 9,905,000 7,000,000 7,084,000 7,000,000 9,905,000
Of 700,000 Ordinary Shares of Rs. 10 each, fully paid
Global IME Sammunat Scheme-1 (GIMES1)
54,294,274 32,717,450 54,294,274 66,350,989 54,294,274 32,717,450 54,294,274 66,350,989
Of 3,271,745 ordinary share of Rs. 10)
Kumari Dhanabriddhi Yojana(KDBY)
183,760,890 183,760,890 183,760,890 183,760,890
Kumari Equity Fund(KEF)
150,000,000 151,050,000 150,000,000 157,500,000 150,000,000 151,050,000 150,000,000 157,500,000
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Laxmi Equity Fund(LEMF)
40,202,431 28,638,443 1,971,961 2,567,794 40,202,431 28,638,443 1,971,961 2,567,794
Of 2,892,772 ordinary share of Rs.10)
Laxmi Unnati Kosh(LUK)
21,291,939 19,120,000 15,000,000 18,930,000 21,291,939 19,120,000 15,000,000 18,930,000
Mega Mutual Fund 1(MMF1)
4,363,400 3,486,357 - - 4,363,400.00 3,486,356.60 - -
Of 436,340 ordinary share of Rs.10)
Nabil Balanced Fund II(NBF II)
84,390,090 77,616,000 52,683,201 62,316,360 84,390,089.56 77,616,000.00 52,683,201 62,316,360
Nabil Equity Fund(NEF)
38,937,813 30,342,150 38,108,889 43,204,539 38,937,813.28 30,342,150.00 38,108,889 43,204,539
NIBL Pragati Fund(NIBL PF)
42,008,600 31,685,845 51,800,717 57,830,934 42,008,599.72 31,685,845.20 51,800,717 57,830,934
NIBL Sahabhagita Fund(NIBLSF)-open ended
35,720,049 30,911,749 14,701,525 20,060,000 33,110,049 29,303,749 13,110,025 17,450,000
2,736,111 Ordinary Shares of Rs. 10 each, fully paid
NIBL Samriddhi Fund I(NIBSF1)
30,965,789 37,417,278 30,965,789 37,417,278
NIBL Samriddhi Fund- II(NIBSF2)
35,434,630 30,721,824 36,721,230 39,695,650 35,434,630.00 30,721,824.21 36,721,230 39,695,650
NIC ASIA Balanced Fund(NICBF)
7,284,360 17,914,082 18,244,017 24,241,002 18,244,017 24,241,002
Of 1,672,650 ordinary share of Rs. 10) 17,284,360.25 17,914,081.50
NIC Asia Select 30 Index Fund(NICSF)
30,000,000 26,310,000 30,000,000 29,820,000 30,000,000.00 26,310,000.00 30,000,000 29,820,000
NIC Asia Dynamic Debt Fund(NICADF)
6,648,300.00 7,100,384.40 6,648,300.00 7,485,986.00 6,648,300.00 7,100,384.40 6,648,300.00 7,485,986.00
Of 664,830 ordinary share of Rs. 10)
NIC Asia Growth Fund(NICGF)
69,364,908 54,210,185 11,786,919 16,278,000 69,364,907.51 54,210,185.00 11,786,919 16,278,000
NMB 50
86,690,292 83,746,091 57,240,340 70,096,887 85,126,391.72 82,585,090.50 57,240,340 70,096,887
NMB Hybrid Fund L(NMBHF1)
43,542,590.84 41,058,684.80 42,742,594.00 49,109,192.00 43,542,590.84 41,058,684.80 42,742,594.00 49,109,192.00
Prabhu Select Fund(PSF)
14,680,900.00 14,108,344.90 14,680,900.00 14,886,433.00 14,680,900.00 14,108,344.90 14,680,900.00 14,886,433.00
RBB Mutual Fund -1(RMF1)
39,920,870 37,006,646 - - 39,920,870.00 37,006,646.49 - -
Sanima Equity Fund(SAEF)
99,544,217 80,365,163 16,240,594 22,629,562 99,544,216.83 80,365,162.50 16,240,594 22,629,562
Sanima Large Cap Fund(SLCF)
25,000,000 23,300,000 25,000,000 26,250,000 25,000,000.00 23,300,000.00 25,000,000 26,250,000
Siddhartha Equity Fund(SEF)
60,641,615 55,779,951 60,641,615 79,322,703 60,641,614.54 55,779,950.72 60,641,615 79,322,703
Siddhartha Investment Growth Scheme 2(SIGS2)
71,534,646.33 63,357,874.47 71,534,646.00 91,898,041.00 71,534,646.33 63,357,874.47 71,534,646.00 91,898,041.00
Of 6,471,693 Ordinary Shares of Rs. 10 each, fully paid
Sunrise Blue Chip Fund(SBCF)
20,000,000 17,480,000 20,000,000 20,320,000 20,000,000.00 17,480,000.00 20,000,000 20,320,000
Of 2,000,000 Ordinary Shares of Rs. 10 each, fully paid
Sunrise First Mutual Fund(SFMF)
62,707,812 60,263,565 18,016,152 28,332,000 59,507,812 57,963,565 16,016,152 25,132,000
Avasar Equity
30,000,000.00 30,000,000.00 - - 30,000,000 30,000,000 - -
Of 300,000 ordinary share of Rs. 100)
Investment in Unquoted Equity and Mutual Funds
Credit Information Centre Limited
1,424,500 78,436,386 1,424,500 52,091,073 1,424,500 78,436,386 1,424,500 52,091,073
Nepal Clearing House Limited
5,253,500 22,205,957 5,253,500 18,077,953 5,253,500 22,205,957 5,253,500 18,077,953
Nepal Electronic Payment System Limited
20,000,000 34,358,468 20,000,000 24,719,301 20,000,000 34,358,468 20,000,000 24,719,301
National Banking Training Institute
1,834,860 6,855,459 1,834,860 6,484,478 1,834,860 6,855,459 1,834,860 6,484,478
Total 1,531,913,213 1,513,316,539 1,168,084,183 1,426,123,934 1,467,984,724 1,464,605,689 1,149,510,559 1,405,959,149
4.9 Current tax assets

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Current tax assets 5,265,470,401 1,189,688,669 5,263,031,997 1,189,688,669
Current year income tax assets 5,265,470,401 1,189,688,669 5,263,031,997 1,189,688,669
Tax assets of prior periods - - - -
Current tax liabilities 4,808,330,705 922,958,747 4,808,330,705 922,958,747
Current year income tax liabilities 4,808,330,705 922,958,747 4,808,330,705 922,958,747
Tax liabilities of prior periods - - - -
Total 457,139,696 266,729,922 454,701,292 266,729,922
Current tax assets of the bank includes advance tax paid by the bank and tax deducted at source (TDS) on behalf of the
bank. In the same way the current income tax liabilities include the tax payable to the Government computed as per the
provisions of the income tax act 2058 under self assessment tax return filed.
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4.10 Investment in subsidiaries

Bank
Particular
FY 2078-79 FY 2077-78
Investment in quoted subsidiaries - -
Investment in unquoted subsidiaries 420,000,000 220,000,000
Total investment 420,000,000 220,000,000
Less: Impairment allowances - -
Net carrying amount 420,000,000 220,000,000
4.10.1 Investment in quoted subsidiaries

Bank
Particular FY 2078-79 FY 2077-78
Cost Fair Value Cost Fair Value
Total
4.10.2 Investment in unquoted subsidiaries

Bank
Cost Fair Value Cost Fair Value
Kumari Capital Ltd.
400,000,000 400,000,000 200,000,000 200,000,000
(40,00,000 Kitta of Rs. 100 each)
KBL Securities Ltd.
20,000,000 20,000,000 20,000,000 20,000,000
(2,00,000 Kitta of Rs. 100 each)
Total 420,000,000 420,000,000 220,000,000 220,000,000
4.10.3 Information relating to subsidiaries of the Bank

Bank
Particular Percentage of ownership held by the Bank
FY 2078-79 FY 2077-78
Kumari Capital Ltd. 100% 100%
KBL Securities Ltd. 100% 100%
4.10.4 Investment in unquoted subsidiaries

Bank
Particular
...Ltd …Ltd. …Ltd …Ltd.
Equity interest held by NCI (%)
Profit/(loss) allocated during the year
Accumulated balances of NCI as on Ashad end
2078
Dividend paid to NCI
Bank
Particular
...Ltd …Ltd. …Ltd …Ltd.
Equity interest held by NCI (%)
Profit/(loss) allocated during the year
Accumulated balances of NCI as on Ashad end
2079
Dividend paid to NCI
As the subidiary is wholly owned by the bank, hence non controlling interest does not exist as on the reporting date.
4.11 Investment in associates

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Investment in quoted associates 444,015,307 286,954,868 80,017,596 80,017,596
Investment in unquoted associates 60,047,140 82,278,644 105,000,000 75,000,000
Total investment 504,062,448 369,233,513 185,017,596 155,017,596
Less: Impairment allowances - - - -
Net carrying amount 504,062,448 369,233,513 185,017,596 155,017,596
143
4.11.1 Investment in quoted associates

Group Bank
National Microfinance Bittiya Sanstha Limited
Promoter Shares 2,00,000 Kitta of Rs. 100 each 20,000,000 187,186,374 20,000,000 128,447,088 20,000,000 20,000,000 20,000,000 20,000,000
Bonus Shares 4,38,983 Kitta of Rs. 100 each
First Microfinance Laghu Bittiya Sanstha Limited
Promoter Shares 2,15,068 Kitta of Rs. 100 each
22,994,596 57,606,978 22,994,596 47,387,103 22,994,596 22,994,596 22,994,596 22,994,596
Mero Microfinance Bittiya Sanstha Limited
37,023,000 139,996,490 37,023,000 111,120,678 37,023,000 37,023,000 37,023,000 37,023,000
Total 80,017,596 384,789,842 80,017,596 286,954,869 80,017,596 80,017,596 80,017,596 80,017,596
4.11.2 Investment in unquoted associates

Group Bank
Solar Farm Pvt. Ltd.
30,000,000 29,093,407 - - 30,000,000 30,000,000
General Insurance Company Limited
50,000,000 60,047,140 50,000,000 54,245,800 50,000,000 50,000,000 50,000,000.0 50,000,000.0
Aviyan Laghubitta Bittiya Sanstha Ltd
25,000,000 30,132,058 25000000 28032844.26 25000000 25000000 25000000 25000000
Total 105,000,000 119,272,605 75,000,000 82,278,644 105,000,000 105,000,000 75,000,000 75,000,000
4.11.3 Investment in unquoted associates

Group Bank
Particular Percentage of ownership held by the Bank Percentage of ownership held by the Bank
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Promoter Shares 2,00,000 Kitta of Rs. 100 each 15% 15% 15% 15%
First Microfinance Laghu Bittiya Sanstha
Limited
4% 4% 4% 4%
Mero Microfinance Bittiya Sanstha Limited
Promoter Shares 3,70,230 Kitta of Rs. 100 each 7% 7% 7% 7%
General Insurance Company Limited
7% 7% 7% 7%
16% 16% 16% 16%
Solar Farm Pvt. Ltd.
9% - 9% -
4.11.4 Equity value of associates

Bank
Particular
FY 2078-79 FY 2077-78
National Microfinance Bittiya Sanstha Limited 187,186,374 136,825,492
First Microfinance Laghu Bittiya Sanstha Limited 57,606,978 48,521,996
Mero Microfinance Bittiya Sanstha Limited 139,996,490 111,120,678
Aviyan Laghubitta Bittiya Sanstha Ltd 25,000,000 28,032,844
General Insurance Company Limited 60,047,140 54,245,800
Solar Farm Pvt. Ltd. 29,093,407 -
Total 469,836,982 378,746,810
4.12 Investment properties

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Investment properties measured at fair value
Balance as on Shrawan 1, 2078 128,112,878 60,348,333 128,112,878 60,348,333
Addition/disposal during the year 16,379,116 67,764,545 16,379,116 67,764,545
Net changes in fair value during the year - - - -
Adjustment/transfer - - - -
Net amount 144,491,994 128,112,878 144,491,994 128,112,878
Investment properties measured at cost
Balance as on Shrawan 1, 2078 - - - -
Addition/disposal during the year - - - -
Adjustment/transfer - - - -
Accumulated depreciation - - - -
Accumulated impairment loss - - - -
Net amount - - - -
Total 144,491,994 128,112,878 144,491,994 128,112,878
144
4.13 Property and Equipment
Group
Particular Leasehold Computer & Furniture & Equipment & Total Ashad Total Ashad
Land Building Vehicles Machinery
Properties Accessories Fixture Others End 2079 End 2078
Cost
As on Shrawan 1, 2077 364,400,518 118,874,504 525,178,927 276,749,098 323,260,713 210,402,044 - 546,338,331 2,365,204,136
Addition during the Year -
Acquisition - - 106,407,906 39,419,801 41,486,000 29,257,036 - 91,061,232 307,631,974
Capitalization - - - - - - - - -
Disposal during the year 44,521,831 1,227,157 53,474,760 11,249,412 152,050,671 14,514,649 - 27,479,387 304,517,867
Adjustment/Revaluation 27,655,782 1,351,680 (2) (1,214,057) 0 (2,304,697) - 3,518,755 29,007,461
Balance as on Ashad end 2078 292,222,905 116,295,667 578,112,075 303,705,429 212,696,042 222,839,734 - 613,438,931 2,339,310,783 2,339,310,782
Addition during the Year
Acquisition - - 87,308,563 6,516,907 21,775,969 23,243,313 - 65,526,686 204,371,437
Capitalization - - - - - - - - -
Through Acquisition-DEVA - - - - - - - - -
Disposal during the year 5,378,520 19,770,514 35,909,311 18,785,665 10,636,050 9,459,045 - 24,627,329 124,566,436
Adjustment/Revaluation (5,100,750) (55,702) - (27,165) - - - 27,318 (5,156,299)
Balance as on Ashad end 2079 281,743,635 96,469,451 629,511,327 291,409,506 223,835,961 236,624,001 - 654,365,605 2,413,959,485
Depreciation and Impairment
As on Shrawan 1, 2077 - 30,087,997 217,046,253 176,789,645 154,569,350 110,899,218 - 287,010,930 976,403,394
Depreciation charge for the Year - 4,388,633 83,627,409 27,845,465 27,892,818 26,823,143 - 73,337,884 243,915,353
Impairment for the year - - - - - - - - -
Disposals - 90,423 40,992,357 10,617,011 64,124,353 11,953,729 - 22,196,207 149,974,079
Adjustment - - - 22,745 - 1,828,911 - (1,851,656) 0
As on Ashad end 2078 - 34,386,207 259,681,305 193,995,355 118,337,816 123,939,721 - 340,004,264 1,070,344,668 1,070,344,668
Through Acquisition-DEVA -
Disposals - 17,366,406 32,905,904 17,216,991 5,158,274 8,842,700 - 22,248,906 103,739,182
Adjustment - 0 - - - - - - 0
As on Ashad end 2079 - 21,061,205 325,262,162 205,001,823 133,092,736 142,089,051 - 393,216,253 1,219,723,230
Capital Work in Progress 2077 - 261,369 - - - - - - 261,369
Capital Work in Progress 2078 - 261,369 - - - - - 261,369
Capital Work in Progress 2079 - 261,369 - - - - - - 261,369 -
Net Book Value
As on Ashad end 2077 364,400,518 89,047,876 308,132,674 99,959,452 168,691,363 99,502,826 - 259,327,400 1,389,062,110
As on Ashad end 2078 292,222,905 82,170,829 318,430,770 109,710,074 94,358,226 98,900,013 - 273,434,667 1,269,227,484
As on Ashad end 2079 281,743,635 75,669,615 304,249,165 86,407,683 90,743,224 94,534,950 - 261,149,352 1,194,497,624 -
145
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Bank
Particular Leasehold Computer & Furniture & Equipment & Total Ashad Total Ashad
146
Land Building Vehicles Machinery
Properties Accessories Fixture Others End 2079 End 2078
Cost
As on Shrawan 1, 2077 364,400,518 118,874,504 524,687,282 275,687,112 320,262,313 210,259,497 - 545,346,611 2359517837 2,359,517,837
Acquisition 102,718,038 37,841,949 41,486,000 29,009,735 90,370,551 301,426,273
Capitalization - -
Disposal during the year 44,521,831 1,227,157 53,474,760 11,249,412 152,050,671 14,514,649 27,479,387 304,517,867
Adjustment/Revaluation 27,655,782 1,351,680 (2) (1,214,057) 0 (2,304,697) - 3,518,755 29,007,461
Balance as on Ashad end 2078 292,222,905 116,295,667 573,930,561 303,493,705 209,697,642 227,059,280 - 604,719,020 2,327,418,782 2,327,418,782
Acquisition - - 86,995,779 6,041,657 15,078,000 23,140,543 65,015,581 196,271,560

Capitalization -
Disposal during the year 5,378,520 19,770,514 35,909,311 18,785,665 7,836,050 9,440,748 24,613,590 121,734,399
Adjustment/Revaluation (5,100,750) (55,702) (27,318) 27,318 (5,156,452)
Balance as on Ashad end 2079 281,743,635 96,469,451 625,017,029 290,722,380 216,939,592 240,759,075 - 645,148,329 2,396,799,491
As on Shrawan 1, 2077 - 30,087,997 217,009,379 176,690,821 154,537,750 110,885,946 - 286,908,450 976,120,344
Depreciation charge for the Year 4,388,633 83,397,183 27,605,174 27,592,978 26,794,241 73,196,379 242,974,587
Disposals 90,423 40,992,357 10,617,011 64,124,353 11,953,729 22,196,207 149,974,079
Adjustment (22,745) - (1,828,911) 1,851,656 (0)
As on Ashad end 2078 - 34,386,207 259,414,204 193,701,729 118,006,376 127,555,369 - 336,056,966 1,069,120,852 1,069,120,852
Impairment for the year -
Disposals - 17,366,406 32,903,752 17,216,991 4,761,608 8,824,424 22,248,906 103,322,087
Adjustment - 0 0
As on Ashad end 2079 - 21,061,205 324,553,845 204,334,610 132,690,861 145,654,688 - 389,011,173 1,217,306,382
Net Book Value
As on Ashad end 2077 364,400,518 89,047,876 307,677,902 98,996,291 165,724,563 99,373,551 - 258,438,161
As on Ashad end 2078 292,222,905 82,170,829 314,516,357 109,791,977 91,691,266 99,503,911 - 268,662,054 1,258,559,299
As on Ashad end 2079 281,743,635 75,669,615 300,463,184 86,387,769 84,248,732 95,104,387 - 256,137,156 1,179,754,478
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4.14 Goodwill and Intangible Assets

Group
Particular Software Total Total
Goodwill Other
Purchased Developed Ashad end 2079 Ashad end 2078
Cost
As on Shrawan 1, 2077 88,804,041 260,166,541 - - 348,970,582
Acquisition - 33,293,819 - - 33,293,819
Capitalization - - - - -
Disposal during the year - 5,258,073 - - 5,258,073
Adjustment/Revaluation - - - -
Balance as on Ashad end 2078 88,804,041 288,202,288 - - 377,006,329 377,006,329
Acquisition - 5,777,177 - - 5,777,177
Through Acquisition-DEVA - - - - -
Disposal during the year - 448,676 - - 448,676
Written off during the year
Adjustment/Revluation - - - - -
Balance as on Ashad end 2079 88,804,041 293,530,788 - - 382,334,829 -
Amortization and Impairment
As on Shrawan 1, 2077 - 141,117,022 - - - 141,117,022
Amortization charge for the Year - 40,618,857 - - - 40,618,857
Impairment for the year - - - - - -
Disposals - 3,714,572 - - - 3,714,572
Adjustment - - - - - -
As on Ashad end 2078 - 178,021,307 - - 178,021,307 178,021,307
Amortization charge for the Year - 41,550,084 - - 41,550,084
Impairment for the year - - - - -
Disposals - 448,675 - - 448,675
Written off during the year -
Adjustment - - - - -
As on Ashad end 2079 - 219,122,716 - - 219,122,716
Capital Work in Progress - - - - - -
Net Book Value
As on Ashad end 2077 88,804,041 119,049,519 - - - 207,853,560
As on Ashad end 2078 88,804,041 110,180,980 - - 198,985,021
As on Ashad end 2079 88,804,041 74,408,072 - - 163,212,113
Bank
Particular Software Total Total
Goodwill Other
Purchased Developed Ashad end 2079 Ashad end 2078
Cost
As on Shrawan 1, 2077 88,804,041 258,950,945 - - 347,754,986
Acquisition - 32,615,819 - - 32,615,819
Disposal during the year - 5,258,073 - - 5,258,073
Adjustment/Revaluation - - - - -
Balance as on Ashad end 2078 88,804,041 286,308,692 - - 375,112,733 375,112,733
Acquisition - 4,921,831 - - 4,921,831
Disposal during the year - 448,676 - - 448,676
Written off during the year
Adjustment/Revluation - - - - -
Balance as on Ashad end 2079 88,804,041 290,781,846 - - 379,585,887
As on Shrawan 1, 2077 - 140,923,406 - - 140,923,406
Impairment for the year - - - -
Disposals - 3,714,572 - 3,714,572
Adjustment - - - -
As on Ashad end 2078 - 177,539,372 - - 177,539,372 177,539,372
Impairment for the year - - - - -
Disposals - 448,675 - - 448,675
Written of during the year -
Adjustment - - - - -
As on Ashad end 2079 - 218,144,596 - - 218,144,596
Capital Work in Progress - - - - -
Net Book Value
As on Ashad end 2077 88,804,041 118,027,540 - - - 206,831,581
As on Ashad end 2078 88,804,041 108,769,320 - - 197,573,361
As on Ashad end 2079 88,804,041 72,637,250 - - 161,441,291
147
4.15 Deferred Tax

Group Bank
FY 2078-79 FY 2078-79
Particular Net Deferred Net Deferred
Deferred Tax Deferred Tax Deferred Tax Deferred Tax
Tax Assets/ Tax Assets/
Assets Liabilities Assets Liabilities
(Liabilities) (Liabilities)
Deferred tax on temporory differences on following items
Loan and Advance to B/FIs - - - - - -
Loans and advances to
- - - - - -
customers
Investment properties - - - - - -
Investment securities 7,454,983 - 7,454,983 3,491,027 - 3,491,027
Property & equipment (129,823,427) - (129,823,427) (129,336,308) - (129,336,308)
Employees' defined benefit plan 55,771,326.60 - 55,771,327 55,511,603 - 55,511,603
Lease liabilities 9,487,615 - 9,487,615 9,487,615 - 9,487,615
Provisions - - - - - -
Other temporory differences (14,362,143) - (14,362,143) (14,362,143) - (14,362,143)
Deferred tax on temporary
(71,471,646) - (71,471,646) (75,208,206) - (75,208,206)
differences
Deferred tax on carry forward of unused tax losses
Deferred tax due to changes in tax rate - - -
Net Deferred tax asset/(liabilities) as on year end of 2079 (71,471,646) (75,208,206)
Deferred tax (asset)/liabilities as on Shrawan 1, 2078 155,860,341 155,212,668
Origination/(Reversal) during the year 84,388,695 80,004,461
Deferred tax expense/(income) recognised in profit or loss (19,802,261) (15,418,027)
Deferred tax expense/(income) recognised in other
(64,586,434) (64,586,434)
comprehensive income
Deferred tax expense/(income) recognised in directly in equity - -
Group Bank
FY 2077-78 FY 2077-78
Particular Net Deferred Net Deferred
Deferred Tax Deferred Tax Deferred Tax Deferred Tax
Tax Assets/ Tax Assets/
Assets Liabilities Assets Liabilities
(Liabilities) (Liabilities)
Loan and Advance to B/FIs - - - - - -
Loans and advances to
- - - - - -
customers
Investment properties - - - - - -
Investment securities (89,040,025) - (89,040,025) (88,560,349) - (88,560,349)
Property & equipment (191,149,147) - (191,149,147) (190,820,771) - (190,820,771)
Employees' defined benefit plan 120,018,180 - 120,018,180 120,018,180 - 120,018,180
Lease liabilities 5,518,325 - 5,518,325 5,518,325 - 5,518,325
Provisions - - - - - -
Other temporory differences (1,176,045) - (1,176,045) (1,368,052) - (1,368,052)
Deferred tax on temporary
(155,828,712) (155,212,668) - (155,212,668)
differences
Deferred tax on carry forward of unused tax losses
Deferred tax due to changes in tax rate - - -
Net Deferred tax asset/(liabilities) as on year end of 2078 (155,828,712) (155,212,668)
Deferred tax (asset)/liabilities as on Shrawan 1, 2077 (9,891,409) (10,001,697)
Origination/(Reversal) during the year (165,720,121) (165,214,365)
Deferred tax expense/(income) recognised in profit or loss 149,448,188 148,942,431
Deferred tax expense/(income) recognised in other
16,271,933 16,271,933
comprehensive income
Deferred tax expense/(income) recognised in directly in equity - -
4.16 Other assets

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Assets held for sale - - - -
Other non banking assets - - - -
Bills receivable - - - -
Accounts receivable 583,090,499 604,018,554 583,090,499 604,018,554
Accrued income - - - -
Prepayments and deposit 26,423,057 54,341,446 26,423,057 54,341,446
Income tax deposit 34,831,654 33,088,610 34,831,654 33,088,610
Deferred employee expenditure 624,157,728 56,979,836 624,157,728 56,979,836
Other 349,593,731 207,534,532 332,821,320 191,027,770
Employees defined benefit obligations 70,909,820 - 70,909,820 -
Right of Use of Assets 1,631,840,152 - 1,631,840,152 -
Total 3,320,846,640 955,962,979 3,304,074,229 939,456,216
148
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4.17 Due to Bank and Financial Institutions

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Money market deposits - - - -
Interbank borrowing - 5,007,600,000 - 5,007,600,000
Other deposits from BFIs 6,028,947,435 9,615,778,395 6,194,529,106 9,724,324,737
Settlement and clearing accounts - - - -
Total 6,028,947,435 14,623,378,395 6,194,529,106 14,731,924,737
Loan and advances provided to microfinance financial institution are presented under this head.
4.18 Due to Nepal Rastra Bank

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Refinance from NRB 1,345,585,620 3,473,673,668 1,345,585,620 3,473,673,668
Standing Liquidity Facility - - - -
Lender of last report facility from NRB - - - -
Securities sold under repurchase agreements - - - -
Other payable to NRB - 1,615,300,000 - 1,615,300,000
Total 1,345,585,620 5,088,973,668 1,345,585,620 5,088,973,668
The amount payable to NRB shall include amount of refinance from NRB, standing liquidity facilities, lender of last resort
facility, sale and purchase agreements. Other payable to NRB includes deposit from NRB.
4.19 Derivative financial instruments

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Held for trading - - - -
Others - - - -
Held for risk management 39,334,195 3,267,738 39,334,195 3,267,738
Forward exchange contract 39,334,195 3,267,738 39,334,195 3,267,738
Other - - - -
Total 39,334,195 3,267,738 39,334,195 3,267,738
The Forward Exchange Contracts are derivative products used by the bank for hedging purpose as a regular treasury
activities. The gross derivative assets and derivative liabilities are netted off and shown separately in the financial statements
as derivative assets or liabilities as a part of risk management.
4.20 Deposits from customers

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Institutions customers: 94,041,297,945 75,235,094,168 94,041,297,945 75,235,094,168
Term deposits 70,328,046,445 44,238,332,591 70,328,046,445 44,238,332,591
Call deposits 9,721,592,589 9,295,796,983 9,721,592,589 9,295,796,983
Current deposits 12,413,897,360 20,242,720,525 12,413,897,360 20,242,720,525
Other 1,577,761,552 1,458,244,069 1,577,761,552 1,458,244,069
Individual customers: 82,726,367,611 70,603,136,842 82,726,367,611 70,603,136,842
Term deposits 47,566,909,181 29,013,429,274 47,566,909,181 29,013,429,274
Saving deposits 34,759,841,442 40,654,874,936 34,759,841,442 40,654,874,936
Current deposits 398,280,956 933,933,517 398,280,956 933,933,517
Other 1,336,032 899,115 1,336,032 899,115
Total 176,767,665,556 145,838,231,009 176,767,665,556 145,838,231,010
149
4.20.1: Currency wise analysis of deposit from customers

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Nepalese rupee 172,462,626,241 140,578,047,815 172,462,626,241 140,578,047,815
Indian rupee - - - -
United State dollar 4,300,955,399 5,257,867,764 4,300,955,399 5,257,867,764
Great Britain pound 178,668 194,324 178,668 194,324
Euro 3,903,189 2,119,044 3,903,189 2,119,044
Japenese yen - - - -
Chinese yuan - - - -
Other - - - -
AUD 1,053 1,053 1,087
CAD 1,006 1,006 975
Total 176,767,663,497 145,838,228,947 176,767,665,556 145,838,231,009
Currency wise deposit include NPR converted value of deposit on different currencies as on reporting date.
4.21 Borrowing
Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Domestic Borrowing - - - -
Nepal Government - - - -
Other Institutions - - - -
Other - - - -
Sub total - - - -
Foreign Borrowing - - - -
Foreign Bank and Financial Institutions - - - -
Multilateral Development Banks - - - -
Other Institutions - - - -
Sub total - - - -
Total - - - -
4.22 Provisions
Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Provisions for redundancy - - - -
Provision for restructuring - - - -
Pending legal issues and tax litigation - - - -
Onerous contracts - - - -
Other 2,500,000 2,334,810 2,500,000 2,334,810
Total 2,500,000 2,334,810 2,500,000 2,334,810
The other provision is created for the audit fee payable for each reporting periods.
4.22.1 Movement in provision

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Balance at Shrawan 1 2,334,810 2,312,232 2,334,810 2,312,232
Provisions made during the year 2,500,000 2,334,810 2,500,000 2,334,810
Provisions used during the year 2,334,810 - 2,334,810 -
Provisions reversed during the year - 2,312,232 - 2,312,232
Unwind of discount - - - -
Balance at Ashad end 2,500,000 2,334,810 2,500,000 2,334,810
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4.23 Other liabilities

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Liability for employees defined benefit obligations - 95,651,277 - 95,651,277
Liability for long-service leave 255,948,496 304,409,322 255,948,496 304,409,322
Short-term employee benefits - - - -
Bills payable 6,398,522 7,131,164 6,398,522 7,131,164
Creditors and accruals 459,565,609 340,233,144 459,565,609 340,233,144
Interest payable on deposit 2,370,444 12,179,557 2,370,444 12,179,557
Interest payable on borrowing 22,012,785 19,847,316 22,012,785 19,847,316
Liabilities on defered grant income - - - -
Unpaid Dividend 1,760,933 3,318,342 1,760,933 3,318,342
Liabilities under Finance Lease - - - -
Employee bonus payable 399,312,726 337,710,800 399,312,726 337,710,800
Lease Liability 1,559,367,081 - 1,559,367,081 -
Other 1,233,308,486 1,046,462,616 978,965,627 964,316,037
Total 3,940,045,081 2,166,943,538 3,685,702,222 2,084,796,959
4.23.1 Defined benefit obligations

The amounts recognised in the statement of financial position are as follows:
Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Present value of unfunded obligations - - - -
Present value of funded obligations 658,213,045 560,774,634 658,213,045 560,774,634
Total present value of obligations 658,213,045 560,774,634 658,213,045 560,774,634
Fair value of plan assets 465,123,357 465,123,357 729,122,865 465,123,357
Present value of net obligations 95,651,277 95,651,277 (70,909,820) 95,651,277
Recognised liability for defined benefit obligations 95,651,277 95,651,277 (70,909,820) 95,651,277
4.23.2 Plan assets

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Plan assets comprise
Equity securities - - - -
Government bonds - - - -
Bank deposit 729,122,865 443,805,579 729,122,865 443,805,579
Other (Deposit with CIT) - 21,317,778 - 21,317,778
Total 729,122,865 465,123,357 729,122,865 465,123,357
Actual return on plan assets.
4.23.3 Movement in the present value of defined benefit obligations

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Defined benefit obligations at Sawan 1 560,774,634 298,532,121 560,774,634 298,532,121
Actuarial losses (170,478,062) 189,257,364 (170,478,062) 189,257,364
Benefits paid by the plan (19,614,157) (11,260,928) (19,614,157) (11,260,928)
Past Service Cost - 14,743,031 - 14,743,034
Current service costs and interest 132,973,100 69,503,046 132,973,100 69,503,046
Defined benefit obligations at Asar end 503,655,515 560,774,634 503,655,515 560,774,634
4.23.4 Movement in the fair value of plan assets

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Fair value of plan assets at Sawan 1 465,123,357 363,517,268 465,123,357 363,517,268
Contributions paid into the plan 283,613,665 112,867,017 283,613,665 112,867,017
Benefits paid during the year (19,614,157) (11,260,928) (19,614,157) (11,260,928)
Actuarial (losses) gains - - - -
Expected return on plan assets - - - -
Fair value of plan assets at Asar end 729,122,865 465,123,357 729,122,865 465,123,357
4.23.5 Amount recognised in profit or loss

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Current service costs 85,398,601 43,856,405 85,398,601 43,856,405
Interest on obligation 47,574,499 25,646,641 47,574,499 25,646,641
Expected return on plan assets - - - -
Total 132,973,100 69,503,046 132,973,100 69,503,046
151
4.23.6 Amount recognised in other comprehensive income

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Acturial (gain)/loss (15,920,532) 189,257,364 (15,920,532) 189,257,364
Total (15,920,532) 189,257,364 (15,920,532) 189,257,364
4.23.7 Actuarial assumptions

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Discount rate 9% 9% 9% 9%
Expected return on plan asset 0% 0% 0% 0%
Future salary increase 5% 5% 5% 5%
Withdrawal rate 12% 8% 12% 8%
4.24 Debt securities issued

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Debt securities issued designated as at fair value
- - - -
through profit or loss
Debt securities issued at amortised cost 2,995,797,489 2,995,439,826 2,995,797,489 2,995,439,826
Total 2,995,797,489 2,995,439,826 2,995,797,489 2,995,439,826
4.25 Subordinated Liabilities

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Redeemable preference shares - - - -
Irredemable cumulative preference shares
- - - -
(liabilities component)
Other - - - -
Total - - - -
4.26 Share capital

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Ordinary shares 14,711,183,326 13,878,474,836 14,711,183,326 13,878,474,836
Convertible preference shares (equity component only) - - - -
Irredemable preference shares (equity component only) - - - -
Perpetual debt (equity component only) - - - -
Total 14,711,183,326 13,878,474,836 14,711,183,326 13,878,474,836
4.26.1 Ordinary shares

Bank
Particular
FY 2078-79 FY 2077-78
Authorized Capital
150,000,000 Ordinary shares of Rs. 100 each share 15,000,000,000 15,000,000,000
Issued capital
147,111,833 Ordinary shares of Rs.100 each share
14,711,183,326 13,878,474,836
(Previous Year 138,784,748 Ordinary shares of Rs.100 each share)
Subscribed and paid up capital
147,111,833 Ordinary shares of Rs.100 each share
14,711,183,326 13,878,474,836
(Previous Year 138,784,748 Ordinary shares of Rs.100 each share)
Total 14,711,183,326 13,878,474,836
4.26.2 Ordinary share ownership

Bank
Percent Amount Percent Amount
Domestic ownership 100% 14,711,183,326 100% 13,878,474,836
Nepal Government - - - -
"A" class licensed institutions - - - -
Other licensed intitutions - - - -
Other Institutions 11.18% 1,644,743,486 9.10% 1,262,912,488
Public 88.82% 13,066,439,840 90.90% 12,615,562,348
Other - - - -
Foreign ownership - - - -
Total 100% 14,711,183,326 100% 13,878,474,836
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4.27 Reserves
Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Statutory general reserve 3,126,607,790 2,608,476,728 3,121,413,179 2,605,451,213
Exchange equilisation reserve 53,455,500 47,242,077 53,455,500 47,242,077
Corporate social responsibility reserve 26,217,559 202,551 25,798,098 0
Debenture redemption reserve 666,666,667 333,333,334 666,666,667 333,333,334
Regulatory reserve 450,897,019 540,326,562 450,897,019 540,326,562
Investment adjustment reserve - - - -
Capital reserve - - - -
Assets revaluation reserve 69,419,000 69,419,000 69,419,000 69,419,000
Fair value reserve (8,145,731) 159,480,726 (8,145,731) 159,480,726
Dividend equalisation reserve - - - -
Actuarial gain / (loss) (96,756,646) (107,901,019) (96,756,646) (107,901,019)
Special reserve - - - -
Other reserve 46,814,117 30,494,232 46,814,117 30,494,232
Employee Training Reserve 16,319,884 (0) 16,319,884 (0)
Capital Adjustment Reserve 30,494,232 30,494,232 30,494,232 30,494,232
Debenture Redemption Reserve - - - -
Deferred Tax Reserve - - - -
Other - - - -
Total 4,335,175,275 3,681,074,192 4,329,561,203 3,677,846,125
Statutory General Reserve

General reserve maintained as per the regulatory requirements. The regulatory requirement to set aside 20% of net profit
until the reserve is twice the paid up capital and thereafter minimum 10% of the net profit.
Exchange Equalization Reserve

Exchange equalization is maintained as per requirement of NRB Directive, which is set at 25% of foreign exchange
realuation gain on the translation to the reporting currency. This reserve is accumulation of such gains over the years.
Corporate Social Responsibility Reserve

Corporate Social Responsibility Reserve is created as per NRB directive, which is set aside of 1% of net profit of previous
year. The balance in the reserve is the amount which is not exhausted in the current fiscal year to be utilized for Corporate
Social Responsibility Objective in the coming years.
Regulatory Reserve
Regulatory Reserve is created due to the changes in the NFRS conversion and adoption with effect in the retained earnings
of the bank.
Investment Adjustment Reserve

Investment Adjustment Reserve is created as per the directive of NRB created against the quoted as well as unqoted investments.
Fair Value Reserve

The fair value reserve is created against the valuation of the investment of the bank as per the fair valuation of the investment
made, quoted as available for sale investments.
Actuarial gain/(losses)
The reserve created against the actuarial valutation of gratuity benefit to the employee of the bank.
Captial Reserve
The reserve created on acqusition against the swap ratio adjustment on paid up shares.
Assets Revaluation Reserve

The reserve created on the basis of Fair Value of Assets Adjustment on acquistion.
Other Reserves
Capital Adjustment Reserve iscreated against the income recognition by capitalization in loans, for which capitalization is
allowed by NRB, but distribution is not done till the settlement of the capitalized interest part.
4.28 Contingent liabilities and commitments

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Contingent liabilities 23,154,903,322 23,902,378,003 23,154,903,322 23,902,378,003
Undrawn and undisbursed facilities 13,995,671,095 20,162,437,848 13,995,671,095 20,162,437,848
Capital commitment - 30,000,000 - 30,000,000
Lease Commitment - - - -
Litigation 181,326,061 177,369,991 181,326,061 177,369,991
Total 37,331,900,478 44,272,185,842 37,331,900,478 44,272,185,842
153
4.28.1 Contingent liabilities

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Acceptance and documentary credit 5,988,064,248 8,801,673,656 5,988,064,248 8,801,673,656
Bills for collection - - - -
Forward exchange contracts 3,130,390,794 4,500,902,151 3,130,390,794 4,500,902,151
Guarantees 14,036,448,279 10,599,802,196 14,036,448,279 10,599,802,196
Underwriting commitment - - - -
Other commitments - - - -
Total 23,154,903,322 23,902,378,003 23,154,903,322 23,902,378,003
4.28.2 Undrawn and undisbursed facilities

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Undisbursed amount of loans 3,294,308,498 5,978,546,632 3,294,308,498 5,978,546,632
Undrawn limits of overdrafts 3,907,913,395 4,734,106,809 3,907,913,395 4,734,106,809
Undrawn limits of credit cards 435,871,298 213,869,286 435,871,298 213,869,286
Undrawn limits of letter of credit 6,357,577,904 9,235,915,121 6,357,577,904 9,235,915,121
Undrawn limits of guarantee - - - -
Total 13,995,671,095 20,162,437,848 13,995,671,095 20,162,437,848
4.28.3 Capital commitments

Capital expenditure approved by relevant authority of the bank but provision has not been made in financial statements
Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Capital commitments in relation to Property and
- - - -
Equipment
Approved and contracted for - 30,000,000 - 30,000,000
Approved but not contracted for - - - -
Sub total - 30,000,000 - 30,000,000
Capital commitments in relation to Intangible assets
Approved and contracted for - - - -
Approved but not contracted for - - - -
Sub total - - - -
Total - 30,000,000 - 30,000,000
4.28.4 Lease commitments

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Operating lease commitments
Future minimum lease payments under non
cancellable operating lease, where the bank is lessee
Not later than 1 year - - - -
Later than 1 year but not later than 5 years - - - -
Later than 5 years - - - -
Sub total - - - -
Finance lease commitments
Future minimum lease payments under non
cancellable operating lease, where the bank is lessee
Not later than 1 year - - - -
Later than 1 year but not later than 5 years - - - -
Later than 5 years - - - -
Sub total - - - -
Grand total - - - -
4.28.5 Litigation
Tax settlement up to the FY 2066/67 has been completed. Against tax reassessment order of FY 2067/68, 2068/69 and
2069/t70, the bank has filed a case at Revenue Tribunal. For the FY 2070/71, 2071/72, 2072/73 and 2073/74 the bank has
filed a case for Administrative Review. The bank had acquired Kasthamandap Development Bank whose tax assessment
of FY 2072/73, a case is filed at Administrative Review and Paschimanchal Finance Company Limited, whose tax
assessment of 2072/73, a case is filed at Administrative Review. Also, Bank acquired Deva Bikas Bank on FY 2076/77,
of which case has been filed case at Revenue Tribunal of FY 2066/67 and that of FY 2067/68 and 2073/74 has been filed
for Administrative Review.
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4.29 Interest income

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Cash and cash equivalent 79,540,669 62,064,484 45,083,582 45,449,615
Due from Nepal Rastra Bank - - - -
Placement with bank and financial institutions 3,987,016 55,714,457 3,987,016 55,714,457
Loan and advances to bank and financial institutions 512,825,268 401,326,008 512,825,268 401,326,008
Loans and advances to customers 16,548,570,317 11,296,406,926 16,548,570,317 11,296,406,926
Investment securities 1,095,375,750 880,062,803 1,095,375,750 880,062,803
Loan and advances to staff 149,317,308 97,427,325 149,317,308 97,427,325
Other - - - -
Total interest income 18,389,616,329 12,793,002,002 18,355,159,241 12,776,387,133
4.30 Interest expense

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Due to bank and financial institutions 519,635,201 87,269,837 519,649,653 87,284,288
Due to Nepal Rastra Bank 414,589,379 88,402,168 414,589,379 88,402,168
Deposits from customers 10,800,197,428 7,166,034,650 10,800,197,428 7,166,034,650
Borrowing - - - -
Debt securities issued 308,700,129 307,823,556 308,700,129 307,823,556
Subordinated liabilities - - - -
Other 94,856,655 49,328,859 94,856,655 49,328,859
Total interest expense 12,137,978,793 7,698,859,070 12,137,993,244 7,698,873,522
4.31 Fees and Commission Income

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Loan administration fees 286,952,424 391,315,529 286,952,424 391,315,529
Service fees 138,205,883 89,014,273 138,205,883 89,014,273
Consortium fees - - - -
Commitment fees 2,089,915 1,039,767 2,089,915 1,039,767
DD/TT/Swift fees 17,478,283 13,271,045 17,478,283 13,271,045
Credit card/ATM issuance and renewal fees 186,696,025 63,352,859 186,696,025 63,352,859
Prepayment and swap fees 9,538,463 13,144,579 9,538,463 13,144,579
Investment banking fees - - - -
Asset management fees - - - -
Brokerage fees - - - -
Remittance fees 26,178,493 26,150,541 26,178,493 26,150,541
Commission on letter of credit 133,062,720 93,108,576 133,062,720 93,108,576
Commission on guarantee contracts issued 154,746,690 126,630,176 154,746,690 126,630,176
Commission on share underwriting/issue - - - -
Locker rental 6,747,165 5,478,317 6,747,165 5,478,317
Other fees and commission income 1,160,235 5,695,834 1,160,235 5,695,834
Total fees and Commission Income 962,856,296 828,201,496 962,856,296 828,201,496
4.32 Fees and commission expense

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
ATM management fees 1,402,630 720,853 1,402,630 720,853
VISA/Master card fees 97,623,530 41,970,236 97,623,530 41,970,236
Guarantee commission - - - -
Brokerage - - - -
DD/TT/Swift fees 19,924,206 7,409,468 19,924,206 7,409,468
Remittance fees and commission - 1,096 - 1,096
Other fees and commission expense 25,733,372 21,269,544 25,733,372 21,269,544
Total fees and Commission Expense 144,683,738 71,371,197 144,683,738 71,371,197
4.33 Net trading income

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Changes in fair value of trading assets - - - -
Gain/loss on disposal of trading assets - - - -
Interest income on trading assets - - - -
Dividend income on trading assets - - - -
Gain/loss foreign exchange transation 377,867,068 420,833,394 377,867,068 420,833,394
Other - - - -
Net trading income 377,867,068 420,833,394 377,867,068 420,833,394
155
4.34 Other operating income

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Foreign exchange revaluation gain 24,853,692 1,191,948 24,853,692 1,191,948
Gain/loss on sale of investment securities (9,624,442) 302,606,645 (9,624,442) 302,606,645
Fair value gain/loss on investment properties - - - -
Dividend on equity instruments 256,063,870 43,481,365 256,063,870 43,481,365
Gain/loss on sale of property and equipment 194,856,534 6,768,798 194,856,534 6,768,798
Gain/loss on sale of investment property - - - -
Operating lease income - - - -
Gain/loss on sale of gold and silver 31,497,119 15,753,586 31,497,119 15,753,586
Other 175,515,641 144,267,350 30,303,295 20,221,206
Total 673,162,414 514,069,691 527,950,068 390,023,547
4.35 Impairment charge/(reversal) for loan and other losses

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Impairment charge/(reversal) on loan and
9,473,105 29,000,343 9,473,105 29,000,343
advances to B/FIs
Impairment charge/(reversal) on loan and
802,627,181 446,280,014 802,627,181 446,280,014
advances to customer
Impairment charge/(reversal) on financial
- - - -
Investment
Impairment charge/(reversal) on placement with
- - - -
banks and financial institutions
Impairment charge/(reversal) on property and
- - - -
equipment
Impairment charge/(reversal) on goodwill and
- - - -
intangible assets
Impairment charge/(reversal) on investment
- - - -
properties
Total 812,100,287 475,280,357 812,100,287 475,280,357
4.36 Personnel Expense

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Salary 908,012,082 773,240,249 888,805,712 759,354,737
Allowances 607,065,562 486,932,307 607,065,562 486,932,307
Gratuity expense 38,871,014 58,613,854 38,871,014 58,613,854
Provident fund 87,148,747 73,250,376 87,148,747 73,250,376
Uniform - - - -
Training & development expense 21,068,727 6,673,917 21,068,727 6,673,917
Leave encashment 36,363,558 125,674,461 36,363,558 125,674,461
Medical 66,144,530 50,179,569 66,144,530 50,179,569
Insurance 58,496,649 48,526,758 58,496,649 48,526,758
Employees incentive - - - -
Cash-settled share-based payments - - - -
Pension expense - - - -
Finance expense under NFRS 56,519,140 26,263,196 56,519,140 26,263,196
Other expenses related to staff 73,191,569 50,738,408 73,191,569 50,738,408
Subtotal 1,952,881,578 1,700,093,095 1,933,675,208 1,686,207,583
Employees bonus 399,312,726 337,710,800 399,312,726 337,710,800
Grand total 2,352,194,304 2,037,803,896 2,332,987,934 2,023,918,383
4.37 Other operating expense

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Directors' fee 3,536,000 3,282,000 3,536,000 3,282,000
Directors' expense 655,434 226,653 655,434 226,653
Auditors' remuneration 2,500,000 1,557,875 2,500,000 1,557,875
Other audit related expense - 808,346 - 808,346
Professional and legal expense 13,397,393 4,271,857 13,397,393 4,271,857
Office administration expense 492,338,852 416,267,383 482,692,447 410,048,244
Operating lease expense 60,114,538 295,630,786 60,114,538 295,630,786
Operating expense of investment properties - - - -
Corporate social responsibility expense 10,229,888 29,863,005 10,229,888 29,863,005
Onerous lease provisions - - - -
Other 116,623,385 118,218,338 110,260,661 111,216,716
Total 699,395,490 870,126,244 683,386,361 856,905,482
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4.37.1 Office Administration Expense

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Water and electricity 43,608,792 38,726,417 43,608,792 38,726,417
Repair and maintenance
a) Building 1,576,054 1,732,815 1,576,054 1,732,815
b) Vehicle 4,822,852 4,495,934 4,822,852 4,495,934
c) Computer Accessories 1,068,640 853,649 1,068,640 853,649
d) Office equipment and furniture 7,566,323 6,596,394 7,566,323 6,596,394
e) Other 664,062 426,938 47,405 108,926
Insurance 25,620,960 19,372,630 25,620,960 19,327,109
Postage, telex, telephone, fax 12,724,273 13,318,772 12,565,620 12,940,319
Printing and stationery 35,950,791 24,641,821 35,877,998 24,140,731
Newspaper, books and journals 473,422 401,883 372,821 390,442
Advertisement 54,972,535 45,732,469 54,929,211 45,703,626
Donation - - - -
Security expense 167,762,297 146,828,495 167,454,797 146,466,512
Deposit and loan guarantee premium 46,615,936 31,569,829 46,615,936 31,569,829
Travel allowance and expense 9,584,425 - 9,584,425 -
Entertainment 6,745,928 4,602,501 6,745,928 4,602,501
Annual/ Special General meeting expense 507,407 400,277 480,473 389,787
Other 72,074,156.01 76,566,559 63,754,213 72,003,254
Total 492,338,852 416,267,382 482,692,447 410,048,244
4.38 Depreciation & Amortisation

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Depreciation on property and equipment 496,381,203 244,203,102 494,275,045 242,974,017
Depreciation on investment property - - - -
Amortisation of intangible assets 40,930,423 40,330,538 40,930,423 40,330,538
Total 537,311,627 284,533,640 535,205,469 283,304,555
4.39 Non operating income

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Recovery of loan written off - 2,800,000 - 2,800,000
Other income 18,320,846 31,095,859 18,320,846 31,095,859
Total 18,320,846 33,895,859 18,320,846 33,895,859
4.40 Non operating expense

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Loan written off - - - -
Redundancy provision - - - -
Expense of restructuring - - - -
Other expense 1,981,949 290,729 1,981,949 290,729
Total 1,981,949 290,729 1,981,949 290,729
4.41 Income tax expense

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Current tax expense 1,043,203,275 937,476,851 1,029,422,733 929,312,008
Current year 1,028,164,532 922,789,351 1,014,383,990 914,624,508
Adjustments for prior years 15,038,743 14,687,500 15,038,743 14,687,500
Deferred tax expense (19,802,261) 139,860,795 (15,418,027) 139,355,038
Origination and reversal of temporary differences (19,802,261) 139,860,795 (15,418,027) 139,355,038
Changes in tax rate - - - -
Recognition of previously unrecognised tax losses - - - -
Total income tax expense 1,023,401,014 1,077,337,646 1,014,004,706 1,068,667,046
157
4.41.1 Reconciliation of tax expense and accounting profit

Group Bank
Particular
FY 2078-79 FY 2077-78 FY 2078-79 FY 2077-78
Profit before tax 3,625,049,922 3,068,142,154 3,593,814,538 3,039,397,203
Tax amount at tax rate of 30% 1,087,514,977 920,442,646 1,078,144,361 911,819,161
Add: Tax effect of expenses that are not
- - - -
deductible for tax purpose
Less: Tax effect on exempt income 5,679,404 5,471,585 5,679,404 5,471,585
Add/less: Tax effect on other items (53,671,041) 7,818,291 (58,080,968) 8,276,932
Total income tax expense 1,028,164,532 922,789,352 1,014,383,990 914,624,508
Effective tax rate 28.4% 30.1% 28.23% 30.09%
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5. Disclosures and Additional Information

5.1. Risk Management
5.1.1.a. Risk management framework
All of the Bank’s activities involve, to varying degrees, the analysis, evaluation, acceptance and management of risks
or combinations of risks. The Bank has placed high importance to identification, assessment and well thought out
handling of all the prominent risk that it faces or likely to face in execution of its activities. The Bank is quite aware
about the risk profile of the business and is committed to establish a strong Risk Management System in the bank.
An established risk management framework ensures oversight of and accountability for the effective management
of risk at Country and regional business levels. For managing risks effectively, the Bank has an independent risk
management department to assess its position regarding each separate risk area including Credit Risk, Market
Risk, Operational Risk, Compliance & Legal Risk and Reputation Risk. The management through Risk Management
Committee (RMC) comprising 4 members, 2 of which represent BOD and one from Operating Unit and another one
from Credit Risk. Risk management is an all-round practice in the bank. Every business unit and department is well
informed about its activities and risks corresponding to those activities.
5.1.1.b. Risk appetite and tolerance limits for key types of risks
Risk appetite in the context of Kumari Bank Limited is defined as the level and nature of risk that the bank is willing
to take for pursuing its mission on behalf of its shareholders, subject to constraints imposed by other stakeholders,
such as debt holders, regulators, and customers. It provides a framework for strategic decision making for the Bank.
The Board of Directors of the bank is responsible for setting the bank’s tolerance for the risks. The Bank sets out the
aggregated level and risk types it accepts in order to achieve its business objectives in the Risk Management Policy
of the Bank. Risk strategy of the bank shall reflect the Bank’s business preferences and conduct, and shall be aligned
with its risk tolerance capacity.
The Bank’s actual performance is reported against approved risk profile and risk appetite, enabling senior
management to monitor the risk profile and guide business activity to balance risk and return. The Bank shall state
the business it wants to undertake sector wise, location wise and product wise. Accordingly, the Bank shall formulate
a risk tolerance level or risk appetite.
Following steps shall be undertaken to formulate a risk appetite statement for the Bank:
Steps Description
•Identification of all material risks.
1. Identify & Classify Risks
•Classify the risks as acceptable or unacceptable risks.
•Identify risk and return measures based on benchmarking with the peers.
2. Identify risk return matrices •For example, proportion of NPL to total loans serves as a good measure to quantify risk
appetite for credit risk
• The peer group of the Bank shall comprise of bank’s functioning in same or similar
3. Identify peer group
geographical regions, comparable size and business strategies
4. Analyze, measure and • Measures chosen are scrutinized among the peers for identifying drivers and set tolerance
formulate risk appetite limits for risk measures and target levels for return measures.
statements • These risk appetite statements shall drive the business growth strategy of the Bank
5.1.1.c. Stress testing
Stress Testing is the process where a number of statistically defined possibilities are determined based on the most
damaging combination of events, and the loss they would produce. It is a valuable risk management tool which studies the
impact of unlikely but not impossible stress events. A stress event is an exceptional but credible event to which a bank’s
portfolio is exposed. As a part of its risk measurement mechanism, Kumari Bank Ltd. puts an emphasis on evaluating
where the Bank stands under stressful market conditions. It helps to provide information on the kinds of conditions
under which strategies or position, the Bank would be most vulnerable and thus, strategies are devised such that such
circumstance doesn’t arise and/or to ensure least impact upon the Bank from such scenarios even if they do occur.
In conducting stress tests, the Bank gives special consideration to instruments or markets where concentrations
exist as such positions may be more difficult to liquidate or offset in stressful situations. The Bank considers both
historical market events as well as forward-looking scenarios and also considers worst case scenarios in addition to
more probable events. Ad hoc scenarios are also prepared reflecting specific market conditions and for particular
concentrations of risk that arise within the businesses. For example, credit shock scenario is measured in terms of
deterioration of assets quality in terms of the adequacy of capital of the bank.
The stress testing methodology assumes that scope for management action would be limited during a stress event,
reflecting the stress scenarios in Credit Shocks, Market Shocks, Liquidity Shock and other factors of stress scenarios
in the banking sector. The Board of the bank has responsibility for reviewing stress exposures and, where management
oversight, monitoring, evaluation and reporting at regular intervals. Regular stress test scenarios are applied and the
report on regular basis reviewed by the Board of the bank along with discussions at Risk Management Committee (RMC).
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The stress testing mechanism at KBL aims to address:
a) Concentration risk;
b) Illiquidity of markets in stressed market conditions;
c) Credit Shocks- CAR perspectives and NPL perspectives;
d) Market Interest rate risk scenarios;
e) Exchange rate and equity investment fluctuations risks; and
f) Other Risks
KBL’s stress tests are both of a quantitative and qualitative nature, incorporating credit risk, market risk and liquidity
risk aspects. Quantitative criteria identify plausible stress scenarios to which bank could be exposed. Qualitative
criteria emphasize that two major goals of stress testing are to evaluate the capacity of the bank’s capital to absorb
potential large losses and to identify steps the Bank can take to reduce its risk and conserve capital. This assessment
is integral to setting and evaluating the Bank’s strategy and the results of stress testing are routinely communicated
to RMC and the board of the bank.
The Bank carries out stress testing in three broad areas based on credit shocks, market shocks and liquidity shocks
which are discussed below:
I. Credit Shocks:
The Bank subjects its portfolios to a series of simulated stress scenarios. The Bank stresses its portfolios with the
shocks of the magnitude experienced elsewhere, even when the Bank has never been exposed to those in the past.
The Bank has formulated stress testing framework where various historical scenarios have been analyzes. The Bank
carries out stress testing in line with the stress testing framework on a regular basis as prescribed by Stress Testing
Framework or NRB guidelines issued from time to time, under Case basis or collective basis of CAR and NPL
perspective along with Concentration stress risks.
II. Market Shocks:

In addition to the above credit shocks, the Bank has also developed stress tests which it identifies as most adverse
based on the characteristics of its market portfolio. The interest rate risks, exchange rate risks and equity price risks
are evaluated and the results are reviewed periodically.
III. Liquidity Shocks:

Stress test scenarios are continually reviewed and updated for the liquidity risk scenarios whereby, various factors
as impact of continual withdrawals on case or collective basis on CAR and liquidity positions are stressed. Also,
concentration risks are also evaluated and the various scenarios are developed to assess the risks possessed due
to high level of deposit concentrations.
Results of stress testing

The result of stress testing is communicated to the Board of Directors and senior management on regular basis. The
same is also discussed in detail in Risk Management Committee. The report of stress testing is also shared with
Nepal Rastra Bank as per the requirement of Unified Directives issued by Nepal Rastra Bank.
Scenario analysis and Sensitivity Analysis

Scenario analysis and sensitivity analysis is conducted through the model developed by Bank Supervision
Department, Nepal Rastra Bank. However, on need basis, the Bank also adopts other techniques and develops
other scenarios on case to case basis.
5.1.2.a. Credit Risk

Credit risks are the risk associated with the probability of default of loan provided by the bank. Hence, the credit
risks comprise of the highest risk exposure of the bank. Management of the credit risks largely signifies the risk
management of the bank as whole.
Credit risk:
 Is measured as the amount which could be lost if a customer or counterparty fails to make repayments.
 Is monitored within limits, approved by individuals within a framework of delegated authorities. These limits
represent the peak exposure or loss to which the Bank could be subjected should the customer or counterparty
fail to perform its contractual obligations;
 Is managed through a robust risk control framework which outlines clear and consistent policies, principles and
guidance for credit risk management.
5.1.2.b. Credit Risk Management

The Bank has its own Credit Risk Policy and Strategy to handle the Credit Risk Management philosophy that involves
a continual measurement of probability of default/loss; identification of possible risks and mitigations. In order to
manage and eliminate the credit risk, the Bank has a practice of maintaining the best quality assets in its book. The
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Bank’s Credit Policy elaborates detailed procedures for proper risk management. The Bank has delegated credit
approval limits to various officials to approve and sanction various amount of credit request based on their individual
expertise and risk judgment capability.
As a check and balance mechanism, each credit case requires dual approval. Regular monitoring of the credit portfolio
ensures that the Bank does not run the risk of concentration of portfolio in a particular business sector or a single
borrower. Similarly, the Bank also exercises controlled investment policy with adequately equipped resource looking
after the investment decisions. To cap these all, the Bank has strong Credit processing channels in place comprising
of various Directors from the Board of the Bank which reviews all credit proposals beyond a specified amount.
5.1.2.c. Impairment assessment and credit risk mitigation

The Bank creates impairment allowances for impaired loans promptly and appropriately.
Impairment assessment methodology
a. Impairment of Financial Assets carried at Amortized Cost

The Bank first assesses individually whether objective evidence of impairment exists for financial assets that are
individually significant. When an account is classified as default or when the Bank no longer expect to recover the
principle or interest due on a loan in full or in accordance with the original terms and conditions, it is assessed for
impairment. If exposures are secured, the current net realizable value of the collateral will be taken into account when
assessing the need for an impairment allowance. When the net present value of the collateral is sufficiently adequate
to cover the outstanding facilities, impairment is not calculated for such cases.
In the event Bank determines that no objective evidence of impairment exists for an individually assessed financial
asset, it includes the asset in a group of financial assets with similar credit risk characteristics such as collateral
type, past due status and other relevant factors and collectively assesses them for impairment. However, assets that
are individually assessed for impairment and for which an impairment loss is or continues to be recognized are not
included in a collective assessment of impairment.
Impairment is assessed on a collective basis in two circumstances:

 To cover losses which have been incurred but have not yet been identified on loans subject to individual
assessment; and
 For homogeneous groups of loans those are not considered individually significant.
Incurred but not yet identified impairment

Individually assessed financial assets for which no evidence of loss has been specifically identified on an individual
basis are grouped together according to their credit risk characteristics for the purpose of calculating an estimated
collective loss. This reflects impairment losses that the bank has incurred as a result of events occurring before the
reporting date, which the Bank is not able to identify on an individual loan basis and that can be reliably estimated.
These losses will only be individually identified in the future. As soon as information becomes available which
identifies losses on individual financial assets within the group, those financial assets are removed from the group
and assessed on an individual basis for impairment.
The collective impairment allowance is determined after taking into account:

 Historical Loss Experience in portfolios of similar credit risk; and
 Management’s experienced judgment as to whether current economic and credit conditions are such that the actual
level of inherent losses at the reporting date is like to be greater or less than that suggested by historical experience.
Homogeneous groups of Financials Assets

Statistical methods are used to determine impairment losses on a collective basis for homogenous groups of financial
assets. Losses in these groups of financial assets are recorded on an individual basis when individual financial assets
are written off, at which point they are removed from the group.
Bank uses the following method to calculate historical loss experience on collective basis:
After grouping of loans on the basis of homogeneous risks, the Bank uses net flow rate method. Under this
methodology, the movement in the outstanding balance of customers into default categories over the periods are
used to estimate the amount of financial assets that will eventually be irrecoverable, as a result of the events occurring
before the reporting date which the Bank is not able to identify on an individual loan basis.
Under this methodology, loans are grouped into ranges according to the number of days in arrears and statistical
analysis is used to estimate the likelihood that loans in each range will progress through the various stages of
delinquency and ultimately prove irrecoverable.
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Current economic conditions and portfolio risk factors are also evaluated when calculating the appropriate level of
allowance required covering inherent loss. These additional macro and portfolio risk factors may include:
 Recent loan portfolio growth and product mix
 Unemployment rates
 Gross Domestic Production (GDP)Growth
 Inflation
 Interest rates
 Changes in government laws and regulations
 Property prices
 Payment status
But, the amount of provision to be created against Loans and Advances shall be higher of the following two amounts:
i) Impairment calculated as per Impairment Assessment Methodology as described in Pt. 5.1.2. c above or,
ii) Loan Loss Provision calculated as per the provisions of Directive No. 2, Unified Directives, 2078 and Circular
issued by Nepal Rastra Bank (Circular 01/078/79).
Impairment calculation by following the methodology described in Pt. 5.1.2.c above

i) Firstly, top borrowers constituting around 25%-30% of total funded exposure of the Bank is subjected to Individual
Impairment Testing in FY 2078-79
ii) Loans and advances as filtered out following pt-(i) were tested for individual impairment including following
criteria but not limited to:
 Known Cash Flow difficulties experienced by the borrowers:
 Past due contractual payments of either principal or interest;
 Breach of loan covenants or conditions;
 The probability that the borrower will enter bankruptcy or other financial reorganization; and
 A significant downgrading in credit rating by an external credit rating agency.
 Bank’s aggregate exposure to the customer;
 The viability of the customer’s business model and their capacity to trade successfully out of financial
difficulties and generate sufficient cash flows to service debt obligations;
 The amount and timing of expected receipts and recoveries;
 The extent of other creditors ‘commitments ranking ahead of, or pari-pasu with the Bank and the likelihood
of other creditors continuing to support the company;
 The realizable value of security and likelihood of successful repossession;
iii) As per the impairment testing conducted as per Pt. (ii), only few loans and advances were identified as individually
impaired in each FY 2078-79
Amount (Rs.)
Particulars 2078/79
Total Individual Impairment as per NAS 39 403,824,583
iv) All loans and advances were then grouped into homogenous types such as home loans, auto loans, term loans,
etc. to calculate collective impairment.
v) Collective impairment was calculated following net flow rate method. Under this methodology, the movements in
the outstanding balance of customers into default categories over the periods are used to estimate the amount of
financial assets that will eventually be irrecoverable, as a result of the events occurring before the reporting date
which the Bank is not able to identify on an individual loan basis.
vi) Collective impairment as per the method mentioned in Pt. (v) in each FY 2078-79 is shown below:
Amount (Rs.)
Particulars 2078/79
Total Collective Impairment as per paragraph 63 of NAS 39 561,117,630
Write off of loans and receivables

Loans (and the related impairment allowance) are normally written off, either partially or in full, when there is no
realistic prospect of recovery. Where loans are secured, this is generally after receipt of any proceeds from the
realization of security. In circumstances where the realizable value of any collateral has been determined and there is
no reasonable expectation of further recovery, write off may be earlier.
Collateral management
The Bank seeks to use collateral, where possible, to mitigate its risks on financial assets. The collateral comes
in various forms such as cash, securities, letters of credit/guarantees, real estate, receivables, inventories, other
non-financial assets and credit enhancements such as netting agreements. The fair value of collateral is generally
assessed, at a minimum, at inception and based on the guidelines issued by the Nepal Rastra Bank. Non-financial
collateral, such as real estate, is valued based on data provided by third parties such as independent valuator and
audited financial statements.
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Credit Risk Mitigants availed under CRM

Types of eligible credit risk mitigants used and the benefits availed under CRM as at 16 July 2022 are as follows:
Particulars Eligible CRM (Rs. 000)
Deposit with Bank & Cash margin 898,608
Deposit with Other Bank / FI -
Total 898,608
b. Impairment of Financial Assets – Held for Trading

For available for sale financial investments, Bank assesses at each reporting date whether there is objective evidence
that an investment is impaired.
In the case of debt instruments, Bank assesses individually whether there is objective evidence of impairment based
on the same criteria as financial assets carried at amortized cost. However, the amount recorded for impairment
is the cumulative loss measured as the difference between the amortized cost and the current fair value, less any
impairment loss on that investment previously recognized in the Income Statement. Future interest income is based
on the reduced carrying amount and is accrued using the rate of interest used to discount the future cash flows for
the purpose of measuring the impairment loss. If, in a subsequent period, the fair value of a debt instrument increases
and the increase can be objectively related to a credit event occurring after the impairment loss was recognized, the
impairment loss is reversed through the Income Statement.
In the case of equity investments classified as available for sale, objective evidence would also include a ‘significant’
or ‘prolonged’ decline in the fair value of the investment below its cost. Where there is evidence of impairment,
the cumulative loss measured as the difference between the acquisition cost and the current fair value, less any
impairment loss on that investment previously recognized in profit or loss is removed from equity and recognized in
the Statement of profit or loss. However, any subsequent increase in the fair value of an impaired available for sale
equity security is recognized in other comprehensive income.
Bank writes-off certain available for sale financial investments when they are determined to be uncollectible.
5.1.3.a. Liquidity Risk

Liquidity is crucial to the ongoing viability of any financial institution. Liquidity risk is the potential for loss to a bank
arising from either its inability to meet its obligations or to fund increases in assets as they fall due without incurring
unacceptable cost or losses. Liquidity is the ability of an institution to transform its assets into cash or its equivalent
in a timely manner at a reasonable price to meet its commitments as they fall due. Liquidity risk is considered a major
risk for banks. It arises when the cushion provided by the liquid assets are not sufficient enough to meet its obligation.
In such a situation banks often meet their liquidity requirements from market. Funding through market depends upon
liquidity in the market and borrowing bank’s liquidity.
Liquidity risk is:
 Measured using maturity ladder analysis
 Monitored against the Bank’s liquidity risk management framework and overseen by Asset and Liability
Management Committee.
 Managed on a stand-alone basis with no reliance on any related party or the Nepal Rastra Bank, unless this
represents routine established business as usual market practice.
Management of liquidity risk

The board has ensured that the bank has necessary liquidity risk management framework and bank is capable of
confronting uneven liquidity scenarios. The bank has formulated liquidity risk management policy, risk management
policies which are recommended by senior management and approved by the Board of Directors. The bank utilizes
flow measures to determine its cash position. A maturity ladder analysis estimates a bank’s inflows and outflows and
thus net deficit or surplus (GAP) over a time horizon. A maturity ladder is a useful device to compare cash inflows
and outflows both on a day-to-day basis and over a series of specified time periods as presented in the NRB Ni.Fa.
No.5.1 under NRB Directives No. 5.
Liquidity of the bank is assessed, measured and maintained by Financial Market Department by ensuring minimal
compliance with Nepal Rastra Bank prescribed ratios such as CRR, SLR, and Credit to Deposit Ratio and Liquidity
Coverage Ratio. The department also maintains investments over and above the prescribed limit to cope up with the
unprecedented liquidity risks that the Bank is ever exposed to.
5.1.3.b. Market Risk

Market risks are the risk of losses in on-balance sheet and off- balance sheet positions arising from adverse
movements in market prices. The major constituents of market risks are:
a) The risks pertaining to interest rate related instruments;
b) Foreign exchange risk (including gold positions) throughout the bank; and
c) The risks pertaining to investment in equities and commodities.
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Management of Market Risk

The Bank has Asset Liability Management (ALM) Policy, Market Risk Management Policy, Investment Policy along
with Treasury manuals in place, which serves as a guide to address the market risk of the Bank. As for the monitoring
of market and liquidity risk, the Bank has an active Assets and Liability Management Committee (ALCO) in place
which meets regularly and takes stock of the Bank’s assets and liability position and profile of assets & liabilities,
monitors risks arising from changes in exchange rates in foreign currencies. All foreign exchange positions are
managed by financial market consisting of front office dealers with specific dealing limits and an independent back
office. The back office executes the deals made by the dealers and also monitors the liquidity position of the Bank.
For the purpose of proper check and control, the front dealing room of financial market and the back office has
different reporting line.
Apart from Financial Market (or front office) and back office, the bank also has Treasury Mid Office; which works as a
third eye which assesses the risks and timely evaluates and report to the senior management, whose reporting chain
is also separate to the front and back office.
Market Risk Assessment Methodology

Out of the various components of market risk, foreign exchange risk is the predominant risk in Nepal. Thus, a net
open position approach has been adopted to measure the operational risk exposure of the bank in aggregation and
the capital requirement in commensurate of the same as set out by Capital Adequacy Framework issued by Nepal
Rastra Bank.
5.1.3.c. Operational Risk

Operational risks are risk of loss resulting from inadequate internal processes, people and systems, or from external
events. Operational risks are highly important as it entails cent percent loss to the bank in the event of its occurrence.
Management of Operational Risk

As a part of monitoring operational risks, the Bank has devised operational manuals for various Banking functions,
which are reviewed and modified time to time as per the changing business context.
The Bank has adopted dual control mechanism in its all operational activities where each and every financial and
non-financial transaction is subject to approval from an authority higher than the transaction initiator. Regular review
meetings are conducted to assess the adequacy of risk monitoring mechanism and required changes are made as
and when felt necessary. Independent reconciliation unit is established to conduct daily reconciliation of all Nostro /
agency accounts, Inter-Branch and Inter-Department account.
The Bank has independent internal audit, which reports to the Audit Committee of the Bank. The Audit Committee
meets frequently and reviews the business process and financial position of the Bank. In order to have better focus
on managing operational risks across branches and to monitor them from Head Office level, the Bank has separate
Branch Operation Department and Operation Risk Management & Compliance Department at Head Office. The Bank
has strong MIS in place to monitor the regular operational activities.
Operational Risk Assessment Methodology

Operational risks are assessed employing the Basic Indicators Approach as set out by Capital Adequacy Framework
issued by Nepal Rastra Bank. The Basic Indicators Approach assesses operational risk in aggregation and is
calculated by multiplying the operational risk capital charge by 10. Bank assesses the operational risk based on the
past operational loss due to system failure, staff embezzlement and other external factors which is considered at the
time of calculation of economic capital.
5.1.4.a. Fair value of financial assets and liabilities

Fair value is a market-based measurement, not an entity specific measurement. For some assets and liabilities,
observable market transactions or market information might be available. For other assets and liabilities, observable
market transactions and market information might not be available. However, the objective of a fair value measurement
in both cases is the same – to estimate the price at which an orderly transaction to sell the asset or to transfer the liability
would take place between market participants at the measurement date under current market conditions (i.e. an exit
price at the measurement date from the perspective of a market participant that holds the asset or owes the liability).
Fair values are determined according to the following hierarchy:
Level-1 inputs
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can
access at the measurement date. Held for trading and available for sale investments have been recorded using Level
1 inputs.
Level-2 inputs
Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly or indirectly.
Level-3 inputs
Level 3 inputs are unobservable inputs for the asset or liability.
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5.2. Capital Management
i. Qualitative disclosures
Capital management approach is driven by its desire to maintain a strong capital base to support the development of its
business and to meet the regulatory capital requirements.
Capital planning and management is essential to ensure adequate level of capital is available at all times. In order to
be prepared for distressed economic environments, capital management plan of the Bank incorporate various potential
scenarios and is responsive to changes in the economy, market, competitive or political landscape, or other external
factors.
Following elements are taken into consideration while devising an effective capital management plan for the Bank:
 Minimum capital requirements as per NRB
 Business growth prospects and risks
 Potential capital raising instruments such as equity, preference stocks, bonds etc
 Various stress scenarios
 Others as considered necessary by the senior management
Paid up Share Capital of the bank

Over the years the Bank has raised share capital as follows:
Cumulative
Fiscal Year Remarks
Paid up Capital
2057/58 350,000,000
2058/59 350,000,000
2059/60 350,000,000
2060/61 500,000,000 Initial Public Offering of NPR. 150 million
2061/62 625,000,000 Right share issue of NPR. 125 million (25%)
2062/63 750,000,000 Bonus share issue of NPR. 125 million (20%)
2063/64 900,000,000 Bonus share issue of NPR. 150 million (20%)
Right share issue of NPR. 180 million (20%). NPR. 170 million capitalized on balance sheet date and
2064/65 1,070,000,000
balance on subsequent year.
In the fiscal year 2064/65, the bank had proposed 10 % bonus share and 15 % right share. 10 % bonus
2065/66 1,186,099,200
share had been capitalized as on balance sheet date pending issuance of right share.
In the FY 2065/66, the bank had issued 10% bonus share including to those who were released from
2066/67 1,306,015,920 black list during the year. Further, right share of NPR. 1,080,000 issued on FY 2064/65 relating to
blacklisted shareholders are included in current year’s capital subsequent to their release from black list.
In the FY 2067/68, the bank capitalized NPR. 178,200,000 (15%) share capital which was approved
for issuance in fiscal year 2064/65. Further, the bank auctioned 7841 numbers of shares that include
2067/68 1,603,800,000 right and bonus shares of subsequent years relating to right share approved in FY 2064/65 but issued
only in FY 2067/68.
Bonus share at the rate of 8% (NPR. 118,800,000) had been proposed in the FY 2067/68.
2068/69 1,603,800,000 -
2069/70 1,828,332,000 14% bonus share of NPR. 224.532 million Issued in the FY 2069/70.
2070/71 2,431,681,560 33% bonus share of NPR. 603,349,560 issued in the FY 2070/71
2071/72 2,699,166,532 11% bonus share of Rs. 267,484,972 issued in the FY 2071/72
2072/73 3,265,991,503 21% bonus share of Rs. 566,824,971 issued in the FY 2072/73
50% right share issued amounting to Rs. 1,349,583,266.00 before acquisition plus share capital of Rs.
2073/74 5,969,495,823
1,353,921,054 added from acquisition.
2074/75 7,163,394,973 20% right share issued amounting to Rs. 1,193,559,650.00
2075/76 8,685,573,112 21.25% of bonus share for the FY 2073-74 and 2074-75.
10.526% of bonus share of 868,557,313 for the FY 2076-77 and with 2,965,919,029 added from
2076/77 12,520,049,469
acquisition.
2078/79 13,878,474,836 10.85% of bonus share of 13,584,253 for the FY 2077-78
2079/80 14,711,183,326 6% of bonus share of 8,327,084 for the FY 2078-79
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List of Shareholder who holds 0.5% or more share

S. No. Name of shareholders Individual/ Remarks Remarks
1 Amir Pratap J. B. Rana Individual 5,290,581 3.60
2 Employees Provident Fund Institution 4,851,853 3.30
3 Bhat Bhateni Super Market & Departmental Store Pvt. Ltd. Institution 3,954,031 2.69
4 Januki Kumari J.B. Rana Shahi Individual 3,406,926 2.32
5 Sabitri Gurung Individual 3,166,701 2.15
6 Bimala Devi Agarwal Individual 2,485,334 1.69
7 Min Bahadur Gurung Individual 1,578,926 1.07
8 Jagannath Gyawali Individual 1,559,399 1.06
9 Rajan Prasad Amatya Individual 1,433,435 0.97
10 Anupam Rathi Individual 1,432,335 0.97
11 Navin Agrawal Individual 1,315,298 0.89
12 Pashupati Murarka Individual 1,302,761 0.89
13 Krishna Prasad Gyawali Individual 1,270,020 0.86
14 Birendra Kumar Shah Individual 1,246,532 0.85
15 Milan Investment Company Pvt. Ltd. Institution 1,241,083 0.84
16 Subhadra Shrestha Individual 1,165,771 0.79
17 Rishi Agrawal Individual 1,079,274 0.73
18 Pradip Kumar Murarka Individual 995,326 0.68
19 Gauri Shrestha Individual 964,177 0.66
20 Sarswoti Devi Shrestha Individual 948,678 0.64
21 Mahabir Prasad Goyal Individual 906,886 0.62
22 Bodh Prasad Tripathi Individual 830,361 0.56
23 Rajendra Kumar Kabra Individual 819,122 0.56
24 Utsav Kumar Amatya Individual 781,174 0.53
ii. Quantitative disclosures

1. Capital structure and capital adequacy
 Tier 1 capital and a breakdown of its components:
Rs. in ‘000
S.N. Particulars Amount
Tier 1 Capital (Core Capital) ( CET1+ AT1) 19,722,816
Common Equity Tier 1 (CET 1) 19,722,816
a Paid Up Equity Share Capital 14,711,183
b Equity Share Premium 88,804
c Proposed Bonus Equity shares -
d Statutory General Reserves 3,121,413
e Retained Earnings -
f Current year cumulative profit/(Loss) 1,872,567
g Capital Adjustment Reserve 666,667
h Capital Redemption Reserve 30,494
i Other Free Reserves -
j Less: Goodwill 88,804
k Less: Deferred Tax Assets -
l Less: Intangible Assets 72,637
m Less: Investment in equity of institutions with financial interests 420,000
n Less: Purchase of land and building in excess of limit and unutilized 87,750
o Less: Other Deductions 99,122
 Tier 2 capital and a breakdown of its components:

Rs. in ‘000
S.N. Particulars Amount
a Cumulative and/or Redeemable Preference Shares -
b Subordinated Term Debt 3,000,000
c Hybrid Capital Instruments
d General Loan Loss Provision 2,606,142
e Investment Adjustment Reserve -
f Assets Revaluation Reserve 69,419
g Exchange Equalization Reserve 53,455
h Other Reserves
Total Tier 2 Capital 5,729,016
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 Subordinated Term Debt

The Bank issued KBL Debenture 2086 in FY 2076/77 for NPR 300 million with face value of NPR 1000. The salient
features of KBL Debenture 2086 are as follows:
• Maturity period: 10 Years
• Interest rate: 10.25% per annum
• Interest Payment frequency: Half Yearly
• Claim in case of liquidation: After depositors
• Debenture Redemption Reserve shall be created to redeem the bond at maturity.
• The debenture can be pledged with other banks and financial institution.
• Listed with Nepal Stock
 Deductions from Capital:

The Bank has investments of Rs. 200 million in the equity shares of Kumari Capital Ltd. and RS 20 million in the equity
shares of KBL Securities Ltd which has been deducted from the core capital while computing capital adequacy.
 Total Qualifying Capital:

Rs. in ‘000
Particulars Amount
Common Equity Tier 1 (CET1) 19,722,816
Additional Tier 1 (AT1) -
Supplementary Capital (Tier 2) 5,729,016
Total Capital Fund 25,451,832
 Capital Adequacy Ratio:

Rs. in ‘000
Particulars Amount
Common Equity Tier 1 Ratio 9.83 %
Core Capital Ratio - Tier 1 9.83 %
Total Capital Adequacy Ratio (Tier 1 & Tier 2) 12.63 %
 Internal approach of the Bank to assess capital adequacy
In order to be prepared for distressed economic environments, the Bank assesses the adequacy of its capital by
incorporating various potential scenarios and being responsive to changes in the economy, market, competitive or
political landscape, or other external factors.
Banks are faced with the challenge of developing internal procedures and systems in order to ensure that
they possess adequate capital resources in commensuration with all material risks posed to it by its operating
activities. The bank has devised Internal Capital Adequacy Assessment Process (ICAAP), which is a set of policies,
methodologies, techniques and procedures to assess the capital adequacy requirements in relation to bank’s risk
profile and effectiveness of its risk management, control environment and strategic planning.
Following elements are taken into consideration while assessing capital adequacy of the Bank:
• Minimum capital requirements as per NRB
• Business growth prospects and risks
• Potential capital raising instruments such as equity, preference stocks, bonds etc
• Various stress scenarios
• Others as considered necessary by the senior management
2. Risk exposures
 Risk weighted exposures for Credit Risk, Market Risk and Operational Risk:
Rs. in ‘000
Particulars Amount
Risk Weighted Exposure for Credit Risk 183,789,209
Risk Weighted Exposure for Operational Risk 6,737,103
Risk Weighted Exposure for Market Risk 137,940
Adjustments under Pillar II:
Add: 4% of Gross income of last FY due to supervisor is not satisfied with sound practice of management
2,426,121
of operational risk (6.4 a 7)
Add: 4% of the total RWE due to supervisor is not satisfied with the overall risk management policies and
7,626,570
procedures of the bank (6.4 a 9)
Total Risk Weighted Exposure (After Pillar II Adjustment) 200,716,942
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 Risk Weighted Exposures under different categories of Credit Risk:

Rs. in ‘000
Risk Weighted
S.N. Categories
Exposure
1 Claims on domestic banks that meet capital adequacy requirements 1,737,061
2 Claims on domestic banks that do not meet capital adequacy requirements -
3 Claims on foreign bank (ECA Rating 0-1) 698,909
4 Claims on foreign bank (ECA Rating 2) 421,252
5 Claims on foreign bank (ECA Rating 3-6) -
6 Claims on foreign bank (ECA Rating 7) -
Claims on foreign bank incorporated in SAARC region operating with a buffer of 1% above their
7 62,165
respective regulatory capital requirement
8 Claims on Domestic Corporates (Credit rating score equivalent to AAA) -
9 Claims on Domestic Corporates (Credit rating score equivalent to AA+ to AA-) -
10 Claims on Domestic Corporates (Credit rating score equivalent to A+ to A-) -
11 Claims on Domestic Corporates (Credit rating score equivalent to BBB+ & below) -
12 Claims on Domestic Corporates (Unrated) 103,890,422
13 Claims on Foreign Corporates (ECA 0-1) -
14 Claims on Foreign Corporates (ECA 2) -
15 Claims on Foreign Corporates (ECA 3-6) -
16 Claims on Foreign Corporates (ECA 7) -
17 Regulatory Retail Portfolio (Not Overdue) 14,356,082
18 Claims fulfilling all criterion of regularity retail except granularity -
19 Claims secured by residential properties 2,527,374
20 Claims not fully secured by residential properties -
21 Claims secured by residential properties (Overdue) 161,701
22 Claims secured by Commercial real estate 3,662,036
23 Past due claims (except for claims secured by residential properties) 2,521,869
24 High Risk claims 25,810,322
25 Lending against securities (bonds & shares) 2,600,737
Trust Receipt Loans for Trading Firms -
26 Investments in equity and other capital instruments of institutions listed in stock exchange 1,265,970
27 Investments in equity and other capital instruments of institutions not listed in the stock exchange 2,267,715
28 Staff loan secured by residential property 888,208
29 Other Assets (as per attachment) 7,064,108
30 Forward Exchange Contract Liabilities 375,881
31 LC Commitments With Original Maturity Up to 6 months domestic counterparty 750,952
32 LC Commitments With Original Maturity Over 6 months domestic counterparty 1,110,789
33 Bid Bond, Performance Bond and Counter guarantee domestic counterparty 5,182,511
34 Repurchase Agreements, Assets sale with recourse 880,000
35 Advance Payment Guarantee 3,170,798
36 Acceptances and Endorsements 554,385
37 Irrevocable Credit commitments (short term) 1,182,101
38 Irrevocable Credit commitments (long term) 645,859
Total 183,789,209
 Total Risk Weighted Exposure calculation table:

Rs. in ‘000
Particulars Amount
Total Risk Weighted Exposures 190,664,251
Tier 1 Capital (Core Capital) ( CET1+AT1) 19,722,816
Total Capital Fund 25,451,832
Total Core Capital to Total Risk Weighted Exposures % 9.83
Total Capital Fund to Total Risk Weighted Exposures % 12.63
Details of Non-Performing Assets

 Amount of Non-Performing Assets (both Gross and Net):
Rs. in ‘000
Loan Loss
Non-Performing Assets Amount Net NPL
Provision
Sub-Standard 466,484.31 113,145.41 353,338.90
Doubtful 176,044.49 87,570.15 88,474.35
Loss 1,121,379.02 1,121,379.02 -
Total 1,763,907.82 1,322,094.58 441,813.24
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iii. Compliance with external requirement

The Bank is required to comply with the minimum Capital Adequacy Requirements of Nepal Rastra Bank. For the year
ended 16 July 2022, such Capital Adequacy Requirement was set at 11% of Total Risk Weighted Exposures of the Bank.
During the year ended 16 July 2022, the Bank has complied with such minimum Capital Adequacy Requirements. The
minimum regulatory requirement of capital as was 11.00% (including capital conservation buffer). Bank maintains the total
CAR of 12.63% which is above 11%.
5.3. Classification of financial assets and financial liabilities

Financial Assets
NAS 39 requires financial assets to be classified in one of the following categories:
 Financial assets at fair value through profit or loss
 Available-for-sale financial assets
 Loans and receivables
 Held to maturity investments
Financial assets at fair value through profit or loss have two sub-categories:
 Financial asset that is designated on initial recognition as one to be measured at fair value with fair value changes in
profit or loss.
 Held for trading.
NAS 39 recognizes two classes of financial liabilities:
 Financial liabilities at fair value through profit or loss
 Other financial liabilities measured at amortized cost using the effective interest rate method
The category of financial liability at fair value through profit or loss has two sub-categories:
 Financial liability that is designated by the entity as a liability at fair value through profit or loss upon initial recognition
 Held for trading
5.4. Operating Segment information

1. General Information
a. Factors used to identify the Bank’s reportable segments
The Bank has identified the key segments of business on the basis of nature of banking operations. It helps the
management to assess the performance of the business segments. The business segments identified are Banking
(including loans, deposits and trade operations), Cards, Remittance and Treasury.
b. Types of products and services from which each reportable segment derives its revenues
(a) Remittance Services
1 Remittance fee and commission
2 Other remit related fees and commission
(b) Digital Banking Business
1 Interchange Income (VISA/NIBL)
2 Credit Card
3 Debit Card
4 Prepaid Card
5 ATM Fees
6 Merchant Settlement Fees and commission
7 Other Fees and Commission
(c) Treasury
1 Interest Income from placements and investments
2 Purchase and Sale of shares/bonds and other financial instruments
3 Bullion Trading Income
4 Dividend Income on Investments
5 Forex Gain
6 Rebate from Nostro Banks
7 Other Fees and Commission income
(d) Banking
1 Income from Loan Products
2 Income from Bills Purchase and Discounting
3 Income from issuance of Letter of Credit
4 Income from issuance of Bank Guarantee
5 Income from Document Collection
7 Income from Bancassurance
8 Profit on sale of assets
9 Profit on sale of Non-Banking Assets
10 Income from other Banking Services
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2. Information about profit or loss, assets and liabilities

Rs. in ‘000
Remittance Digital Bank- Treasury
Particular Banking Total
Services ing Business Business
Revenue from external customers 43,657 304,799 1,767,775 18,125,923 20,242,154
Intersegment revenues - - - - -
Net Revenue 43,657 304,799 1,767,775 18,125,923 20,242,154
Interest Revenue - 9,413 1,144,446 17,201,300 18,355,159
Interest Expense - - 308,526 11,829,467 12,137,993
Net interest revenue - 9,413 835,920 5,371,833 6,217,166
Depreciation and Amortization 169 893 - 534,144 535,206
Segment profit/(loss) 17,237 130,890 821,207 2,624,481 3,593,815
Entity’s interest in the profit or loss of associates
- - - - -
accounted for using equity method
Other material non-cash items: - - - - -
Impairment of assets - 12,619 - 3,912,740 3,925,359
Segment assets 17,613 126,703 27,160,521 184,803,601 212,108,438
Segment liabilities 3,325 14,492 1,348,853 189,739,652 191,106,322
3. Measurement of operating segment profit or loss, assets and liabilities

a. Basis of Accounting
All transactions between the reportable segments are accounted as separate unit and allocation is based upon use of
resources and output derived from the reportable segments.
b. Nature of differences between the measurements of the reportable segments’ profits or losses and the Bank’s
profit or loss before income tax
There is no difference between the measurement of the reportable segments’ profit and the Bank’s profit before income tax.
c. Nature of differences between the measurements of the reportable segments’ assets and the Bank’s asset
There is no difference between the measurement of the reportable segments’ assets and the Bank’s asset.
d. Nature of any changes from prior periods in the measurement methods used to determine reported segment
profit or loss and the effect, if any
No changes are made in the measurement methods used to determine reported segment profit or loss from prior periods.
e. Nature and effect of any asymmetrical allocations to reportable segments

No asymmetrical allocations are made to reportable segments.
4. Reconciliations
(a) Revenue
Particulars 2078-79 2077-78
Total revenues for reportable segments 20,242,153,519 14,449,341,428
Other revenues - -
Elimination of intersegment revenues - -
Entity’s revenues 20,242,153,519 14,449,341,428
(b) Profit or loss

Total profit or loss for reportable segments 3,593,814,538 3,039,397,203
Other profit or loss - -
Elimination of intersegment profits - -
Unallocated amounts: - -
Profit before income tax 3,593,814,538 3,039,397,203
(c) Assets
Total assets for reportable segments 212,108,438,392 189,782,816,080
Other assets - -
Unallocated amounts - -
Entity’s assets 212,108,438,392 189,782,816,080
(d) Liabilities
Total liabilities for reportable segments 191,106,322,395 170,890,594,021
Other liabilities
Unallocated liabilities
Entity’s liabilities 191,106,322,395 170,890,594,021
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5. Information about products and services

Remittance Services 26,173,008 25,954,629
Remittance fee and commission 26,173,008 25,954,629
Other fees and commission - -
Card Business 251,060,268 151,872,766
Interchange Income (VISA/CUP/NEPS) 46,428,257 16,074,849
Credit Card 13,643,635 6,472,920
Debit Card 50,938,999 21,237,676
Prepaid Card 543,341 88,217
ATM Fees 19,871,145 8,431,991
Merchant Settlement Fees and commission 16,527,197 11,047,205
Other Fees and Commission 103,107,695 88,519,908
Treasury 1,836,561,429 1,663,929,740
Interest Income from placements and investments 1,144,446,348 880,062,803
Purchase and Sale of shares/bonds and other financial instruments 2,077,184 302,606,645
Bullion Trading Income 31,497,119 15,753,586
Dividend Income on Investments 256,063,870 43,481,365
Forex Gain 402,476,908 422,025,341
Rebate from Nostro Banks - -
Other Fees and Commission income - -
Banking 18,128,358,813 12,607,584,293
Income from Loan Products 17,279,943,209 11,795,160,258
Income from Bills Purchase and Discounting
Income from issuance of Letter of Credit 133,062,720 93,108,576
Income from issuance of Bank Guarantee 154,746,690 126,630,176
Income from Document Collection
Income from Banc-assurance 10,610,544 13,240,203
Profit on sale of assets 194,856,534 (9,087,637)
Profit on sale of Non-Banking Assets
Income from other Banking Services 355,139,116 588,532,717
Total Revenue 20,242,153,519 14,449,341,428
6. Information about geographical areas (Total Operating Income)

Domestic 7,941,155,691 6,645,200,852
Province 1 2,097,196,519 1,387,797,331
Province 2 1,343,797,033 621,376,117
Province 3 2,489,224,216 2,768,177,909
Gandaki province 165,935,168 186,185,306
Province 5 1,294,760,671 1,152,912,429
Karnali Province 246,062,541 230,458,393
Sudurpaschim province 304,179,543 298,293,367
Foreign - -
Total 7,941,155,691 6,645,200,852
7. Information about major customers

None of the external customer of the Bank individually contributes 10% or more to the Bank’s revenue as at Asadh 31,
2078 as well as Asadh 32, 2079.
5.5. Share options and share based payment

A share-based payment is a transaction in which the bank receives goods or services either as consideration for its equity
instruments or by incurring liabilities for amounts based on the price of the entity's shares or other equity instruments of the entity.
The bank has not entered into any share option or share based payment contract as of Asadh 32, 2079.
5.6. Contingent liabilities and commitment

Contingent Liabilities:
Where the Bank undertakes to make a payment on behalf of its customers for guarantees issued, such as for performance
bonds or as irrevocable letters of credit as part of the Bank’s transaction banking business for which an obligation to make
a payment has not arisen at the reporting date, those are included in these financial statements as contingent liabilities.
Other contingent liabilities primarily include revocable letters of credit and bonds issued on behalf of customers to customs,
for bids or offers.
Commitments:
Where the Bank has confirmed its intention to provide funds to a customer or on behalf of a customer in the form of loans,
overdrafts, future guarantees, whether cancellable or not, or letters of credit and the Bank has not made payments at the
reporting date, those instruments are included in these financial statement as commitments.
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Please refer Note No. 4.28 (including Note No. 4.28.1- 4.28.5) for detail of contingent liabilities and commitments as at
Asadh 31, 2078 and Asadh 32, 2079.
5.7. Interest Income recognition with reference to Nepal Rastra Bank Guideline, 2019
Bank has adopted the guideline issued by Nepal Rastra bank issued on July 2019 for the recognition of Interest Income-
the criteria for suspension of interest income and cessation of Accrued Interest. Out of total accrued interest income
recognized during the year the aforementioned suspended amount has not been transferred regulatory reserve. The Net
Realizable Value (NRV) of collateral is adequate to cover the principal and accrued interest of the borrowers with arrears
of more than three months and within 12 months, and therefore, accrued interest is recognized as interest income. For the
purpose of classification of interest income/expense to BFIs, average rate on loan/deposit to BFIs have been considered.
5.8. Related parties’ disclosures

Parties are considered to be related if one party has the ability to control the other party or exercise significant influence
over the other party in making financial or operational decisions and include major shareholders, subsidiary companies,
associates, retirement funds, directors and key management personnel and their close family members.
Banking transactions with the related parties are executed substantially on the same terms, including mark-up rates and
collateral, as those prevailing at the time for comparable transactions with unrelated parties and do not involve more than
a normal risk.
a) Subsidiary
Transactions between the Bank and its subsidiary, Kumari Capital Limited, K.B.L Securities Limited meet the definition
of related party as defined under NAS-24 “Related Party Disclosures”.
Transactions during the year (Kumari Capital Limited) 2078-79 (Rs.) 2077-78Rs.)
Equity Investment by Kumari Bank Limited on Kumari Capital Ltd. 200,000,000 200,000,000
Deposits held by Kumari Capital Limited at Kumari Bank Ltd. 131,957,923 88,546,34
Interest Expenses incurred by Kumari Bank Limited, which formed part of income of
2,195,256 237,114
Kumari Capital Limited
Expenses of Kumari Capital Limited paid by Kumari Bank Ltd, reimbursable - -
RTS income of Kumari Capital Limited for the service rendered to Kumari Bank Limited 800,000 800,000
Amount transferred in relation to Dividend Payable of Kumari Bank Limited for subsequent
- 72,819,301
payment to shareholders
Transactions during the year (KBL Securities Limited) 2078-79 (Rs.) 2077-78Rs.)
Equity Investment by Kumari Bank Limited on K.B.L Securities Ltd. - 20,000,000
Deposits held by K.B.L Securities Ltd at Kumari Bank Ltd. - 20,000,000
Expenses of K.B.L. Securities Limited paid by Kumari Bank Ltd, reimbursable - -
Interest Expenses incurred by Kumari Bank Limited, which formed part of income of K.B.L
244,844 -
Securities Limited
b) Associates
Associates are an entity over which the investor has significant influence. Where an entity holds 20% or more of
the voting power (directly or through subsidiaries) on an investee, it will be presumed the investor has significant
influence unless it can be clearly demonstrated that this is not the case. If the holding is less than 20%, the entity will
be presumed not to have significant influence unless such influence can be clearly demonstrated. The existence of
significant influence by an entity is usually evidenced in one or more of the following ways:
 representation on the board of directors or equivalent governing body of the investee;
 participation in the policy-making process, including participation in decisions about dividends or other distributions;
 material transactions between the entity and the investee;
 interchange of managerial personnel; or
 provision of essential technical information
Transactions between the Bank and its associates also meet the definition of related parties.
The Bank exercise significant influence in the financial and operating policy decisions of any of its investees as at and
Asadh 32, 2079 as the bank has representation on the board of directors in case of following investees:
Transactions during the year (KBL Securities Limited) 2078-79 (Rs.)
National Microfinance Laghubitta Bittiya Sanstha Limited Mr. Kshitij Khadka
First Microfinance Laghubitta Bittiya Sanstha Limited. Mr. Ganesh Kumar KC
Mero Microfinance Laghubitta Bittiya Sanstha Limited. Mrs. Sajana Manandhar
General Insurance Company Nepal Limited Mr. Bholanath Dhungana
Aviyan Laghubitta Bittiya Sanstha Limited Mr. Prabin Jha
Solar Farm Pvt. Ltd Mr. Aswin Babu Shrestha
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Ashad End Asadh End

Particulars
2078-79 (Rs.) 2077-78 (Rs.)
Investment in shares-Promoter 20,000,000 20,000,000
First Microfinance Laghu Bittiya Sanstha Limited
Investment in shares-Promoter 20,414,200 20,414,200
Investment in shares-Ordinary 2,580,396 2,580,396
Mero Micro Finance Bittiya Sanstha Ltd
Investment in shares- Promoter 37,023,000 37,023,000
General Insurance Co. Ltd
Solar Farm Pvt. Ltd
Investment in shares- Promoter 30,000,000 -
Total Investment in Associates 185,017,596 155,017,596
c) Directors and other Key Managerial Personnel (KMP)

Key Management Personnel and their immediate family members are also considered to be related parties for disclosure
purpose as per NAS-24 “Related Party Disclosures”.
As per Nepal Financial Reporting Standard (NAS 24) “Related Party Disclosures”, Key Management Personnel are
those having authority and responsibility for planning, directing and controlling the activities of the entity. The Bank
considers the members of its Board, Chief Executive Officer and all managerial level executives as Key Management
Personnel (KMP) of the Bank.
Following is a list of Board of Directors and CEO bearing office at Asadh 32, 2079.
Mr. Amir Pratap J. B. Rana Chairman

Mr. Krishna Prasad Gyawali Director
Mr. Mahesh Prasad Pokharel Director
Mrs. Anuradha Chaudhari Director
Prof. Dr. Ganesh Prasad Pathak Director
Mr. Ram Chandra Khanal Chief Executive Officer
Mr. Ram Chandra Khanal has been appointed as Chief Executive Officer since 27 April 2022.
Compensation to the members of the Board

All members of the Board are non-executive directors and no executive compensation is paid to the directors. Specific
non-executive allowances paid to directors are as under:
Board Meeting fees Rs 3,536,000

Other benefits Rs. 655,433
These allowances and benefits are approved by the Annual General Meeting of the Bank.
Compensation to Chief Executive Officer of the Bank

In ‘000
Total Compensation (Rs.)
2078-79 2077-78
Acting CEO
Nature of Compensation (Anuj Mani CEO
Timilsina) (Ram Chandra
till February 2, Khanal)
2022
Short-term employee benefits 7,864.00 4,325.00 16,808
Employee Bonus 3,992.00 - 4,269
Voluntary retirement payment 18,359.00 - -
Post employee benefits 3143.00 - -
Festival Allowances and payment against annual leave 1,928.00 358.00 2,469
Other Allowances 1,212.00 290.00 -
Total 36,498.00 4,973.00 23,546
The compensation to CEO stated is of then Acting CEO Mr.Anuj Mani Timilsina till February 2, 2022 and CEO Ram Chandra
Khanal there after till the end of fiscal year.
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Compensation to Senior Management Personnel of the Bank

In ‘000
Total Compensation (Rs.)
Nature of Compensation
2078-79 2077-78
Short-term employee benefits 16,164 29,161
Employee Bonus 5,099 10,716
Post employee benefits 15,684 4229
Festival Allowances and payment against annual leave 2,464 4,037
Other Allowances 6,027 2726
Total 45,438 50,869
Senior Management Personnel is represented by employees of AGM level and above
d) Loans and deposits of Directors and other Key Managerial Personnel (KMP); along with Close Family Members
(CFMs)
In ‘000
Loans and Receivables 83,167.77 44,569
Credit Cards 315.73 94
Deposits 13,743.25 14,790
The above figures indicate the details of directors and staffs of AGM level and above and identified close family members of KMPs.
5.9. Additional disclosures of non-consolidated entities
Nepal Financial Reporting Standard (NAS 24) “Disclosure of Interests in Other Entities”, is applicable when an entity has
interest in any of the following:
 Subsidiaries
 Joint arrangements (joint operations or joint ventures)
 Associates
 Unconsolidated structured entities
The Bank has already disclosed its interests in subsidiaries and associates in 5.8. Related parties’ disclosures. The Bank
does not have any interest in any form of joint arrangements or unconsolidated structured entities as on Asadh 31, 2078
as well as Asadh 32, 2079.
5.10. Events after reporting period
Events after the reporting date are those events, favorable and unfavorable, that occur between the reporting date and the
date the Financial Statements are authorized for issue.
The Bank follows NAS-10 “Events after the Reporting Period” to account for and report the events that have occurred after
the reporting period.
Adjusting events after reporting period

The Bank has also availed the provision as provided by NRB directive that allows Banks to consider interest recovery made
till July 31, 2022 while calculating amount to be transferred to regulatory reserve on account of interest income recognized
on accrual basis but not realized till July 16, 2022.
Non-adjusting events after reporting period

The Board of Directors of the Bank has proposed the distribution of 12.5% of paid up capital as cash dividend amounting
NPR 1,838,897,915.77 vide board meeting dated September 30, 2022 for the year ended July 16, 2022. Bonus shares and
cash dividend will be paid out of retained earnings. In accordance with Nepal Accounting Standard - NAS 10 (Events after
the Reporting Period), above proposed cash dividend has not been recognized as a liability at the year end. The Bank will
recognize the same as its liability once the dividend is approved by shareholders.
Above proposed bonus shares has not been recognized in share capital. The Bank will recognize the same as share capital
once the proposed bonus shares is approved by shareholders in the Annual General Meeting.
5.12. Availment of Carve-outs notified by Institute of Chartered Accountants of Nepal

The Institute of Chartered Accountants of Nepal has notified 2 Carve-outs in NFRS which allows alternative treatment. Out
of the 2 Carve-outs, the Bank has availed following Carve-outs while preparing its financial statements for FY 2078/79:
a) Carve-Out: 1 - NFRS 9: Financial Instruments: Recognition and Measurement (Incurred Loss Model to measure the
Impairment Loss on Loan and Advances)
b) Carve-Out: 2 - NFRS 9: Financial Instruments: Recognition and Measurement (Impracticability to determine transaction
cost of all previous years which is the part of effective interest rate); one year extended for implementation.
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a) Carve-Out: 1 - NFRS 9: Financial Instruments: Recognition and Measurement (Incurred Loss Model to measure the
Impairment Loss on Loan and Advances)
As per NAS-39, an entity shall assess at the end of each reporting period whether there is any objective evidence that
a financial asset or group of financial assets measured at amortized cost is impaired. If any such evidence exists, the
entity shall apply paragraph 63 to determine the amount of any impairment loss.
The Carve-out requires Banks to measure impairment loss on loans and advances as the higher amount derived as per
norms prescribed by Nepal Rastra Bank for loan loss provision and amount determined as per paragraph 63 of NAS-
39; and shall apply paragraph 63 to measure the impairment loss on financial assets and other assets other than loan
and advances. The Bank shall disclose the impairment loss as per the Carve-out and the amount of impairment loss
determined as per paragraph 63.
If there is objective evidence that an impairment loss on financial assets measured at amortized cost has been incurred,
the amount of the loss is measured as the difference between the asset's carrying amount and the present value of
estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial
asset's original effective interest rate (i.e. the effective interest rate computed at initial recognition). The carrying amount
of the asset shall be reduced either directly or through use of an allowance account. The amount of the loss shall be
recognized in profit or loss.
The Bank has availed the Carve-out and has accordingly recognized impairment loss on loans and advances as the
higher amount derived as per norms prescribed by Nepal Rastra Bank for loan loss provision and amount determined
as per paragraph 63 of NAS-39. The detail of impairment loss on loans and advances are as follows:
Amount (Rs.)
Particulars 2076/77 2077/78 2078/79
Short-term employee benefits 7,864.00 4,325.00 16,808
Employee Bonus 3,992.00 - 4,269
Voluntary retirement payment 18,359.00 - -
Post employee benefits 3143.00 - -
Festival Allowances and payment against annual leave 1,928.00 358.00 2,469
Other Allowances 1,212.00 290.00 -
Total 36,498.00 4,973.00 23,546
As, Loan loss provision as per norms prescribed by Nepal Rastra Bank is higher, impairment loss on loans and
advances is made accordingly.
The Bank has classified total loan loss provision mentioned above into 2 categories viz. Individual Impairment and
Collective Impairment. The Bank has classified general loan loss provision as Collective Impairment and specific loan
loss provision as Individual Impairment.
b) Carve-out: 2- NAS 39: Financial Instruments: Recognition and Measurement (Impracticability to determine transaction
cost of all previous years which is the part of effective interest rate)
As per NAS-39, an entity shall estimate cash flows considering all contractual terms of the financial instrument (for
example, prepayment, call and similar options) but shall not consider future credit losses while calculating the effective
interest rate. The calculation includes all fees and points paid or received between parties to the contract that are an
integral part of the effective interest rate (see NAS 18 – Revenue).
The Carve-out states that the effective interest rate calculation shall estimate the expected cash flows by considering
all the contractual terms of the financial instrument (for example, prepayment, extension, call, and similar options)
but shall not consider the expected credit losses. The calculation includes all fees and points paid or received unless
it is immaterial or impracticable to determine reliably, between parties to the contract that are an integral part of the
effective interest rate (see paragraphs BS.4.1-BS.4.3), transaction costs, and all other premiums or discounts. There is
a presumption that the cash flows and the expected life of a group of financial instruments can be estimated reliably.
However, in those rare cases when it is not possible to reliably estimate the cash flows or the expected life of a financial
instrument (or group of financial instruments), the entity shall use the contractual cash flows over the full contractual
term of the financial instrument (or group of financial instruments). The Bank has availed this Carve-out and opted for
the extended time limit for its implementation and has not considered all fees and points paid or received which are
impracticable to measure reliably while determining effective interest rate.
5.13. Dividend and Bonus

Bank’s BOD meeting held on 30 September 2022 has decided to propose Rs 1,838,897,915.77 (12.50% of the existing
paid up capital) as cash dividend (inclusive for tax purpose, if any) from the retained earnings up to FY 2078/79.
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5.14. Unpaid Dividend

Total cash dividend proposed, NPR 119,916,696 is still payable to shareholders who have not yet collected. Detail of same
is as follows:
Particulars Amount Rs.
Payable of Kumari Bank Limited 107,386,687
Payable of then Paschimanchal Finance Co. Limited 1,136,846
Payable addition from acquisition of then Deva Bikas Bank Limited 9,632,231
Total Dividend Payable with Kumari Capital Limited 118,155,765
Total Payable in the books of Kumari Bank Limited is as follows.

Particulars Amount Rs.
Payable of Kumari Bank Limited 876,553
Payable addition from acquisition of then Deva Bikas Bank Limited 169,284
Payable from acquisition of then (Kasthamandap / Kakre Bihar / Mahakali / Paschimanchal Finance) 715,095
Total Dividend Payable in Books of Bank 1,760,933
As per Section 182 (9) of Companies Act, dividend amount not claimed/received by any shareholder even after the expiry of
a period of five years after the date of resolution adopted by the company in its general meeting to distribute dividend shall
be credited to the investor protection fund to be established under Section 183. With reference to the said requirement
bank had transferred Rs. 3,811,259.51 to investor protection fund out of the dividend payable standing related to various
prior years in FY 2077/78.
5.15. Provision for staff bonus

Provision for staff bonus has been provided at 10% of net profit before providing for income tax provision. This provision
has been made as per Bonus Act 2030.
5.16. Impairment of Goodwill

As per Paragraph 10 of NFRS 36 i.e impairment of asset, irrespective of whether there is any indication of impairment, an
entity shall also test goodwill acquired in a business combination for impairment annually.
A cash-generating unit (CGU) to which goodwill has been allocated shall be tested for impairment annually, and whenever
there is an indication that the unit may be impaired, by comparing the carrying amount of the unit, including the goodwill,
with the recoverable amount of the unit. If the recoverable amount of the unit exceeds the carrying amount of the unit, the
goodwill allocated to that unit shall be regarded as not impaired. If the carrying amount of the unit exceeds the recoverable
amount of the unit, the entity shall recognize the impairment loss. Since the recoverable amount is higher than carrying
amount of the cash generating unit , goodwill allocated is not impaired. The summary of calculation of impairment are
stipulated below:
Calculation of recoverable amount of the CGU (value in use) Amount
Present value of cash flows for years 2080 to 2085 16,561,752,931
Present value of cash flow for terminal year 157,603,334,975
Total recoverable amount 174,165,087,906
Calculation of carrying amount of the CGU: 161,950,478,151
Excess of carrying amount over recoverable amount -> impairment loss 12,214,609,755
5.17. Share Premium

Along with acquisition of then Deva Bikas Bank Limited; goodwill is created amounted to Rs. 88,804,041 which is placed
under Share Premium.
5.18. General Reserve

20 percent of the profit after tax is transferred to General Reserves as per Section 44 of Banks and Financial Institutions Act
2073. In FY 2078/79, the Bank has transferred Rs. 515,961,966 to the General Reserve Fund from the current year’s profit.
The balance in General Reserve Stands at Rs. 3,121,413,179 as at 32nd Ashad 2079.
5.19. Exchange Fluctuation Fund

25 percent of the revaluations gain on foreign exchange is transferred to exchange fluctuation fund as per Section 45
of Banks and Financial Institutions Act 2073. In FY 2078/79, the revaluation gains on foreign exchange amounts to Rs.
23,853,692. Therefore, the Bank has transferred Rs. 6,213,423 to Exchange Fluctuation Fund from the current year profit.
The balance in Exchange Fluctuation Fund stands at Rs. 53,455,500 as on Asadh 32, 2079.
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5.20. Investment Adjustment Reserve

There is an amount of no investment adjustment reserve as at Balance Sheet date. However for other investment,
no adjustment reserve has been created as per the exemption provided by Nepal Rastra Bank Directive 8 and other
requirements as per the same directive as stipulated below:
Investment
Particulars Cost Price Rs. % Reserve Adjustment
Reserve
1. Investment in Shares (unquoted)
Credit Information Center Limited 1,424,500 Exemption by NRB -
Nepal Clearing House Limited 5,253,500 Exemption by NRB -
National Banking Training Institute 1,834,860 Exemption by NRB -
Kumari Capital Ltd 400,000,000 100% Subsidiary Company -
Nepal Electronic Payment System Ltd 20,000,000 Exemption by NRB -
KBL Securities Ltd 20,000,000 100% Subsidiary Company -
Solar Farm Pvt. Ltd. 30,000,000 Investment made on FY 2077/78 -
Aviyan Laghubitta Bittiya Sanstha Ltd 25,000,000 Listed -
Total Investment 503,512,860 -
5.21. Interest Capitalization

Following are the loans, on which interest is capitalized to recognize income in accordance with NRB approval. These loans
are the project loans, interest on which was capitalized for moratorium period. Detail of such loans and interest recognized
in FY 2078/79 is as follows:
Amount (Rs.)
S.N Name of client Type Capitalized Interest
1 Arun Valley Hydropower Co Ltd Term Loan 7,486,851.73
2 Bhujung Hydropower Private Limited Term Loan 11,700,032.99
3 C.G. Cement Industries Palpa P.Ltd. Term Loan 53,480,332.75
4 KBNR Isuwa Power Limited Term Loan 20,539,603.02
5 Mewa Developers Pvt Ltd Term Loan 26,466,594.98
6 Munal And Mayur Resort Pvt Ltd Term Loan 23,245,931.42
7 Myagdi Hydropower Pvt. Ltd. Term Loan 3,171,713.93
8 Nilgiri Khola Hydro Power Company Ltd Term Loan 25,594,783.19
9 Pan Himalayan Energy Pvt Ltd Term Loan 15,754,484.97
10 Peoples Hydropower Company Pvt Ltd Term Loan 75,334,103.11
11 Setikhola Hydropower Pvt Ltd Term Loan 24,484.43
12 Super Madi Hydro Power Ltd Term Loan 27,481,415.40
13 Swet Ganga Hydropower & Construction Limited Term Loan 72,147,138.18
14 Tundi Power Company Pvt. Ltd. Term Loan 5,046,460.64
15 Vision Energy And Power Private Limited Term Loan 905,679.50
As per the Circular issued by Nepal Rastra Bank dated 2078/5/8, 2/078/79-point number 13, related to interest capitalization; For loans
whose prior approval for interest capitalization period is already expired; but considering current scenario, further interest capitalization
till Asadh end 2079 is allowed. Above interest capitalization are as per the directive issued by Nepal Rastra Bank, where capital
adjustment reserve is not requiring to be created for the same, in F.Y. 2077-78 reserve is created under regulatory reserve amounting
to Rs. 3,673,000.00 for Liberty Energy Company Limited whose loan is outstanding and reserve is carried in F.Y. 2078/79.
5.22. Regulatory Reserve

As per NRB, the Bank is required to create regulatory reserve; the details included in the regulatory reserve are as:
Addition/ (Re-
Particulars FY 2077-78 FY 2078-79
versal)
Accrued Interest 299,103,356 (29,951,647) 269,151,709
Provision for possible losses on investment - 8,145,730 8,145,730
Provision on Non-Banking Assets 76,451,073 (3,281,140) 73,169,933
Deferred Tax Asset - - -
Actuarial gain/(loss) 132,480,155 (35,723,508) 96,756,647
Other (Unrealized Fair Value gain) 28,618,978 (28,618,978) -
Other (Interest Capitalization) 3,673,000 - 3,673,000
Total 540,326,562 (89,429,543) 450,897,019
The additional disclosure of regulatory reserve as directed by NRB are as:

Short provision
Short Short Gain on
Interest for possible Actuarial Loss Deferred
FY Loan Loss Provision on Goodwill Bargain Other Total
Receivable losses on Recognized Tax
Provision NBA purchase
investment
2074/75 282,804,643 - 9,310,883 134,171,003 - - 50,883,888 0 - 477,170,417
2075/76 5,316,437 - 7,200,962 (45,748,988) - - 62,673,742 77,789,908 - 107,232,061
2076/77 86,282,192 - 17,541,285 (33,174,432) - - (113,557,630) (67,788,211) - (110,696,796)
2077/78 (75,299,916) - (34,053,130) 21,203,490 - - 132,480,155 (10,001,697) 32,291,978 66,620,880
2078/79 -29,951,647 8,145,730 -3,281,140 -35,723,508 - -28,618,978 -89,429,544
Total 269,151,709 0 8,145,730 73,169,933 0 0 96,756,647 0.00 3,673,000
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5.23. Fair Value Reserve

Fair value reserve comprises the cumulative net change in the fair value of financial assets measured at fair value with
changes in fair value is recognized in other comprehensive income. Gain/ Loss on DE recognition (net of tax) of financial
assets measured at fair value through Other Comprehensive Income (OCI) has been recognized directly under equity.
Opening balance as on 1stShrawan 2078 159,480,726
Movement in Fair Value Reserve net of taxation (167,626,456)
Closing balance as on 32nd Asadh 2079 (8,145,731)
5.24. Actuarial Gain/ Loss Reserve

Actuarial gain or loss Reserve includes gain loss resulting from changes in actuarial assumptions used to value employee
obligations.
Opening balance as on 1stShrawan 2078 (107,901,019)
Actuarial Gain during the year 11,144,372
Closing balance as on 32nd Asadh 2079 (96,756,646)
5.25. Other Reserves

a. CSR Reserves
As per NRB circular, the Bank has to transfer 1% of current year’s profit to CSR fund. The Bank has transferred Rs
25,798,098 to CSR Fund from net profit of FY 078/79. As of Balance Sheet date, the Bank’s CSR fund stands at Rs
25,798,098.
Opening balance as on 1stShrawan 2078 (A) -
1% of Net profit for FY 2078/79 to be transferred to CSR Fund (B) 25,798,098
CSR expenses incurred out of CSR Fund in FY 2078-79 (D) -
Closing balance as on 32nd Asadh 2079 (A+B+C-D) 25,798,098
The bank has made expenditure in the following head of expenditure in below mentioned province:
Province Education Environment Health Heritage Sports Miscellaneous Total
Province 1 50,000 10,000 20,000 21,001 101,001
Province 2 240000 240,000
Bagmati 2,084,657 720,000 2,314,241 140,850 1,525,000 200,000 6,984,749
Gandaki 327,200 35,000 10000 115,500 487,700
Lumbini 403,916 21200 10,000 150000 105,629 690,745
Karnali 320,625 500,000 178,402 999,027
Sudurpaschim 184,298 495,065 47,304 726,667
Total 3,610,696 1,236,265 2,869,241 170,850 1,675,000 667,836 10,229,888
b. Capital Adjustment Reserve
Capital Adjustment Reserve is created on interest income recognized by capitalizing interest income for the loans
provided under National Priority after approval for such capitalization from Nepal Rastra Bank. The total capital
adjustment reserve created in the FY 2075-76 is carried forward in the current year, while no addition to the capital
adjustment reserve is required to be created as per NRB directive.
Financial Year Name of Borrower Capital Adjustment Reserve Amount
2071/72 Electrocom and Research Center P Ltd 2,990,173
2072/73 Electrocom and Research Center P Ltd 14,936,857
2072/73 Nepal Health Care Co-operative Limited 4,007,609
2073/74 Nepal Health Care Co-operative Limited 8,559,593
Total Amount 30,494,232
c. Debenture Redemption Reserve

Debenture Redemption Reserve of NPR 666,666,667 has been created against the subordinated debt issued amounting
to NPR. 3 Billion, which have maturity period of 10 years and the redemption reserve is created not considering first
and final year of the debenture. The debenture was issued on 19th Magh 2076. Thus, total debenture issued is spread
over 9 years to determine the annual reserve creation for the debenture.
d. Assets Revaluation Reserve

Assets Revaluation Reserve of NPR 619,419,000 has been created as the fair value adjustment of net assets acquired
on business combination.
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5.26. Summary of Loans and Advances Disbursed, Recovered and Principal & Interest Written-off (except for Staff Loans
and advances and interest accrued)
The loan and advances disbursed, recovered and written off during the year is given below:
(Rs in million)
Particulars Amount
Opening Loans and Advances 143,772
Loans and Advances disbursed during the year 43,245
Loans and Advances recovered during the year 27,573
Loans and Advances written off during the year -
Closing Loans and Advances 159,444
Interest written off -
5.27. Weighted Average Interest Rate Spread

Particulars Rate (%)
Average Rate of return from loans and advances and investment 9.62
Average Rate of interest on deposits & borrowings 6.71
Net Spread 2.91
5.28. Summary of Concentration of exposure

No balance sheet and off balance sheet transaction have been highly concentrated to a single person, firm, organization or
to a particular sector. Detail of highest exposure to a single person or organization is as follows:
NPR In Million
Maximum concentration to a single customer
Particulars Total Exposure
Amount %
Loans & Advances 159,444 1,974 1.24%
Deposits 182,962 9,006 4.92%
Off Balance Sheet Items 21,431 1,300 6.06%
5.29. Other Additional disclosure

During FY 2078/79
Particulars
No. of Customers Amount (NRs.)
Refinance Loan 200 1,345,585,620
Subsidized Loan 2,900 5,584,045,788
5.30. Summary of Changes in deposit during the year

Growth in deposits during the year is given below:
NPR In Million
Particulars This Year (Rs.) Last Year (Rs) Changes in amount
1) Current Deposit 13,360.20 23,924.78 (10,564.58)
a) Local Currency 13,231.34 23,815.20 (10,583.86)
b) Foreign Currency 128.86 109.58 19.28
2) Saving Deposit 34,891.97 40,654.87 (5,762.90)
a) Local Currency 34,720.56 40,476.58 (5,756.02)
b) Foreign Currency 171.40 178.29 (6.89)
3) Fixed Deposit 118,547.96 80,461.38 38,086.58
a) Local Currency 115,416.54 75,627.40 39,789.14
b) Foreign Currency 3,131.41 4,833.98 (1,702.57)
4) Call Deposit 14,715.58 10,677.68 4,037.90
a) Local Currency 13,842.21 10,539.34 3,302.87
b) Foreign Currency 873.37 138.33 735.04
5) Margin Deposit 1,446.49 1,459.14 (12.65)
a) Local Currency 1,446.49 1,459.14 (12.65)
b) Foreign Currency - - -
Total Deposit 182,962.19 157,177.86 25,784.33
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5.31. Classification of Assets and Liabilities based on Maturity

NPR In Million
181-270 271-365 Total
S.N. Particulars 1-90 Days 91-180 Days Over 1 Year
Days Days Amount
Assets
1 Cash Balance 5,731 - - - - 5,731
2 Balance with Banks & FIs 74,29 - - - - 74,29
3 Investment in Foreign Banks 3,121 - - - - 3,121
4 Call Money - - - - - -
5 Government Securities 1,453 497 - 4,410 1,453 2,089
6 Nepal Rastra Bank Bonds - - - - - -
7 Inter Bank & FI Lending 8,257 - - - 8,257
8 Loans & Advances 47,801 19,894 12,405 6,500 72,844 159,444
9 Interest Receivable 1,248 8 0.2 6 192 1,454
10 Reverse Repo - - - - - -
Receivables from other
11 - - - - - -
Institutions under Commitment
Payment to be made for facilities
12 7,574 1,188 1,070 1,408 4,098 15,338
under s.no 20,21 & 22
13 Others 3,963 1,321 1,321 1,321 4,118 12,045
Total Assets (A) 86,579 26,028 14,796 13,645 95,782 236,831
Liabilities
14 Current Deposits 4,442 1,481 1,481 1,481 5,923 14,807
15 Saving Deposits 12,402 2,480 2,480 2,480 29,765 49,608
16 Fixed Deposits 44,449 27,703 17,837 12,340 16,220 118,548
17 Debentures - - - - 3,000 3,000
Borrowings: 5,008 1,619 1,730 125 - 8,481
(a) Call/Short Notice - - - - - 4,650
(b) Inter-bank/Financial
18 - - - - - 358
Institutions
(c) Refinance - 1,346 - - - 1,346
(d) Others - - - - - -
Other Liabilities and Provisions 60 9 9 9 - 88
(a) Sundry Creditors - - - - - -
(b) Bills Payable 9 3 3 3 - 18
19
(c) Interest Payable 2 22 - - - 24
(d) Provisions - - - - - -
(e) Others 0.9 0.3 0.3 0.3 - 2
Payable to other institutions under
20 17 - - - - 17
Commitment
21 Unutilized Approved Facilities 108 153 153 153 153 720
Letter of Credit/Guarantee (Net of
22 1,080 1,697 1,528 1,960 4,877 20,865
Margin)
23 Repo - - - - - -
Payment to be made for facilities
24 - - - - - -
under S.No 11
25 Others 1,793 598 598 598 - 3,586
Total Liabilities (B) 74,025 35,482 24,080 19,015 59,937 212,539
Net Financial Assets (A-B) 12,554 (12,575) (9,284) (5,370) 35,845 21,171
Cumulative Net Financial Assets 28,028 (211) (9305) (14,674) 21,171 -
5.32. Reconciliation Status

The Bank reconciles inter branch transactions and other agency accounts regularly. The difference has been identified,
reviewed and reconciled and it has been or will be adjusted in due course of business.
Rs. in ‘000
Statement Statement
Reconciliation status Ledger Credit Ledger Debit
Credit Debit
Less than 1 Month 137,872.41 83,967.27 132,411.85 82,974.18
More than 1 Month To Less than 3 Months 702.90 66.78 - -
More than 3 Months To Less than 9 Months - 67.22 - -
More than 9 Months - - - -
Total 138,575.31 84,101.27 132,411.85 82,974.18
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5.33. Details of Software Application (Intangible Assets)

Rs. in ‘000
Net Opening Balance Net Additions during the year Amortization during the year Net Closing Balance
108,769,320 4,473,155 40,605,224 72,637,251
5.34. Capital Work in Progress (WIP)

Fixed assets under construction i.e. construction of corporate office of the bank incurred cost for soil testing work at Naxal
Site. As of the balance sheet date, the carrying amount of Capital WIP is NPR. 261,369. As the assets is not ready for use
are shown as capital work in progress.
5.35. Disclosure of Actuarial Valuation of Gratuity

Gratuity Liability of the bank is governed based on Bank’s Employee Service Bylaw. Liability/ Asset pertaining to gratuity
liability of bank has been assessed through actuarial valuation and has been recognized on liabilities/ asset as on year
end, which governs overall liability of the bank in relation to the Gratuity expenses. Details related to actuarial valuation is
as mentioned below:
2078-79
Particulars
Amount (NPR)
Change in Present Value Obligations
PV of Obligation at beginning of the year 560,774,634
Interest Cost 47,574,499
Current Service Cost 85,398,601
Benefit paid (19,614,157)
Past Service Cost -
Actuarial (Gain)/ Loss (15,920,532)
Liability at the end of the year 658,213,045
Change in Fair Value of Plan Assets
Fair Value of Plan Asset at Beginning of the Year 465,123,357
Contribution by Employer 283,613,665
Benefit paid (19,614,157)
Actuarial (Gain)/ Loss on Plan Assets -
Fair Value of Plan Asset at End of the Year 729,122,865
Amount Recognized in Statement of Financial Position
Present Value of Obligations at Year End 658,213,045
Fair Value of Plan Assets at Year End 729,122,865
Funded Status-(Surplus)/Deficit (70,909,820)
Unrecognized Actuarial (Gain)/Loss at Year End
Unrecognized Past Service Cost
Net (Asset)/Liability Recognized in Balance Sheet (70,909,820)
5.36. Disclosure of Actuarial Valuation of Leave Liability:

Leave Liability of the bank is governed based on Bank’s Employee Service Bylaw i.e. on the basis of the number of
days’ staffs are entitled to. Leave encashment during the year (leave balances in excess of accumulated balances). For
accumulated leave, bank’s policy states for accumulation of total 150 days leave (90 days’ annual leave and 60 days’
medical leave), payable on gross salary of the staff on the date of encashment. Thus the liability of the bank is provisioned as
per the latest staff remuneration for the leave accumulated. Liability pertaining to leave liability of bank has been assessed
through actuarial valuation and has been recognized on liabilities/ asset as on year end, which governs overall liability of
the bank in relation to the Leave expenses. Details related to actuarial valuation is as mentioned below:
2078-79
Particulars
Amount (NPR)
Change in Present value of Benefit Obligation during the Period
Defined Benefit Obligation, Beginning of Period 238,013,522
Actuarial (Gains)/Losses (40,702,244)
Actual Benefits Paid (18,200,199)
Defined Benefit Obligation, End of Period 255,948,496
Current / Non-Current Bifurcation
Current Liability 41,567,435
Non-Current Liability 214,381,061
Liability/(Asset) Recognized in the Balance Sheet 255,948,496
Amount Recognized in Statement of Profit & Loss
Expected Return on Plan Assets -
Past Service Cost -
Net Actuarial Losses/(Gains) (40,702,244)
Total Expense/(Income) included in "Employee Benefit Expense" 36,135,173
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5.37. Operating Lease recognized as per NFRS 16

As per NFRS 16, Lease expense shall be recognized at the commencement date, a lessee shall recognize a right-of-use
asset and a lease liability. At the commencement date, a lessee shall measure the lease liability at the present value of the
lease payments that are not paid at that date. The lease payments shall be discounted using the interest rate implicit in
the lease, if that rate can be readily determined. If that rate cannot be readily determined, the lessee shall use the lessee’s
incremental borrowing rate.
After the commencement date, a lessee shall measure the lease liability by:
(a) Increasing the carrying amount to reflect interest on the lease liability;
(b) Reducing the carrying amount to reflect the lease payments made; and
(c) Re-measuring the carrying amount to reflect any reassessment or lease modifications to reflect revised in-substance
fixed lease payments
For the first time adoption of lease, the effect is recognized and restated from previous years as:
Particulars 2078-79
Right of Use Asset 1,874,428,453
Lease Liability 1,853,386,150
Right of Use Asset Depreciation 242,588,302
Interest Expense 60,088,838
Total Lease Expenses 302,677,139
5.38. Disclosure of Non-Banking Assets

As at Asadh 32, 2079, Non-Banking Assets assumed by Bank are as follows:
Date of assuming of Total Non-Bank-
Name of Borrower/Party
Non-Banking Assets ing Assets (Rs.)
Rajkumar Tamang 27-Jun-18 5,890,530
Shree Ajima Grocery 28-Jun-18 51,840
Manakamana Diagnostic & Imaging Center 28-Jun-18 10,086,674
Bhagwan Basnet and Bhagwan tiles & Sanitary 15-Jul-20 6,619,708
Kamachya Store 15-Jul-20 3,618,324
Shree Madhav Nabajiwan Sanjibini 8-Dec-20 1,527,104
Meera fancy Store 29-Mar-21 25,215,000
Malika Traders and Order suppliers 5-Aug-21 2,549,001
World Export And Import Pvt Ltd 29-Aug-21 34,185,416
Saroj Bahadur Sonar 7-Dec-21 3,179,000
Rugu Bina Kumari Singh 31-Mar-22 2,389,169
Ram Chandra Thapa 2-Jun-22 1,865,129
Pa. Ra. Ra. Chaulagain Bastralaya 12-Jul-22 2,647,744
City Center Hospital Pvt. Ltd. 8-May-18 16,318,113
TOTAL 116,142,751
Non-Banking assets (NBA) as disclosed above is reported under Investment Property. Land located at Gaindakot, in the
name of bank which that does not meet the criteria of recognition of Property plant and Equipment under NAS 16 costing
NPR 51,00,750 has been classified under Investment property, whose fair value is recognized as Rs. 28,349,243.
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5.39. Fair Value Disclosure

Level 1 and Level 2 Valuation has been used for Fair Valuation of Financial Assets, the details of which are mentioned
below:
Particulars Amount (NPR)
Level 1 1,322,749,419
Ajod Insurance Limited ( AIL ) 5,584,768
Api Power Company Ltd. (API) 489
Butwal Power Co. Ltd.(BPCL) 322
Everest Insurance Co.Ltd. (Promoter)EICPO 832,187
Everest Insurance Co.Ltd.(EIC) 500
Forward Microfinance Laghubitta Bittiya Sanstha Limited ( FORWAD ) 2,385
Himalayan General Insurance Co.Ltd.(HGI) 3,640
Life Insurance Co. Nepal(LICN) 13,284,020
Lumbini General Insurance Company Limited-Promoter(LGILPO) 40,476,997
Mero Microfinance Laghubitta Bittiya Sanstha Limited ( MERO ) 1,694
Neco Insurance(NIL) 4,130,688
Nepal Life Insurance Co. Ltd.(NLIC) 747
Nerude Laghubita Bikas Bank Limited( NLBBL) 115,280
Ngadi Group Power Limited(NGPL) 297
Prabhu Insurance Limited(PRIN) 239,680
Siddhartha Insurance Ltd.(SIL) 72,856
Surya Life Insurance Company Limited(SLICL) 387
Synergy Power Development Limited(SPDL) 335
National Microfinance Bittiya Sanstha Ltd.(NMFBS) 3,870
Citizens Mutual Fund(CMF-1) 23,931,600
Citizens Mutual Fund-II(CMF-II) 7,084,000
Global IME Sammunat Scheme-1 (GIMES1) 32,717,450
Kumari Dhanabriddhi Yojana(KDBY) 183,760,890
Kumari Equity Fund(KEF) 151,050,000
Laxmi Equity Fund(LEMF) 28,638,443
Laxmi Unnati Kosh(LUK) 19,120,000
Mega Mutual Fund 1(MMF1) 3,486,357
Nabil Balanced Fund II(NBF II) 77,616,000
Nabil Equity Fund(NEF) 30,342,150
NIBL Pragati Fund(NIBL PF) 31,685,845
NIBL Samriddhi Fund- II(NIBSF2) 30,721,824
NIC ASIA Balanced Fund(NICBF) 17,914,082
NIC Asia Growth Fund(NICGF) 54,210,185
NMB 50 82,585,091
NMB Hybrid Fund L(NMBHF1) 41,058,685
Prabhu Select Fund(PSF) 14,108,345
RBB Mutual Fund -1(RMF1) 37,006,646
Sanima Equity Fund(SAEF) 80,365,163
Sanima Large Cap Fund(SLCF) 23,300,000
Siddhartha Equity Fund(SEF) 55,779,951
Siddhartha Investment Growth Scheme 2(SIGS2) 63,357,874
Sunrise Blue Chip Fund(SBCF) 17,480,000
Sunrise First Mutual Fund(SFMF) 57,963,565
NIBL Sahabhagita Fund(NIBLSF)-open ended 29,303,749
NIC Asia Select 30 Index Fund(NICSF) 26,310,000
NIC Asia Dynamic Debt Fund(NICADF) 7,100,382
Avasar Equity 30,000,000
Level 2 133,598,548
Credit Information Centre Limited 70,178,664
Nepal Clearing House Limited 22,205,957
Nepal Electronic Payment System Limited 34,358,468
National Banking Training Institute 6,855,459
Grand Total 1,456,347,967
5.40. Financial Asset at fair value gain through profit and loss
As per Clause 3(1) of Unified Directives 2078, Banks and Financial Institution should invest in entity who have issued public
share and is listed in stock exchange for the term exceeding on year or more. In no case bank should involve in short term
trading activities. The financial asset that are held for trading by the bank in previous financial year has been reclassified
to share held to maturity.
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5.41. COVID Loans

FY 2078/79
Particulars
Amount (NPR)
COVID Management Loan 118,297,784
Rescheduled Loans 3,828,096349
5.42. Premium Refund

As per direction of Nepal Rastra Bank, the bank has made provision amounting to Rs. 20 crores for refund of the premium
in current fiscal year.
5.43. Loan to Daniel Trading Pvt. Ltd

As per NRB inspection report in relation to the case of fraudulent activities in the loan extended to Daniel Trading Pvt. Ltd,
bank has taken appropriate steps to fully cover the loan amount with the collateral. The initial loan amount was Rs. 19
crores, which with extensive recovery action is now brought down to Rs. 17 crores. The loan is kept under bad category,
and the fraudulent case is under judicial proceeding.
5.44. Shareholders Details

Number of Shareholders of Kumari bank limited are as follows:
Particulars Ashad 2079
Number of Promoter Shareholder 1,271
Number of Public Shareholder 185,795
5.45. Rounding off and Comparative Figures

The previous year figure of derivative financial instrument is netted off. Figures are rounded to nearest rupees.
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Statement of distributable profit or loss

(As per NRB Regulation)
Particulars Current Year Previous Year
Opening Retained Earning 95,174,347
Net profit or (loss) as per statement of profit or loss 2,579,809,832 1,970,730,157
Appropriations:
a. General reserve (515,961,966) (394,146,031)
b. Foreign exchange fluctuation fund (6,213,423) (297,987)
c. Capital redemption reserve (333,333,333) (333,333,334)
d. Corporate social responsibility fund (25,798,098) (965,243)
e. Employees' training fund (16,319,884) -
f. Other - -
- Investment Adjustment Reserve - 1,800,000
- Other Reserve 22,370,583
Profit or (loss) befor regulatory adjustment 1,682,183,127 1,266,158,145
Regulatory adjustment :
a. Interest receivable (-)/previous accrued interest received (+) 29,951,647 75,299,916
b. Short loan loss provision in accounts (-)/reversal (+) - -
c. Short provision for possible losses on investment (-)/reversal (+) (8,145,730) 34,053,130
d. Short loan loss provision on Non Banking Assets (-)/reversal (+) 3,281,140 (21,203,490)
e. Deferred tax assets recognised (-)/ reversal (+) - 10,001,697
f. Goodwill recognised (-)/ impairment of Goodwill (+) - -
g. Bargain purchase gain recognised (-)/reversal (+) - -
h. Actuarial loss recognised (-)/reversal (+) 35,723,508 (132,480,155)
i. Other (+/-) Investment Adjustment Reserve -
j. Other (+/-) Fair Value Gain 28,618,978 (28,618,978)
k. Other (+/-) Interest Capitalization - (3,673,000)
Distributable profit or (loss) 1,866,787,017 1,199,537,265
185
Comparision Unaudited and Audited Financial Statements as of FY 2078/79
186
As per Unaudited As per Audited Variance
Statement of Financial Position Financial Financial Reason for variance
Statement Statement In amount In %
Assets
Cash and Cash Equivalents 17,611,221,553 17,609,892,391 (1,329,162) -0.01% Reclassification of Cash and Cash Equivalents
Due from Nepal Rastra Bank 5,473,992,720 5,475,310,681 1,317,962 0.02% Reclassification of Cash and Cash Equivalents
Placement with Bank and Financial Institutions 1,945,942,959 1,949,476,858 3,533,899 0.18% Reclassification of Placements
Derivative Financial Instruments - - -
Other Trading Assets - - - 0.00%
Loans and Advances to BFIs 5,846,262,217 5,846,262,217 - 0.00%
Loans and Advances to Customers 153,369,812,601 152,562,929,781 (806,882,820) -0.53% Due to Change in Loan Loss Provision and reclassification, Staff Loan Calculation as per NFRS
Investment Securities 22,806,827,861 22,815,085,583 8,257,722 0.04% Due to consideration of Net Assets Value (NAV) for fair valuation of Mutual funds.
Current Tax Assets 338,614,688 454,701,292 116,086,604 34.28% Due to Taxable Income calculation as per Income Tax Act.
Investment in Subsidiaries 420,000,000 420,000,000 - 0.00%
Investment in Associates 185,017,596 185,017,596 - 0.00%
Investment Property 144,491,994 144,491,994 - 0.00%
Property and Equipment 1,179,928,661 1,179,754,479 (174,182) -0.01% Due to adjustments of depreciation
Goodwill and Intangible Assets 161,441,291 161,441,291 - 0.00% Due to adjustments related to assets write off.
Deferred Tax Assets - - -
Other Assets 1,313,991,876 3,304,074,229 1,990,082,353 151.45% Reclassification of Other Assets and Addition of NFRS 9 i.e. Lease
Total Assets 210,797,546,017 212,108,438,392 1,310,892,375 0.62%
Liabilities
Due to Bank and Financial Institutions 6,194,529,106 6,194,529,106 - 0.00%
Due to Nepal Rastra Bank 1,345,585,620 1,345,585,620 - 0.00%
Derivative Financial Instruments 152,433,555 39,334,195 (113,099,359) 0.00% Reclassification of financial instruments
Deposits from Customers 176,767,665,556 176,767,665,556 0 0.00%
Borrowings - - - 0.00%
Current Tax Liabilities - - - 0.00%
Provisions 2,500,000 2,500,000 - 0.00% Due to reclassification of provision under accounts payable
Deferred Tax Liabilities 107,691,816 75,208,206 (32,483,609) 0.00% Due to Calculation of Deffered tax
Due to adjustment related to gratuity as per actuarial valuation report and other
Other Liabilities 2,045,338,488 3,685,702,222 1,640,363,734 80.20%
reclassification and offsetting.
Debt Securities Issued 2,995,623,137 2,995,797,489 174,352 0.00% Adjustments
Subordinated Liabilities - - - 0.00%
Total Liabilities 189,611,367,278 191,106,322,395 1,494,955,118 0.79%
Equity
Share Capital 14,711,183,326 14,711,183,326 - 0.00%
Share Premium 88,804,041 88,804,041 -
Retained Earnings 1,773,917,680 1,872,567,427 98,649,747 5.56% Impact of Changes in Statement of Profit or Loss
Reserves 4,612,273,693 4,329,561,203 (282,712,490) -6.13% Impact of Changes in Statement of Profit or Loss
Total Equity Attributable to Equity Holders 21,186,178,740 21,002,115,997 (184,062,743) -0.87% Impact of Changes in Statement of Profit or Loss
Non Controlling Interest - - - 0.00%
Total Equity 21,186,178,740 21,002,115,997 (184,062,743) -0.87% Impact of Changes in Statement of Profit or Loss
Total Liabilities and Equity 210,797,546,017 212,108,438,392 1,310,892,375 0.62% Impact of Changes in Statement of Profit or Loss
Statement of Profit or Loss Financial Financial Reason for variance
lnterest income 18,518,543,000 18,355,159,241 (163,383,758) -0.9% Due to recognition of interest income and amortisation related to prepaid staff cost.
Interest expense 12,137,818,892 12,137,993,244 174,352 0.0% Due to Impact of NFRS Interest expense of Debenture
Net interest income 6,380,724,107 6,217,165,997 (163,558,110) -2.6%
Fee and commission income 962,316,043 962,856,296 540,253 0.1% Income Adjustments
Fee and commission expense 143,513,346 144,683,738 1,170,392 0.8% Reclassification of expenses pertaining to the year
Net fee and commission income 818,802,697 818,172,558 (630,139) -0.1%
Net interest, fee and commission Income 7,199,526,804 7,035,338,555 (164,188,249) -2.3%
Net trading income 379,883,986 377,867,068 (2,016,918) -0.5% Reclassification of FVTPL to FVOCI
Other operating income 545,549,380 527,950,068 (17,599,312) -3.2% Previous year NFRS Rent Payable reverse
TotaI operating income 8,124,960,171 7,941,155,691 (183,804,480) -2.3%
lmpairment charge/ (reversal) for Loans and
562,225,062 812,100,287 249,875,225 44.4% Changes in the Loan Loss provision in line with circular issued and after audit remarks
other losses
Net operating income 7,562,735,109 7,129,055,404 (433,679,705) -5.7%
Operating expense - 0.0%
PersonneI expenses 2,341,466,329 2,332,987,934 (8,478,395) -0.4% Bonus changes and expenses reclassification
Other operating expenses 940,667,588 683,386,361 (257,281,227) -27.4% Reversal of NFRS rent
Depreciation & Amortization 292,442,985 535,205,469 242,762,484 83.0% Adjustment of Depreaciation on Right of use of Asset as per NFRS 9
Operating Profit 3,988,158,207 3,577,475,641 (410,682,566) -10.3%
Non operating income 18,262,897 18,320,846 57,949 0.3% Reclassification of non operating income
Non operating expense 31,949 1,981,949 1,950,000 6103.5% Reclassification of non operating expense
Profit before income tax 4,006,389,155 3,593,814,538 (412,574,617) -10.3%
lncome tax expense 1,171,155,100 1,014,004,706 (157,150,393) -13.4%
Current Tax 1,145,509,337 1,029,422,733 (116,086,604) -10.1% Due to Taxable Income calculation as per Income Tax Act.
Deferred Tax 25,645,763 (15,418,027) (41,063,790) -160.1% Due to Taxable Income calculation as per Income Tax Act.
Profit/(loss) for the period 2,835,234,056 2,579,809,832 (255,424,224) -9.0% Due to above factors

Statement of Comprehensive lncome Financial Financial Reason for variance
Profit/(loss) for the period 2,835,234,056 2,579,809,832 (255,424,224) -9.01%
Other Comprehensive lncome (170,722,100) (150,701,679) 20,020,421 -11.73% Due to Change in FVTPL to Oci
Total Comprehensive lncome for the period 2,664,511,956 2,429,108,153 (235,403,802) -8.83%
-
Basic earnings per share 19.27 17.54 (1.74) -9.01%
Diluted earnings per share 19.27 17.54 (1.74) -9.01%
-
Profit attributable to: -
Equity holders of the Bank 2,664,511,956 2,429,108,153 (235,403,802) -8.83%
Non-controlling interest - - 0.00%
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Interim Financial Statements of the FY 2078/79

Condensed Consolidated Statement of Financial Position
As at Fourth Quarter (16th July 2022) of the Fiscal Year 2021/22
Amount in NPR
Group Bank
Particulars Immediate Previous Immediate Previous
This Quarter Ending This Quarter Ending
Year Ending Year Ending
Assets
Cash and Cash Equivalents 17,614,124,823 7,591,048,102 17,611,221,553 7,580,241,082
Due from Nepal Rastra Bank 5,473,992,720 8,486,453,288 5,473,992,720 8,486,453,288
Placement with Bank and Financial Institutions 1,945,942,959 4,840,711,695 1,945,942,959 4,840,711,695
Derivative Financial Instruments - - - -
Other Trading Assets - - - -
Loans and Advances to BFIs 5,846,262,217 5,123,681,172 5,846,262,217 5,123,681,172
Loans and Advances to Customers 153,369,812,601 137,897,925,002 153,369,812,601 137,897,925,002
Investment Securities 23,188,421,712 22,875,627,748 22,806,827,861 22,697,941,963
Current Tax Assets 345,164,953 257,142,529 338,614,688 257,142,529
Investment in Subsidiaries - - 420,000,000 220,000,000
Investment in Associates 514,550,183 369,233,513 185,017,596 155,017,596
Investment Property 144,491,994 128,112,878 144,491,994 128,112,878
Property and Equipment 1,194,671,653 1,269,227,483 1,179,928,661 1,258,559,299
Goodwill and Intangible Assets 163,212,113 198,985,021 161,441,291 197,573,361
Deferred Tax Assets - - - -
Other Assets 1,330,826,564 955,962,980 1,313,991,876 939,456,215
Total Assets 211,131,474,491 189,994,111,410 210,797,546,017 189,782,816,080
Liabilities
Due to Bank and Financial Institutions 6,042,498,463 14,623,378,395 6,194,529,106 14,731,924,737
Due to Nepal Rastra Bank 1,345,585,620 5,088,973,668 1,345,585,620 5,088,973,668
Derivative Financial Instruments 152,433,555 3,267,738 152,433,555 3,267,738
Deposits from Customers 176,767,665,556 145,838,231,009 176,767,665,556 145,838,231,009
Borrowings - - - -
Current Tax Liabilities - - - -
Provisions 2,500,000 2,334,810 2,500,000 2,334,810
Deferred Tax Liabilities 108,346,980 146,241,319 107,691,816 145,625,275
Other Liabilities 2,174,199,641 2,166,943,538 2,045,338,488 2,084,796,958
Debt Securities Issued 2,995,623,137 2,995,439,829 2,995,623,137 2,995,439,826
Subordinated Liabilities - - - -
Total Liabilities 189,588,852,952 170,864,810,307 189,611,367,278 170,890,594,021
Equity
Share Capital 14,711,183,326 13,878,474,836 14,711,183,326 13,878,474,836
Share Premium 88,804,041 88,804,041 88,804,041 88,804,041
Retained Earnings 2,099,716,780 1,480,948,035 1,748,917,680 1,247,097,056
Reserves 4,642,917,392 3,681,074,192 4,637,273,693 3,677,846,125
Total Equity Attributable to Equity Holders 21,542,621,539 19,129,301,103 21,186,178,740 18,892,222,058
Non-Controlling Interest - - - -
Total Equity 21,542,621,539 19,129,301,103 21,186,178,740 18,892,222,058
Total Liabilities and Equity 211,131,474,491 189,994,111,410 210,797,546,017 189,782,816,080
188
Condensed Consolidated Statement of Profit or Loss
For the Fourth Quarter Ended (16 July 2022) of the Fiscal Year 2021/22
Group Bank
Particulars Upto this Quarter Upto this Quarter Upto this Quarter Upto this Quarter
This Quarter This Quarter This Quarter This Quarter
(YTD) (YTD) (YTD) (YTD)
Interest Income 5,700,131,836 18,552,963,364 3,283,245,610 12,793,002,002 5,688,183,245 18,518,543,000 3,283,205,756 12,776,387,133
Interest Expense 3,732,388,715 12,137,804,441 2,032,909,904 7,698,859,070 3,732,388,715 12,137,818,892 2,032,909,904 7,698,873,522
Net Interest Income 1,967,743,121 6,415,158,923 1,250,335,706 5,094,142,931 1,955,794,530 6,380,724,107 1,250,295,852 5,077,513,611
Fee And Commission Income 299,622,006 962,316,043 210,873,724 822,620,181 299,622,006 962,316,043 210,873,724 822,620,181
Fee And Commission Expense 87,725,256 143,513,346 12,000,733 38,901,965 87,725,256 143,513,346 12,000,733 38,901,965
Net Fee and Commission Income 211,896,750 818,802,697 198,872,991 783,718,216 211,896,750 818,802,697 198,872,991 783,718,216
Net Interest, Fee And Commission Income 2,179,639,871 7,233,961,620 1,449,208,697 5,877,861,148 2,167,691,280 7,199,526,804 1,449,168,843 5,861,231,827
Net Trading Income 78,981,062 379,883,986 125,646,274 420,833,394 78,981,062 379,883,986 125,646,274 420,833,394
Other Operating Income 251,037,436 694,565,301 89,682,262 514,374,560 211,590,471 545,549,380 71,476,295 390,328,416
Total Operating Income 2,509,658,369 8,308,410,907 1,664,537,233 6,813,069,102 2,458,262,813 8,124,960,171 1,646,291,412 6,672,393,638
Impairment Charge/ (Reversal) For Loans And Other
302,636,044 562,225,062 480,421,066 475,280,357 302,636,044 562,225,062 480,421,066 475,280,357
Losses
Net Operating Income 2,207,022,325 7,746,185,845 1,184,116,167 6,337,788,745 2,155,626,769 7,562,735,109 1,165,870,346 6,197,113,281
Operating Expense
Personnel Expenses 389,991,056 2,360,218,480 406,348,608 2,037,803,896 385,212,992 2,341,466,329 405,627,154 2,023,918,383
Other Operating Expenses 283,938,000 956,278,989 276,827,468 897,319,029 279,643,812 940,667,588 276,670,102 884,098,269
Depreciation & Amortization 80,024,286 294,549,297 74,597,245 284,533,640 79,423,121 292,442,985 74,557,381 283,304,555
Operating Profit 1,453,068,983 4,135,139,079 426,342,846 3,118,132,181 1,411,346,844 3,988,158,207 409,015,709 3,005,792,073
Non-Operating Income 5,646,326 18,262,897 12,150,455 33,895,859 5,646,326 18,262,897 12,150,455 33,895,859
Non-Operating Expense 27,399 31,949 1,459 290,729 27,399 31,949 1,459 290,729
Profit Before Income Tax 1,458,687,910 4,153,370,027 438,491,842 3,151,737,310 1,416,965,771 4,006,389,155 421,164,704 3,039,397,203
Income Tax Expense 387,483,809 1,180,772,218 258,425,277 1,077,337,646 384,503,283 1,171,155,100 258,918,078 1,068,667,046
Current Tax 361,798,926 1,155,087,335 118,564,482 937,476,851 358,857,520 1,145,509,337 119,563,039 929,312,008
Deferred Tax 25,684,883 25,684,883 139,860,795 139,860,795 25,645,763 25,645,763 139,355,038 139,355,038
Profit/(Loss) For The Period 1,071,204,102 2,972,597,809 180,066,565 2,074,399,664 1,032,462,487 2,835,234,056 162,246,627 1,970,730,157
Condensed Consolidated Statement Of Comprehensive Income
Profit/(Loss) For The Period 1,071,204,102 2,972,597,809 180,066,565 2,074,399,664 1,032,462,487 2,835,234,056 162,246,627 1,970,730,157
Other Comprehensive Income (96,245,691) (170,722,100) (95,930,268) 37,967,845 (96,245,691) (170,722,100) (95,930,268) 37,967,845
Total Comprehensive Income For The Period 974,958,410 2,801,875,710 84,136,297 2,112,367,509 936,216,796 2,664,511,956 66,316,359 2,008,698,001
Basic Earnings Per Share 20.21 14.95 19.27 14.20
Diluted Earnings Per Share 20.21 14.95 19.27 14.20
Profit Attributable To:
Equity Holders Of The Bank 974,958,410 2,801,875,710 84,136,297 2,112,367,509 936,216,796 2,664,511,956 66,316,359 2,008,698,001
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Non-Controlling Interest - - - - - - - -
Statement of Distributable Profit or Loss

For the Quarter end Ashad 2079
Amount in NPR
Opening Retained Earning 43,833,287
Net Profit for the period end Ashad 2079 quarter 2,835,234,056
1. Appropriations
1.1 Profit required to be appropriated to statutory reserve
a. General Reserve (567,046,811)
b. Capital Redemption Reserve (333,333,333)
c. Exchange Fluctuation Fund (5,648,231)
d. Corporate Social Responsibility Fund (18,122,453)
e. Employees Training Fund (20,022,783)
f. Other
1.2 Profit required to be transfer to Regulatory Reserve (160,976,057)
a. Transfer to Regulatory Reserve (201,606,948)
b. Transfer from Regulatory Reserve 40,630,891
Total Distributable Profit / (Loss) 1,773,917,676
Ratios as per NRB

Group Bank
Previous Year Previous Year
Current Year Current Year
Corresponding Corresponding
Particulars
Upto this Upto this Upto this Upto this
This This This This
Quarter Quarter Quarter Quarter
Quarter Quarter Quarter Quarter
(YTD) (YTD) (YTD) (YTD)
Capital fund to RWA 12.98% 13.71% 12.98% 13.71%
Non-performing loan (NPL) to total loan 0.96% 0.96% 0.96% 0.96%
Total loan loss provision to Total NPL 241.09% 226.57% 241.09% 226.57%
Cost of Funds 7.76% 5.55% 7.76% 5.55%
Credit to Deposit Ratio 85.12% 81.01% 85.12% 81.01%
Base Rate (FTM) (As per NRB) 10.57% 7.90% 10.57% 7.90%
Interest Rate Spread 4.36% 3.13% 4.36% 3.13%
Notes to the Interim Financial Statements

1. Above figures are prepared in accordance with Nepal Financial Reporting Standards, including the carve-outs as issued by the
Institute of Chartered Accountants of Nepal; subject to change upon otherwise directions of Statutory Auditor and/or Regulatory
Authorities.
2. Group represents the Bank and its wholly owned subsidiary Kumari Capital Ltd and KBL Securities Ltd; National Microfinance
Laghubitta Bittiya Sanstha Limited, First Microfinance Laghubitta Bittiya Sanstha Ltd, Mero Microfinance Laghubitta Bittiya
Sanstha Ltd, General Insurance Co. Ltd, Aviyan Laghubitta Bittiya Sanstha Ltd and Solar Farm Pvt. Ltd as Associates.
3. The NFRS reporting has been complied by adopting appropriate accounting judgment, those having potential material impact on
the financial statements and had made appropriate judgment in making accounting estimates.
4. Loan and Advances include interest receivables and are presented net of impairment charges where impairment has been
computed as higher of amount derived as per the norms prescribed by Nepal Rastra Bank and as per para 63 of NAS 39
whichever is higher according to the carve out issued by Institute of Chartered Accountants of Nepal (ICAN).
5. Loan Administration Fees that are integral part of effective interest rate (EIR) is treated immaterial and not considered while
calculating the Effective Interest Rate
6. Personnel Expenses include employment bonus provision calculated at 10 percent of profit and amortization of prepayment
amount of subsidized loans provided to the employees of the bank.
7. Interest income on loans and advances to customers are shown on accrual basis.
8. Figures have been regrouped and rearranged wherever necessary.
9. The detail Interim report has been published in the Bank’s website www.kumaribank.com
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Publication of Information as Required by Securities Registration and Issuance Regulation

2073 (Related to Sub Rule (1) of Rule 26)
1. Major Financial Indicators (annualized fig.)
1. Earnings per Share –19.27 2. Market Price per Share –Rs.191
3. Price Earnings Ratio (P/E ratio) –9.92 4. Net Worth per Share – Rs.144.01
5. Liquidity Ratio -24.81
2. Management Analysis:
 The bank has been continuously pioneering in introducing new products and re-innovating its existing products and services
as per the market needs.
 The bank has been focusing on cost management, diversified investments, technological up gradation, optimum utilization
of resources and automation of work.
 The deposits from customers have increased by 21.21% and loans & advances to BFIs and Customers in total have increased
by 11.48% in this quarter with reference to the last year.
 The bank has formulated strategic plan to widen the branch network, along with broadening the electronic banking and
digitization of the bank transactions. Currently, the bank has branch network of 197 branches all over the country with 24
extension counters; also the bank has currently setup 48 Branchless Banking units (BLBs).
3. Details Regarding Legal Actions
a. Case filed by or to Kumari Bank Ltd. during the quarter –
 Apart from the case related to credit recovery in the normal course of business operation, no other cases were file by or
to Kumari Bank Ltd. during the quarter.
b. Case filed by or against the promoter or director of Kumari Bank Ltd. regarding disobedience of prevailing law or commission
of criminal offence –
 No such information has been received
c. Case filed against any Promoter or Director of Kumari Bank Ltd. regarding commission of financial crime –
 No such information has been received
4. Analysis of Share Transaction of Organized Institutions
a. Management’s view on share transactions of Kumari Bank Ltd. at Securities Market:
Since the price of the stock is determined by open market operation, the management’s view is neutral in this regard.
b. Maximum, minimum and closing price of shares including total transactions and transacted days during the quarter
Max. Price - Rs. 228 Min. Price - Rs. 187.20 Closing Price - Rs. 191 Total no. of Transactions – 16,601 Transacted Day - 64 days
5. Problems and Challenges
Internal
a. Attaining reasonable level of cost of operation.
b. Retention of qualified and trained human resources.
c. Improving operational efficiencies to minimize inherent risks.
External
a. Improving overhead efficiency.
b. Intense competition from banks and financial institutions with increasing capital and thereby business capacity.
c. Challenge to overcome the pressure of recovery in current highly liquid crunch situation.
d. Intense pressure in liquidity in the overall economy leading hardship in maintaining the liquid position.
Strategy to Overcome Problems & Challenges
a. Continually renovating and diversifying the product & services to meet the changing need of the customers.
b. Utilizing the assets in as much as high yield and low risk investment sector.
c. Proper Risk Management on operational, market, business and other risk segments.
d. Better cost management practices with high focus on operational efficiency through innovation and process reengineering.
e. Understanding the expectations and motivating factors of employees in order to retain them; providing intense training for
enhancement of skills and knowledge.
f. Re-pricing of its interest sensitive assets and liabilities as per liquidity position of the market.
g. Digitalization of banking systems, stimulating and educating employees working on online platforms to make every banking
service available online.
6. Corporate Governance
In order to increase the standard of corporate governance, following actions has been initiated by the bank:
a. The Board of Directors of the bank is the top most body responsible and accountable to ensure that the bank has embraced
superior standard of corporate governance. Further, various sub-committees of the Board including the Audit Committee,
continuously review the activities of various areas of the Bank and provide direction and support where necessary.
b. Clear demarcation has been made in the Bank between various conflicting areas of the Bank like Credit, Risk and Operations,
with each unit being headed by senior personnel directly accountable to the CEO.
c. Management Committee chaired by the CEO and comprising of heads of key units of the bank, meets on a regular basis to assess
the performance of the Bank and take key decisions. Similarly, committees like Asset Liability Committee, Risk Management
Committee, and Recovery Committee etc. meet at regular intervals to critically review performance and initiate proactive actions.
7. Particulars relating to Annexure – 16 of Securities Registration and Issuance Regulation, 2073
• Appointment of CEO Mr. Ram Chandra Khanal effective from Baisakh 14, 2079.
8. Declaration by CEO
I hereby declare that the data and information provided in this report is true, complete, and factual to the extent of my knowledge.
No attempt has been made to misguide the investors. I personally take the responsibility and accountability regarding the
truthfulness of the information provided in the report as of quarter end.
191
Major Indicators
Particulars Indicators FY 2074/2075 FY 2075/76 FY 2076/77 FY 2077/78 FY 2078/79
1. Net Profit/Gross Income % 38.90% 12.40% 10.08% 13.64% 12.74%
2. Earnings Per Share
Basic EPS Rs. 14.54 14.81 12.08 14.20 17.54
Diluted EPS Rs. 14.54 14.81 12.08 14.20 17.54
3. Market Value per Share Rs. 199.00 220.00 186.00 371.00 191.00
4. Price Earning Ratio Times 13.68 14.85 15.39 26.13 10.89
5. Dividend (including bonus) on share capital Rs 8.50% 10.00% 10.85% 6.00% 0.00
6. Cash Dividend on share Capital Rs. 0.00% 0.53% 3.15% 2.67% 0.00%
7. Interest Income/Loans & Advances % 10.91% 11.96% 9.23% 8.93% 11.59%
8. Employee Expenses/Total Operating Exps % 51.37% 47.26% 53.23% 52.84% 54.45%
9. Interest Exps on Total Deposit and Borrowings % 6.85% 7.30% 5.64% 4.79% 6.63%
10. Exchange Fluctuation Gain/Total Income % 6.21% 7.81% 8.04% 6.68% 5.33%
11. Staff Bonus/ Total Employee Expenses % 23.68% 25.25% 15.59% 20.03% 20.65%
12. Net Profit/Loans & Advances % 1.67% 1.62% 1.01% 1.38% 1.63%
13. Net Profit/ Total Assets % 1.26% 1.17% 0.76% 1.04% 1.22%
14. Total Credit/Deposit % 89.55% 90.11% 92.19% 90.99% 86.58%
15. Total Operating Expenses/Total Assets % 0.56% 1.57% 1.49% 1.68% 1.67%
16. Adequacy of Capital Fund on Risk Weightage
Assets
a. Core Capital % 12.48% 10.89% 12.01% 10.64% 9.83%
b. Supplementary Capital % 0.88% 0.86% 3.34% 3.07% 2.80%
c. Total Capital Fund % 13.36% 11.75% 15.35% 13.71% 12.63%
17. Liquidity % 6.85% 4.59% 3.78% 3.72% 3.78%
18. Non Performing Loans/Total Loans % 1.05% 1.01% 1.39% 0.96% 1.11%
19. Base Rate % 11.60% 10.82% 10.08% 7.90% 10.08%
20. Weighted Average Interest Rate Spread * Rs. 3.12% 3.54% 4.07% 3.13% 4.07%
21. Book Net worth (in lakhs) Rs. 105,398 117,191 172,682 188,922 210,021
22. Total Shares Number 80,767,278 86,855,731 125,200,495 138,784,748 147,111,833
23. Total Employees Number 796 1043 1781 1881 1845
Others
Per employee Buisness in lakhs Rs. 783.61 729.18 642.97 760.35 858.59
Employee Expense/ Total Income % 24.10% 7.88% 10.60% 11.67% 9.55%
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KBL
SUBSIDIARIES
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SUBSIDIARY COMPANY
KUMARI CAPITAL LIMITED
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Statement of Financial Position

As on Ashadh 32, 2079 (Corresponding to July 16, 2022)
Particular Note Ashadh 32, 2079 Ashadh 31, 2078
Assets
Non-Current Assets
Property, Plant and Equipment 4.1 14,743,145 10,668,184
Investment Properties - -
Intangible Assets 4.2 1,770,822 1,411,660
Deferred Tax Assets 4.3 3,736,561 -
Financial Assets Measured at Amortized Cost 4.4 217,883,000 77,521,000
Financial Assets held at fair value through Profit or Loss 4.5 48,710,851 20,164,785
Trade and Other Receivables - -
Employee Benefits - -
Total Non-Current Assets 286,844,378 109,765,629
Current Assets - -
Financial Assets Measured at Amortized Cost 4.4 115,000,000 80,000,000
Inventories 4.6 88,114 89,748
Financial Assets held at fair value through Profit or Loss - -
Trade and Other Receivables 4.7 16,684,294 16,008,018
Current Tax Assets 4.8 2,426,038 408,994
Cash and Cash Equivalents 4.9 259,990,955 99,353,362
Total Current Assets 394,189,401 195,860,122
Total Assets 681,033,780 305,625,751
Equity & Liabilities
Non-Current Liabilities
Deferred Tax Liabilities 4.3 - 686,793
Employee Benefits Obligations 4.10 808,126 377,683
Provisions - -
Trade and Other Payables - -
Total Non-current Liabilities 808,126 1,064,476
Current Liabilities
Trade and Other Payables 4.11 253,123,696 81,426,217
Current Tax Liabilities - -
Employee Benefits Obligations 4.10 57,620 26,510
Provisions 4.12 0 6,811
Deferred Revenue 4.13 325,167 73,526
Total Current Liabilities 253,506,483 81,533,064
Equity
Share Capital 4.14 400,000,000 200,000,000
Reserve & Surplus 4.15 26,719,170 23,028,210
Total equity 426,719,170 223,028,210
Total Equity and Liabilities 681,033,780 305,625,751
Aswin Babu Shrestha Bikas Khanal Chandan Karki Puspa Sharma

Chief Executive Officer Chairman Director Chief Operating Officer
Rohit Singh Anil Joshi Kaji Thebe Hari Prasad Wagle

Director Independent Director Head - Finance, Admin & HR Independent Director
As per our attached report of even date
On Behalf of G. Prakash & Associates

Chartered Accountants
Date: August 01, 2022 CA Prakash Gautam
Place: Tangal, Kathmandu Proprietor
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Statement of Profit or Loss and Other Comprehensive Income

For the Year Ended Ashadh 32, 2079 (Corresponding to July 16, 2022)
Particular Note FY 2078-79 FY 2077-78
Income
Income from Merchant Banking Activities 4.16 28,301,891 24,208,269
Income from Portfolio Management Services 4.17 1,261,892 55,581
Income from Mutual Fund Operations 4.18 19,850,897 5,808,647
Interest Income 4.19 34,226,695 16,629,320
Net gain/ (loss) on Financial Assets held at fair value 4.20 (293,913) 8,901,528
Net Unrealized gain/(Loss) on Financial Assets held at fair value 4.21 (15,217,639) 1,529,921
Other Income 4.22 382,375 147,041
Total Operating Income 68,512,198 57,280,307
Merchant Banking Related Expenses 4.23 6,562,724 5,341,943
Mutual Fund Related Expenses 4.24 881,516 1,113,259
Portfolio Management Service Related Expenses 4.25 57,437 7,792
Other Operating Expenses 4.26 438,162 738,627
Operating Profit 60,572,359 50,078,686
Non-Operating Income/(Expenses) 4.27 (377,772) -
Other Operating Expenses
Staff Cost 4.28 19,206,370 13,798,194
General Administrative Expenses 4.29 7,858,268 6,190,888
Depreciation of Property and Equipment 4.1 1,609,974 940,766
Amortization of Intangible Assets 4.2 496,184 288,319
Profit Before Tax 31,023,791 28,860,518
Income Tax Expenses 4.30 9,332,829 8,705,270
- Current Tax Expenses 13,756,183 8,164,843
- Deferred Tax Expenses (4,423,354) 540,426
Profit for the Year 21,690,961 20,155,247
Other Comprehensive Income / (Expenses)
Net gains on Financial Assets measured at Fair Value through OCI - -
Actuarial Gain / (Loss) on defined benefit plans - -
Total Other Comprehensive Income / (Expenses) - -
Less: Tax Expenses related to Components of OCI - -
Total Comprehensive Income for the Year 21,690,961 20,155,247
Profit attributable to:
Equity holders 21,690,961 20,155,247
Non-controlling Interest - -
Profit for the year 21,690,961 20,155,247
Earning per share 6.04 10.08
Diluted Earning per share 6.04 10.08



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Statement of Cash Flow

(A). Cash Flow from Operating Activities
1. Cash Received 77,405,665 38,389,401
1.1 Income from Merchant Banking Activities 28,301,891 24,208,269
1.2 Income from Mutual Fund Operation 19,850,897 5,808,647
1.3 Income from PMS Services 1,261,892 55,581
1.4 Interest Income 27,608,610 8,169,863
1.4 Net gain/ (loss) on Financial Assets held at fair value - -
2. Cash Payment 35,004,477 27,190,703
2.1 Merchant Banking Related Expenses 6,562,724 5,341,943
2.2 Mutual Fund Related Expenses 881,516 1,113,259
2.3 PMS Related Expenses 57,437 7,792
2.4 Other Operating Expenses 438,162 738,627
2.5 Staff Cost 19,206,370 13,798,194
2.6 General Administrative Expenses 7,858,268 6,190,888
2.7 Other Expenses - -
Cash Flow before Changes in Working Capital 42,401,188 11,198,698
Increase /( Decrease) of Current Assets (35,674,642) 14,102,400
1. (Increase)/Decrease in Short Term Investment (35,000,000) 30,000,000
2. (Increase)/Decrease in Other Current Assets (674,642) (15,897,600)
Increase /( Decrease) of Current Liabilities 172,403,862 77,224,139
1. Increase/(Decrease) in Short Term Borrowings - -
2. Increase/(Decrease) in Other Current Liabilities 171,949,120 78,579,591
3. Increase/(Decrease) in Provisions 454,742 (1,355,452)
Payment of Income Tax (15,773,228) (7,740,861)
(B) Cash Flow from Investment Activities (184,719,277) (4,497,080)
1. Purchase of Long-term Investment (229,353,328) (75,243,163)
2. Proceeds from Disposal of Long-term Investment 42,733,664 68,797,096
3. Purchase of Property, Equipment, and Intangible Assets (8,955,223) (6,883,702)
4. Proceeds from Disposal of Property, Equipment, and Intangible Assets 2,037,479 -
5. Interest income from Long Term Investment 6,618,085 8,459,458
6. Dividend Income 2,200,046 373,231
7. Others - -
(C) Cash Flow from Financing Activities 182,000,000 (8,000,000)
1. Increase/(Decrease) in Long term Borrowings - -
2. Increase/(Decrease) in Share Capital 200,000,000 -
1. Payment of Dividend (18,000,000) (8,000,000)
4. Increase/(Decrease) in Other Liabilities - -
(D) Cash Flow arising from Exchange Fluctuation 310 -
(E) This Year's Cash Flow from All Activities 160,637,593 82,287,295
(F) Opening Balance of Cash and Bank Balances 99,353,362 17,066,068
(G) Closing Balance of Cash and Bank Balances 259,990,955 99,353,362



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Accumulated Deferred Tax Other Reserve &

Particulars Share Capital General Reserve CSR Reserve Total Amount
Profit/Loss Reserve Fund
Balance as on Ashadh 31, 2077 200,000,000 9,742,571 1,016,102 101,610 210,860,283
Adjustments 12,680
Adjusted Balance as on Ashadh 31, 2077 200,000,000 9,755,251 1,016,102 101,610 - - 210,872,963
Net Profit for the Period 20,155,247 20,155,247
Dividend Paid during the year (8,000,000) (8,000,000)
Transferred to Retained Earnings 100,000 (100,000)
General Reserve Fund (2,009,413) 2,009,413 -
Corporate Social Responsibility (CSR) Reserve (200,941) 200,941 -
Other Comprehensive Income/(expenses) (net of Tax) -
Deferred Tax Fund -
Balance as on Ashadh 31, 2078 200,000,000 19,800,144 3,025,515 202,551 - - 223,028,210
Adjustments
Adjusted Balance as on Ashadh 31, 2078 200,000,000 19,800,144 3,025,515 202,551 - - 223,028,210
Capital Issued 200,000,000 200,000,000
Net Profit for the Period 21,690,961 21,690,961
Dividend Paid during the year (18,000,000) (18,000,000)
Other Comprehensive Income/(expenses) (net of Tax) -
Transferred to Retained Earnings -
General Reserve Fund (2,169,096) 2,169,096 -
Corporate Social Responsibility (CSR) Fund (216,910) 216,910 -



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1. General Information
Kumari Capital Limited (KCL) is the subsidiary of Kumari Bank Limited (KBL) registered under Company Act, 2063, which holds
100 percent of the paid-up capital. The company has been working as Depository Participant (DP) under the license obtained
by KBL which has delegated the authority to provide DP Service through an agreement signed on 2076/04/27 between KBL and
KCL. The bank has received DP Registration Certificate from SEBON to operate as Depository Participants dated Ashwin 07,
2072 and membership license from the CDS and Clearing Ltd, dated Magh 15, 2072 as per the CDS Byelaws, 2058. MOU has
been signed with KBL to use all of its branches as representative to provide DP services nationwide.
The company has received Merchant Banker License from SEBON on Poush 10, 2075. Under the license, the company is
permitted to provide Issue Management and Underwriting Services, Registrar to Shares, Portfolio Management Services, and
Corporate Advisory Services. Similarly, the company has received Fund Manager’s License and Depository License from SEBON
on Aswin 09, 2077. The company has also received permission from SEBON to work as Qualified Institutional Investor on Poush
23, 2077.
The company was registered at Company Registrar Office on Ashwin 06, 2074 with registration number of 176694/074/075 and
registered office at Ward no: 01, Naxal, Kathmandu. It is also registered with Inland Revenue Office on Mangsir 05, 2074 with
PAN registration number of 606868806.
The management of the company acknowledges the responsibility of preparation of financial statements of the company. The
financial statements were authorized for issue by the Board of Directors on Shrawan 25, 2079 and have been recommended for
approval by shareholders in the Annual General Meeting.
Kumari Capital Limited is a limited liability company, incorporated on Ashwin 06, 2074 and domiciled in Nepal. It is a licensed
Merchant Entity as wholly owned subsidiary of Kumari Bank Limited, licensed under Securities Businessperson (Merchant
Banker) Rules, 2064 from the Securities Board of Nepal (SEBON). The registered address of Kumari Capital is Kathmandu, Nepal.
Financial Statements
The Financial Statement of the company for the year ended July 16, 2022 comprises Statement of Financial Position, Statement of
Profit or Loss, Statement of Other Comprehensive Income, Statement of Changes in Equity, Statement of Cash Flows, Summary
of Significant Accounting Policies of the Company and Other Explanatory Notes.
Principal Activities and Operations

Kumari Capital Limited obtained license for commercial operation as a Securities Businessperson (Merchant Banker) from SEBON
on Poush 10, 2075. The major activities of the company are issue management, portfolio management services, underwriting
of securities, securities trustee, registrar to shares, depository participant services in a central depository services, corporate
advisory services, mutual fund management service etc.
2. Basis of Preparation of Financial Statements

2.1 Statement of Compliance
The Financial Statement of the entity which comprises components mentioned above have been prepared in accordance
with Nepal Financial Reporting Standards comprising of Nepal Financial Reporting Standards and Nepal Accounting
Standards (hereafter referred as NFRS), laid down by the Institute of Chartered Accountants of Nepal and in compliance
with the requirements of the Securities Act, 2063 and its regulation and in conformity with the Company Act 2063 and other
relevant laws.
2.2 Reporting Period and Approval of Financial Statements
a. Reporting Dates
The company follows the Nepalese financial year based on the Nepalese calendar starting from first day of Shrawan (Mid
July) of each year to the last day of Ashadh (Mid July) of the next year. The corresponding dates for the English calendar
are as follows:
Relevant financial statements date / period Nepalese calendar English calendar
Reporting date Ashadh 32, 2079 July 16, 2022
Comparative reporting date Ashadh 31, 2078 July 15, 2021
Reporting period Shrawan 01, 2078 to Ashadh 32, 2079 July 16, 2021 to July 16, 2022
Comparative reporting period Shrawan 01, 2077 to Ashadh 31, 2078 July 16, 2020 to July 15, 2021
b. Responsibility for Financial Statements

The preparation and presentation of Financial Statements including consolidated financial statements is the responsibility
of the management as per the governing provisions.
c. Approval of Financial Statements by Directors

The accompanied Financial Statements have been authorized to issue by the Board of Directors vide its resolution dated
Shrawan 25, 2079 and recommended for its approval by the Annual General Meeting of the shareholders.
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2.3 Functional & Presentation Currency

The Financial Statements of Entity are presented in Nepalese Rupees (Rs), which is the currency of the primary economic
environment in which the Entity operates. Financial information is presented in Nepalese Rupees. There was no change in
Entity’s presentation and functional currency during the year under review.
2.4 Significant Accounting Judgments, Estimates and Assumptions

The preparation of Financial Statements in conformity with Nepal Accounting Standards requires the management to make
judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of
assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized
in the period in which the estimate is revised and in any future periods affected. Disclosures of the accounting estimates
have been included in the relevant section of the notes wherever the estimates have been applied along with the nature
and effect of changes of accounting estimates, if any.
The most significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have most
significant effect in the Financial Statements are as follows:
2.4.1 Going Concern

The Directors have made an assessment of Entity’s ability to continue as a going concern and satisfied that it has
the resources to continue in business for the foreseeable future. Furthermore, Board is not aware of any material
uncertainties that may cast significant doubt upon Entity’s ability to continue as a going concern and they do not
intend either to liquidate or to cease operations of it. Therefore, the Financial Statements continue to be prepared on
the going concern basis.
2.4.2 Useful lives of Property Plant & Equipment

Useful life is the period over which an asset is expected to be available for use by an Entity. Various factors may limit
the useful life of a vessel. These factors may be due to physical wear and tear, technological advancement, economic
factors and legal factors. The entity asses the remaining useful lives of its Property Plant & Equipment at each
reporting date. An assessment is made to determine whether there is any indication of impairment in each asset.
2.5 Presentation of Financial Statements

The assets and liabilities of entity presented in the Statement of Financial Position are grouped in an order of liquidity. An
analysis on recovery or settlement within 12 months after the reporting date (current) and more than 12 months after the
reporting date (non-current) is presented in the Note.
The statement of profit or loss has been prepared using classification ‘by nature’ method.
The cash flows from operation within the statement of cash flows have been derived using the indirect method.
The accounting policies have been consistently applied by entity with those of the previous financial year in accordance
with NAS 01 Presentation of Financial Statements, except those which had to be changed as a result of application of the
new NFRS. Further, comparative information is reclassified wherever necessary to comply with the current presentation.
2.6 Materiality & Aggregation

In compliance with Nepal Accounting Standard - NAS 01 Presentation of Financial Statements, each material class of
similar items is presented separately in the Financial Statements. Items of dissimilar nature or functions too are presented
separately unless they are immaterial.
Financial Assets and Financial Liabilities are offset and the net amount reported in the Statement of Financial Position only
when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis,
or to realize the assets and settle the liability simultaneously. Income and expenses are not offset in the Statement of Profit
or Loss unless required or permitted by an Accounting Standard.
2.7 Discounting
When the realization of assets and settlement of obligations is for more than one year, the company considers discounting
of such assets and liabilities where the impact is material.
2.8 Comparative Information

The comparative information is re-classified wherever necessary to conform with the current year’s classification in order to
provide a better presentation. The details of such re-classifications have been provided in Notes to the financial statements.
3. Summary of Significant Accounting Policies

3.1 Basis of Measurement
These are prepared under accrual basis of accounting in accordance with the historical cost convention, except for certain
items as follows:
a. Investment in equity instruments and units of mutual fund are measured at fair value.
b. Liability for defined benefit obligations is recognised at present value of the defined benefit obligation as determined
by actuary.
The principle accounting policies are adopted in preparation of financial statements, which have been consistently applied
unless otherwise stated.
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3.2 Revenue Recognition

Revenue is recognized on accrual basis and is measured at the fair value of the consideration received or receivable net
of sales returns, trade discounts and revenue related taxes. The management of the Company determines the amount of
revenue based on the applicable service agreement. Fees and commission arising from transactions are recognized on
basis of completion of underlying transaction. Accounting policies, estimates and judgments used by management for
each item of revenue is detailed below:
3.2.1 Issue Management Fees

The issue management fee is recognized when the related service as specified in the agreement is performed. The
management also considers the degree of recoverability and probability that the economic benefit will flow into the
company.
3.2.2 ASBA Fee and Other Collection Commission

The ASBA fee and other collection commission is recognized as revenue after the allotment is completed.
3.2.3 Underwriting Fee

The issue management fee is recognized when the related service as specified in the agreement is performed. The
management also considers the degree of recoverability, non-refundability and probability that the economic benefit
will flow into the company.
3.2.4 RTS/RTS Fee

The Registrar to Shares (RTS) fee is recognized as income on an accrual basis over the period covered by the related
agreement.
3.2.5 Depository Participant (DP) Fee

The income related to DP service is recognized on cash basis. This is because of the high uncertainty on recoverability
of DP income. The management estimates that the income when recognized on cash basis shall provide reliable and
more relevant information about the effects of transactions, and conditions of financial performance of the company.
3.2.6 Annual Fee and Performance Fee from Portfolio Management Service
The annual fee and performance fee is recognized on cash basis. This is because of impracticability to reliably
measure the amount of fees to be received. The fee is calculated based on the value of portfolio of the client as on
the date of one-year completion after the execution of PMS agreement with the client. As the value of the portfolio
for future date cannot be measured reliably, the fee cannot be measured reliably as on the financial statement date.
3.2.7 Dividend Income

Dividend income is recognized in profit or loss on an accrual basis when the Entity’s right to receive the dividend is
established.
Dividends are presented as net realized gain/ (loss) on Financial Assets held at fair value based on the underlying
classification of the equity investment along with the trading gain/(loss) from financial assets measured at fair value
through profit & loss account.
3.2.8 Interest Income

Interest income are recognized in profit or loss using the effective interest rate. The “effective interest rate” is the rate
that exactly discounts the estimated future cash receipts through the expected life of the financial asset or financial
liability (or, where appropriate, a shorter period) to the carrying amount of the financial asset. When calculating the
effective interest rate, the Company estimates future cash flows considering all contractual terms of the financial
instrument, but not future credit losses.
The calculation of the effective interest rate includes transaction costs and fees and points paid or received that are
an integral part of the effective interest rate. Transaction costs include incremental costs that are directly attributable
to the acquisition or issue of a financial asset.
Interest income on all trading assets are considered to be incidental to the Entity’s trading operations and are
presented together with all other changes in the fair value of trading assets in net trading income.
3.2.9 Gain on Disposal and Fair valuation of FVTPL Financial Instruments

Gain on disposal of “FVTPL Financial Investments” comprises realized trading gains on disposal of government
securities, quoted shares and listed debentures, are presented in statement of profit and loss as net gain/(loss) from
financial investments.
Fair valuation changes on “FVTPL Financial Investments” comprises unrealized gains on fair valuation (marked
to market valuation) of government securities, quoted shares, investment in unit trust and listed debentures, are
presented in profit or loss as Net Unrealized gain/(Loss) on Financial Assets held at fair value in the statement of
profit or loss.
3.2.10 Other Income

Other incomes are recognized when it is probable that consideration associated with the transaction will flow to the
company and the amount of revenue can be measured reliably.
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3.3 Interest Expenses

The interest expense on financial liabilities measured at amortized cost is recognized using the effective interest
rate. The “effective interest rate” is the rate that exactly discounts the estimated future cash payments through the
expected life of the financial asset or financial liability (or, where appropriate, a shorter period) to the carrying amount
of the financial liability.
3.4 Income Tax

Income tax expense comprises current and deferred tax. It is recognized in profit or loss except to the extent that it
relates to items recognized directly in equity or in Other Comprehensive Income (OCI).
Current tax assets and liabilities and deferred tax assets and liabilities are offset only to the extent that they relate to
income taxes imposed by the same taxation authority, there is a legal right and intentions to settle on a net basis and
it is allowed under the tax law of the relevant jurisdiction.
Current Tax
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively
enacted on the reporting date, and any adjustment to tax payable in respect of previous years.
Provision for taxation is based on the profit for the year adjusted for taxation purposes in accordance with the
provisions of the Income Tax Act, 2058 and the amendments thereto.
Deferred Tax
Deferred taxation is computed for temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the tax base of assets and liabilities, which is the amount attributed to those assets
and liabilities for tax purposes. The amount of deferred tax provided is based on the expected manner of realization
or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted on the
reporting date.
Deferred tax assets are recognized for unused tax losses, unused tax credits and deductible temporary differences
to the extent that it is probable that future taxable profits will be available against which they can be used. Deferred
tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the
related tax benefit will be realized.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse,
using tax rates enacted or substantively enacted at the reporting date.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and
assets, and they relate to taxes levied by the same tax authority on the same taxable entity, or on different tax entities,
but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized
simultaneously.
3.5 Foreign Currency Transactions

Transactions in foreign currencies are translated into the respective functional currency of Entity at the spot exchange
rates at the date of the transactions.
Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated into the functional
currency at the spot exchange rate (Closing rate) at that date. The foreign currency gain or loss on monetary items
is the difference between the amortized cost in the functional currency at the beginning of the year, adjusted for
effective interest and payments during the year, and the amortized cost in the foreign currency translated at the spot
exchange rate at the end of the year.
Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated into the
functional currency at the spot exchange rate at the date on which the fair value is determined. Non-monetary items
that are measured based on historical cost in a foreign currency are translated using the spot exchange rate at the
date of the transaction.
Foreign currency differences arising on translation are generally recognized in profit or loss.
3.6 Financial Instrument

Recognition
The company initially recognizes a financial asset or a financial liability in its statement of financial position when, and
only when, it becomes party to the contractual provisions of an instrument. The company initially recognizes loans
and advances, deposits and debt securities/subordinated liabilities issued on the date that they are originated which
is the date that the company becomes party to the contractual provisions of the instruments. The investments in
equity instruments, units of mutual funds, bonds, debenture, government securities and NRB bond are recognized
on trade date at which the company commits to purchase/acquire the financial assets. Regular purchase and sale of
financial assets are recognized on trade date.
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Classification
The company classifies its financial assets and financial liabilities as per NFRS 9 into the following measurement
categories:
Financial assets
a. Financial assets held at fair value through profit or loss;
b. Financial assets held at fair value through other comprehensive income, and
c. Financial assets held at amortized cost.
Financial liabilities
a. Held at fair value through profit or loss, or
b. Held at amortized cost.
Financial assets
The company classifies the financial assets as subsequently measured at amortized cost or fair value on the basis of
the company’s business model for managing the financial assets and the contractual cash flow characteristics of the
financial assets. Interest income from these financial assets is included in Interest Income using the effective interest
rate method. The two classes of financial assets are as follows:
a.Financial assets recognized at amortized cost

The company classifies a financial asset measured at amortized cost if both of the following conditions are met:
i. The asset is held within a business model whose objective is to hold assets in order to collect contractual cash
flows and;
ii. The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
b.Financial assets recognized at fair value

Financial assets other than those measured at amortized cost are measured at fair value. Financial assets measured
at fair value are further classified into two categories as below:
i. Financial assets at fair value through profit or loss (FVTPL)
Financial assets are classified as FVTPL if they are held for trading or are designated at fair value through profit
or loss. Upon initial recognition, transaction costs that are directly attributable to the acquisition are recognized
in profit or loss as incurred. Such assets are subsequently measured at fair value and changes in fair value are
recognized in statement of profit or loss.
ii. Financial assets at fair value through other comprehensive income (FVTOCI)
Investment in an equity instrument that is not held for trading and at the initial recognition, the company makes
an irrevocable election that the subsequent changes in fair value of the instrument is to be recognized in other
comprehensive income are classified as FVTOCI. Such assets are subsequently measured at fair value and
changes in fair value are recognized in other comprehensive income.
The company classifies financial liabilities as follows:
a. Financial liabilities recognized at fair value through profit or loss (FVTPL)
Financial liabilities are classified as FVTPL if they are held for trading or are designated at fair value through profit
or loss. Upon initial recognition, transaction costs that are directly attributable to the acquisition are recognized
in statement of profit or loss as incurred. Subsequent changes in fair value is recognized at statement of
profit or loss.
b. Financial Liabilities recognized at amortized cost
All financial liabilities other than measured at fair value though statement of profit or loss are classified as
subsequently measured at amortized cost using effective interest method.
Measurement
a. Initial Measurement
Financial assets and financial liabilities are recognized when the company becomes party to the contractual
provisions of the relevant instrument and are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities are added to or deducted from
the fair value on initial recognition of financial assets or financial liabilities unless the same is measured at fair
value through profit or loss. The transaction cost of financial assets and financial liabilities measured at fair value
through profit or loss are expensed in profit or loss.
b. Subsequent Measurement
A financial asset or financial liability is subsequently measured either at fair value or at amortized cost based on
the classification of the financial asset or liability.
Financial asset or liability classified as measured at amortized cost is subsequently measured at amortized cost
using effective interest rate method. The amortized cost of a financial asset or financial liability is the amount at
which the financial asset or financial liability is measured at initial recognition minus principal repayments, plus or
minus the cumulative amortization using the effective interest rate method of any difference between that initial
amount and the maturity amount, and minus any reduction for impairment or non-collectability.
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Further, once a financial asset or a group of similar financial assets has been written down as a result of an
impairment loss, interest income is thereafter calculated by applying effective interest rate to the gross carrying
amount of a financial asset. Interest income on financial assets which has been individually impaired are
not recognized.
Financial assets classified at fair value are subsequently measured at fair value. The subsequent changes in
fair value of financial assets at fair value through profit or loss are recognized in statement of profit or loss
whereas of financial assets at fair value through other comprehensive income are recognized in other
De-recognition
a. De-recognition of Financial Assets
Financial assets are derecognized when the right to receive cash flows from the assets has expired, or has
been transferred, and the company has transferred substantially all of the risks and rewards of ownership.
Financial assets are also derecognized upon write off. Any gain or loss arising on the disposal or retirement of
an item of financial asset is determined as the difference between the sales proceeds and its carrying amount
and is recognized in the statement of profit or loss. The cumulative gain or loss that was recognized in other
comprehensive income, is recognized to statement of profit or loss except for investment in equity instruments
measured at fair value through other comprehensive income.
b. De-recognition of Financial Liabilities

A financial liability is derecognized when, and only when it is extinguished (i.e. when the obligation specified in
contract is discharged, cancelled or expired). If the liability is renegotiated with the original lender on substantially
different contractual terms, the original liability is derecognized and new liability is recognized.
The difference between the carrying amount of a liability (or portion) extinguished or transferred to another party
(including related unamortized cost) and the amount paid for it (including any non-cash assets transferred or
liability assumed), are included in statement of profit or loss.
Determination of Fair Value

“Fair value” is the price that would be received to sell an asset or paid to transfer a liability (exit price) in an orderly
transaction between market participants at the measurement date in the principal or, in its absence, the most
advantageous market to which the company has access at that date.
The fair value of a liability reflects its non-performance risk. When available, the scheme measures the fair value
of an instrument using the quoted price in an active market for that instrument. A market is regarded as active if
transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information
on an ongoing basis.
If there is no quoted price in an active market, then the company uses valuation techniques that maximize the
use of relevant observable inputs and minimize the use of unobservable inputs. The chosen valuation technique
incorporates all of the factors that market participants would take into account in pricing a transaction. The
company uses
The fair value measurement hierarchy is as follows:

Level 1: These are quoted prices in active markets for identical assets or liabilities that the company can access
at the measurement date. For the majority of its investments, the company relies on information provided by
independent pricing services for the valuation of its investments.
A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available
from NEPSE and are traded frequently i.e. traded within 30 days.
Level 2: These are the inputs other than quoted prices that are observable for the assets or liabilities, either
directly or indirectly. These would include prices for the similar, but not identical, assets or liabilities that were
then adjusted to reflect the factors specific to the measured asset or liability.
Level 3: These are unobservable inputs for the assets or liability.
The best evidence of the fair value of a financial instrument at initial recognition is normally the transaction price
i.e. the fair value of the consideration given or received. Where available, the company measures the fair value of
an instrument using quoted prices in an active market for that instrument. If a market for a financial instrument is
not active, the company, establishes fair value using an appropriate fair valuation technique.
For all unquoted investment in equity instruments, their cost has been considered as their fair value and
accordingly these are recognized at cost, net of impairment if any.
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Impairment
At each reporting date, the company assesses whether there is objective evidence that a financial asset or group
of financial assets not carried at fair value through the Statement of Profit or Loss are impaired.
A financial asset or a group of financial assets is impaired when objective evidence demonstrates that a loss
event has occurred after the initial recognition of the asset(s), and that the loss event has an impact on the future
cash flows of the asset(s) that can be estimated reliably.
Objective evidence that financial assets are impaired can include significant financial difficulty of the borrower
or issuer, default or delinquency by a borrower, restructuring of a loan or advance by the company on terms
that the company would not otherwise consider, indications that a borrower or issuer will enter bankruptcy, the
disappearance of an active market for a security, or other observable data relating to a group of assets such
as adverse changes in the payment status of borrowers or issuers in the group, or economic conditions that
correlate with defaults in the group.
In addition, for an investment in an equity security, a significant or prolonged decline in its fair value below its cost
is objective evidence of impairment.
a. Impairment of financial assets measured at amortized cost

Impairment of financial assets measured at amortized cost is based on the judgments of past experience of the
assets’ behavior. In assessing collective impairment, the company uses historical trends of the probability of
default, the timing of recoveries and the amount of loss incurred, adjusted for management’s judgment as to
whether current economic and credit conditions are such that the actual losses are likely to be greater or less
than suggested by historical trends. Further, management has taken additional external risk (inflation, market risk
and risk of data incompleteness) for the impairment of loans and advances.
Default rates, loss rates and the expected timing of future recoveries are regularly benchmarked against actual
outcomes to ensure that they remain appropriate. Impairment losses on assets measured at amortized cost
are calculated as the difference between the carrying amount and the present value of estimated future cash
flows discounted at the asset’s original effective interest rate. Loans together with the associated allowance are
written off when there is no realistic prospect of future recovery and all collateral has been realized or has been
transferred to the company.
If in a subsequent year, the amount of the estimated impairment loss increases or decreases because of an
event occurring after the impairment was recognized, the previously recognized impairment loss is increased or
reduced by adjusting the allowance account. If a write off is later recovered, the recovery is recognized in the
‘recovery of loan written off’.
b. Impairment of investment in equity instrument classified as fair value though other comprehensive income
Objective evidence of impairment of investment in an equity instrument is a significant or prolonged decline in
its fair value below its cost. Impairment losses are recognized by reclassifying the losses accumulated in the fair
value reserve in equity to profit or loss. The cumulative loss that is reclassified from equity to profit or loss is
the difference between the acquisition cost, net of any principal repayment and the current fair value, less any
impairment loss recognized previously in profit or loss.
3.7 Derivative assets and derivative liabilities

The company does not have any derivative assets and liabilities.
3.8 Trade and Other Payables

Amounts payable to creditors, TDS Payable, amounts refundable to investors, RTS and custodial dividend payable,
Advance received/ transfer from DP clients are categorized as trade and other payables.
3.9 Cash and Cash Equivalents

Cash and cash equivalents includes cash in hand, deposits held at call with banks and other short-term investments in an
active market with original maturities of three months or less and bank overdrafts.
3.10 Property, Plant and Equipment

Property, plant and equipment are tangible items that are held for use in the production or supply of goods or services or
for administrative purposes and are expected to be used during more than one period.
Recognition and Measurement

Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated
impairment losses.
Purchased software that is integral to the functionality of the related equipment is capitalized as part of that equipment.
If significant parts of an item of property or equipment have different useful lives, then they are accounted for as separate
items (major components) of property and equipment.
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Any gain or loss on disposal of an item of property and equipment (calculated as the difference between the net proceeds
from disposal and the carrying amount of the item) is recognized within other income in profit or loss.
The low value minor equipment below NRs 5,000 are not booked as Property, Plant and Equipment to ease record keeping
and is shown under Office Accessories & Equipment’s under Other Administrative Expenses in Explanatory Notes 4.20 as
the cumulative impact of such amount is considered immaterial.
Subsequent Costs
Subsequent expenditure is capitalized only when it is probable that the future economic benefits of the expenditure will flow
to the Entity. Ongoing repairs and maintenance are expensed as incurred.
Depreciation
Depreciation is calculated to write off the cost of items of property and equipment less their estimated residual values using
the straight-line method over their estimated useful lives, and is generally recognized in profit or loss. Leased assets are
depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Entity will obtain
ownership by the end of the lease term. Land is not depreciated.
The estimated useful lives of significant items of property and equipment lives for the current and comparative periods are
as follows are as follows:
Asset Type Useful Life Time (Years)
Laptop and Computers 8 Years
Furniture & Fixtures 8 Years
Office Equipment 8 Years
Motor Vehicles 10 Years
Other Office Equipment 8 Years
Leasehold Developments As estimated by the management, or within the lease period where applicable.
De-recognition
The carrying amount of an item of property, plant and equipment is derecognized on disposal or when no future economic
benefits are expected from its use or disposal. The gain or loss arising from de-recognition of an item of property, plant and
equipment is included in profit or loss when the item is derecognized.
3.11 Intangible Assets

Software
Software acquired by the Company is measured at cost less accumulated amortization and any accumulated impairment
losses.
Subsequent expenditure on software assets is capitalized only when it increases the future economic benefits embodied
in the specific asset to which it relates. All other expenditure is expensed as incurred.
Software is amortized on a straight-line basis in profit or loss over its estimated useful life, from the date on which it is
available for use. The estimated useful lives for the current and comparative periods are as follows:
Asset Type Useful Life Time (Years)
Software 5 years or license period whichever is earlier
Amortization methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
3.12 Assets held for sale and discontinued operations

Non-current assets (such as property) and disposal groups (including both the assets and liabilities of the disposal groups)
are classified as held for sale and measured at the lower of their carrying amount and fair value less cost to sell when:
i. their carrying amounts will be recovered principally through sale;
ii. they are available-for-sale in their present condition; and
iii. their sale is highly probable.
Immediately before the initial classification as held for sale, the carrying amounts of the assets (or assets and liabilities in a
disposal group) are measured in accordance with the applicable accounting policies described above.
There are no assets that meet the recognition criteria for assets held for sale and discontinued operation.
3.13 Provisions
A provision is recognized if, as a result of a past event, the Entity has a present legal or constructive obligation that can be
estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
3.14 Commitments & Contingencies

All discernible risks are accounted for in determining the amount of all known liabilities.
Contingent liabilities are possible obligations whose existence will be confirmed only by uncertain future events or present
obligations where the transfer of economic benefit is not probable or cannot be reliably measured. Contingent liabilities are
not recognized in the Statement of Financial Position but are disclosed unless they are remote.
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3.15 Employee Benefits

Short-term Employee Benefit
Short-term employee benefits are those expected to be settled wholly before twelve months after the end of the annual
reporting period during which employee services are rendered, but do not include termination benefits. Salaries, leave
benefits, bonus to be paid under Bonus Act, 2030 and non-monetary benefits paid to current employees.
The undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in an accounting
period is recognized in that period. The expected cost of short-term compensated absences is recognized as the employees
render service that increases their entitlement or, in the case of non-accumulating absences, when the absences occur,
and includes any additional amounts an entity expects to pay as a result of unused entitlements at the end of the period.
Defined Contribution Plan

A defined contribution plan is a post-employment plan under which an entity pays fixed contributions into a separate
entity and will have no legal or constructive obligation to pay a further amount. Obligations for contributions to defined
contribution plans are recognized as expense in the profit or loss as and when they are due.
a. Employee’s Provident Fund

The company and employee contribute 10% of basic salary (including grade) of each employee to an approved
retirement fund.
b. Gratuity
The company contributes 8.33% of basic salary (including grade) of each employee to an approved
retirement fund.
Other Long-term Employee Benefits

Other long-term employee benefits are employee benefits other than short-term employee benefits and long-term employee
benefits.
a. Leave Encashment
The company's liability towards the accumulated leave (Annual and Sick Leave) which is expected to be utilized
beyond one year from the end of the reporting period is treated as other long-term employee benefits. The
company's net obligation towards unutilized accumulated leave is calculated by discounting the amount of future
benefit that employees have earned in return for their service in the current and prior periods to determine the
present value of such benefits. The calculation is performed by a qualified actuary using the projected unit credit
method
The Company recognizes all re-measurement gains and losses including all service cost and interest cost related
to other long term employee benefits are expensed in profit or loss account.
3.16 Statement of Cash flows

The Statement of Cash Flow has been prepared using the “Indirect Method” of preparing Cash Flows in accordance with
the Nepal Accounting Standard - (NAS 7) “Statement of Cash Flows”.
Cash and cash equivalents comprise short term, highly liquid investments that are readily convertible to known amounts of
cash and are subject to an insignificant risk of changes in value.
3.17 Events after Reporting Period

Events after the reporting period are those events, favorable and unfavorable, that occur between the reporting date and
the date the Financial Statements are authorized for issue.
All material and important events that occurred after the reporting date have been considered and appropriate disclosures
if any are made in Note to the Financial Statements.
3.18 Earnings per Share (EPS)

The company presents basic and diluted Earnings per share (EPS) for its ordinary shares. Basic EPS is calculated by
dividing the profit and loss attributable to ordinary equity holders of Bank by the weighted average number of ordinary
shares outstanding during the period. Diluted EPS is determined by adjusting both the profit and loss attributable to the
ordinary equity holders and the weighted average number of ordinary shares outstanding, for the effects of all dilutive
potential ordinary shares, if any. Earnings per share is calculated and presented in statement of comprehensive income.
3.19 Segmental Reporting

The company is organized for management and reporting purposes into segments such as: Merchant Banking and Fund
Management. The segmental information is disclosed in notes.
3.20 Leasehold Assets

The company holds Leasehold Developments on the building leased to it.
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4. Other Explanatory Notes

4.1 Property, plant and equipment
Details of property, plant and equipment are presented as follows:
Electric
Leasehold Computers & Office Furniture &
Particulars Equipment Vehicles Total
Development Accessories Equipment Fixture
& ACs
1. Cost
a. Opening Balance 4,181,514 2,639,838 1,164,107 389,849 518,294 2,998,400 11,892,001
b. Addition during the year 312,784 475,250 159,605 102,770 351,500 6,697,969 8,099,877
c. Sales/Disposal - - - - - 2,800,000 2,800,000
d. Revaluation / written back
- - - - - - -
this year
e. Written off during the year - - - 18,297 13,739 - 32,037
Total Cost (a + b – c + d - e) 4,494,298 3,115,088 1,323,712 474,322 856,055 6,896,369 17,159,841
2. Accumulated Depreciation
a. Up to Previous Year 267,100 339,116 240,680 42,175 3,306 331,440 1,223,817
b. For this year 443,369 373,587 160,576 68,134 97,206 467,102 1,609,974
c. Depreciation on revaluation /
- - - - - - -
written back
d. Depreciation on Assets sold /
18,276 2,152 396,667 417,095
written off
Total Depreciation 710,471 712,702 401,256 92,033 98,360 401,875 2,416,696
3. Carrying Value (WDV) (1 - 2) 3,783,827 2,402,386 922,456 382,289 757,695 6,494,494 14,743,145
4.2 Intangibles
Intangibles comprises of Computer Software and Website Development cost. The details of the same is presented as
follows:
Rigo: Windows SQL Mutual Fund
PBX-
Particulars C-ASBA Accounts, Shareplus Server & Server & Website Management Wealth Total
System
HR, & FA CAL CAL System
1. Cost
a. Opening Balance 50,000 259,900 339,000 142,945 254,250 169,500 678,000 - - 1,893,595
b. Addition during the year 253,346 150,000 452,000 253,346
c. Sales/Disposal - - - - - - - - - -
d. Revaluation / written back
- - - - - - - - - -
this year
e. Written off during the year - - - - - - - - - -
Total Cost (a + b – c + d - e) 50,000 259,900 339,000 142,945 254,250 169,500 931,346 150,000 452,000 2,748,941
a. Up to Previous Year 15,000 95,297 129,950 52,413 93,225 50,850 45,200 - - 481,935
b. For this year 10,000 51,980 67,800 28,589 50,850 33,900 186,269 14,062 52,733 496,184
c. Depreciation on revaluation /
- - - - - - - - - -
written back
d. Depreciation on Assets sold
- - - - - - - - - -
/ written off
Total Depreciation 25,000 147,277 197,750 81,002 144,075 84,750 231,469 14,062 52,733 978,119
3. Carrying Value (WDV) (1 - 2) 25,000 112,623 141,250 61,943 110,175 84,750 699,877 135,938 399,267 1,770,822
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4.3 Deferred Tax Asset/Liability

The details of Deferred Tax Asset/Liability are presented are as follows:
Temporary
SN Particulars Carrying Amount Tax Base
Difference
A. Assets
1 Property and Equipment 14,743,145 13,267,722 1,475,424
2 Intangible Assets 1,770,822 1,622,514 148,307
3 Financial Assets Held at FVTPL 48,710,851 61,924,037 (13,213,187)
Taxable/(Deductible) Temporary Difference on assets (11,589,456)
B. Liabilities
1 Provision for leave 865,746 - (865,746)
Taxable/(Deductible) Temporary Difference on liabilities (865,746)
Net Taxable/(Deductible) Temporary Difference (12,455,202)
Current Tax Rate 30%
Deferred Tax (Assets)/Liability as of Ashadh 32, 2079 (3,736,561)
Opening Deferred Tax (Assets)/Liability 686,793*
Deferred Tax (Income)/Expenses (4,423,354)
* Restated balance – refer to note: 4.33
4.4 Financial Assets measured at Amortized Cost

The financial assets measured at amortized cost include investment in fixed deposits and investment in bond and
debentures. The details have been presented as below:
S. N. Particulars Ashadh 32, 2079 Ashadh 31, 2078
1 Fixed Deposits with Banks 175,000,000 140,000,000
2 Investment in Debentures 157,883,000 17,521,000
Total 332,883,000 157,521,000
The investments have been classified to current and non-current assets as below:
1 Current Assets 115,000,000 80,000,000
2 Non-current Assets 217,883,000 77,521,000
Total 332,883,000 157,521,000
4.5 Financial Assets measured at Fair Value through Profit and Loss (FVTPL)
The details of investment and analysis within the fair value hierarchy at reporting period end have been presented as below:
FY 2078/79 FY 2077/78
Investment in: Fair Value as on Fair Value as on
L1 L2 L3 L1 L2 L3
Ashadh 32, 2079 Ashadh 31, 2078
Mutual Fund Units 5,069,000 5,069,000 - - 5,810,000 5,810,000 - -
Equity Instruments 43,641,851 43,641,851 - - 14,354,785 14,354,785 - -
Total 48,710,851 48,710,851 - - 20,164,785 20,164,785 - -
The investment has been classified to non-current assets.
4.6 Inventories
Inventories include stock of stationery to be used in the ordinary course of business.
1 Inventories 88,114 89,748
Total 88,114 89,748
4.7 Trade and Other Receivables

These current assets include the assets directly held for the ordinary purpose of business. Following is the details:
1 Account Receivable 6,925,450 10,535,389
2 Less: Impairment - -
3 Prepaid Expenses 1,817,322 462,220
4 Security Deposit 70,000 20,000
5 Staff Loan 7,848,159 4,990,409
6 Employee Advance 10,000 -
7 Other Receivable 13,364 -
Total 16,684,294 16,008,018
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4.8 Current Tax Assets/(Liabilities)

The current tax assets include advance tax paid by the company and the tax deducted from payment made to the company
by various parties (withholding tax). Similarly, tax liabilities include tax payable by the company computed as per the
provision of Income Tax Act, 2058.
The details of current tax assets are presented as follows:
Particulars Ashadh 32, 2079 Ashadh 31, 2078
Current Tax Assets
Opening Balance (Net offset with current tax liabilities) 408,994 832,976
Add: Tax Receivable during the year 15,694,490 7,740,861
Closing balance
Current Tax Liabilities 7,848,159 4,990,409
Opening Balance (Net offset with current tax assets) - -
Add: Current tax payable during the year 13,677,446 8,164,843
Closing balance 13,677,446 8,164,843
Net Current Tax Assets / (Liabilities) 2,426,038 408,994
4.9 Cash and Cash equivalents

Cash and cash equivalents includes cash in hand, deposits held at call accounts with banks, other short-term investments
in an active market with original maturities of three months or less and bank overdrafts. The details of cash and cash
equivalents are presented as follows:
1 Cash in Hand 15,000 -
2 Cash at Bank 259,975,955 99,353,362
Total 259,990,955 99,353,362
The cash and cash equivalents as presented above also includes restricted cash balances. Restricted cash balances
are those which are not available for use by the company. Those includes amounts collected from investors during issue
management, dividends uncollected by the investors, and right share amount yet to be refunded.
Following is the details of amount not available for use at reporting period end:
1 Uncollected Dividend 119,942,903 74,637,744
2 Right Share Refund Payable 289,800 289,800
3 IPO Refund Payable 125,306,433 160,488
Total 245,539,136 75,088,032
4.10 Provision for Accumulated Leave Encashment

In order to fully provide for the liabilities against staff accumulated leave encashment, the company has made a provision
of NPR. 865,746 up to July 16, 2022. The details have been presented as follows:
4.10.1 Amount Recognized in Profit and Loss Account

Particulars FY 2078/79 FY 2077/78
Current Service Cost 320,534 95,523
Interest Cost 33,740 10,547
Expected Return on Plan Assets - -
Past Service Cost - -
Net Actuarial Losses/(Gains) 1,65,889 1,86,605
(Gain) / Loss due to Settlements / Curtailments /
- -
Acquisitions / Divestitures
Unrecognized Asset due to Limit in Para 58(b) - -
Total Expense/(Income) included in "Employee Benefit Expense" 5,20,163 2,92,675
4.10.2 Details of amount presented in Statement of Financial Position:

Other Long-term Benefits 8,65,746 4,04,194
Fair Value of Plan Assets - -
Funded Status - (Surplus)/Deficit 8,65,746 4,04,194
Unrecognized Past Service Cost / (Credit) - -
Unrecognized Asset due to Limit in Para 58(b) - -
Liability/(Asset) recognized in Statement of Financial Position 8,65,746 4,04,194
- Current Liability/(Assets) 57,620 26,510
- Non-Current Liability/(Assets) 808,126 377,684
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4.10.3 Change in Present Value of Benefit Obligation during the Period

Ther Long-term Benefit, Beginning of Period 404,194 122,852
Current Service Cost 320,534 95,523
Interest Cost 33,740 10,547
Actual Plan Participants' Contributions - -
Actuarial (Gains)/Losses 165,889 186,605
Acquisition/Business Combination / Divestiture - -
Actual Benefits Paid (58,611) (11,333)
Past Service Cost - -
Changes in Foreign Currency Exchange Rates - -
Loss / (Gains) on Curtailments - -
Liabilities Extinguished on Settlements - -
Other Long-term Benefits, End of Period 865,746 404,194
4.10.4 History of DBO, Asset values, Surplus / Deficit & Experience Gains / Losses
Particulars FY 2078/79 FY 2078/79 FY 2077/78
Other Long-term Benefit 865,746 404,194 1,22,852
Plan Assets - - -
(Surplus)/Deficit 865,746 404,194 122,852
Exp. Adj. - Plan Assets Gain/(Loss) - - -
Assumptions (Gain)/Loss - - -
Exp. Adj. - Plan Liabilities (Gains)/Loss 165,889 186,605 -
Total Actuarial (Gain)/Loss 165,889 186,605 -
4.10.5 Actuarial Assumptions

a. Financial Assumptions
Discount Rate 9% 9%
Salary Escalation Rate 6% 6%
Expected Return on Assets 0% 0%
b. Demographic Assumptions
Nepali Assured Lives Nepali Assured Lives
Mortality Table *
Mortality (2009) Mortality (2009)
Withdrawal Rate 4% 4%
Retirement Age 60 years 60 years
*Mortality Rates: Representative mortality rates from Nepali Assured Lives Mortality (2009) are given in the
table below.
c.Timing Related Assumptions

Time of Retirement Immediately on achieving normal retirement
Salary Increase frequency Once a year
4.10.6 Other Disclosures

Recognition of Actuarial Gain / Loss FY 2078/79 FY 2077/78
Actuarial (Gain)/Loss arising on DBO 165,889 186,605
Actuarial (Gain)/Loss arising on Plan Assets - -
Total (Gain)/Loss recognized during the period 165,889 186,605
Unrecognized Actuarial (Gain)/Loss, End of Year - -
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4.11 Trade and other payables

Trade liabilities include the current liabilities directly related to the operating income or expenses.
Details of trade and other payable are presented as follows:
1 Accounts Payable 2,656,310 1,477,799
2 Employee Payable 2,937 11,392
3 Gratuity Payable 50 503,952
4 Provident Fund Payable 120 1,568
5 TDS Payable 325,117 369,496
6 Other Payables 1,137,688 765,407
7 Dividend Payable 119,942,903 74,637,744
8 Right Share Refund Payable 289,800 289,800
9 IPO Refund Payable 125,306,433 160,488
10 Advance Received 9,000 11,550
11 Staff Bonus Payable 3,447,088 3,197,022
12 VAT Payable 6,249 -
Total 253,123,696 6,090,788
4.12 Provisions
The details of provision are as follows:
1 Provision for Expenses - 6,811
Total - 6,811
4.13 Deferred Revenue

Deferred revenue is the revenue already received but related service is yet to be performed. The details are as follows:
1 RTS Fee Received in Advance 123,500 71,860
2 Debenture Trusteeship Fee Received in Advance 201,667 1,667
Total 325,167 73,526
4.14 Share Capital

The capital structure of the company is presented as follows:
Ashadh 32, 2079 Ashadh 31, 2078
Particular Value per Share
No. of Shares Amount No. of Shares Amount
Authorized capital 100 5,000,000 500,000,000 5,000,000 500,000,000
Issued and subscribed capital 100 4,000,000 400,000,000 2,000,000 200,000,000
Paid-up capital 100 4,000,000 400,000,000 2,000,000 200,000,000
Following is the reconciliation of outstanding number of shares at the reporting period end.
Number of paid-up outstanding shares at beginning 2,000,000 2,000,000
Add: Additional issue of equity instruments 2,000,000 -
Add: Issue of bonus shares - -
Number of paid-up shares outstanding at period end 4,000,000 2,000,000
4.15 Reserve and Surplus

All accumulated profit reduced by distribution is represented under Reserve and Surplus. Following is the details of Reserve
and Surplus:
Opening Balance 23,028,210 10,860,283
Add/(Less): Restatement/ Adjustment - 12,680
Add: Net profit during the year 21,690,961 20,155,247
Less: Distribution during the year (18,000,000) (8,000,000)
Closing Balance 26,719,170 23,028,210
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4.16 Income from Merchant Banking Activities

The income from merchant banking activities comprises income from RTS/RTS, income from depository participant (DP),
income from issue management and underwriting and Income from Portfolio Management. The following table summarizes
the income earn from each of these activities:
1 Income from Share Registrar 1,577,110 1,564,350
Other Income from RTS 28,128 53,911
RTS Fee 882,318 849,370
Debenture Trusteepship Fee 10,000 10,000
Bonus/Right Share Credit Charge 656,664 651,069
2 Income from DP 20,218,259 16,556,965
Account Opening Fee 4,696,810 6,781,650
Account Operation Annual Fee 7,209,800 3,086,300
Mero Share Registration Fee 1,776,400 2,560,950
Mero Share Renewal Fee 2,228,900 734,450
Other Income from DP 10,774 3,715
Securities Transfer Fee 3,966,125 2,818,025
Pledge Acceptance Fee 276,450 494,400
Pledge Set-up Fee 53,000 77,475
3 Income from Issue Management and Underwriting 6,506,522 6,086,954
ASBA Fee 1,333,300 947,940
Issue Management Fee 3,562,681 1,000,000
Underwriting Fee 1,610,541 4,139,014
VAT Payable 6,249 -
Grand Total 28,301,891 24,208,269
4.17 Income from Portfolio Management Services

It includes the income earned from portfolio management service which includes entry fee, exit fee, fixed annual
management fee and performance based management fee. The details are presented as below:
1 PMS Entry Fee 42,850 42,000
2 PMS Exit Charge 84,155 13,581
3 Performance Fee 399,538 -
4 Annual Fee 735,349 -
Total 1,261,892 55,581
4.18 Income from Mutual Fund Operations

It includes the income earned from mutual fund schemes managed by the company. The company also earns income for
providing depository service to the schemes. The details are presented as below:
1 Fund Management Fee 17,515,497 5,125,277
Fund Management Fee from Kumari Equity Fund 16,009,964 5,125,277
Fund Management Fee from Kumari Dhanabriddhi Yojana 1,505,533 -
2 Depository Fee 2,335,400 683,370
Depository Fee from Kumari Equity Fund 2,134,662 683,370
Depository Fee from Kumari Dhanabriddhi Yojana 200,738 -
Grand Total 19,850,897 5,808,647
4.19 Interest Income

It includes the interest income earned from Fixed Deposits, Bond and Debentures and Call Accounts maintained with
various banks and financial institutions. The details are presented as below:
1 Interest Income from Fixed Deposit 20,676,201 14,411,269
2 Interest Income from Call Deposit 5,449,605 358,596
3 Interest Income from Bond and Debenture 8,100,889 1,859,455
Total 34,226,696 16,629,320
4.20 Net gain/ (loss) on Financial Assets held at fair value

It includes the capital gain/(loss) realized on disposal of investment made in equity instruments including mutual fund units
and the dividend income earned from such investments:
1 Gain on Disposal of Financial Assets held at fair value (2,493,959) 8,528,297
2 Dividend Income 2,200,046 373,231
Total (293,913) 8,901,528
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4.21 Net Unrealized gain/(Loss) on Financial Assets held at fair value

Following table summarizes the change in fair value of FVTPL Financial Assets:
Ashadh 32, 2079 Ashadh 31, 2078
Investment in:
Cost Fair Value Gain/(Loss) Cost Fair Value Gain/(Loss)
Mutual fund units 7,373,900 5,069,000 (2,304,900) 3,660,500 5,810,000 2,149,500

Equity Investments 56,554,590 43,641,851 (12,912,739) 14,974,364 14,354,785 (619,579)
Total 63,928,490 48,710,851 (15,217,639) 18,565,864 20,164,785 1,529,921
4.22 Other Income

The details of other income are presented as below:
1 Miscellaneous Income 2,320 2,119
2 Interest on Staff Loan 380,055 144,922
Total 382,375 147,041
4.23 Merchant Banking Related Expenses

These expenses represent the expenses directly related to the merchant banking service of the company.
1 Issue Management & Underwriting Expenses - 100,000
2 Merchant Banking License Renewal Fee 710,000 710,000
3 SEBON Fee on Merchant Banking Income 1,410,455 1,068,065
4 CDS Service Fee 4,403,793 3,406,031
5 Data Migration Charge - 13,673
6 Account Opening Related Expenses 31,976 30,624
7 BO Correction Charge 6,500 13,550
Total 6,562,724 5,341,943
4.24 Mutual Fund Related Expenses

These are the expenses directly related to the mutual fund operations. The details have been presented as follows:
1 Licensing/Renewal Fee 125,000 600,000
2 SEBON Fee on Fund Management and Depository Fee 595,527 174,259
3 Fund Management Quality Rating Fee 160,989 339,000
Total 881,516 1,113,259
4.25 Portfolio Management Related Expenses

These expense represent the expenses directly related to the portfolio management service. The details have been
presented as follows:
1 PMS Administrative Expenses 37,857 6,125
2 SEBON Fee on PMS Income 19,580 1,667
Total 57,437 7,792
4.26 Other Operating Expenses

The details of other operating expenses have been presented as below:
1 Brokerage, DP and SEBON Charges 438,162 638,627
2 Corporate Social Responsibility Expenses - 100,000
Total 438,162 738,627
4.27 Non-Operating Income/(Expenses)

1 Loss on Disposal of Property, and Equipment 377,462 -
2 Exchange Fluctuation Loss 310 -
Total 377,772 -
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4.28 Staff Cost

The details of staff cost have been presented as below:
1 Festival Allowance 788,973 391,210
2 Forced Leave Allowances 555,768 373,410
3 Staff Insurance Premium 512,348 227,313
4 Intern Expenses 11,400 151,188
5 Leave Expenses 520,164 379,992
6 Gratuity Expenses 590,952 412,196
7 Overtime Allowance 6,820 15,881
8 Provident Fund Expenses 709,427 494,740
9 Salary and Allowance 11,299,574 7,392,536
10 Staff Bonus Expenses 3,447,088 3,197,022
11 Staff Refreshment and Recreation Expenses 330,570 254,243
12 Wages 275,655 595,780
13 Staff Welfare Expenses 33,753 -
14 Travelling Allowance and Daily Allowance 99,878 -
15 Uniform Expenses 24,001 -
Total 19,206,370 13,885,512
4.29 General Administrative Expenses

The details are as follows:
1 Annual General Meeting Expenses 26,935 10,490
2 Advertisement and Publicity Expenses 43,324 28,843
3 Annual Maintenance Charge 616,657 318,012
4 Audit Fees (External) 113,000 56,500
6 Audit Fees (Internal) 135,600 90,400
7 Audit Expenses 17,630 11,548
8 Business Development Expenses 9,871 2,191
9 Consultancy Fees 46,286 16,950
10 Electricity and Water 367,767 252,051
11 Fuel (Petrol) 482,707 171,236
12 Insurance Premium 92,471 45,521
13 Janitorial Expenses 100,601 73,043
14 Kitchen Expenses 158,653 96,202
15 Marketing Expenses 72,793 235,075
16 Meeting Allowance 307,500 327,500
17 Membership Fee 50,000 40,000
18 Miscellaneous Expenses 63,920 61,626
19 Notice Publication Charge 2,017 14,986
20 Office Upkeep Expenses 46,897 23,000
21 Office Relocation Expenses - 24,860
22 Office Rent 2,977,200 2,243,406
23 Other Meeting related Expenses 47,727 2,959
24 Other Office Expenses 93,113 169,333
25 Periodicals and Books 8,978 11,441
26 Postage, Telephone, Email, Internet 667,895 378,453
27 Printing and Stationery 456,446 501,090
28 Rates, and Taxes 44,800 -
29 Repair and Maintenance 77,121 424,790
30 Security Expenses 400,380 361,983
31 Training Expenses 120,985 69,200
32 Traveling Allowance and Expenses - 10,000
33 Travelling Expenses 169,946 -
34 Vehicle Renewal Charge 3,600 23,150
35 Business Registration and Renewal Charge 20,000 95,050
36 Website Redesigning Expenses 15,450 -
Total 7,858,268 6,190,888
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4.30 Income Tax Expenses

Current year tax liability has been recognized on statement of profit or loss account at the rate of 30%, after required
adjustment to arrive at taxable profit. Similarly, deferred tax is computed at 30% of the temporary differences between
accounting base and tax base. Deferred tax assets/liabilities and the calculation of deferred taxes are given in Note 4.3.
Following is the details of tax expenses recognized in statement of profit or loss:
Current Tax Expenses 13,756,183 8,164,843
-in respect of current year 13,677,446 8,164,843
-in respect of previous year 78,738 -
Deferred Tax (Income)/Expenses (4,423,354) 514,231
-in respect of previous year (4,423,354) 514,231
Total Income Tax Expenses Recognized during the year 9,332,829 8,679,075
Following table shows the reconciliation of tax expenses with the product of accounting profit multiplied by applicable
tax rate.
Profit/ (loss) before tax for the year 31,023,791 28,773,200
Income tax expenses calculated at 30 % 9,307,137 8,631,960
Less: Effect of incomes that are not taxable for the year
Net unrealized gain on financial asset at measured FTVTL - 458,976
Dividend Income received from resident companies 54,014 -
Add: Effect of expenses that are not deductible for taxation
Depreciation and Amortization 631,847 368,725
Repair & Improvement 23,136 127,437
Other Expenses 282,199 131,517*
Net unrealized loss on financial asset measured at FTVTL 4,565,292 -
Less: Effect of expenses that are deductible for taxation
Depreciation and amortization as per tax law 903,830 591,155
Repair & Improvement as per tax law 23,136 70,860
Other Expenses 151,186 -
Tax credit (used)/carried forward - -
Current Tax Expenses in respect of current year 13,677,446 8,164,843
Effective Tax Rate 44.09% 28.38%
* Adjusted for tax effect arising for reduction in leave expenses due to change in accounting policy. Refer to note 4.33
4.31 Status of Tax Assessment

The self-assessment returns filed by the company for FY 2074/75 to 2077/78, has not yet been opened for reassessment
by the inland revenue office.
4.32 Statutory Reserves and Funds

The reserve & surplus of the company includes statutory reserves and funds set aside for specific purpose pursuant to
Securities Businessperson (Merchant Bankers) Regulation, 2064.
i. Corporate Social Responsibility (CSR) Fund

The company has not expensed on activities relating to CSR during the year. Hence, no amount has been transferred from
CSR Fund created in previous year to Accumulated Profit/Loss in the current year.
The company has created additional amount of Rs. 216,910 to CSR Fund being 1% of net profit after tax pursuant to
Section 30Ka(2) of Securities Businessperson (Merchant Bankers) Regulation, 2064. The fund so created shall be used for
CSR activities in the next fiscal year.
The total movement of Corporate Social Responsibility Fund has been presented in the Statement of Changes in Equity.
4.33 Change in Accounting Policy

Effective Shrawan 1, 2078 the Company changed its accounting policy to measure the liability towards employee benefit
other than short-term employee benefit using projected unit credit method. The calculation is performed by the certified
actuary. Previously, the Company measured the liability as a product of number of unused leave outstanding at the end of
fiscal year and the salary.
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The change in the policy has been made because it is management’s opinion that the actuarial valuation of the benefit
provides reliable and more relevant information about the cost of employee benefit and the resulting obligation.
The following table summarizes the impact on the components of statement of financial position, and statement of profit
and loss for previous years:
Previously Reported Leave Expenses 140,966 379,992
Leave Expenses as per actuarial valuation 122,852 292,675
Increase/(Decrease) in leave expenses (18,114) (87,317)
Adjusted to:
- Retained Earnings 12,680 61,122
- Deferred Tax (Assets)/Liabilities 5,434 26,195
- Leave Liability (18,114) (87,317)
The restated balance of Retained Earnings for the FY 2077/78 and FY 2078/79 is presented as follows:
Retained Earnings as on beginning of the year 9,742,571 19,726,342
Add/(Less): Adjustment 12,680 73,802
Adjusted Retained Earnings as on beginning of the year 9,755,250 19,800,144
Similarly, the restated balance of Provision for Accumulated Leave, and Deferred Tax Assets / (Liabilities) for the previous
year is presented as follows:
Particulars Ashadh 31, 2078
Previously Reported Leave Liability 509,624
Add/(Less): Adjustment (105,431)
Adjusted Leave Liability 404,193
Previously Reported Deferred Tax Assets/(Liability) (655,164)
Add/(Less): Adjustment (31,629)
Adjusted Deferred Tax Assets/(Liability) (686,793)
4.34 Related Party

A person or entity is considered a related party if it:
a. controls or has significant influence to the Company
b. is subsidiary, joint venture, associates or in which the Company can have significant influence
c. is member of key management personnel of the company or its parent.
Directors and other Key Management Personnel (KMP)
The key management personnel are those persons having authority and responsibility of planning, directing and controlling
the activities of the entity, directly or indirectly including any director. The key management of the company includes
members of its Board of Directors, Chief Executive Officer and other higher level employee(s) of the company. The name of
the key management personnel who were holding various positions in the office during the year were as follows:
Member of Board of Directors:

Name Designation
Mr. Bikas Khanal Chairman
Mr. Chandan Karki Director
Mr. Rohit Singh Director
Mr. Anil Joshi Independent Director
Mr. Hari Prasad Wagle Independent Director
Mr. Anuj Mani Timilsina* Former Chairman
*Resigned from the post of chairman and director w. e. f. 2078/12/17.
Other Key Management Personnel:

Name Designation
Mr. Aswin Babu Shrestha Chief Executive Officer
Mr. Puspa Sharma Chief Operating Officer
Mr. Bikranta Koirala Company Secretary
Holding Company
Kumari Bank Limited (KBL)
A. Compensation to Members of Board of Directors

As per the provision of Articles of Association of the company, the directors are entitled to meeting allowance at Rs. 5,000
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per meeting and the company secretary is entitled to Rs. 2,500 per meeting. The details relating to compensation paid to
the directors are as follows:
S. N. Particulars Ashadh 31, 2078
1 Meeting Allowance 287,500
Total 287,500
B. Compensation to other Key Management Personnel

Chief Executive Officer has been deputed from Kumari Bank Limited who is not entitled to any compensation from the
company.
The compensation paid to other member(s) of KMP is governed by Employee Service Byelaw of the company and the
decisions made by the management from time to time.
The details relating to compensation paid to other key management personnel are as follows:
Short term employee benefits
Salary & Allowances 2,721,640 2,042,400
Employee Bonus* 941,380 1,069,802
Festival Allowance 191,040 170,200
Gratuity 152,909 124,150
Provident Fund 183,564 149,040
Forced Leave Allowance 161,040 124,200
Total Short Tern Employee Benefits (A) 4,351,573 3,679,792
Other Long-term Employee Benefits - -
Payment against annual leave - -
Total Other Long-term Employee Benefits (B) - -
Post-Employment Benefits - -
Total Post-Employment Benefits (C) - -

Total Benefits (A+B+C) 4,351,573 3,679,792
*Represents the bonus distributed out of profit of FY 2078/79.
C. Related Party Transactions

a. Related Party Transactions with Holding Company
The company has entered into the agreement with Kumari Bank Limited for providing Registrar to the Shares
Service with respect the ordinary shares and 10.25% KBL Debenture 2086 for annual fee of Rs. 700,000 and Rs.
100,000 respectively. The provisions led in the agreements are in line with arms-length principle.
The following is the related party transactions with the Holding Company:
Transaction Nature of
S. N. Particulars Remarks
Amount Transactions
1. Deposit at KBL (Operating Account) 7,885,339 Bank Deposit -
2 Deposit at KBL (Other Bank Balances) 137,623,613 Bank Deposit -
3 Interest earned from accounts maintained at KBL 2,178,027 Interest Income -
Includes Rs. 51,230 received
RTS fee from KBL for ordinary shares and 10.25% KBL in FY 2077/78 and Rs.
4 800,000 RTS Fee Income
Debenture 2086 51,230 received for FY
2079/80
Share / Debenture
5 Share/Debenture Credit Charge received from KBL 656,664 Credit Charge
Income
6 ASBA Fee received from KBL 270 ASBA Fee Income
4.35 Events after Reporting Period

There have been no events after reporting period that have come to our attention.
4.36 Operating Segment Information

A. General Information
The company has identified the reportable segment as the business activities from which it earns revenues and incurs
expenses, whose operating results are reviewed by the management to make decision about the allocation of resources to
each segment and assess its performance.
The following are the major business segments identified based on the nature of products and services:
i. Mutual Fund Management
ii. Merchant Banking
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iii. Portfolio Management

iv. Investment
The segment results that have been reported include items directly attributable to a segment as well as those that can be
allocated on a reasonable basis.
Factors that management used to identify the entity’s reportable segments

i. Mutual Fund Management
This segment includes fund management and depository service being provided to the mutual fund schemes operated
under Kumari Samuhik Lagani Kosh. The segment generates revenue in the form of fund management fee and depository
fee from the mutual fund schemes managed by it.
ii.Merchant Banking
This segment includes issue management and underwriting, registrar to the shares, depository services. The segment
generates revenue from issue management and underwriting service, share/debenture registrar service, registration of
demat account and meroshare account etc.
iii.Portfolio Management
This segment includes management of investment portfolio on behalf of the clients. This segment generates revenue from
entry and exit fee, fixed annual management fee and management fee based on performance.
iv.Investment
This segment includes activities relating to investment/trading in equity instruments, investment in debentures and
placement of fund in fixed deposits. The segment generates its revenue from the interest on debentures and fixed deposits,
and gain on trading of equity instruments.
B.Information about profit or loss, assets and liabilities

Mutual Fund Merchant Portfolio
Particulars Investment Total
Management Banking Management
Revenue from external customers 19,850,897 28,301,891 1,261,892 13,265,539 62,680,219
Expenses to external customers 881,516 6,562,724 57,437 438,162 7,939,839
Intersegment Revenue - - - - -
Segment Profit 18,969,381 21,739,168 1,204,455 12,827,377 54,740,381
Segment Assets 47,293,494 248,912,766 - 381,593,851 677,800,110
Segment Liabilities - 245,873,304 - - 245,873,304
Notes having brief description for above items are provided below:
a. Revenues from External Customers: Revenue from external customers have been segregated according to the nature
of segment.
b. Expenses to External Customers: Expenses to external customers have been segregated according to the nature of segment.
c. Segment Profit: Segment profit is revenue from external customers less expenses to external customers.
C. Reconciliations of reportable segment revenues, profit or loss, assets and liabilities

a. Revenue
Particulars Amount
Total revenue for reportable segments 62,680,219
Other revenue 5,831,979
Elimination of intersegment revenue -
Entity’s Revenue 68,512,198
b. Profit and Loss
Particulars Amount
Total profit and loss for reportable segments 54,740,381
Elimination of intersegment profit -
Unallocated amounts (23,716,590)
Entity’s profit before tax 31,023,791
c. Assets
Particulars Amount
Total assets for reportable segments 677,800,110
Unallocated amounts 3,292,987
Entity’s Assets 681,093,097
d. Liabilities
Particulars Amount
Total liabilities for reportable segments 245,873,304
Unallocated amounts 8,441,305
Entity’s Liabilities 254,314,609
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D. Information about products and services

Revenue from each type of product and services described in point no. B above:
Particulars Amount
Mutual Fund Management 19,850,897
Merchant Banking 28,301,891
Portfolio Management 1,261,892
Investment 13,265,539
Total 62,680,219
4.37 Earnings per share (EPS)

i. Basic Earnings per Share (BEPS)
From continuing operations attributable to the ordinary equity holders of the company 6.04 10.05
From discontinued operation - -
Total basic earnings per share attributable to the ordinary equity holders of the company 6.04 10.05
ii. Diluted Earnings per Share (DEPS)

From continuing operations attributable to the ordinary equity holders of the company 6.04 10.05
From discontinued operation - -
Total basic earnings per share attributable to the ordinary equity holders of the company 6.04 10.05
iii. Reconciliations of earnings used in calculating earnings per share

For Basic Earnings per Share
Profit attributable to the ordinary equity holders of the company used in calculating basic earnings per share:
- From continuing operations 21,690,961 20,094,125
- From discontinuing operations - -
Total 21,690,961 20,094,125
For Diluted Earnings per Share

Profit attributable to the ordinary equity holders of the company used in calculating basic earnings per share:
- Used in calculating basic earnings per share 21,690,961 20,094,125
- Adjustments for income or expenses that would result from conversation of dilutive
- -
potential ordinary shares
Total 21,690,961 20,094,125
iv. Weighted average number of shares used as the denominator

Weighted average number of ordinary shares used as the denominator in calculating basic
3,590,164 2,000,000
earnings per share:
Adjustments for calculation of diluted earnings per share - -
Weighted average number of ordinary shares and potential ordinary shares used as the
3,590,164 2,000,000
denominator in calculating diluted earnings per share
4.38 Interim Financial Reporting

NAS 34, “Interim Financial Reporting” doesn’t mandate Kumari Capital Limited to publish interim financial reports. Since,
the shares of KCL are not listed and is wholly owned by Kumari Bank Limited, KCL is not required by any regulatory or other
bodies which may govern its operating activities to publish interim financial reports.
4.39 Risk Management

The Board of Directors has the overall responsibility for the establishment and oversight of the company’s risk management
framework. The wide-ranging risk categories that includes Market, Liquidity, Credit, and Operational Risk are reviewed,
measured, monitored and controlled.
A. Market Risk
Market risk is the risk that changes in market prices, interest rate, foreign exchange rate will affect the company’s income or
the value of its holdings of financial instruments. The objective of market risk management is to manage and control market
risk exposures within acceptable parameters, while optimizing the return on risk.
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B. Credit Risk
Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to
the company. The company manages the credit quality of financial assets using internal credit ratings. The company’s
exposure and the credit rating of its counterparties are continuously monitored.
C. Liquidity Risk
Liquidity risk is the risk that the Entity will not have adequate financial resources to meet Entity's obligations as when the fall
due. This risk arises from mismatches in the timing of cash flows. The management of liquidity risk includes taking steps to
ensure, as far as possible, that it will always have adequate financial resources to meet its liabilities when due, under both
normal and stressed conditions, without incurring unacceptable losses or risking damage to the company’s reputation.
D. Operational Risk
Operational risk is the risk of direct or indirect loss arising from a wide variety of causes associated with the Entity’s
involvement with financial instruments, including processes, personnel, technology and infrastructure, and from external
factors other than credit, market and liquidity risks such as those arising from legal and regulatory requirements and
generally accepted standards of corporate behavior. The company’s objective is to manage operational risk so as to
balance the avoidance of financial losses and damage to the business reputation with overall cost effectiveness and
to avoid control procedures that restrict initiative and creativity. The compliance with company’s internal controls and
procedures is supported by a program of periodic reviews undertaken by internal audit. The results of internal audit reviews
are discussed with the management of the business units with summaries submitted to the Audit Committee.
4.40 Proposed Dividend

The Board of Directors meeting of Kumari Capital Limited held on Shrawan 25, 2079 has proposed cash dividend amounting
to NPR 200,00,000 (5% of paid-up capital) including tax from retained earning including current year profit.
4.41 Reclassification, and Rounding Off

The previous year figure has been reclassified wherever found necessary for better presentation of Financial Statements.
Certain reclassifications have been made to the prior year’s financial statements to enhance comparability with the current
year’s financial statements.
As a result, certain line items have been amended in the statement of profit or loss and other comprehensive income, and
the related notes to the financial statements. Comparative figures have been adjusted to conform to the current year’s
presentation.
The items were reclassified as follows:

Particulars Previously Reported After Reclassification
Provision for Staff Bonus 3,197,022 -
Staff Bonus Payable - 3,197,022
Provision for Accumulated Leave 509,624 -
Employee Benefit Obligation* - 404,193
* Re-measurement of accumulated leave liability as per actuarial valuation based on projected unit credit method.
The figures presented in financial statements have been rounded off to the nearest rupee.


Director Independent Director Head - Finance, Independent Director
Admin & HR

CA Prakash Gautam
Proprietor
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SUBSIDIARY COMPANY
KUMARI SECURITIES LIMITED
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Significant Accounting Policies

For the Year Ended Ashad 32, 2079
1 Reporting Entity
K.B.L Securities is incorporated on 2076/4/26, vide registration no 221079/076/077. under the Nepal Companies Act, 2063
having its registered Office at Naxal, Kathmandu. The company is registered at Inland revenue department with the PAN No
609514456 with the objective of dealing with brokerage of stock. K.B.L. securities Limited is fully owned subsidiary of Kumari
Bank Limited.

2 Basis of Preparation
The financial statements are prepared on accrual basis in accordance with Nepal Financial Reporting Standards (NFRS)
pronounced by Accounting Standard Board of Nepal as effective on September, 13, 2013 and the manner required by the Nepal
Companies Act.

The financial statements comprises the Statement of Financial Position, Statement of Income and Statement of Other
Comprehensive Income, the Statement of Changes in Equity, the Statement of Cash Flows and the Notes to the Accounts.

2.1 Statement of Compliance
The financial statements of the company have been prepared in accordance with Nepal Financial Reporting Standards
(NFRS), as pronounced by the Institute of Chartered Accountants of Nepal (legally delegated authority under Companies
Act to do so) issued by the Accounting Standard Board of Nepal so far as applicable. The applicable laws; Company Act,
2063 and Nepal Accounting Standards issued by ICAN, Bonus Act, Labour Act and other applicable laws.

The principal accounting policies adopted in the preparation of these financial statements are presented below and apply
to the company. These policies have been consistently applied to all years presented, unless otherwise stated.

2.2 Reporting Period and Approval of Financial Statements
2.2.1 Reporting Period
The company follows the Nepalese financial year based on the Nepalese calendar. The reporting period for the
financial statement is 2078.04.01 to 2079.03.32.

2.2.2 Responsibility for Financial Statements
The Board of Directors acknowledges the responsibility for the preparation and fair presentation of the financial
statements of "K.B.L Securities Limited" in accordance with NFRS.

2.2.3 Approval of Financial Statements
The accompanied financial statements for the year ended on 16 July 2022 (Ashadh 32, 2079) have been adopted by
the Board of Directors vide resolution passed through meeting held on 01/08/2022.
2.3 Functional and Presentation Currency

The financial statements are presented in Nepalese Rupees (Rs) which is the functional and presentation currency. All
financial information presented in NPR has been rounded to the nearest rupee except where indicated otherwise.

2.4 Use of Estimates, Assumptions and Judgments
The company, under NFRS, is required to apply accounting policies to most appropriately suit its circumstances and
operating environment. Further the company is required to make judgement in respect of items where the choice of specific
policy, accounting estimate or assumption to be followed could materially affect the financial statements. This may later be
determined that a different choice could have been more appropriate.

NFRS requires the company to make estimates and assumptions that will affect the assets, liabilities, disclosure of
contingent assets and liabilities, and profit or loss as reported in the financial statements.

The company applies estimates in preparing and presenting the financial statements. The estimates and underlying
assumptions are reviewed periodically. Revision to accounting estimates are recognized in the period in which the estimates
are revised and are applied prospectively.

Disclosures of the accounting estimates have been included in the relevant sections of the notes wherever the estimates
have been applied along with the nature and effect of changes of accounting estimates, if any.

2.5 Going Concern
The financial statements are prepared on a going concern basis, as the Board of the company is satisfied that the company
has the resources to continue in business for the foreseeable future. In making this assessment, the Board of Directors
have considered a wide range of information relating to present and future conditions, including future projections of
profitability, cash flows and capital resources.

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2.6 Changes in Accounting Policies

The company has applied unifrom accounting policy as permited by NFRS and applying NFRS in measurement of
recognised assets and liabilities.

3 Significant Accounting Policies

3.1 Basis of Measurement
The company, while complying with the reporting standards, makes critical accounting judgement as having potentially
material impact on the financial statements. The significant accounting policies that relate to the financial statements as a
whole along with the judgements made are described herein.

Where an accounting policy is generally applicable to a specific item, the policy is described within that relevant note.
NFRS requires the company to exercise judgement in making accounting estimates. Description of such estimates has
been given in the relevant sections wherever they have been applied.

3.2 Cash and Cash Equivalent
Cash and cash equivalents include cash in hand, balances with BFIs, money at call & short notice and highly liquid financial
assets with original maturities of three months or less from the acquisition dates that are subject to an insignificant risk of
changes in their fair value and are used by the company in the management of its short-term commitments.

3.5 Income tax
Tax expenses comprises of current tax and deferred tax and are recognised in profit and loss except to the extent that
they relate to items recognised directly in equity or in other comprehensive income.
A. Current Tax
Current tax is the expected tax payable or recoverable on the taxable income or loss for the year, using tax rates enacted
or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Current tax
payable also includes any tax liability arising from the declaration of dividends.

B. Deferred Tax
Deferred income tax is provided in full on all temporary differences arising between the tax bases of assets and liabilities and
their carrying values for financial reporting purposes. However, if the deferred income tax arises from the initial recognition
of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither
accounting nor taxable profit nor loss, it is not accounted for. Deferred income tax is determined using tax rates and laws
that have been enacted or substantively enacted at the reporting date and are expected to apply when the related deferred
income tax liability is settled. Deferred income tax assets are recognized only to the extent that it is probable that future
taxable profits will be available against which the temporary differences can be utilized. Deferred income tax is provided on
temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the
temporary difference is controlled by the company and it is probable that the temporary difference will not reverse in the
foreseeable future.

The measurement of deferred tax reflects the tax consequences that would flow from the manner in which the company
expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets and
liabilities are offset only if certain criteria are met.

3.6 Provisions
A provision is recognized when as a result of a past event, the licensed institution has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle
the obligation.

A) Provision for Redundancy
It shall include benefits payable as a result of employment being terminated or based on a dismissal plan of the licensed
institution. It also includes provision for employees' termination benefits like voluntary retirement scheme.

B) Provision for Restructuring
Restructuring includes sale or termination of a line of business, closure of business locations or relocation in a region,
changes in management structure, fundamental reorganizations that restructuring that is recognized as per the requirement
of NFRSs. Provision for the same shall be done.

C) Pending Legal Issues and Tax Litigation
It includes provisions for pending legal issues and tax litigation.
3.7 Revenue Recognition:

Revenue are recognized on an accrual basis when the service has been provided or significant act performed whenever
the benefit exceeds cost in determining such value.

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3.8 Share capital and reserves

Financial instruments issued are classified as equity when there is no contractual obligation to transfer cash, other financial
assets or issue available number of own equity instruments. Incremental costs directly attributable to the issue of new
shares are shown in equity as deduction net of taxes from the proceeds.
Dividends on ordinary shares and preference shares classified as equity are recognised in equity in the period in which they
are declared.
Incremental costs directly attributable to the issue of an equity instrument are deducted from the initial measurement of the
equity instruments considering the tax benefits achieved thereon.
The reserves include retained earnings and other statutory reserves such as general reserve,assets revaluation reserve,
capital reserve and other reserve etc.
Notes to the Financial Statements

For the Year Ended Ashad 32, 2079

4.1 Cash & Cash Equivalent
Cash & Cash Equivalent has been shown at carrying value which is fair value. Balance with B/FIs includes balance
maintained at various banks and financials institutions. Highly Liquid financial assets with original maturities of three
months or less from the date of acquisation that are subject to an insignificant risk of changes in their fair value, and are
used by the licensed institution in the management of its short term commitments.
Particulars As on Ashad 32, 2079 As on Ashad 31, 2078
Cash in Hand - -
Balances with B/FIs 20,072,720 20,000,000.00
Other - -
Total 20,072,720 20,000,000.00
4.2 Current Tax Assets/Liabilities

Current Income Tax Assets includes advance income tax paid under the self assesment tax returns by the bank as per
Income Tax Act 2058 & tax deducted at source (TDS) on behalf of the Bank. Simialrly, the current income tax liabilities
includes the tax payable to the Government computed as per the provision of the Income Tax Act 2058.
Current tax assets 36,724
Current year income tax assets 36,724 -
Tax assets of prior periods - -
Current tax liabilities 24,358
Current year income tax liabilities 24,358 -

Tax liabilities of prior periods - -
Total 12,366 -
4.3 Investment Properties
KBL Securities Ltd. doesnot not own any investment properties as on reporting date.
Investment Properties measured at Fair value
Balance as on shrawan 1, …….. - -
Addition/disposal during the year - -
Net changes in fair value during the year - -
Adjustment/transfer - -
Net amount - -
Investment Properties Measured at Cost
Balance as on shrawan 1, …….. - -
Addition/disposal during the year - -
Adjustment/transfer - -
Accumulated depreciation - -
Accumulated impairment loss - -
Net amount - -
Total
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4.4 Property & Equipment

KBL Securities Ltd does not own any Property & Equipment as on reporting date.
Cost
Balance as onShrawan 2078 - -
Acquisition - -
Capitalization - -
Disposal during the year - -
Adjustment/Revaluation - -
Balance as on Ashad end 2079 - -
As on Shrawan 1, 2078 -
Depreciation charge for the Year -
Impairment for the year -
Disposals -
Adjustment
As on Ashad end 2079 - -
Capital Work in Progress
Net Book Value
4.5 Goodwill and Intangible Assets

KBL Securities Ltd does not have any Goodwill & Intangible Assets as on reporting date.
Cost
Balance as on Ashad end 2078
Acquisition - -
Capitalization - -
Disposal during the year - -
Adjustment/Revaluation - -
Balance as on Ashad end 2079 - -
As on Ashad end 2078 -
Amortization charge for the Year - -
Impairment for the year - -
Disposals - -
Adjustment - -
Capital Work in Progress - -
Net Book Value
4.6 Deferred Tax

Deferred Tax is recognised as per the provisions of NAS 12, Income Taxes.
As on Ashad 32, 2079
Particulars Deferred
Deferred Tax Deferred Tax
Tax Assets/
Assets Liabilities
(Liabilities)
Property & equipment - - -
Employees' defined benefit plan - - -
Lease liabilities - - -
Provisions - - -
Other temporory differences - - -
Carry forward losses (39,120) - (39,120)
Deferred tax on temporory differences (39,120) - (39,120)
Deferred tax on carry forward of unused tax losses -
Deferred tax due to changes in tax rate - -
Net Deferred tax asset/(liabilities) as on Ashad end of 2079
(39,120) - (39,120)
(Closing F.Y 78-79)
Deferred tax (asset)/liabilities as on Shrawan 1, 2078.(Opening F.Y 78-79)
Origination/(Reversal) during the year (39,120)
Deferred tax expense/(income) recognised in profit or loss 39,120
Deferred tax expense/(income) recognised in other comprehensive income -
Deferred tax expense/(income) recognised in directly in equity -
231
4.7 Other Assets

KBL Securities Ltd does not have other assets as on reporting date.
Assets held for sale - -
Bills receivable - -
Accounts receivable - -
Accrued income - -
Prepayments and Deposit - -
Others - -
Total - -
4.8 Provisions
KBL Securities Ltd does not have provisions as on reporting date.
Provisions for redundancy - -
Provision for restructuring - -
Pending legal issues and tax litigation - -
Onerous contracts - -
Other - -
Total - -
4.9 Other Liabilities

Liability for long-service leave - -
Short-term employee benefits - -
Bills payable - -
Creditors and accruals -
Liabilities under Finance Lease - -
Provision for Audit Fee 27,875 27,875
Employee bonus payable - -
Other
Liabilities under Operating Lease - -
Employees Provident Fund Payable - -
TDS Payable 375 375
Other Payable-(Kumari Bank Ltd) - 102,150
Total 28,250 130,400
4.10 Share capital

Ordinary shares
Ordinary Equity Share Capital 20,000,000 20,000,000.00
Convertible preference shares (equity component) - -
Irredemable preference shares (equity component) - -
Perpetual debt (equity component only) - -
Total 20,000,000.00 20,000,000.00
Authorized Capital
a) 500,000 Ordinary Shares of Rs.100 each 50,000,000 50,000,000.00
b) ………… Non- redeemable preference shares of Rs. ……..each - -
c) ………… Redeemable Preference Shares of Rs. ………each - -
Issued capital
a) 200,000 Ordinary Shares of Rs.100 each 20,000,000 20,000,000.00
b) ………… Non- redeemable preference shares of Rs. ……..each - -
Subscribed and paid up capital
a(i) 200,000 Ordinary Shares of Rs.100 each 20,000,000 20,000,000.00
b) ………… Non- redeemable Preference Shares of Rs. ………each - -
Total 20,000,000 20,000,000.00
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4.11 Reserves
Capital Redemption Reserve - -
Capital Reserve - -
Assets Revaluation Reserve - -
Actuarial Gain - -
Special Reserve - -
Other Reserve
Total - -
4.12 Contingent Liability

Contingent liabilities are potential future cash out flows, where the likelihood of payment is considered more than remote,
but is not considered probable or cannot be measured reliably. Where the entity undertakes to make a payment on behalf
of its customers for guarantees issued for which an obligation to make a payment has not arisen at the reporting date, those
are included in these financial statements as contingent liabilities
Where the company has confirmed its intention to provide funds to a customer or on behalf of a customer in the form of
loans, overdrafts, future guarantees, whether cancellable or not and the company has not made payments at the reporting
date, those instruments are included in these financial statement as commitments.
KBL Securities Ltd does not have contingent liability to be disclosed as on reporting date.
4.13 Commission Income

Purchase Transaction Income - -
Sales Transaction Income - -
Total interest income - -
4.14 Other Business Income

Interest Income 244,844 -
Other Miscellaneous Income - -
Total interest expense 244,844 -
4.15 Personnel Expense

Salary - -
Allowance - -
Gratuity Expense - -
Provident fund - -
Uniform - -
Training & Development Expense - -
Leave Encashment - -
Medical - -
Insurance - -
Employees Incentive - -
Cash-settled share-based payments - -
Pension Expenses - -
Other expenses related to staff - -
Sub total - -
Employees Bonus - -
Grand Total - -
4.16 Other Operating Expense

All operating expenses other than those relating to personnel expense are recognized and presented under this account head.
Directors' fee - -
Directors' expense - -
Auditors' remuneration 28,250 28,250.00
Other audit related expense - -
Registration Fee 5,000 -
Professional and legal expense - -
Office administration expense - -
Operating lease expense - -
Onerous lease provisions - -
Other - -
Total 33,250 28,250.00
233
4.17 Depreciation & Amortisation

Depreciation on property and equipment - -
Depreciation on investment property - -
Amortisation of intangible assets - -
Total - -
4.18 Non operating income

Other income - -
Total - -
4.19 Non operating expense

Redundancy provision - -
Expense of restructuring - -
Other expense - -
Total - -
4.20 Income Tax Expense

Current tax expense
Current year 24,358 -
Adjustments for prior years -
Net Current Tax 24,358 -
Deferred tax expense
Origination and Reversal (TD) 39,120 8,475
Changes in tax rate - -
Recognition of previously unrecog tax losses - -
Net Deferred Tax 39,120 8,475
Total income tax expense 63,478 8,475
4.21 Related parties disclosures

A related party transaction is a transfer of resources, services, or obligations between related parties, regardless of whether
price is charged. Following are the related party and transactions occurred with them.
Following has been identified as Related Parties for company under NAS 24 Related Parties:
a. Directors
b. Key Management Personnel of the company
c. Relatives of Directors and Key Managerial Personnel
Name Relationship
Aswin Babu Shrestha Director
Anish Tamrakar Director
4.23 Events after reporting date:

Events after Reporting Period are those that occur between the end of the reporting period and when the financial
statements are authorized for issue.
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Milestones, CSR &

AWARDS/ACHIEVEMENTS
237
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Corporate Social
At Kumari Bank Limited, we firmly stand by the motto: ‘Do well protection include investing in promoting green plantations
by doing Good’. We believe that we can enhance our competitive via region-wise afforestation drives, spreading environmental
edge and profitability, while fostering projects and commitments awareness and our initiatives to minimizing our carbon footprint,
that contribute to the well-being of our communities and promote which is likely to be observed in the mid-term after completion of
societal order. We ensure this belief is carried for the long-run digitization of all our core-operations.
by ensuring our social investments (CSR spending) are funneled
towards sustainable, social initiatives that aim to deliver long- Furthermore, the Bank has also acquired electric vehicles, as
term returns. part of embracing electric mobility in Nepal. This move is bound
to not only implement fleet sustainability and diminish emission
As a responsive and responsible corporate citizen, Kumari Bank of harmful greenhouse gases, but will serve as fuel-efficient and
will continue to accord very high priority to our CSR engagement. cost-effective means of mobility against the grim backdrop of
This commitment accounts for why we are one of the few Banks sky-rocketing global fuel prices.
in Nepal that maintains a full-fledged CSR unit.
Education & Skill Enhancement
Ever since its inception, as a Bank, CSR has remained a key Kumari Bank supports local public schools with logistical and
plan of our strategic drive for the overall well-being of our society financial support, and aid them in capacity building of teachers
in which we operate. In fact, next to our corporate citizenship and infrastructure development.
obligations is our unwavering commitment and efforts in CSR, a
dedication that has won for us commendations from within the The Bank also organizes skill-development and income-
Nepali Banking realm. generating trainings/programmes in coordination with NGOs/
INGOs and the local governing bodies. In addition to this, financial
Investing for shared Sustainable Prosperity assistance is also given to marginalized and underprivileged
Initiatives in Education, Health, Environment and Social communities in setting up cottage industries and empowering
Development forms a sizeable chunk of Kumari Bank’s them with marketing knowhow.
community-outreach programs.
Women & Youth Empowerment Programmes
We contribute to the well-being of people by introducing Kumari Bank nurtures and sponsors many projects designed to
sustainable measures and providing assistance to various educate, employ and empower women and youth in and around
institutions and welfare organizations, across Nepal, reaching the catchment areas of its operations.
well beyond our business locations, impacting the lives of
marginalized communities. Over the years, our initiatives have Kumari Bank Community Development Programmes
positively affected thousands of individuals. Kumari Bank conducts several livelihood-training programmes
and has also provided aid and equipment to the physically
Community Infrastructure challenged communities to help them lead fairly independent
A large number of initiatives are focused on developing lives from an economic well-being point-of-view.
community infrastructure and protecting the environment.
Kumari Bank has made considerable investments in the realm of Kumari Bank Educational Scholarships
Sustainable Water management by partnering with Smart PAANI. The Bank has been providing various educational scholarships
We have invested in water-filtration and purification installations and/or financial aid to a few meritorious students, hailing from
in various publicly funded schools across all 7 provinces, where low-income backgrounds, either through direct donations and/
there was limited access to clean drinking water prior to the or partnerships with other institutions working to bridge gaps in
Bank’s intervention. Access to Quality Education.
Environment Protection Drives Kumari Foundation

Environmental impact assessment and qualitative risk analysis Kumari Bank Limited has always made sustainable development
are central to all our new projects. We have converted a sizeable the cornerstone of its business strategy to achieve sustainable
portion of arid lands into major green zones. and profitable growth, creating in its wake thriving eco-systems
around all its businesses. To provide impetus to various
Moreover, some of the Bank's initiatives to promote environment developmental initiatives of Kumari Bank, we are in the process
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Responsibility
of setting up a non-profit making structure, in the name of
Kumari Foundation, with an objective to facilitate the coverage of As we continue to expand and grow, we will also continue to
social-welfare activities channelize Bank’s CSR as an expression expand and deepen the scope of our commitment to giving
of our vision towards sustainable growth in Nepal. back to society, a reasonable chunk of the fruit of our labour as
a corporate-citizen. In doing this, we will ensure that we do not
just spread our assistance thinly across all manner of needs, but
The vision for the foundation is to set up a non-profit making endeavor to make contributions that make meaningful impact on
structure, in pursuit of rendering a positive impact in the society the well-being of the beneficiaries and the society at large. For
through philanthropy, creation of awareness about the pressing this, we have a CSR policy in place that ensures all our CSR
social issues and providing solutions to identified problems undertakings are in accordance with the CSR regulations in
through equity or direct grant and technical support. place, while being in congruence with the Bank’s vision.
Provincewise and Sectorwise CSR Spending
Environ- Miscella-
Province Education Health Heritage Sports Total
ment neous
Province 1 50,000 10,000 20,000 21,001 101,001
Province 2 240000 240,000
Bagmati 2,084,657 720,000 2,314,241 140,850 1,525,000 200,000 6,984,749
Gandaki 327,200 35,000 10000 115,500 487,700
Lumbini 403,916 21200 10,000 150000 105,629 690,745
Karnali 320,625 500,000 178,402 999,027
Sudurpaschim 184,298 495,065 47,304 726,667
Total 3,610,696 1,236,265 2,869,241 170,850 1,675,000 667,836 10,229,888
Heritage
Miscellaneous
Sports
Education
Environment Health
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Excellence in E-commerce Business 2022

Excellence in E-commerce Business 2022
VISA International felicitated the Bank in the
Leadership & Conclave Payments Innovation Awards
in the category: "Excellence in E-commerce
Business 2022" for garnering highest e-commerce
business volume in the Nepalese card payment
industry.
Infosys Finacle Client Innovation Awards2019

Kumari Bank Limited has been awarded with
international recognition: the "Accelerated
Transformation Award" at the Infosys Finacle
Client Innovation Awards 2019. Kumari Bank is
first ever Nepali bank to receive the said-award by
Finacle Infosys. The said-award has recognized the
competence and potential of the comprehensive
Nepali banking industry.
The Finacle client innovation award is a global platform

of recognition given to bank delivering breakthrough
innovation in banking products, customer service,
process design and distribution channels via
capitalization on Finacle solutions.
With over 250 nominations received over 8 categories

Kumari Bank Limited has successfully bagged the
winning title for core banking modernization in the
"Accelerated Transformation" category this year.
With this, Kumari Bank has set up a historical record
for successful migration of CBS Finacle Version
10.2.19 in the shortest recorded time of 4.5 months.
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mBillionth Award South Asia 2011

The Bank received the coveted international
recognition - mBillionth Award south Asia 2011
for its mobile cash products. It is a platform that
recognizes some of the key innovative applications
and services and honored excellence in the arena of
mobile communications across South Asia.
Manthan Award South Asia 2011

The first of its kind, Kumari mobile cash pioneered the
"mobile wallet" concept in Nepal, which allowed users
to store cash balances in their mobile phones. Users
are then able to deposit and withdraw cash from their
mobile phones, and use the stored cash value for
various purposes such as remittance, bill payment,
and airtime recharge, with the push of a few buttons.
For this, Kumari Bank won the Manthan Award
South Asia 2011 for the concept and introduction of
Kumari Mobile Cash in Nepal, out of 481 participants
across 30 categories.
243
NPR
NPR 14.71
NPR 212 NPR
Billion
Paid-up Capital
182
Billion
17.54
EPS
Billion
Total Assets 159
Billion
Deposit Portfolio Lending
Portfolio
1.22%
12.63%
ROA
12.28% 200 ATMs
8.4
CAR ROE
Lakhs NPR
M-Banking
NPR
Customers
199
6.21
2.57
Billion
Branches
Billion
Net interest
Income
60
36
Net Profit
Thousands
1.11% I-Banking Extension
NPL Customers
Counters
60 BLB
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KUMARI BANK LIMITED

BRANCH NETWORK
245
Branch Network
Province 1
1 AANPGACHHI 8 CHISANKHUGADHI 15 NOBEL MEDICAL COLLEGE
Mr. Sujan Shrestha Mr. Bijaya Pandey EXTENSION COUNTER
Mobile: 9852049270 Mobile: 9845279225 Mr. Bhupal Singh Adhikari
Itahari Sub-metropolitan city, Chishankhugadhi Rural Mobile: 9852066445
Ward no. 2, Aanpgachhi, Sunsari Municipality-5, Serna, Okhaldhunga Biratnagar Metropolitan City,
025-475126/ 127 chisankhugadhi@kumaribank.com Ward No. 4, Kanchanbari, Morang
aanpgachhi@kumaribank.com
9 DAMAK 16 OKHALDHUNGA
2 BARGACHHI Mr. Yuba Raj Dahal Mr. Dhan Bahadur Bhat
Mr. Nitesh Agrawal Mobile: 9852676277 Mobile: 9851126494
Mobile: 9852039613 Damak Municipality, Damak, Jhapa Rambaazar-4, Okhaldhunga
Biratnagar Metropolitan City, Tel: 023-582580 okhaldhunga@kumaribank.com
Morang damak@kumaribank.com
Tel: 021- 461388 17 PATHARI
bargachhi@kumaribank.com 10 FIKKAL Mr. Madhav Prasad Kharel
Mr. Keshab Gautam Mobile: 9852035547
3 BELAKA Mobile: 9852054779 Pathari Sanishchare Muncipality-1,
Mr. Amit Kumar Jha Suryodaya Municipality, Morang
Mobile: 9852844043 Ward No. 10, Fikkal, Ilam Tel: 021-556127/137
Belaka -9, Rampur, Udaypur Tel: 027-540632/33 pathari@kumaribank.com
belaka@kumaribank.com fikkal@kumaribank.com
18 RELIANCE SPINNING MILLS -
4 BELBARI 11 INARUWA EXT COUNTER KHANAR
Mr. Ambika Prasad Khatiwada Mr. Prakash Raj Pandey Itahari Sub-Metropolitan City,
Mobile: 9852057309 Mobile: 9852078514 Khanar -Sunsari
Belbari Municipality, Morang Inaruwa Municipality, lnaruwa, Sunsari Tel: 025-420136
Tel: 021-434421/22 Tel: 025- 590120/ 21
belbari@kumaribank.com inaruwa@kumaribank.com 19 SWASTIK JUTE MILLS
EXTENSION COUNTER
5 BIRATNAGAR 12 ITAHARI Mr. Bijan Karki
Mr. Ankit Pandey Mr. Dhundi Raj Bhattarai Mobile: 9807048114
Mobile: 9852030455 Mobile: 9852055470 Budhiganga Rural Municipality
Goshwara Road, Biratnagar-9, Pathivara Market, Itahari, Sunsari Nemuwa -Morang
Byapaar Sangh Building,Morang Tel: 025-586659/61 biratnagar@kumaribank.com
Tel: 021-577101/02/03/04/05 itahari@kumaribank.com
biratnagar@kumaribank.com 20 URLABARI
13 LUKLA Mr. Tanka Prasad Neupane
6 BIRTAMODE Mr. Ganesh Lama Mobile: 9852055572
Mr. Devraj Nepal Mobile: 9852833095 Itahara Road, Urlabari-4, Morang
Bhadrapur Road, Birtamod Khumbu Pasang Lhamu Rural Tel: 021-541901/ 02
Municipality, Jhapa Municipality, Solukhumbu urlabari@kumaribank.com
Tel: 023-531028/534080/533822 lukla@kumaribank.com
birtamod@kumaribank.com
14 NAMCHE
7 CHANDRAGADHI Mr. Ganesh Lama
Ms. Ushitapa Pandey Mobile: 9852833095
Mobile: 9851139372 Khumbu Pasang Lhamu Rural
Bhadrapur Municipality, Municipality-5, Namche Bazar,
Chandragadhi, Jhapa Solukhumbu
Tel: 023-453026/27 038-540414
chandragadhi@kumaribank.com namche@kumaribank.com
Madhesh Province
1 BARAHATHAWA
Mr. Mohammad Kashif Reza 3 BARDIBAS 5 BHANGAHA
Mobile: 9854033786 Mr. Hemant Karki Mr. Randhir Kumar Mandal
Barahathawa Municipality, Ward No -7, Mobile: 9854030707 Mobile: 9854055060
Sarlahi Bardibas Municipality, Mahottari Bhangaha Ward No - 5, Mahottari
Tel: 046-540387 044-550558/580/680 9841521424
barahathawa@kumaribank.com bardibas@kumaribank.com bhangaha@kumaribank.com
2 BARAHATHAWA MALPOT 4 BAYALBAS 6 BIRGUNJ

EXTENSION COUNTER Mr. Bikram Kumar Shrestha Mr. Sujan Dhungana
Mr. Moti Shanker Parwat Mobile: 9851110099 Mobile: 9852024932
Mobile: 9861620010 lshworpur Municipality, Birgunj Metropolitan City,
Barahathawa Municipality, Sarlahi Ward No - 6, Sarlahi Aadarshanagar, Parsa
barahathawa@kumaribank.com 9854022585 051-524812/ 813
bayalbas@kumaribank.com birgunj@kumaribank.com
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Madhesh Province
7 CHANDRAPUR 12 KHAYARMARA EXTENSION 17 NIJGADH
Mr. Khil Narayan Shrestha COUNTER Mr. Umesh Lamichhane K.C.
Mobile: 9854024300 Mr. Nirman Shrestha Mobile: 9861622005
Chandrapur Municipality, Rautahat Khayarmara CTEVT, Bardibas Nijagadh Municipality 7, Bara
055-540006/ 07 Municipality, Ward No. 11, 053-540483
chandrapur@kumaribank.com Mahottari nijgadh@kumaribank.com
9860644321
8 DRYPORT bardibas@kumaribank.com 18 PRATIMACHOWK
Mr. Shashibhusan Kumar Kushwaha Mr. Sanjay Prasad Sah
Mobile: 9845193196 13 LAHAN 9855026378
Sirsiya, Parsa Mr. Deb Sharan Raut Birgunj Metropolitan city, Parsa
051-590022 Mobile: 9854020803
dryport@kumaribank.com Lahan Municipality, Lahan, Siraha 19 R.R.M. CAMPUS
033-564758/ 59 EXTENSION COUNTER
9 HARIWON lahan@kumaribank.com Mr. Ranjan Kumar Yadav
Mr. Dhundi Raj Subedi Janakpurdham Sub-Metropolitan
Mobile: 9851147100 14 MAHENDRANAGAR City, Ward no. 12, Janakpurdham,
Hariwon Municipality, Sarlahi Mr. Bashudev Bhattarai Dhanusha
046-530246, 046-530287 Mobile: 9854030706 9854025523
hariwon@kumaribank.com Chhireshwornath Municipality, janakpur@kumaribank.com
Dhanusa
10 JANAKPUR 041-540351 20 RAJBIRAJ
Mr. Sanjay Kumar Karna mahendranagar@kumaribank.com Mr. Rahul Kumar Gupta
Mobile: 9854027297 Mobile: 9852835588
Janakpurdham Sub-Metropolitan 15 MALANGAWA Rajbiraj Municipality, Ward No. 7,
City, Dhanusa Mr. Dipesh Raj Amatya Saptari
041-590092/ 093 Mobile: 9851244683 031-530272/73
janakpur@kumaribank.com Malangawa Municipality, rajbiraj@kumaribank.com
Malangawa, Sarlahi
11 JITPUR 9801660025 21 SIRSIYA
Mr. Krishna Prasad Poudel malangwa@kumaribank.com Mr. Bikas Dangol
Mobile: 9855023622 Mobile: 9855026177
Jitpur, Simara Sub-Metropolitan 16 NATIONAL MEDICAL COLLEGE Birgunj Metropolitan City, Dryport,
City, Bara EXT COUNTER Parsa
053-412275/ 76 Parsa, Birgunj 051-590417/ 432
jitpur.bara@kumaribank.com 051-621890
Bagmati Province (A - Inside Valley)

1 KUMARIPATI 5 SATDOBATO 10 GOLFUTAR
Mr. Bigyan Rana Mr. Jems Hamal Mr. Yugal Kumar Shrestha
Mobile: 9851106276 Mobile: 9849134099 Mobile: 9851278784
Kumaripati, Lalitpur Khumaltar, Satdobato, Lalitpur Golfutar, Kathmandu
01-5456024/25/26 01-5230016/146 01-4378873
kumaripati@kumaribank.com satdobato@kumaribank.com golfutar@kumaribank.com
2 LALDARBAR 6 BOUDDHA 11 JHAMSIKHEL

Mr. Nabin Muni Bajracharya Ms. Anupama Kc Mr. Kumar Upreti
125 Bina Marg, Lal Darbar, Boudha, Kathmandu Jhamsikhel, Lalitpur Metropolitan 3,
Kathmandu 01-4913075/ 76 Lalitpur
01-4253459/6633; 4242272/2553 boudha@kumaribank.com 01-5422080/01-5422081
laldarbar@kumaribank.com jhamsikhel@kumaribank.com
7 KALIMATI
3 BUDHANILKANTHA Ms. Manisha Suwal 12 BANEPA
Ms. Priyanka Khatiwada Dahal Mobile: 9851034041 Ms. Nabina Vaidhya
Mobile: 9851152415 Kalimati, Kathmandu Mobile: 9851132771
Narayanthan, Milan Chowk, 01-5370303/04 Surya Bhawan, Banepa-8,
Budhanilkantha, Kathmandu kalimati@kumaribank.com Kavrepalanchok
01-4377718 011-661298/309
budhanilkantha@kumaribank.com 8 JAGATI banepa@kumaribank.com
Ms. Krishna Laxmi Kisi
4 THALI Mobile: 9851160330 13 MELAMCHI
Mr. Sandip Shrestha Jagati Chowk, Bhaktapur Mr. Kiran Maharjan
Mobile: 9801017922 01-6616006/ 007 Mobile: 9851179468
Thali Chowk, Kathmandu jagati@kumaribank.com Melamchi Municipality, Melamchi,
01-4451285/486 Sindhupalchok
thali@kumaribank.com 9 JAGATI EXTENSION COUNTER 011- 401087/97
Ms. Krishna Laxmi Kisi melamchi@kumaribank.com
Suryabinayak Municipality - 8,
Jagati, Bhaktapur
01-6616007
247
Bagmati Province (A)

14 AALAPOT 21 KUNTABESI 28 CHHETRAPATI EXTENSION
Mr. Anil Dhakal Mr. Bishnu Prasad Paudel COUNTER
Mobile : 9851171861 Mobile: 9841491375 Ms. Sarita Ranabhat
Kageshwori Manahara Municipality, Mandandeupur Municipality - 7, Public Youth Campus, Kathmandu
Kathmandu Kuntabesi, Kavrepalanchowk Metropolitan City, Ward No. 17,
01-4156779/ 798 011-412044 Chhetrapati
aalapot@kumaribank.com kuntabesi@kumaribank.com 9851140918
laldurbar@kumaribank.com
15 ARUBARI EXTENSION 22 KUSHADEVI
COUNTER Mr. Deba Bahadur Khatri 29 KULESHWOR EXTENSION
Ms. Jyoti Sapkota Mobile: 9849093410 COUNTER
Gokarneshwor Municipality, ward Panauti - 6, Kushadevi Bazaar, Ms. Sabanam Pradhan
no. 9, Arubari, Kathmandu Kavrepalanchok Kuleshwor Awas Secondary School,
9851310099 011-405104/405105/405106 Kathmandu Metropolitan City,
bouddha@kumaribank.com kushadevi@kumaribank.com Ward No. 14, Kuleshwor, Kathmandu
9841218655
16 GATTHAGHAR 23 PANCHKHAAL kalimati@kumaribank.com
Ms. Preeti Pandey Mr. Bishnu Mani Nepal
Mobile: 9851296861 Mobile: 9851171259 30 TAHACHAL EXTENSION
Madhyapur Thimi Municipality, Panchkhaal Municipality-4, COUNTER
Bhaktapur Kavrepalanchok Ms. Barsha Ban
01-5903941 / 42 011-499048 Mahendraratna Campus,
gatthaghar@kumaribank.com panchkhaal@kumaribank.com Kathmandu Metropolitan City, Ward
No. 13, Tahachal, Kathmandu
17 BYASI 24 THIMI 9867813025
Mr. Krishna Prasad Dumaru Ms. Prabina Chhunju newroadpako@kumribank.com
Mobile: 9851127857 Mobile: 9851275413
Bhaktapur Municipality, Byasi, Madhyapur Thimi - 7, Mill Road, 31 TATHALI EXTENSION COUNTER
Bhaktapur Bhaktapur Mr. Sunil Krishna Karmacharya
01-6612257/ 261 01-6634098/832 ; 01-6635202 Kathmandu Cancer Center Pvt. Ltd.,
byasi@kumaribank.com thimi@kumaribank.com Chhangunarayan Municipality,
Ward No. 09, Tathali, Bhaktapur
18 BHAKTAPUR 25 MALIGAON 01-5091810
Mr. Roshan Prasad Lawaju Mr. Suyog Shrestha jagati@kumaribank.com
Mobile: 9851310773 Mobile: 9855050280
Dudhpati-01, Bhaktapur Maligaon, Kathmandu 32 KHURKOT
01-6620045, 6641300 01- 4545495 Mr. Subash Thapa
bhaktapur@kumaribank.com maligaon@kumaribank.com Golanjor Rural Municipality,
Khurkot, Sindhuli
19 DHULIKHEL 26 NAYAPATI 9851226531
Mr. Rabin Pandey Mr. Sachin Chettri khurkot@kumaribank.com
Mobile: 9851206104 Mobile: 9855045823
Dhulikhel Municipality-3, Dhulikhel, Gokerneshwor, Nayapati, Kathmandu 33 INDRAYENI EXTENSION
Kavrepalanchok 01-4801304/305 COUNTER
011-490614 nayapati@kumaribank.com Mr. Kiran Bhattarai
dhulikhel@kumaribank.com Shankharapur Municipality,
27 SIFAL Ward no. 9, Indrayeni, Kathmandu
20 JALBIRE Mr. Mahesh Dhakal 9860232466
Mr. Ishwor Poudel Khatri Mobile: 9851259658 alapot@kumaribank.com
Mobile: 9844145420 Sifal, Kathmandu Metropolitan City - 7,
Jalbire VDC - 4, Sindhupalchok Kathmandu 34 NIKOSERA EXTENSION
011 - 403051 01-5901909, 01-5901908 COUNTER
jalbire@kumaribank.com sifal@kumaribank.com Ms. Anjana Kutuwaju
Madhyapur Thimi Municipality, ward
no. 9, Nirpur, Nikosera, Bhaktapur,
Kathmandu
9849720601
thimi@kumaribank.com
Bagmati Province (B)

35 AMACHHODINGBO 37 KHUSIBU 39 KOTESHWOR
Mr. Janga Bahadur Tamang Mr. Manoj Pokhrel Ms. Kripa Shrestha
Amachhodingbo Rural Municipality, Khusibu, Kathmandu Tinkune, Koteshwor, Kathmandu
Chilime, Rasuwa 01-4360571/72 01-5199425/ 01-5199426
9808133434 khusibu@kumaribank.com koteshwor@kumaribank.com
amachhodingbo@kumaribank.com
38 KIRTIPUR 40 LOLANG EXTENSION COUNTER
36 BAGMATI Ms. Anjana Joshi Mr. Dhanraj Singh Budhathoki
Mr. Anil Maharjan Mobile: 9851124037 Tarkeshwor Municipality, Boharatar,
Mobile: 9858045688 Kirtipur Municipality, Nayabazaar, Lolang Height, Kathmandu
Bagmati Rural Municipality, Kathmandu 9762871224
Ward No. 03, Lalitpur 01- 4330726/ 01- 4333164 futung@kumaribank.com
01-6227411 kirtipur@kumaribank.com
bagmati@kumaribank.com
248
www.kumaribank.com

41 MAHARAJGUNJ EXTENSION 51 SAMAKHUSI EXTENSION 60 BALAJU
COUNTER COUNTER Mr. Narayan Shrestha
Ms. Suniti Adhikari Ms. Anne Shrestha Mobile: 9851150168
Kathmandu Metropolitan city, Ashirwad College, Kathmandu Kathmandu Metropolitan City,
Ward no. 3, Maharajgunj, Kathmandu Metropolitan City, Ward No. 26, Ward no. 16, Balaju Bypass
9841470518 Samakhushi, Kathmandu 01-4382180
panipokhar@kumaribank.com 9841359564 balaju@kumaribank.com
thamel@kumaribank.com
42 MAITIDEVI 61 BALAJU EXTENSION COUNTER
Mr. Nabin Thapa 52 SANOBHARYANG Ms. Anita Tiwari
Mobile: 9851255771 Mr. Manoj Gautam Kathmandu Metropolitan City,
Maitidevi, Kathmandu Mobile: 9851253800 Ward no. 16, Balaju
01-5909322/23 Sanobharyang, Kathmandu 01-5914168
maitidevi@kumaribank.com 01-5249479/ 80 balaju@kumaribank.com
sanobharyang@kumaribank.com
43 MANGALBAZAR 62 BALKHU EXTENSION COUNTER
Ms. Padma Pradhan 53 SHANKHAMUL EXTENSION Ms. Soni Bhandari
Mobile: 9851253521 COUNTER Kathmandu Metropolitan City,
Mahapal, Mangal Bazar, Lalitpur Ms. Rojina Thapa Ward no. 14, Balkhu, Kathmandu
01-5529701 Mobile: 9803542558 9841930861
mangalbazar@kumaribank.com Laligurans Rastriya Secondary kritipur@kumaribank.com
School, Kathmandu Metropolitan
44 NAREPHANT City, Ward No. 31, Shankhamul, 63 BANESHWOR
Mr. Ananta Bhandari Kathmandu Mr. Erose Bhandari
Mobile: 9851081773 01-5911367 Mobile: 9851209552
Narephant, Kathmandu newbaneshwor@kumaribank.com Old Baneshwor, Bhimsengola,
01-5149508/5149334 Kathmandu
narephant@kumaribank.com 54 TANGAL, LALITPUR 01-4499322, 01-4462601/71
Mr. Suraj Bajracharya
45 NAXAL Mobile: 9851058145 64 BASUNDHARA
Mr. Suresh Raj Pandey Lalitpur Metropolitan City Mr. Suresh Paudel
Mobile: 9851051843 Ward - 19, Tangal, Lalitpur Mobile: 9851034702
C&D Block, 1st Floor, Four Square 01-5538011, 5548301 KMC -3, Basundhara, Chauki
complex, Narayanchaur, Naxal, tangal@kumaribank.com Chowk, Kathmandu
Kathmandu 01-4953609 / 01-4956708
01-4427091/ 4429337/ 4424654 55 THAHITY
naxal@kumaribank.com Ms. Shristi Amatya 65 BATTAR
Mobile: 9851138148 Mr. Uddab Kandel
46 NEW BANESHWOR Thahity, Kathmandu Mobile: 9851120743
Ms. Samjhana Rana 01-5358400/ 5355005/ 5357141 Bidur Municipality -4, Battar Bazaar,
Mobile: 9851029636 thahity@kumaribank.com Nuwakot
New Baneshwor, Kathmandu 010-561739/40
01-4795654/ 01-4795653 56 THAMEL battar@kumaribank.com
newbaneshwor@kumaribank.com Ms. Rosita Shah
Mobile: 9851048155 66 CHABAHIL
47 NEW ROAD Chhayadevi Complex, 3rd Floor Ms. Bibha Shrestha
Mr. Deepak Mahat Tridevi Marga -Thamel, Kathmandu Mobile: 9851044441
Mobile: 9856030710 01-5252022/ 23 Chabahil Plaza, Chabahil,
Newroad, Kathmandu thamel@kumaribank.com Kathmandu
01-5713323/75/79/88/92 and 01-4474299
01-5713412/ 32/ 33/ 36/ 56 57 TIMURE chabahil@kumaribank.com
newroad@kumaribank.com Mr. Gyalbo Ghale
Mobile: 9851119489 67 CHABAHIL EXTENSION
48 NEWROAD (DHARMAPATH) Gosaikunda Rural Municipality, COUNTER
Mr. Shiba Pathak Timure, Rasuwa Ms. Sita Kandel
Mobile: 9851163168 010-543119, 9851119489 Chabahil, Kathmandu
Fresh House Building, Dharmapath, timure@kumaribank.com 01-4490074
Kathmandu
01-4221912, 4221915 58 TOKHA 68 CHHAUNI EXTENSION COUNTER
newroadpako@kumaribank.com Mr. Pramod Upreti Ms. Roshi Shrestha
Mobile: 9851085734 Kathmandu Metropolitan city,
49 PANIPOKHARI Tokha, Grande Hospital Road, Ward no. 16, Mhenpi-Chhauni
Mr. Rijendra Bhakta Pradhanang Kathmandu 9841468512
Mobile: 9851203636 01-4986827 khusibu@kumaribank.com
Panipokhari, Kathmandu tokha@kumaribank.com
01-4443657/58 69 FUTUNG
panipokhari@kumaribank.com 59 BAFAL Mr. Santosh Man Singh
Ms. Bidhya Ranjit Mobile: 985112018
50 PUTALISADAK Mobile: 9851237678 Tarakeshwor Municipality,
Ms. Diksha Singh Bafal, Kathmandu Kathmandu
Mobile: 9851176141 01-5314506/ 507 01-5189020/ 21
Kathmandu Metropolitan City, bafal@kumaribank.com futung@kumaribank.com
Kathmandu
01-4232112/ 113
putalisadak@kumaribank.com
249

70 GAIRIGAUN EXTENSION 73 HEAD OFFICE, TANGAL 76 JHOR EXTENSION COUNTER
COUNTER Thirbam Sadak, Tangal Ms. Sunaina Manandhar
Ms. Pratibha Dahal (Dhakal) 01- 4443075/76/77 Mobile: 9841746086
Mobile: 9841549180 Tokha Municipality, Ward no. 1,
Nagarjun Municipality, ward no. 3, 74 IMADOL Tokha-Jhor, Kathmandu
Gairigaun, Kathmandu Ms. Shradha Rai tokha@kumaribank.com
sanobharyang@kumaribank.com Mobile: 9851115809
Mahalaxmi Municipality, Lalitpur 77 KADAGHARI EXTENSION
71 GONGABU 015202157/ 177 COUNTER
Mr. Raju Raj Pandey imadol@kumaribank.com Ms. Gita Khanal
Mobile: 9851042535 Kadaghari, Kathmandu
Lhotse Mall, Gongabu, Kathmandu 75 JAISIDEVAL EXTENSION COUNTER 01-4990274
01-4985807/809 , 01-4985456/644 Ms. Anusha Shakya kadaghari@kumaribank.com
gongabu@kumaribank.com Mobile: 9851074851
Kathmandu Metropolitan City, 78 KALANKI
72 GURJUDHARA Ward no - 23, Jaisideval, Kathmandu Mr. Sujan Joshi
Mr. Binaya Maharjan 01-4250363 Mobile: 9851147797
Mobile: 9851213934 newroadpako@kumaribank.com Purano Kalimati, Kalanki,
Chandragiri Municipality, Ward - 12, Kathmandu
Kathmandu 01-5225394/ 400
gurjudhara@kumaribank.com kalanki@kumaribank.com
Bagmati Province (Outside Valley)

79 SAURAHA 86 CHANAULI 93 HAKIMCHOWK
Mr. Bibek Bhandari Mr. Bikash Acharya Mr. Dhanapati Lamichhane
Hattichowk, Ratna Nagar-6, Chitwan Gunjanagar - 4, Chitwan Bharatpur Metropolitan City,
056-580491 056-592486 Hakimchowk, Chitwan
sauraha@kumaribank.com chanauli@kumaribank.com 056-595430/637
hakimchowk@kumaribank.com
80 NARAYANGADH 87 GEETANAGAR
Mr. Krishna Sharma Mr. Ranga Nath Adhikari 94 SIDDHALEK
Mobile: 9856029941 Mobile: 9855074099 Mr. Jiwan Singh Thagunna
Kamalnagar Chowk, Bharatpur, Bharatpur -6, Chowk Bazaar, Mobile: 9851214926
Chitwan Chitwan Siddhalekh Rural Municipality-4,
056-595241/242/252 056-400048 Dhading
narayangadh@kumaribank.com geetanagar@kumaribank.com 9851241605
siddhalekh@kumaribank.com
81 HETAUDA 88 KHOLESIMAL
Mr. Bishnu Prasad Adhikari Mr. Hari Krishna Regmi 95 CHISAPANI HATIYA EXT
Mobile: 9851085294 Mobile: 9841160220 COUNTER
Nayasadak, Hetauda, Makwanpur Kalika -6, Kholesimal Bazar, Mr. Arpan Dhakal
Sub-Metropolitan-4 Narayanghat, Chitwan Hetauda Sub-Metropolitan City,
057-524143/ 243 056-413004/05 Chisapani Hatiya, Makwanpur
hetauda@kumaribank.com kholesimal@kumaribank.com 057-530377
82 TANDI hetauda@kumaribank.com
Mr. Shankar Sharan Jaisawal 89 LANKOO
Mobile: 9855016210 Mr. Dilip Pradhan 96 DHADING BESI
Ratnanagar Municipality, Mobile: 9855083703 Mr. Dhan Bahadur Shrestha
Ward no. 01, Tandi, Chitwan Dharamchowk, Bharatpur, Chitwan Mobile: 9843649139
056-563066/67 056-590650/750/850 Nilkantha Municipality-3,
tandi@kumaribank.com lankoo@kumaribank.com Dhadingbesi Bazar, Dhading
010-521065/67
83 PURANO PARSA 90 MADI dhadingbesi@kumaribank.com
Ms. Rita Dhakal Lamichhane Mr. Kamal Bahadur Bhandari
Mobile: 9855084898 Mobile: 9855047939 97 DHARKE
Khairahani Municipality, Purano Madi - 3, Basantaur, Chitwan Mr. Rudra Prasad Adhikari
Parsa, Chitwan 056-501082 Mobile: 9851140928
056-582639/ 649 madi@kumaribank.com Dhunibeshi Municipality-6,
puranoparsa@kumaribank.com Dharke Bazar, Dhading
91 MANGALPUR 010-414027
84 NAYA PARSA Mr. Jyoti Rijal dharke@kumaribank.com
Mr. Gangaram Mahato Mobile: 9845051828
Mobile: 9860186598 Mangalpur Chowk, Bharatpur, 98 MAHADEVBESI
Khairahani Municipality, Naya Chitwan Mr. Netra Lal Dhital
Parsa, Chitwan 056-591713 Mobile: 9857860945
056-583326/27 mangalpur@kumaribank.com Mahadevbesi, Dhading
nayaparsa@kumaribank.com 010-415003
92 MALEKHU mahadevbesi@kumaribank.com
85 BHARATPUR Mr. Shiba Raj Kadel
Mr. Dilip Ghimire Mobile: 9818493936 99 MAJUWA EXTENSION COUNTER
Mobile: 9855066640 Benighat-1, Malekhu, Baikunthapuri, Mr. Shiba Kadel
Bharatpur Metropolitan City - 10, Dhading Majuwa Bazaar, Malekhu, Dhading
Synergy Road, Chitwan 010-400021, 400022 010-400025
056-532308/532328/532329 malekhu@kumaribank.com
bharatpur@kumaribank.com
250
www.kumaribank.com
Bagmati Province (Outside Valley)

100 CHARAUDI LBO (EXTENSION 101 BALEFI LBO (EXTENSION 102 BALKUMARI EXTENSION
COUNTER) COUNTER) COUNTER
Ms. Radhika Rijal Mr. Krishna Sapkota Ms. Kalpana Shrestha
Charaudi, Dhading Sangachowk - 1, Sukute, Mobile: 9847113470
01-0420013 Sindhupalchok Balkumari College, Bharatpur
011-400035 Metropolitan City, Ward No. 2,
Chitwan
narayangadh@kumaribank.com
Gandaki Province
1 AMARSINGH CHOWK 10 DULEGAUDA 19 KUSHMA
Mr. Narayan Thapa Mr. Dhananjaya Wagle Mr. Dipak Raj Poudel
Pokhara Metropolitan City, Shuklagandaki Municipality-4, Melmilaap Chowk, Parbat
Amarsingh Chowk, Kaski Unique chowk, Dulegauda, Tanahu 067-421145
061-433523 /24 065-414304/ 325 kushma@kumaribank.com
amarsingh@kumaribank.com dulegauda@kumaribank.com
20 LAKESIDE
2 ARUNGKHOLA 11 FALEBAS LBO (EXTENSION Mr. Rishiram Gyawali
Mr. Gyan Prasad Bhusal COUNTER) Mobile: 9856032723
Mobile: 9857073045 Ms. Laxmi Dhakal Pokhara Metropolitan City,
Nayabelhani-8, Nawalparasi, Falebas, Parbat Ward No - 6, Lakeside, Kaski
Nawalpur 067-430130 061-458123/24/25
078-555296/ 297 lakeside@kumaribank.com
arungkhola@kumaribank.com 12 GAINDAKOT
Mr. Ramesh Poudel 21 LEKHNATH
3 BAGLUNG Mobile: 9845330956 Mr. Mahesh Pokharel
Mr. Ramu Pandey Gaindakot-04, Nawalparasi, Nawalpur Mobile: 9856087499
Mobile: 9857621500 078-501850/078-502500 Pokhara Metropolitan City, Kaski
Mahendrapath, Baglung gaindakot@kumaribank.com 061-562014/15
068-522472/73 lekhnath@kumaribank.com
baglung@kumaribank.com 13 GHIRING
Mr. Ramesh Tiwari 22 POKHARA
4 BENI Mobile: 9857630925 Mr. Bhupendra Khadka
Mr. Milan Kumar Shrestha Ghiring Rural Municipality-3, Mobile: 9856028002
Mobile: 9857662576 Manpur, Tanahu BBC Building, B.P Chowk,
Beni Bazar, Myagdi 065-620003 Chipledhunga, Pokhara, Kaski
069-520151/963, 069-521020 ghiring@kumaribank.com 061-543266/ 543267
beni@kumaribank.com pokhara@kumaribank.com
14 GORKHA
5 BHIMAD Mr. Sanjeev Koirala 23 PRAGATINAGAR
Mr. Narendra Kumar Karki Mobile: 9855063789 Mr. Govinda Adhikari
Mobile: 9856055675 Gorkha Municipality, Gorkhabazar, Mobile: 9855080070
Bhimad Municipality, Tanahu Gorkha Devchuli Municipality - Nawalparasi
065-572480, 98560-55675 06-4420781 East, Pragatinagar, Nawalpur
bhimad@kumaribank.com gorkha@kumaribank.com 078-575005/9855080070
pragatinagar@kumaribank.com
6 BIRAUTA 15 HARINASH
Mr. Mahesh Dhungana Mr. Prakash Dangi 24 RHISING
Mobile: 9851113080 Mobile: 9857055433 Mr. Chandra Bahadur Thapa
Birauta, Pokhara -17, Kaski Harinash Rural Municipality-4, Mobile: 9856033102
061-457760/61 Chittre Bhanjyang, Syangja Rhishing Rural Municipality-2,
birauta@kumaribank.com 063-620004 Pokhari, Tanahu
harinash@kumaribank.com 065-620002
7 CHUMNUMBRI rishing@kumaribank.com
Mr. Krishna Pokharel 16 KAHUNKHOLA
Mobile: 9746134023 Ms. Pratikshya Pokharel 25 SYANGJA
Chumnumbri Rural Municipality-3, Mobile: 9851119900 Mr. Amar Man Shrestha
Filim, Gorkha Kahunkhola - 13, Pokhara, Kaski Mobile: 9857029473
01-6227410 061-584255/ 66 Putalibazar Municipality -1, Syangja
chumnubri@kumaribank.com kahunkhola@kumaribank.com 063-424370/71
syangja@kumaribank.com
8 DALDALE 17 KASKI DISTRICT COURT
Mr. Tika Bahadur Bakabal EXTENSION COUNTER 26 WALING
Mobile: 9857040400 Mr. Nabin Dhital Mr. Bikal Karki
Devchuli - 13, Daldale, Nawalpur Mobile: 9861338725 Mobile: 9851195790
078-575546/48 Pokhara Metropolitan City, Baidam, Waling Nagarpalika, Syangja
daldale@kumaribank.com Kaski 063-440310
lakeside@kumaribank.com waling@kumaribank.com
9 DAMAULI
Mr. Chiranjibi Sharma 18 KAWASOTI
Mobile: 9857672008 Mr. Surya Bahadur Shrestha
Vyasnagar-2, Shree Tole, Tanahu Mobile: 9857087622
065-564787 Sabhapati Chowk, Kawasoti-5,
damauli@kumaribank.com Nawalpur
078-541166/67
kawasoti@kumaribank.com
251
Lumbini Province (A)

1 BAHADURGUNJ 7 CHANDRAUTA 12 MURGIYA
Mr. Babu Ram Khanal Mr. Bikash Kumar Lal Karn Mr. Suman Gyawali
Krishnanagar-8, Kapilvastu Main Chowk, Chandrauta, Kapilvastu Sainamaina Municipality, Murgiya,
076-530190, 9847085376 076-540433 Rupandehi
bahadurgunj@kumaribank.com chandrauta@kumaribank.com 071-440312/ 316
murgiya@kumaribank.com
2 BARDAGHAT 8 DRIVER TOLE
Mr. Kishor Chaudhary Mr. Mohan Pokhrel 13 PALPA
Mobile: 9857012841 Mobile: 9857075176 Mr. Ambika Prasad Basyal
Bardaghat Municipality Tillotama-4, Driver Tole, Rupandehi Mobile: 9851154330
Nawalparasi West, Parasi 071-414350 Tansen Municipality-4,
078-590974/75 drivertole@kumaribank.com Makkhan Tole, Palpa
bardaghat@kumaribank.com 075-522690
9 JITPUR palpa@kumaribank.com
3 BARTUNG EXTENSION COUNTER Mr. Arun Paudel
Mr. Surja Kunwar Chhetri Mobile: 9857045126 14 PARASI
Tansen Municipality Bartung, Palpa Banganga Municipality, Jitpur, Mr. Ram Prasad Basyal
9857014992 Kapilvastu Mobile: 9857041866
076-550446/447 Ramgram Municipality,
4 BHAIRAHAWA jitpur@kumaribank.com Parasibazaar-Nawalparasi West,
Mr. Sujit Pathak Parasi
Mobile: 9855014204 10 KALIGANDAKI 078-520391/92
Narayanpath, Siddharthanagar-8, Mr. Santosh Rayamajhi parasi@kumaribank.com
Rupandehi Mobile: 9857062121
071-571008/09 Kaligandaki Rural Municipality-4, 15 RIDI
bhairahawa@kumaribank.com Purtighat, Gulmi Mr. Bhisma Gyawali
075-620021 Mobile: 9857044702
5 BHUMAHI kaligandaki@kumaribank.com Ridi Bazar, Gulmi
Mr. Top Bahadur Khatri 079-400098
Mobile: 9857017164 11 KHAIRENI ridi@kumaribank.com
Sunwal Municipality-12, Mr. Krishna Bahadur Nepali
Nawalparasi West, Bhumahi, Parasi Mobile: 9857037555 16 SUKRAPATH
078-415425 Debdaha Municipality -7, Mr. Kiran Khadka
bhumahi@kumaribank.com Rupandehi Mobile: 9857072454
071-577230 / 231 Sukrapath, Butwal-10, Rupandehi
6 BUTWAL khaireni@kumaribank.com 071-543924
Mr. Sudan Khatri sukrapath@kumaribank.com
Mobile: 9851117658
Rammandir Line, Butwal-6,
Rupandehi
071-554546/47
butwal@kumaribank.com
Lumbini Province (B)

17 BANSGADHI 21 GADHAWA 25 KHAJURA
Mr. Sridhar Adhikari Mr. Sharad Singh Pandey Mr. Prakash Bayalkoti
Bansgadhi Nagarpalika, Bardiya Main Road, Gadhawa, Dang Deukhuri Khajura - 3, Banke
084-400179/ 181 082-410002/07, 9847848130 081-560456
bansgadhi@kumaribank.com gadhawa@kumaribank.com khajura@kumaribank.com
18 BHALUBANG 22 GHORAHI 26 KOHALPUR

Mr. Krishna Prasad Bhattarai Mr. Sushil Pokhrel Mr. Shreedhar Chalise
Bhalubang, Dang Deukhuri Sahid Gate Marg, Ghorahi, Kohalpur Municipality, Ward no. 11,
082-415145, 9866937139 Dang Deukhuri Kohalpur, Banke
bhalubang@kumaribank.com 082-560732, 082-561579 081-541264
ghorahi@kumaribank.com kohalpur@kumaribank.com
19 BIJAURI
Mr. Madhusudan Gharti 23 HAPURE 27 LAMAHI
Mobile: 9857827465 Mr. Bashanta Prasad Bhandari Mr. Bijay Thapa
Main Road, Bijauri, Dang Deukhuri Mobile: 9857850389 Mobile: 9857834833
082-411146 Babai - 4, Hapure, Dang Deukhuri Main Road, Lamahi, Dang Deukhuri
bijauri@kumaribank.com 082-403032/ 033, 9847879431 082-540432
hapure@kumaribank.com lamahi@kumaribank.com
20 CHISAPANI
Mr. Youbraj Shahi 24 HOSPITAL ROAD 28 MAGARGADHI
Mobile: 9843386940 Ms. Anju Pokhrel Mr. Chakra Khanal
Baidanath - 1, Chisapani, Banke Mobile: 9847832312 Mobile: 9857834620
081-401050 Ghorahi Sub Metropolitan, Magargadhi - 6, Bardiya
chisapani@kumaribank.com Hospital Road, Dang Deukhuri 084-404119/120
082-561559 magargadhi@kumaribank.com
hospitalroad@kumaribank.com
252
www.kumaribank.com
Lumbini Province (B)

29 NARAYANPUR 32 RIMJHIM 35 SISHANIYA
Mr. Dharam Bahadur Oli Mr. Pragyan Jung Rana Mr. Om Prakash Chaudhary
Narayanpur, Ghorahi, Khajura Gaun Palika - 2, Sishaniya, Dang Deukhuri
Dang Deukhuri Rimjhim Bazaar, Banke 082-402055
082-530258/59 9742577850 sishaniya@kumaribank.com
narayanpur@kumaribank.com rimjhim@kumaribank.com
36 TARATAL
30 NEPALGUNJ 33 SAMJHANA BAZAR Mr. Mohan Thapa
Mr. Toyanath Kandel Mr. Manoj Adhikari Mobile: 9848058106
Mobile: 9857030980 Mobile: 9858027713 Taratal-6, Sanoshree, Bardiya
Dhambhoji Chowk, Nepalgunj-1, Baijanath - 6, Samjhana Bazar, 084-440261/304
Banke Banke taratal@kumaribank.com
081-538061/62/63 081-413080/81
nepalgunj@kumaribank.com samjhanabazar@kumaribank.com 37 THAKURBABA
Mr. Bhim Dhami
31 NEPALGUNJ, KARKANDO 34 SHAMSERGUNJ Mobile: 9858489166
Mr. Bishnu Nath Yogi Mr. Prakash Shrestha Thakurbaba Municipality, Bardiya
Mobile: 9847822650 Mobile: 9858071472 084-403203/ 04
Pushpa Lal Chowk, Nepalgunj, Rapati Sonari - 8, Shamsergunj, Banke thakurbaba@kumaribank.com
Banke 081-400062
081-530866/67/68 shamshergunj@kumaribank.com 38 TULSIPUR
karkando@kumaribank.com Mr. Binay Baniya
Mobile: 9858030033
“Ka” Line, Tulsipur-5, Dang Deukhuri
082-521775/ 76
tulsipur@kumaribank.com
Karnali Province
1 BABIACHAUR 4 KAPURKOT 7 SALYAN
Mr. Ram Bahadur Gurung Mr. Dharmendra Raut Chhetri Mr. Birendra Gharti/ Mobile:
Mobile: 9858037302 Mobile: 9857841993 9847842824
Babiachaur, Surkhet New Road, Kapurkot-3, Salyan Khalanga-5, Old Buspark, Salyan
083-416031/ 032 088 - 410011 088-520317/ 18
babiachaur@kumaribank.com kapurkot@kumaribank.com salyan@kumaribank.com
2 BIRENDRANAGAR 5 MEHELKUNA 8 SHREENAGAR EXTENSION

Mr. Yagyaraj Budha Mr. Khim Bahadur Thapa COUNTER
Mobile: 9851132993 Mobile: 9858053009 Mr. Mithun Budhathoki
Birendranagar Municipality-4, Mehelkuna, Surkhet Sharada Municipality Ward no. 01,
Arichowk, Surkhet 083-410003 Salyan
083-522474/522310/521557 mehelkuna@kumaribank.com salyan@kumaribank.com
birendranagar@kumaribank.com
6 MUSIKOT 9 SURKHET
3 KANAKASUNDARI Mr. Nabin Kadayat Mr. Khagendra Kumar Saud
Mr. Randhir Thapa Magar Mobile: 9848281423 Mobile: 9858422008
Mobile: 9858051464 Tallo Bazar, Musikot-1, Khalanga, Tallo Bazaar, Birendranagar,
Kanakasundari Rural Municipality-6, Western Rukum District Surkhet
Gothijiula, Jumla 088-530308 083-521256/ 2256
9858051464 rukum@kumaribank.com surkhet@kumaribank.com
kanakasundari@kumaribank.com
Sudurpashchim Province
1 ATTARIYA 4 CAMPUS CHOWK 7 DADELDHURA
Mr. Krishna Bahadur Pal Mr. Nara Raj Giri Mr. Janak Raj Chataut
Godawari Municipality, Campus Chowk, Dhangadhi-8, Kailali Amargadhi Na. Pa. 5, Bagbazar,
Mahendranagar Road, Attariya, 091-522869 Dadeldhura
Kailali campuschowk@kumaribank.com 096-420424
091-551334/ 088 dadeldhura@kumaribank.com
attariya@kumaribank.com 5 CHANDANI DODHARA
Mr. Surendra Bahadur Chand 8 DHANGADHI
2 BELAURI Mobile: 9858753509 Mr. Narayan Datt Bhandari
Mr. Puskar Bahadur Bista Dodhara Chandani, Na. Pa. 5, Mobile: 9858440450
Mobile: 9858778535 Kanchanpur Ratopul, Dhangadi-7, Kailali
Belauri Na. Pa. 6, Kanchanpur 099-400001 091-526036/ 037
099-580099 dodhara@kumaribank.com dhangadi@kumaribank.com
belauri@kumaribank.com
6 CHHABISPATHIVERA 9 DILASAINI
3 BUDAR Mr. Kshatra Raj Timilsena Mr. Niraj Kharel
Mr. Bam Bahadur Kathayat Mobile: 9851031946 Mobile: 9848722585
Mobile: 9746322277 Chhabis Pathibhara Rural Dilasaini-06, Gokuleshor, Baitadi
Chhatiban VDC, Budar, Doti Municipality, Byasi, Bajhang 093-400015
094-410040/410039 9848721893 dilasaini@kumaribank.com
budar@kumaribank.com chhabispathivera@kumaribank.com
253
Sudurpashchim Province
10 DURGATHALI 13 JHALARI 17 PAHALMANPUR
Mr. Ram Prasad Pant Mr. Bhoj Raj Awasthi Mr. Dharmanand Bhatt
Durgathali Rural Municipality, Jhalari Bazaar-7, Kanchanpur Main Road, Pahalmanpur, Kailali
Chaudhaari, Bajhang 099-540171 091-400080
9858785077 jhalari@kumaribank.com pahalmanpur@kumaribank.com
durgathali@kumaribank.com
14 JOSHIPUR 18 THALARA
11 GAUMUL Mr. Jagat Bahadur Bohara Mr. Rabindra Prasad Dhungana
Mr. Narendra Singh Saud Mobile: 9858423727 Mobile: 9851194405
Mobile: 9858750312 VDC Office Area, Joshipur, Kailali Thalara Rural Municipality,
Gaumul Rural Municipality, 091-401072 Ward No. 5, Kholi, Bajhang
Ghatmuna, Bajura 9851194405
9858750312 15 KANCHANPUR thalara@kumaribank.com
gaumul@kumaribank.com Mr. Madan Raj Pandit
Mobile: 9858490702 19 TIKAPUR
12 IBRD Campus Road-4, Mahendranagar, Mr. Sushil Ojha
Mr. Krishna Raj Joshi Kanchanpur Mobile: 9851098545
Mobile: 9815651673 099-521365 Hospital Line, Tikapur, Kailali
Bazaar line, IBRD, Kanchanpur kanchanpur@kumaribank.com 091-560006/526007
099-420010/ 099-420010 tikapur@kumaribank.com
ibrd@kumaribank.com 16 LAMKI
Mr. Pawan Acharya
Mobile: 9848466577
Mainroad, Lamki, Kailali
091-540201
lamki@kumaribank.com
254
www.kumaribank.com
ATM Network
Province 1
AANPGACHHI CHANDRAGADHI ITAHARI II
Kumari Bank Ltd Aanpgachhi Branch Kumari Bank Limited, Chandragadhi, Reliance Spinning Mills, Itahari-12
Premises, Itahari Sub-metropolitan Jhapa
city, ward no. 2, Aanpgachhi, Sunsari, JHAPA
Sunsari, Province 1 DAMAK Kumari Bank Limited, Birtamode Jhapa
Kumari Bank Limited, Damak, Jhapa
BARGACHHI LUKLA
Kumari Bank Limited, Biratnagar DINGBOCHE Kumari Bank Limited Lukla, Solukhumbu
Metropolitan, Ward Nos. 5 Bargachhi, Solukhumbu
Morang Kumari Bank ATM at the highest altitude NAMCHEBAZAR
of 4,410 metres. Namchebazar , Solukhumbu
BELKA
Kumari Bank, Belka Udayapur FIKKAL OKHALDHUNGA
Fikkal, Illam Kumari Bank Limited, Rambazar,
BIRATNAGAR Okhaldhunga
Kumari Bank Limited, Goshwara Road, HULAS STEEL
Morang Byapaar Sangh Building, Hulas steel office, Biratnagar PATHARI
Biratnagar, Morang Pathari, Morang
INARUWA APF CAMP
BIRATNAGAR (NMC) Inside The APF Camp URLABARI
Nobel Medical Hospital Kumari Bank Limited, Urlabari, Morang
INARUWA
BIRATNAGAR II Kumari Bank Limited, Inaruwa, Sunsari
Swastik Jute Mills, Biratnagar, Morang
ITAHARI 1
BIRTAMODE Kumari Bank Limited, Pathivara Market ,
Birtamode, Jhapa, Nepal Dharan Road, Itahari , Sunsari
Madhesh Province
BARAHATHAWA DRYPORT MAHENDRANAGAR
Barahathawa, Sarlahi Dryport, Birgunj, Parsa Kumari Bank Limited, Mahendranagar
HARIWON MALANGAWA
BARDIBAS Kumari Bank Limited Hariwon Kumari Bank Limited, Malangawa,
Kumari Bank Limited, Bardibas Municipality Ward No. 11, Hariwon, Sarlahi
Municipality, Ward No.01 Bardibas, Sarlahi
Mahottari NIJGADH
JANAKPUR Kumari Bank Limited, Nijhgadh, Bara
BIRGUNJ 1 (ADARSHANAGAR) Kumari Bank Limited, Janakpurdham,
Kumari Bank Limited, Adarsha Nagar , Sub- Metropolitan City, Ward No. 1, PRATIMACHOWK
Birgunj, Parsa Janakpur, Dhanusa Kumari Bank Limited Birgunj
Metropolitan City, Parsa
BIRGUNJ II (NMC) JITPUR
National Medical College Jitpur Simara Sub-Metropolitan City, RAJBIRAJ
Ward Nos. 07, Jitpur, Bara Rajbiraj Branch Premises, Rajbiraj
CHANDRAPUR ATM Municipality, Ward No. 7, Saptari
Kumari Bank Limited, Chandrapur, LAHAN
Rautahat Lahan Municipality, Ward No. 02 Lahan,
Siraha
255
Bagmati Province
AALAPOT DHARKE KIRTIPUR
Kumari Bank Limited, Aalapot, Dharke Branch Premises , Dhunibeshi Kirtipur, Kathmandu
Kathmandu Municipality-6, Dharke Bazar, Dhading,
Bagmati Province KOTESHWOR
ALOFT Koteshwor, Kathmandu
Hotel Aloft, Thamel, Kathmandu DHULIKHEL
Kumari Bank Premises, Dhulikhel KUMARIPATI
BAFAL Municipality-3, Dhulikhel, Kumari Bank Limited, Kumaripati,
Bafal, Kathmandu Kavrepalanchok, Bagmati Province Lalitpur
BANEPA DISH HOME KUNTABESI

Surya Bhawan-8, Banepa, Dish Home Office, Bhaisepati Kathmadu Kumari Bank Premises, Mandandeupur
Kavrepalanchok Municipality - 7, Kuntabesi,
DURBARMARG Kavrepalanchowk
BASUNDHARA Kumari Bank Limited, Durbarmarg,
Green City Hospital (Ground Floor) , Kathmandu LAL DURBAR, DURBAR MARG
Basundhara, Kathmandu Lal Durbar, Durbar Marga (Inside The
EKANTAKUNA Bank Premises)
BASUNDHARA II Department Of Transport Management,
Kmc -3 , Basundhara, Chauki Chowk Lalitpur LANKOO BRANCH
Dharamchowk, Bharatpur, Chitwan,
BATTAR NUWAKOT FPAN Bagmati Province
Bidur Municipality -4, Battar Bazaar Family Planing Association Of Nepal,
Premises Pulchowk Lalitpur (Near To LAZIMPAT I
BHAKTAPUR DURBAR SQUARE High Court Patan) Big Mart Building (Way To Hotel
Bhaktapur Durbar Square Premises Radisson), Lazimpat, Kathmandu
Bhaktapur Municipality, Bhaktapur FUTUNG
Kumari Bank Limited, Futung, LAZIMPAT II
BHAKTAPUR II Kathmandu Cocino Mitho Chha (Opposite To
Dudhpati, Bhaktapur Ka.ma.na. Pa. Ward No.02), Lazimpat,
GATTHAGHAR Kathmandu
BHARATPUR Kumari Bank Limited Gatthaghar,
Kumari Bank Limited, Synergy Chowk, Bhaktapur MAHADEVBESI
Bharatpur, Chitwan Mahadevbesi, Thakre, Dhading
GOLFUTAR
BOUDDHA Kumari Bank Limited, Golfutar, MAITIDEVI
Boudha, Kathmandu Kathmandu Maitidevi, Kathmandu
BUDDHA MALL GONGABU MALEKHU

Buddha Mall, Gongabu Bg Mall (Ground Floor) , Gongabu, Ktm Benighat-1, Malekhu, Baikunthapuri
BUDHANILKANTHA ATM HAKIMCHOWK MALIGAUN

Kumari Bank Limited, Buddhanilkantha, Kumari Bank Limited, Hakimchowk, Maligaun, Naxal, Kathmandu
Kathmandu Chitwan
MALIGAUN CARD
BUSPARK HETAUDA Maligaun, Kathmandu
Lotse Mall, Gongabu, Kathmandu Kumari Bank Limited, Nayasadak,
Hetauda MANGAL BAZAAR
BYASI Mangal Bazar, Lalitpur
Bhaktapur Branch, Dudhpati-01, IMADOL
Bhaktapur, Bagmati Province Kumari Bank Limited Mahalaxmi MANGALPUR
Municipality, Ward No. 04 Imadol Lalitpur Kumari Bank Limited, Mangalpur Chowk,
CHABAHIL Bharatpur, Chitwan, Bagmati Province
Chabahil Plaza Atm, Chabahil, JAGATI
Kathmandu Jagati, Bhaktapur MARSHYANGDI
Hotel Marshyangdi, Thamel , Kathmandu
CHANAULI JHAMSIKHEL
Chanauli, Kathmandu Kumari Bank Limited, Jhamsikhel, MELAMCHI
Laltipur Melamchi Branch Premises, Melamchi
CHINA TOWN, THAMEL Municipality, Ward No. 11, Melamchi,
China Town Premise, Thamel, JYATHA Sindhupalchok
Kathmandu Jyatha, Thamel
MOBILE VAN
CHISAPANI HETAUDA KALANKI Kbl Corporate Office Thirbaum Sadak,
Chisapani, Hetauda, Nepal Kumari Bank Limited, Near Kalanki Tangal, Kathmandu
Chowk
CIVIL HOMES NARAYANGADH
Civil Homes, Kathmandu KHOLESIMAL Kumari Bank Limited Narayangadh
Kolesimal Branch Premises, Kalika -6, Branch, Pulchowk, Narayangadh
DHADINGBESI Kholesimal Bazar, Narayanghat, Chitwan,
Nilkantha Municipality-3, Dhadingbesi Bagmati Province NAREPHANT
Bazar Narephant, Kathmandu
KHUSIBU
Khusibu, Kathmandu NAXAL
Kumari Bank Limited, Naxal, Kathmandu
256
www.kumaribank.com
Bagmati Province
NAYA PARSA PURANO PARSA, CHITWAN TANGAL, LALITPUR
Kumari Bank Limited, Naya Parsa, Khairahani Municipality Ward No: 06 Kumari Bank Limited, Tangal, Lalitpur
Nawalparasi Purano Parsa, Chitwan
THAHITY
NAYABAZAR PUTALISADAK Thahity, Kathmandu
Nayabazar Branch, Nayabazar, Kumari Bank Limited, Right To Main
Kathmandu Entrance Gate, Putalisadak, Kathmandu THALI
Kumari Bank Limited Premises
NAYAPATI RATNA PARK
Nayapati, Kathmandu Nepal Electricity Authority Building, THAMEL II
Ratna Park, Kathmandu Hotel Arts (Ground Floor) , Thamel, Ktm
NEW BANESHWOR II
Kumari Bank Limited, Opposite To Bicc, SANOBHARYANG THAMEL III
New Baneshwor Sanobharyang Chowk, Ktm Opposite Of Kathmandu Guest House
(Kgh), Thamel.
NEW ROAD SATDOBATO
Kumari Bank Limited, New Kumari Bank Limited Satdobato Branch, THIMI
Road,Kathmandu Lalitpur Thimi, Bhaktapur
NEW ROAD II SAURAHA TOKHA

Tamrakar Complex (Ground Floor) , New Ratnanagar - 6, Sauraha, Chitwan Tokha, Kathmandu
Road, Kathmandu
SHER-BHAWAN V.S NIKETAN
OLD BANESHWOR Sher Bhawan, Thamel, Kathmandu V.s Niketan College Premises Tinkune
Kumari Bank Limited, Old Baneshwor, Baneshwor, Kathmandu
Kathmandu TANDI
Ratnanagar Municipality, Ward No. 01,
PACHKHAL Tandi, Chitwan (200m West From The
Panchkhal Municipality-4, Panchkhal Existing Location)
(200m North From The Existing Location)
TANGAL I
PAKNAJOL Thirbam Sadak, Tangal, Kathmandu
Paknajol Thamel, Kathmandu Kumari Bank's Corporate Office
Panchabuddha Hotel Premises Premises
PANIPOKHARI TANGAL II
Panipokhari Kathmandu Bagmati Thirbam Sadak, Tangal, Kathmandu
Province Kumari Bank's Corporate Office
Premises
Gandaki Province
AMARSINGH CHOWK GORKHA POKHARA I
Amarsingh Chowk, Kaski Kumari Bank Limited, Gorkha Chiple Dhunga, Pokhara, Kaski
BENI HALLANCHOWK POKHARA II

Beni Bazar, Myagdi Hallanchowk, Pokhara Pokhara ATM
BHIMAD KAHUNKHOLA POKHARA III

Bhimad, Tanahu Kahunkhola Branch, Pokhara, Kaski Talchowk, Lekhnath
BIRAUTA KASKI DISTRICT COURT POKHARA LAKESIDE

Kumari Bank Limited, Birauta, Kaski Kaski District Court, Baidam, Pokhara-6, Lakeside ATM, Center Point, Laskeside,
Kaski, Kaski District Court premises Pokhara
BUSY BEE
Lakeside, Pokhara KAWASOTI POKHARA LAKESIDE II
Kumari Bank Limited, Sabhapati Chowk, Opposite to Chilly Bar & Restaurant,
DAMAULI Kawasoti Hallanchowk, Lakeisde
Kumari Bank Limited, Damauli -2
KUSHMA PRAGATINAGAR
DULEGAUDA Kushma, Parbat Kumari Bank Limited Devchuli
Dulegauda, Tanahun Municipality ward No. 15 Pragatinagar,
LEKHNATH Nawalparasi
GAIDAKOT Kumari Bank Limited, Lekhnath, Kaski
Kumari Bank Limited Gaidakot PUTALIBAZAR
Municipality, ward No. 04 Gaidakot, PHALEBAS PARBAT Kumari Bank Limited, Putalibazar,
Nawalparsi Phalebas Parbat Syangja
257
Gandaki Province
BARDAGHAT MURGIYA GHORAHI
Kumari Bank Limited, Bardaghat, Parasi Sainamaina Municipality, Murgiya, Sahid Gate Marg, Ghorahi,Dangdeukhuri
Rupandeh
BHAIRAHAWA HAPURE
Kumari Bank Limited, Narayan Path, PALPA Babai - 4, Hapure, Dang Deukhuri,
Bhairahawa Kumari Bank Limited, Palpa Lumbini B
BHUMAHI PARASI KOHALPUR

Sunwal Municipality, Ward Nos. I 2, Ramgram Municipality, Ward No. 3, Kumari Bank Limited, Kohalpur
Bhumahi, Nawalparasi Parasibazaar, Nawalparasi
LAMAHI
BURTUNG RIDI Main Road, Lamahi, Dang Deukhuri,
Burtung, Palpa Ridi,Gulmi
MUSIKOT
BUTWAL SUKRAPATH Kumari Bank Limited, Musikot
Infront of Kumari Bank Limited, Ram Kumari Bank Limited, Sukrapath,
Mandir Line, Butwal Butwal,Rupendehi NARAYANPUR
Narayanpur, Ghorahi, Dang
DRIVER TOLE BANSGADHI
Kumari Bank Limited, Drivertole, Kumari Bank Limited Bansgadhi NEPALGUNJ
Rupandehi Nagarpalika, Bardiya Surkhet Road, Dhambhoji, Nepalgunj
JITPUR (KAPILVASTU) CHISAPANI TULSIPUR

Kumari Bank Limited, Banaganga Baidanath - 1, Chisapani (Opposite to B.P. Chowk, Tulsipur, Dang
Municipality, Ward No. 01, Jitpur, NGMC Gate), Banke
Kapilvastu
GADHAWA
KHAIRINI Main Road, Gadhawa, Dang Deukhuri,
Khairini, Rupandehi Lumbini B
Karnali Province
BABIYACHAUR SALYAN SURKHET APF
Babiyachaur Branch, Babiyachaur, Kumari Bank Limited, Khalanga, Salyan Inside the APF Camp Surkhet
Surkhet
SHREENAGAR SURKHET BIRENDRANAGAR
KAPURKOT Sharada Municipality Ward no. 01, Salyan Kumari Bank Ltd. Premises, Tallo Bazaar,
Kumari Bank Limited, Kapurkot, Salyan Birendranagar, Surkhet
SURKHET
MEHELKUNA Birendra Nagar, Surkhet SURKHET, BABIYACHAUR
Kumari Bank Limited, Mehelkuna, Babiyachaur, Surkhet
Surkhet
Sudurpaschim Province
ATTARIYA DADELDHURA KANCHANPUR
Kumari Bank Limited, Attariya, Kailali Kumari Bank Limited, Dadeldhura Kumari Bank Limited, Kanchanpur
BELAURI DHANGADHI LAMKI

Belauri, Kanchanpur Ratopul, Dhangadi, Kailali Mainroad, Lamki
CAMPUS CHOWK DILASAINI PAHALMANPUR

Kumari Bank Limited, Campus Chowk , Dilasaini Branch Premises, Dilasaini Kumari Bank, Pahalmanpur, Kailali
Dhangadhi, Kailali Gaupalika - 9, Gokuleswor, Baitadi
TIKAPUR
CHANDANI DODHARA JHALARI Hospital Line, Tikapur
Kumari Bank Limited Dodhara Chandani, Kumari Bank Limited, Jhalari,
Na. Pa. 5 Kanchanpur Kanchanpur
258
Scan for Location
Head Office Corporate Office

Tangal (M3 Building), Kathmandu,Nepal Phone: 977-01-4443075/76/77/78/79
Contact No: 977-01-4443076 Email: info@kumaribank.com
www.kumaribank.com

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22nd Annual Report

Kumari Culture embraces everyone with a smile to

We take every step together – for happiness and for

We move forward in unison to create a new world, a

Welcome to Kumari Culture!

CORPORATE GOVERNANCE & MANAGEMENT PRACTICES

KBL SUBSIDIARIES 193

MILESTONES, CSR & AWARDS/ACHIEVEMENTS 237

KBL NETWORK 245

ABOUT KUMARI BANK

Kumari Bank Limited, came into existence as the

Kumari Bank Limited provides a wide-range of

The Bank has pioneered in providing modern banking

The Bank has been offering both Domestic and

The Bank is recognized as an innovative and fast

The Bank acquired Kasthamandap Development

VISION & MISSION STATEMENT

I would like to extend my congratulations to Amir Pratap JB Rana

We executed well on our

Mr. Krishna Prasad Gyawali Dr. Prof. Ganesh Prasad Pathak

While the FY 2019-20 saw the darkest period

WORKSPACE REENGINEERED DIVIDEND

We take to heart that our business operations and

While 2021 was one of

Mr. Ram Chandra Khanal Mr. Kshitij Khadka

Mr. Bikas Khanal Mr. Anish Tamrakar

Mr. Rohit Singh Mr. Chandan Karki

Mr. Ganesh Kumar K.C. Mr. Narayan Prasad Ghimire

CEO WITH TEAM PROVINCE

Mr. Manish Shrestha

Mr. Roshan Kumar Shrestha

Mr. Prabin Jha

Mr. Nabin Raj Poudel

Mr. Bishnu Regmi

Mr. Sudarshan Jung Rana

Mr. Ram Mani Adhikari

Mr. Deepak Adhikari

Mr. Himal Prasad Mudbhari

Mr. Ajaya Ghimire

Executive Management with Head Office Team

KBL Women in Leadership

Mr. Bibek Man Singh Shakya Mr. Bhusan Tandukar

Mr. Aswin Babu Shrestha Ms. Preeti Shah

Mr. Bikranta Koirala Mr. Kiran Kumar Shah

Mr. Unesh Manandhar Mr. Deepak Khanal

Mr. Anup Shrestha Mr. Bhupendra Pandey

Mr. Milan Kuinkel Mr. Suwash Khadka

Mr. Ishor Gurung Mr. Mandeep Bhattarai

Mr. Himal Singh Basnet Ms. Anjana Mishra

Ms. Renu Koirala Mr. Rabi Shanker Shrestha

Mr. Anil Niroula Mr. Niraj Rai

Mr. Rupendra Kumar Pandey Mr. Santosh Kumar Mahato

Mr. Bharat Dhungana Mr. Rajiv Bajracharya

Ms. Pushpa Shrestha Ms. Reema Thapa

Mr. Udeet Bahadur Singh

1. Performance Review FY 2078-79 ........................ 33

Performance Review FY 2078-79

Loan & Advances and Investment

Profit & Loss