DESIGN & PRINT PROCESS: Cover:Layout 1 6/12/2015 12:49 PM Page 1 N Branch Network Cover:Layout 1 6/12/2015 12:49 PM Page 2 Valuing Partnership SiddharthaBankLimited(SBL

Head Office: Hattisar, KathmanduP.O.Box. 13806Phone: 01-4442919 / 4442920Fax: 977-1-4442921 SWIFT: SIDDNPKAEmail: [email protected]

www.siddharthabank.com

AnnualReport2013/14

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Branch Network


ValuingPartnership

Siddhartha Bank Limited (SBL) came into operations on December 25,

2002 as the seventeenth commercial bank of the country. Ever since its

initial years of operations, the Bank’s ultimate thrust has been to create,

nurture and retain partnerships with all its stakeholders. �

� | sIddharTha banK lTd.

This philosophy has been transcended in its approachto provide world class customized products andservices to its customers, at the same timemaintaining a dynamic approach towards prudent riskmanagement. backed by the state of the art bankingsoftware and team of vibrant bankers with diverse andextensive experience of the banking industry, thebank has been able to establish its own niche withextensive points of representation throughout thecountry.

For sbl, customer satisfaction and service excellenceremain as the guiding philosophy in each and everyaspect of its operations. as a result of this, over theyears the bank has been able to gain the confidenceof large number of customers from the different strataof the society. Furthermore, with a view to providebanking access to the rural populace of the countrythe bank has come up with branchless bankingservices from multiple remote locations of thecountry. This financial inclusion initiative of the banktypically portrays how such initiatives can empowerthe lives of thousands of marginalized individuals andcommunities.

For sbl, strict adherence to corporate governance andtransparency in its business operations remain as anintegral part of the bank’s business philosophy. Itpractices full compliance to the regulatoryrequirements and internal policies and control

mechanism. This has greatly helped the bank to sethigh standard and ethical business practices.

an organization can only be as good as its employeesare. Keeping this in the background, development ofhuman resource has always been an utmost priority ofthe bank. sbl has always emphasized on recruiting,motivating, developing and retaining the best talentsin the industry so as to enhance its service deliverystandards. It has always encouraged its employees toadopt a proactive approach so as to add value to theoverall performance of the bank. several training anddevelopment programs are conducted regularly toenhance the skill sets of its employees as per thechanging business dynamics. The bank has alwaysremained in the forefront in terms of providing betterperks and benefits to its employees.

sbl is aware of the challenges of surviving andgaining a distinctive edge in a highly competitivemarket characterized by multiple market players, withsimilar products and services, competitive pricing andstringent rules and regulations, yet it is confident thatwith its diverse array of unique market products andservices, an unmatched customer focused servicedelivery mechanism and a visionary team of vibrantbankers, it shall continue to stand tall, develop strongpartnership and continue to play a proactive role inthe economy to become the ‘bank for Prosperity’ forall.

250,000 60 46Valued cusToMers aTMs branches

v a l u i n g p a r t n e r s h i p w i t h c u s t o m e r s

�

sIddharTha banK lTd. | �

contentsan overview 4

Financial highlights 6

board of directors 8

chairman’s statement 10

From the ceo’s desk 12

senior Management Team 14

Management Team 16

Product & services 18

corporate social responsibility 30

director’s report 32

analysis of Financial statement 39

an overviewsiddhartha bank limited commenced its operationsmore than a decade ago on december 25, 2002 as the17th commercial bank of the country.

currently, the bank has been catering to the uniqueneeds of its diverse clientele all over the countrythrough an extensive branch network of 46 branchesand 60 aTMs spread from chandragadhi in the east toMahendranagar in the West. siddhartha bank hasbeen one of the pioneer banks to serve the ruralpopulace of the country, untouched by the formalbanking system, with its innovative branchlessbanking service branded as ‘sajilo banking sewa’. Theservice that started as a cash distribution program ofthe World Food Program has now expanded to 48different locations all over the country and has been

serving the basic banking needs of the ruralcustomers via biometric Point-of-sale machines.

Throughout its journey, siddhartha bank hascapitalized on every new opportunity that enables itto better serve its customers with highly qualitativeservices. Most importantly, the bank has alwaysjustified the support and trust of its valuablecustomers and stakeholders by rendering theminnovative market offerings, customer orientedservice delivery and better financial performance yearby year. The bank envisages identifying viableopportunities and creating better ways to reach andserve the customers in the future as well. The bank iscommitted as ever to be the ‘bank for Your Prosperity’to all its customers and stakeholders.

the logo of the bank has been instrumental in enabling the customers to easilyidentify the brand ‘siddhartha bank’. the corporate color ‘yellow’ instillsoptimism and energy which sparks creative thoughts which is precisely the workculture of the bank. the quadrilateral box enclosing the letter 's' is a rhombus.rhombus is also referred to as diamond; and like the diamond, the bank believesin adding decor to people and institutions associated with it, primarily thecustomers. the four vertices of the rhombus carry four beliefs of the bank:

our brand identity

security returns work ethics &professionalism

corporate socialresponsibility


visionsiddhartha bank runs with a vision to be financiallysound, operationally efficient and to keep abreastwith technological developments.

missionThe bank desires to be one of the leading banks of theindustry by fulfilling the interest of the stakeholdersand also aims to provide total customer satisfactionby way of offering innovative products and bydeveloping and retaining highly motivated andcommitted staffs. The following mission statement is aguide to meet the Vision of the bank:

� be one of the leading banks of the industry in termsof profitability, productivity and innovation.

� aim at total customer satisfaction by renderingefficient and diversified financial services throughimproved technology.

� build a highly motivated and committed team ofstaffs by nurturing a good work culture to achievesuperior individual performance aiming to enhanceorganizational effectiveness.

� be the place of pride to all its stakeholders.

core values of the bank� customer focus� shareholder prosperity� employee growth� economic welfare

our customersThe bank has a rich clientele with a good mix ofindividuals and institutions. The bank’s individualcustomers come from diverse background andeconomic strata. Majority of the individual customersare self-employed while others include doctors,engineers, lawyers, teachers, civil servants, employeesworking in nGos, InGos, private offices, agrarians aswell as the rural populace who were earlier deprivedof the services and facilities of a formal bankingsystem.

on the other hand, the bank has an equally diversemix of institutional and corporate customers. Majorityof the big government institutions have been bankingwith us. In addition to this, numerous hospitals,schools, colleges, universities, manufacturingindustries, corporate houses, nGos, InGos, travelagencies, money changers and sMes form the core ofour loyal customer base.

Deposits (Rs. In Million) Loans and Advances (Rs. In Million)

Net Worth (Rs. In Million) Earning Per Share (In Rs.)

Operating Profit

Before LLP (Rs. In Million)

Interest Income & Expenses (Rs. In Million)

Q

08/09 09/10 10/11 11/12 12/13 13/14

35

,41

4

28

,39

3

25

,94

9

21

,57

6

20

,19

7

15

,85

5

08/09 09/10 10/11 11/12 12/13 13/14

27

,98

6

23

,72

2

20

,60

7

18

,64

7

16

,89

5

13

,50

5

08/09 09/10 10/11 11/12 12/13 13/14

3,0

01

2,5

02

2,1

83

1,9

88

1,6

04

1,2

79

08/09 09/10 10/11 11/12 12/13 13/14

39

30

20

20

22

23

08/09 09/10 10/11 11/12 12/13 13/14

1,1

64

1,0

14

66

5

51

3

43

8

37

6

2,690

08/09 09/10 10/11 11/12 12/13 13/14

2,906.27

2,898.41

3,056.29

814

2,048.91

1,742.84

1,708.87

Interest Income

Interest Expenses

1,266

2,018

1,406

1,925

financial highlights for the year 2013/14

Quality of Assets

2.75 %Non-Performing

Loan

97.25%Performing Loan

Deposit Mix

7 %Non-interest

Bearing

32%Call

27 %Saving

34%Fixed

6 %Home/Housing

Loan

1%Margin

Type Loan

20 %Term Loan

13 %Real Estate

Loan

47 %Overdraft Loan/

TR Loan/ WC Loan

13 %Others

Loan Mix

Shareholders

Fund

7%

Debenture

2%

Other

2%

Deposit &

Borrowing

89%

Sources of Fund

Other

2%

Fixed Assets

1%

Cash &

Bank Balance

18%

Investment

11%Loans & Advances

68%Bank is well to

reach its goal within the time.

performing

Application of Fund

board of DirectorsMr. Chiranjilal AgrawalChairman

Mr. chiranjilal agrawal is a highly prestigious name in the field of Industry and commerce in nepal.he possesses an experience of more than 50 years in the field of industry, trade and commerce.

Mr. agrawal is the chairman of siddhartha bank limited since its inception in the year 2002.

Mr. Poonam Chanda AgrawalDirector

Mr. Poonam chanda agrawal is a pioneer industrialist of the country with an experience of morethan 45 years. he is associated with ashok steel Industries - a leading steel industry of nepal. Mr.agrawal has been associated with the bank as a director from 11 May, 2011. he is also the convenerof audit committee of the bank.

Mr. Ratan Lal KediaDirector

Mr. ratan lal Kedia has been involved in the industrial sector of the country for the past 30 years. heis associated with siddhartha bank limited as a director since 27 april, 2014. he is also associatedwith various business organizations like sushil banaspati Ghee Pvt. ltd., Yeti Fabrics Pvt. ltd.,sitaram Gokul Mills Kathmandu ltd etc.

Mr. Manoj Kumar KediaDirector, representing to Prudential Investment Co. Ltd

Mr. Manoj Kumar Kedia is a renowned industrialist of nepal with more than 20 years of experience.he has been associated with the bank as a director from 28 april, 2011. he is also the chairman ofsiddhartha Insurance limited and is associated with various organizations like brij cement IndustriesPvt. ltd., Kedia Investment corporation Pvt. ltd etc. as a director/Promoter.


Mr. Bishwa Nath ShahDirector

Mr. bishwa nath shah is a veteran industrialist of the country with an experience of more than 50years in the field of industry and commerce. he is associated with siddhartha bank limited as adirector from 27 april, 2014. he is also associated with various organizations namely Prestige loopMets Industries Pvt. ltd., nobel Textiles Pvt. ltd., d.b. Industries Pvt. ltd. and many other businessfirms related to industry and trade as a Promoter/director.

Mr. Mahesh Prasad PokharelDirector, Public Shareholder

Mr. Mahesh Prasad Pokharel has been involved in the field of investment business for the last 18years. he has been associated with siddhartha bank limited, as a director from 17th January 2006.

Mr. Rajesh Kumar KediaDirector, Public Shareholder

Mr. rajesh Kumar Kedia is one of the renowned industrialists of the country and possesses anexperience of more than 25 years in the field of industry and commerce. he has been associatedwith siddhartha bank limited as a director from 28 January, 2014. he is also associated with severalother organizations namely brij cement Industries Pvt. ltd., Yagyashree Trades Pvt. ltd.,Mb Kedia dental college Pvt. ltd., sushil soap and chemical Industries Pvt. ltd etc.

Mr. Hemant GyawaliDirector, Public Shareholder

Mr. hemant Gyawali possesses an extensive experience of more than 15 years in the field of publicenterprises as well as in various financial institutions in the capacity of director and General Manager.he has been associated with the bank as a director from 17th January 2006.

Mr. Bhagat BistaProfessional Director (Expert)

Mr. bhagat bista is a renowned name in the nepalese banking and finance sector. he possesses anexperience of more than 30 years in various departments of nepal rastra bank namely, Micro Financedepartment, research department, Foreign exchange department, and banking department. he was alsoone of the members of a Task Force on the World Financed Project on Monitoring and Implementation ofcommercial bank Problem analysis and strategic study (cbPass); Member-secretary of nepal rural creditreview board; director of eastern rural development bank, biratnagar; Founder director of Far Western ruraldevelopment bank, dhangadhi; Member of Management committee (board of directors) of nepal banklimited. he has been associated with siddhartha bank limited as a Professional director from 19 april, 2013.

�� | sIddharTha banK lTd.

chairman’sstatementdear shareholders,

The year 2013-14 has been amemorable year for siddharthabank limited marked by remarkableachievements in various fronts. likeany other fiscal year, this year alsohad a fair share of challenges for thebank, yet your undoubted trust andsupport enabled us to successfullyovercome each of these challengesand to justify the trust embeddedupon the bank by all ourstakeholders.

sIddharTha banK lTd. | ��

The international economic scenario of theFY 2013-14 witnessed an end to the several adverseeffects of the global recession in the developedeconomies of usa, Japan and euro zone, therebypaving way for economic growth in these economies.as a result, the developing countries also experiencedsome positive economic developments resulted byincrement in the external demand of the developingnations. In addition to this, further growth has beenexpected in the economies of India and china as well.

The nepalese economy has also shown some positivedevelopments in the financial year 2013-14. Thepreliminary estimates of central bureau of statisticspresent a GdP growth of 5.2 % at basic price and5.5 % at producers’ price in the FY 2013-14 incomparison to 3.5 % and 3.9 % respectively in thepreceding year. The agricultural and service sectorshave registered a significant growth of 4.7% and 5.3 %as compared to 1.1 % and 4.6 % in the last fiscal year.

Talking about the banking and finance sector of thecountry, the fiscal year 2013-14 was marked by anease in the overall liquidity condition in the industry.In this year, the deposit mobilization of banks andFinancial Institutions (bFIs) increased by 18.4 %(rs. 218.68 billion), which stood at a growth rate of17.4 % (rs. 176.27 billion) last year. however, thedeposit mobilization growth rate of commercial bankshas slightly declined from 17.9 % in the last fiscal yearto 17.8% this year. on the lending side, the total loansand investment of bFIs grew by only 14.4 %(rs. 165.48 billion) in comparison to a growth of18.6 % (rs. 180.20 billion) in the preceding fiscal year.

siddhartha bank limited has been able todemonstrate brilliant performance in the fiscal year2013-14, even amidst the prevalent challenges andintense competition in the nepalese banking industry.The bank registered an encouraging operating profitbefore loan loss provision of rs. 1.16 billion,accompanied by a net profit of rs. 700 million in theFY 2013-14. The bank’s deposit portfolio increasedfrom rs. 28.39 billion in the last fiscal year to rs. 35.41billion this year signaling a growth of 24.73 %. as aresult of the bank’s intense focus to diversify itsdeposit base and to reduce the associated costs, thebank was able to significantly improve thecomposition of saving deposits and current depositsin its aggregate deposit portfolio in theFY 2013-14. The bank’s lending portfolio also grewfrom rs. 23.72 billion in the previous fiscal year to rs.27.98 billion in the FY 2013-14.

In the FY 2013-14, the bank witnessed a growth of16.60 % in its net interest income while the bank’s networth grew by 19.91%, thereby reaching a total ofrs. 3 billion. similarly, there has been an increment of14.67 % in the bank’s total income, amounting tors. 1.84 billion and an increment of 14.38 % in thetotal expenses this year. The increment in totalexpenses is attributable to the bank’s branchexpansion initiatives as well as increased inflationlevels of the country. as a result of the bank’semphasis on maintaining a superior quality of assets,its non Performing assets (nPa) has been containedat 2.75 % in the FY 2013-14, well below the prevalentindustry average.

With the heightened market competition,technological advancements, homogenous productsand services, higher customer bargaining power,stringent rules and regulations and the need tocomply to national and international standards, it isevident that the bank shall have to face severalchallenges in various fronts in the upcoming financialyear as well. however, at the same time, sbl isconfident that its drive for innovation andconvenience not only in its market offerings but alsoin its service delivery channels, operating procedures,points of representation etc shall enable it tosuccessfully overcome the challenges on the way.Most importantly, sbl is confident that its cohesiveand professional board of directors, proactive andexperienced management team, robust corporategovernance mechanism, strict adherence to nationaland international regulations and competent humanresource base shall enable it to successfully remain asthe ‘bank for Prosperity’ for its shareholders,customers and stakeholders.

last but not the least, I would like to extend myheartfelt appreciation to the board of directors fortheir proactive approach and undeterred support forenabling the bank to register remarkableachievements year after year. I am also thankful tonepal rastra bank and all other regulatory authoritiesfor their constant guidance and cooperation. I wouldalso like to thank the dedicated employees of thebank for their rigorous efforts to deliver exemplaryand efficient services to the valued customers.

Thank you.

chiranjilal agrawalchairman


from theceo’s DeskIt is a pleasure to report to you alla year marked with remarkableachievements of siddhartha banklimited (sbl). First of all, I extendmy heartfelt gratitude to ourshareholders, directors, customers,management team, employees andall the stakeholders for theirundoubted trust and support thathas always inspired andencouraged sbl to reach greaterheights year after year.


The fiscal year 2013-14 had its own share ofchallenges as well as achievements for the bank. asfor any other commercial bank of the country, sblalso had to comply to stringent regulations of theregulatory authorities, the competition was furtherintensified following merger of several bFIs and thebank also had to give due attention to liquiditymanagement and identification of new avenues forlending. however, despite the challenges, wecontinued to grow our portfolio, strengthen ourinternal processes and above all achieve significantprogress on the business front.

We have made significant progress in furtherenhancing transparency, corporate governance,operating procedures etc and have further solidifiedour compliance with regulatory requirements. Wehave not only created a diverse yet healthy depositand credit portfolio but also maintained our nonPerforming assets at 2.75 %.

In a bid to further enhance the bank’s reach to thecustomers of the eastern region of the country, sblestablished two branches in birtamod and Itahari inthe FY 2013-14. also, the bank took its branchlessbanking service a step further in the far flung localityof dadeldhura by establishing a dedicated branch tooffer a full range of banking services to the populaceof that vicinity. The number of aTMs of the bankreached a total of 60 this year.

as an effort to make the bank’s remittance service aglobally acceptable and easily assimilated brand, werebranded the remittance service ‘siddhartha remit’as ‘sbl remit’. We have plans to further expand sblremit’s reach and coverage to more and moreinternational destinations in the future so as toaddress the needs of the customers working abroad.

In the FY 2013-14 sbl joined hands with undP tofacilitate the human development and socialProtection Pilot Project (hdsPP) that targets to

disburse educational grants to the targeted 23,000school going children of dadeldhura and Kanchanpur.The bank has already registered the beneficiaries andhas started disbursing the grant through itsbranchless banking service – ‘sajilo banking sewa’.also, in the same year, the bank entered into anagreement with International Finance corporation(IFc) under its ‘Global Trade Finance Program’, underwhich IFc as an Issuing bank shall provide sblconfirmation facility worth us $ 5 million. This shallassist the bank to further enhance its capacity offinancing various development projects, localimporters and exporters, thereby enabling the bank tobetter support local businesses and projects byoffering appropriate trade finance products.

Throughout its years of operations, sbl has not onlyemphasized on increasing its business portfolio andfinancial soundness, but also in creating betterpartnerships with its customers, shareholders,employees, other stakeholders and the nepalesesociety.

The bank shall continue this philosophy in theupcoming years as well and continue to identify anddevelop avenues to create right kinds of products andservices, efficient service delivery channels andprocedures, maximization of shareholders’ welfareand ample human resource growth and developmentopportunities to effectively address the underlyingneeds of all these partnerships and to truly abide byits intent of becoming ‘bank for Your Prosperity’ to allof its valuable stakeholders.

surender bhandarichief executive officer

senior management team

ira praDhanRelationship Manager - Credit

suresh raj maharjanHead - Payment Solutions

surya bahaDur tamangHead - Corporate Credit

arjun bhaDra khanalHead - Business Support

pankaj pantHead - Remittance Business Unit

laxman subbaHead - SME & Consumer Banking

srijan krishna mallaHead - Information Technology

shailaja gyawaliHead - Valley Resources

sher bahaDur buDhathokiSenior Business Officer

sunDar prasaD kaDelChief Operating Officer

surenDer bhanDariChief Executive Officer

sitting From left to right standing From left to right

shambhu nath gautamChief Business Officer

rameshwor prasaD bashyalSenior Business Officer

kamal basnetBranch Manager - Biratnagar

Dilli raj lekhakBranch Manager - Birgunj

biplavi singhBranch Manager - New Road

praDeep pantRelationship Manager – Valley Resources

aninDra raj acharyaHead - Internal Audit

ram chanDra khanalHead - Finance & Treasury

tej timalsinaBranch Manager - Dhangadhi

rabeen mallaManager - Payment Solutions

management team

amit shresthaRelationship Manager – Credit

pravin niDhi tiwariManager – Branch Operations

prabin DhungelHead - Credit Risk Administration Compliance & Recovery

bhola nath DhunganaCompany Secretary & Head- Legal

upenDra prakash gaDtaulaBranch Manager - Birgunj

ruDra nath DhunganaRelationship Manager - SME & CB

sushil nepalBranch Manger – Butwal

saroj kafleHead - Compliance and Corporate Governance

product & servicesloans & advances� consumer/ retail loans� business/corporate loans� sMe loans� loan syndication

Deposit products� Fixed deposits� savings deposits� current accounts� call accounts

remittance products� sbl remit� Global Payment services (sWIFT, demand draft)� local Payment services (abbs)

payment solutions� Internet banking (iconnect)� Mobile banking (mconnect)� sMs alert� card services:

� debit card� credit card� Prepaid card

- International Travel card- student VIsa Prepaid card- Medical Prepaid card

� branchless banking� siddhartha hello Paisa Mobile Wallet

trade finance� advance Payment� documentary collection� Import letter of credit� export letter of credit� Forward contract

treasury andcorrespondent banking� Treasury services� correspondent banking services� bullion Trading� Market Making for local bond Market

bank guarantee� bid bond� Performance bond� advance Payment Guarantee� shipping Indemnity

wealth management services� bancassurance� safe deposit locker� Mutual Fund


siddhartha bank offers an extensive array of financial products and servicesto effectively cater to the unique needs of its diverse clientele. The bankbelieves in reinventing and upgrading the products and services constantlyso that it can meet the dynamic needs of its existing as well as prospectivecustomers.

Deposit productssbl has an assortment of deposit products to fulfillthe varied needs of its diverse clientele. on the onehand, the bank offers a current/call account to cater tothe business community while on the other hand, ithas fixed deposits accounts with varying tenuresmeant for individuals and institutions as well asdifferent kinds of savings accounts targeting differentcustomer categories. In addition to the regularbanking facilities, all of the deposit accounts offer abundle of other ancillary banking services like internetbanking, mobile banking, mobile wallet, sMs alert,any branch banking services (abbs), utility payment,locker services, etc.

The bank has developed each of the various depositproducts by keeping in mind the unique needs andrequirements of the target customers. That is why ithas a separate deposit product for each of its targetcustomer segment especially in the saving depositscategory. The various types of savings account offeredby the bank for specialized customer segmentsinclude siddhartha bachat (zero balance account),sarvottam bachat (high interest bearing account),Jestha nagarik bachat (for senior citizens aged 50 &above), nari bachat (for women), bal bachat (forminors), Investors savings (for those investing in sharemarket), remit account (for individualsworking/deputed abroad and their family members).

In addition to this, the bank also offers customizedservice of managing salary accounts on behalf of itsvalued clients and facilitates payment of utility bills forvarious institutional customers. The bank has alsodeveloped customized application Interfaces (aIs) forfees management of various educational institutions,which it plans to improvise and expand in the days tocome as well.

loans and advancesThe bank’s loans and advances service ranges fromconsumer loans for small households, sMe loans for

small and medium enterprises to large corporateloans including project financing in diversified sectorsof economy viz. hydro power, cement, airlines,hospitals, medical colleges, pharmaceuticals, hotels,media, education, agriculture and various otherservice & manufacturing industries.

The bank offers regular loan products like workingcapital financing, long term financing, bridge-gapfinancing, trade financing, cash credit etc. as acomplete solution for sMe as well as corporateborrowers. besides, it also has various customizedproducts in its array like home loan, auto loan, hirePurchase loan, education loan, Personal loan,Mortgage loan and loan against Fixed depositreceipt to cater to the needs of the specific clienteleof consumer banking segment. The bank has alsobeen providing syndicated credit facilities especiallyfor mega projects under corporate lending segmentby forming consortium of the financial institutions.

trade financesiddhartha bank offers a complete range of tradeservices, with service delivery standards which areamong the highest in the industry. With widerinternational networks of correspondent banks, ourTrade Finance department provides the entire gamutof financial products needed by businesses involvedin import and export, such as: Import letter of credit,export letter of credit, documentary collection,Forward contract and bank Guarantee.

payment solutionsapart from the regular banking services, siddharthabank has always been one of the pioneer banks tooffer technology driven ancillary products andservices to address the dynamic requirements of itsdiverse customer base. some of the variousalternative delivery channels offered by the bankinclude:


atmsiddhartha bank has a network of 60 aTMs and iscontinuously expanding it to make it more reachablefor its customers. The bank’s aTMs accept all themajor payment card brands such as VIsa,Mastercard, unionPay, national Payment network(nPn), scT, Maestro, cirrus and Plus. aTM facilitatesthe cardholder to withdraw cash, inquire balanceand obtain mini statement.

internet banking (iconnect)The customers can view account information, fundtransfer and make payments with ease fromanywhere by using the bank’s iconnect service.

carD servicessiddhartha bank offers various card products to meetthe requirements of its customers. It offers sbl VIsadebit card, sbl VIsa credit card, student Prepaidcard, Medical Prepaid card and domestic &International Travel card.

With prepaid cards, customers can load money intheir card and use it for cash withdrawal or merchantpayment, without the hassle of carrying papermoney or opening an account. domestic VIsaPrepaid cards can be used in nepal and India,whereas the International VIsa Prepaid card (Travelcards) can be used in any country of the world. VIsaPrepaid Travel card is designed targeting customerswho travel abroad as a replacement for Traveler’scheque and shortage of foreign currency. Withstudent VIsa Prepaid card, the parents or studentsthemselves can load money in the card and use it forcash withdrawal or merchant payments.

mobile banking (mconnect)Through mconnect customers can carry out thegeneral banking transactions like balance inquiry,fund transfer, mini statement, utility payment,recharge top up and merchant payment using theirmobile. customers can use mconnect either througha web based interface (using GPrs or 3G) or a simpletext-messaging (sMs) interface.

sms alert serviceThe sMs alert service will inform the customers bysending sMs when there is any transaction withvalue of nPr 1,000 or above.

branchless banking:"sajilo banking sewa" is a branchless bankinginitiative of siddhartha bank limited, aimed atenhancing access of financial services to people inrural parts of nepal. Initially started as a cashdistribution program in collaboration with WorldFood Programme (WFP), “sajilo banking sewa”targets the large population of the country, who areoutside the banking net to provide basic financialservices. currently, the bank has been serving 48different locations of the country through thisinnovative service.

siDDhartha bank- hello paisa sewaunder siddhartha hello Paisa service, the customerscan open mobile account and link it to theirrespective bank account. With the service, thecustomers can transfer funds from bank account tomobile account and vice-versa. The fund can be usedfor utility payment, merchant payments as well astransferring fund to other accounts availing suchservices under siddhartha bank or other banksassociated with hello Paisa.

siDDhartha bank meDical prepaiD carDuseful for medical checkups in nepal and India, thecard can be used by customers in hospitals as well asin aTMs and Pos machines. since devised formedical purposes the transaction limit for aTM/Posuses is slightly higher than other prepaid cards.

remittancesiddhartha bank boasts an exclusive remittancepayment portal - sbl remit that aims to serve thenepalese workforce residing in foreign countries andto facilitate local online payment solutionthroughout nepal. The bank has more than 3700active payout locations throughout nepal. In thepursuit to accomplish service delivery excellence, thebank has established a full-fledged remittance


business unit (rbu), run by a team of competent andexperienced staffs who work round the clock withundeterred commitment to offer quality andcustomer oriented service to each of the customers.

The bank rebranded its remittance service as sbl remitwith effect from March 2014, which was previouslyknown as siddhartha remit. The rebranding was doneto make the remittance brand simple, globallyacceptable and easily assimilated brand for differentsociety all across the world. With the new brand name,the bank is looking forward to expand its remittanceservice reach and coverage at international forum withfast and smooth service as well as to further improviseits service quality and customer care.

In order to effectively handle customer queries andfeedbacks, the bank has established a separate fulltime help desk with a toll free number dedicatedpurely for remittance related issues and operations.currently, sbl remit has its presence in saudi arabia,Qatar, Kuwait, bahrain, Malaysia, uae, Korea, russiaand India. The bank plans to further expand itsremittance service to the nepalese migrants residingin cities like london, lebanon and singapore. sbl isalso the first nepali bank to offer remittance serviceglobally from multiple corridors in collaboration withits overseas remittance partners.

customer proximity has always been a prime concern for sbl. The bank has always believed in

reaching out to as many of its target customers as possible. The bank’s utmost priority for ensuring

customer proximity has been well justified by establishment as well as expansion of the bank’s

branches and aTMs in various locations throughout the country. Today, the bank has been serving

its customers in the urban, semi urban and rural areas with an extensive network of 46 branches and

60 aTMs scattered all over the country.

In addition to the formal banking services through itsbranches and aTMs, the bank has been serving its valuedcustomers residing in the far-flung areas of the countrythrough its innovative branchless banking service – ‘sajilobanking sewa’. ‘sajilo banking sewa’ has been currentlyserving customers in 48 rural locations of the country viaPos machines and biometric authentication by enablingthem to carry out basic banking services through thededicated agents appointed by the bank. sbl plans tofurther expand this service to other remote areas of nepal

in the days to come. also, the bank’s technologically basedproducts like iconnect, mconnect, hello Paisa, sMs alertetc have played an instrumental role in enhancing thebank’s customer proximity.

sbl is committed as ever to ensure that it is able toenhance the customer proximity in the future as well. Thebank shall continue identifying newer and mostimportantly, better ways to enhance its customer proximityin an effective and efficient way.

customer proximity


treasury operationsThe bank has in place a full-fledged ‘Treasury and correspondentbanking department’ with a state-of-the-art dealing room and is anactive player in the local interbank & foreign exchange market aswell as in bullion trading and other money market instruments. Thedepartment undertakes the function of both treasury operationsand correspondent banking and combines them in a single unit.The department complies with ‘Treasury and Investment policy2013' which lays down the overall functions and scope of thedepartment and, at all times, ensures strict adherence with nrbguidelines issued from time to time and subsequent amendments.It ensures smooth operation of the bank by providing basic andadvance treasury services and also supports the profit earning ofthe bank by making prudent investments.

The department runs four major desks: Money Market, Foreignexchange, bullion (Gold & silver) and equity trading. under moneymarket activities, the department carries out activities like interbankborrowing/lending, ensuring compliance with statutory ratios likescrr, slr, liquid assets, etc., local currency asset-liabilitymanagement, understanding and forecasting the money marketand market making for government bonds. under Foreignexchange management, the department determines the exchangerate, and manages FcY assets and liabilities. Further, it also importsbullion (gold and silver) from various refineries and deals withauthorized customer as specified by nrb guidelines. under equitytrading, the bank makes investment in various capital marketinstruments like shares, debentures, mutual funds scrips, etc.,adhering to the nrb guidelines, with an optimum risk-return profileand contributes to the overall profitability of the bank.

under correspondent banking, the department initiates andmaintains nostro relationship with various local and internationalcorrespondent banks. It extends its full support todepartments/branches for any correspondent requirement.

other servicesIn addition to the aforementioned products, the bank providesvarious ancillary services such as safe deposit locker Facilities,bancassurance, and utility bill Payments. The bank offers safedeposit lockers of different sizes for safeguarding customers’jewellery, important documents and other valuables. sbl also offersutility bills payment facility for nTc (landline & Mobile) bills, ncellMobile bills, dish home recharge fees etc.

siddhartha mutual fundsbl has also established a separate subsidiary unit, siddharthacapital limited (scl), which offers investment products to itscustomers. The first investment product launched by scl is amutual fund scheme named ‘siddhartha Investment Growthscheme – I’. The scheme was a five years, closed ended schemewith an objective of providing regular and balanced return over thescheme period with focus on higher possible capital appreciation atthe end of the maturity. The scheme was open to individuals, bankand financial institutions, investment companies, insurancecompanies, merchant bankers, different funds such as pensionfunds, retirement funds, employee welfare funds, nrn's holdingnrn certificate issued by Government of nepal, Trusts, and otherinstitutions etc.

scl launched its second scheme named siddhartha equityoriented scheme (seos) on august 2014. This scheme is a 5 yearsclosed ended scheme with a basic size of rs. 800 million which canbe extended to rs 1 billion. due to overwhelming responses frominvestors, the size of the fund has increased by 20 million and hasreached to rs 1 billion as per mutual fund guidelines. It is abalanced scheme investing 20 % - 30 % fixed income instrumentsand rest in equities to ensure minimum risk yet enhanced returns atthe same time.

SIddhArThA BAnk LTd. | ��

Capitalizing onHuman Resource

Siddhartha Bank offers an encouraging work environment with ampleprospects of knowledge sharing and career development. Our humanresource management policy is uncompromising in that it ensuresperformance based growth and compensation. The employeespractice high level of ethics, integrity and transparency, which isparamount to our business philosophy.

With the expansion in the Bank’s geographical coverage and customerbase, there has been increment in total number of employees of theBank. As of FY 2013-14, the Bank possesses an employee base of 401employees.

SBL regularly conducts various kinds of trainings and developmentprograms with a view to enhance the skills and expertise of its humanresources so that they are able to deliver excellent service to the Bank’scustomers. In the FY 2013-14, a total of 234 employees of the Bankwere trained via 76 training and development programs. Apart fromthese training and development activities, the Bank offers abundantopportunities to the employees for participating in several recreationalactivities as well as corporate events organized by variousorganizations.

Siddhartha Bank believes in attracting and retaining the best humanresources in the industry. It is because of the talent, commitment andefficiency of its human resources and their collective efforts that the Bankhas been able to position itself as one of the consistently growingcommercial banks of the country in a span of 13 years.

Senior Manager /Manager / DeputyManager / AssistantManager

6%

Executive

1%

Senior Officer /Officer

31%

Support Staff

3%

Supervisors

9%

Assistants

50% employee

composition

informationtechnologysiddhartha bank has a proactive approach when it comes to being updated with thelatest information communication technology implemented in the nepalese bankingindustry. This has enabled the bank to operate mainstream banking in a highlyautomated environment and enhance its capacity to deliver world class services andfacilities to its diverse clientele both in the cities and rural areas around nepal.

all the bank’s branches have online connectivity, whichenables the bank to offer speedy fund transfer facilities forits valued customers. Multi-branch access is also providedto retail customers through the bank’s branches,automated Teller Machines (aTMs), mobile and internetbanking, branchless banking and various card services.

The bank has made considerable efforts and investmentsin acquiring the best technology available internationallyto build the infrastructure for a world class bank. In termsof core banking software, the business is supported byFlexcube from oracle Financial services software. Thesystem is open and highly scalable to interface withvarious products and services given by the bank.

The bank has also prioritized its engagement to deployrobust IcT system for business continuity plan and powerhardware requirement through dedicated disasterrecovery site and hybrid solar system. as an initiative topromote renewable energy, the bank has installed solarhybrid at 22 branches and 4 aTMs with further expansionplan. sbl is one of the first pioneer private banks in nepalto use such system efficiently.

at siddhartha bank, we understand the significance of proper risk

management ability in determining the success of the bank. The bank thus,

follows a systematic approach to identify, monitor and control key risks

involved in the business.

credit riskcredit risk management is crucial for any bank because of itsimpact on the assets (loans and advances) and liability (deposits)sides of the balance sheet. since the primary business of the bank isto manage depositors’ funds and to be the custodian of theirdeposits, siddhartha bank places high emphasis on themanagement of credit risks so that we can create high qualityassets. The bank has comprehensive credit Policy Guidelines (cPG)and credit Manuals which serve as a basis for executing its lendingoperations. While the credit manual defines the processes andprocedures associated with credit creation, the credit policyguidelines clearly defines the credit policies of the bank in terms ofcredit concentration, obligor limits, credit analysis, approvingauthorities etc.

The bank has segregated the business generation and creditadministration operations for ensuring necessary checks andbalances. Thus, the business transactions are generated by one unitof the bank while the administration of the credit transactionsnamely documentations, compliance, disbursement, monitoringand control of credit exposures are done by another separate unit.For ensuring a robust loan approval process, the bank has a systemwhereby all loan applications are to be reviewed by at least twoapproving authorities before the final approval. Further,lending/approving limits are granted only to the staff possessingvast credit knowledge as well as experience.

The loan approving authorities are also segregated at three levels,namely management level, credit committee level and bod level.decisions on credit applications are made at different levels on thebasis of the requested loan amount. approved limits are put into

the system by the credit administration division only after ensuringthat documentations are fully complied with and that drawingpower of the borrower is reviewed.

The bank has a separate recovery unit to look into recovery of bothcorporate and retail loans. also, there is a red flag system wherebyeach credit account is pro-actively monitored, doubtful paymentsare identified and immediate actions are taken to prevent furtherloss. We also have in place, a comprehensive MIs system for regularmonitoring and review of credit accounts. The entire creditportfolio is reviewed regularly by the bod for ensuring a healthymix of exposures thus reducing the credit concentration risk. aregular review of various sectors is done time and again. also, theinterest and principal repayment are closely monitored on a dailybasis and any delinquency/deficiency is immediately reported tothe management for necessary corrective actions. similarly, thebank also closely monitors the credit worthiness of various financialinstitutions that share nostro/vostro relationship with the bank.credit limits are sanctioned and set only after detailed financialanalysis of the FIs and limit reviews are done regularly.

all of the aforementioned mechanisms have helped the bank toconsistently maintain its non-performing assets (nPa) within theprescribed limit. as of FY end 2013-14, the bank’s nPa stood at2.75 %. considering the total loan portfolio of the bank, this nPalevel is comparatively lowest amongst other banks in the industry.similarly, the bank has been able to maintain a consistent loan lossprovisioning to loans/advances ratio which clearly portrays thebank’s emphasis to safeguard the interests of its stakeholders. also,the bank has in place a sound Investment Policy, assets – liabilitiesManagement Policy and Treasury operational Manual for ensuringa healthy investment portfolio.

risk management


market riskMarket risk basically refers to the risk arising from theadverse fluctuations in market rates or prices thatultimately affect earnings from various asset andliability holdings of the bank. Interest rate, foreignexchange and securities are prone to market risks.

The banks’ earnings are affected by changes in theinterest rate environment especially when suchchanges are unanticipated. The primary source ofincome is the differential or ‘spread’ between theinterest earned on loans, securities and other interestearning assets, and interest paid on deposits,borrowings and other interest bearing liabilities. anychanges in interest rates affect the interest spreadsbecause of the difference between the maturitiesand re-pricing characteristics of interest earningassets and interest bearing liabilities. Interest ratechanges also affect the loan volume and yields. Forinstance, a sharp increase in interest rate results inlower loan originations and ultimately affectsearnings. sometimes it also affects borrowers’repayment capacity.

similarly, the bank is exposed to foreign exchangerates fluctuations that are subject to marketmovements. These fluctuations affect values ofdifferent assets, liabilities denominated in foreigncurrencies.

The bank has specified dealers' limit and limits onovernight position for ensuring proper managementof market risks. The foreign currency positions arerevalued daily on mark-to-market basis and counterparty limits are also determined based on the creditworthiness of the parties. The management ofmarket risks is carried out by the Treasurydepartment.

siddhartha bank has been successfully maintainingminimum level of market risks, with the help of an

effective asset and liability Management committee(alco) that operates as per the alco charter.Interest rate risk is managed through funding gapand earnings sensitivity analysis. The bank carefullymonitors the interest rate movements in the marketand takes up necessary proactive measures. Thebank also has an equally well managed foreignexchange risk management system. all foreignexchange transactions are monitored by theTreasury department.

operational risk

robust check anD balance mechanismoperational risk is one of the vital risk categories for abank that arises because of various factors such ashuman errors, frauds, technological breakdowns, etc.lack of proper management of operational risk mayresult in significant losses. siddhartha bank fullyunderstands the implications of operational risks andthus, has a robust system to avert operational risks tothe maximum (or best) possible extent. It has arobust internal control mechanism with clear lines ofauthorities and reporting structure. all operationalprocesses are well defined through standardoperating manuals. Internal audits are carried outperiodically to ensure compliance of the bank’sactivities with various international accounting andauditing standards, as well as several internal,regulatory and statutory requirements.

Various training and development programs areconducted regularly for enhancing the skills andexpertise of the staff and reduce the operationalerrors. apart from this, various operational manualsand its strict compliance help to ensure smoothworkflow. The bank is fully aware of the dynamicnature of business and operational procedures of theindustry owing to ever changing market dynamicsand scenarios. The bank has therefore established adedicated branch operation division at head officeto support and facilitate the branches in their day today operational activities. The division is alsoresponsible for reviewing the operational processesin the light of changing business and regulatoryenvironment and suggesting appropriate measuresand changes in policy level to ensure properaversion of operational risks. The bank also has aseparate control and compliance unit formonitoring of compliance status against setstandards and provisions. There is an independentInternal audit department constituted as per theinternational audit norms that consists ofprofessionals with expertise in risk identification. Theaudit committee reviews the audit comments raisedby the internal audit department and advises themanagement to implement the recommendations.

RiskManagement

Process

RiskManagement

Accountabilities

RiskKnowledge

Management

SystemicRisk Analysis

Tools andTechniques

SocialProcess and

culture


liquidity risk

MAtCHiNG ASSetS ANd LiABiLitieSliquidity risk refers to any undue risk to a bank's earnings and capital arisingfrom the bank's inability to meet its obligations when they are due.siddhartha bank has a well-structured policy for governing the liquidity riskmanagement. The bank’s asset liability committee (alco) monitors theliquidity risk. liquidity is managed using a total balance sheet perspectiveanalyzing both funding capacity available via increase of liabilities andthrough liquidation of assets- all this is analyzed with reference to projecteddemands for liquidity. The primary sources of liquidity for the bank includecore deposits, asset liquidation, including securities sold under repurchaseagreements, and wholesale funding, which includes funds raised fromsources such as inter bank borrowing. The bank’s Treasury department isinvolved in liquidity management through funding and investment functions.alco also periodically reviews the liquidity position of the bank and plans fornecessary actions to be taken in case of unforeseen event which mightadversely affect the bank's normal funding activities.

CoMPLiANCe to AML NoRMSsiddhartha bank views money laundering prevention as an integral part ofthe bank’s risk Management strategy with the vision of ensuring complianceto the regulatory and legal requirements of nepal as well as Internationalstandards.

The bank has highly focused on compliance with the ‘Know Your customer’policy for maintaining greatest possible transparency in business relationshipsand financial transactions, with the spotlight on prevention of moneylaundering. In adherence with this policy, the bank verifies the documentsrelating to the identification of its clients and also acquires a risk-basedclassification of account relationship into high, medium and low to streamlinethe process of customer screening for their source of assets and liabilities.Moreover, employee awareness campaign on KYc framework is organized onregular basis for the effective enforcement of anti money laundering norms.

BASeL ii CoMPLiANCeThe bank has fully complied with the regulatory capital adequacy framework.as per the central bank’s regulation to implement basel II frame work fromfiscal year 2008/09, the bank has been stringently ensuring that the standardsare met. sbl successfully maintained its capital adequacy ratio (car) at alevel well above the minimum capital requirement of 10% as required bybasel II. The bank’s car stood at 11.39% in the FY 2013/14.

The bank has adopted simplified standardized model of capital adequacyframework under basel II as regulated by nrb, and has developed internalmechanisms to ensure that it complies with the standard. effective MIssystem to monitor the risk elements, strong product documentation,standard operating procedures and trained human resources about theregulatory requirement has helped the bank to ensure compliance with thestandards.



siddhartha bank has always abided by high standards of corporate

Governance throughout its years of operations. The bank has full

compliance to the various principles of sound corporate governance. The

bank has always adopted an uncompromising attitude when it comes to

complying with the various legal, statutory and regulatory requirements.

The bank maintains a robust control mechanism to effectively identify and

address operational risk events and has a team of independent auditors to

ensure full compliance to various policies and standard operating

procedures.

siddhartha bank has instilled proper policies,guidelines and operating manuals to ensure smoothand compliant operations. The bank’s employeespossess high standards of ethics & professionalismand they have apt understanding that their behaviordirectly affects the bank’s goodwill and reputation.sbl has in place a transparent business managementthat highly prioritizes the welfare of all of itsstakeholders. Various periodic publications of financialinformation are conducted regularly so as tocommunicate the stakeholders about the bank’sfinancial stature in a prompt and accurate manner.

sbl possesses a well defined organizational structurewhich ensures that the bank’s objectives are properly

addressed and that all company affairs are welloverseen by the respective authorities. Its robust andcomprehensive internal control mechanism enables itto accurately identify and fulfill all the obligations ofthe bank. also, there is a systematic and effective riskmanagement system that assists the bank to properlyidentify, monitor and control the various kinds of riskto which it is exposed. In addition to a dedicatedinternal audit department, sbl has appointed reputedexternal auditor, independent of any financialinterests in the company. These efforts properly justifythe bank’s understanding and emphasis for ensuring awell defined as well as sound corporate governancesystem in the organization.

corporategovernance


siddhartha bank is well aware of its corporate social responsibility (csr) as

a responsible corporate citizen of the country and has always prioritized

that the bank’s operations strengthen the bank’s undeterred commitment

towards csr. similar to the prior years, the bank has directly or indirectly

participated in several social welfare programs, events and initiatives in the

FY 2013-14. The bank has supported several activities and events in areas

such as education, sports, social welfare, health care and local/regional

events and exhibitions as a part of its csr initiative.

In the FY 2013-14, the bank supported the ‘clean upnepal 2013 campaign’ jointly organized by small earthaustralia and small earth nepal. Various employeesfrom the bank participated in the event and wereactively involved in cleaning the buddhanagar area,which was one of the prime locations targeted by thecampaign.

similarly, the bank provided a sponsorship worthrs. 150,000 for the 8th International saarc Federationof oncologists conference which was attended bymore than 300 delegates from saarc countries andabroad so as to discuss various technologies,treatments and knowledge sharing related to cancerdisease.

In order to motivate the players of the nepalesenational cricket Team as well as to offer them a stablesource of income, the bank sponsored two players ofthe Team, who hadn’t been already providedsponsorship by other organizations. The banksponsored Mr. Prithu banskota and Mr. som Pal Kamifrom the Team as an honorary employee of the bankfor a period of two years. both of the players shall beprovided working opportunity in their leisure time, forenhancing their work knowledge as well as leadershipand people skills.

sbl also partnered with annapurna Post, one of themajor national dailies of nepal, for the Post’s csrinitiative ‘aba desh daudincha’. under the initiative, thebank provided 3 sewing machines to marginalized andsocially underprivileged women of nepalgunj

identified by care nepal, Violence against Women,annapurna Post and the bank’s nepalgunj branch.under the same initiative, sbl also donated sportsequipments to 3 different clubs of butwal, identified bylocal nGos, annapurna Post and the bank’s butwalbranch.

The bank conducted banking awareness programs invarious educational institutes of Kathmandu tocelebrate the Global Money Week 2014. It alsoparticipated in the ‘Global Money Week rally’organized by nepal rastra bank and nepal bankers’association.

sbl has maintained a dedicated mechanism so as toidentify possible csr opportunities as well as to ensurethe effectiveness of its csr initiatives. In order toexpand the reach and scope of its csr activities, thebank plans to identify and conduct various csractivities at branch level also in the days to come.

event participationsiddhartha bank has been actively participating in andsupporting several events organized by multipleinstitutions. In the FY 2013-14, sbl participated in the‘Maiti nepal human chain’ event organized by Maitinepal to express solidarity against human trafficking onthe occasion of 7th anti Trafficking day. The bank’semployees from various inside valley participated inthe event where all the participants joined hands toform a human chain covering the entire ring road areaof Kathmandu.

corporate socialresponsibility

as a continuation to its past efforts, the bank activelyparticipated in Indrajatra Festival, in association withGanga club, newroad, whereby the bank sponsored forthe T-shirts for volunteers as well as preparation ofritual foods (samay bazi). The bank’s welcome bannerswere also placed at different prominent locationsround the basantapur durbar square area.

sbl also participated in computer association of nepal(can)’s annual events namely can sofTech 2013, canInfotech 2014 and can IcT conference 2014 as anofficial bank of can. The bank not only managed ticketcounters for the sofTech and Infotech but also placed adedicated stall completely branded with the bank’sproducts and services.

In order to promote nepalese cricket and associationof corporate houses in sporting events, the banksponsored ‘Journey to World cup championship’jointly organized ‘cricket association of nepal’ andZohra International from december 2-7, 2013. Teamsfrom various countries such as singapore, India,bangladesh, nepal etc had participated in the event. asa part of the sponsorship, the bank had placedbranding materials at the stadium along with a spraypainted logo of the bank at one of the bowlers end.The bank also sponsored ‘Man of the Match’ title in onethe matches of the championship. The entire eventwas live telecasted by Kantipur Television.

When the entire nation was celebrating the historicachievement of the nepalese national cricket Team inthe T20 World cup Tournament, sbl celebrated theproud moment by felicitating the national cricketTeam with a cash prize worth rs. 500,000. as a part ofcompliance to the regulations of the governingauthorities, the bank provided this cash prize byloading it in siddhartha bank VIsa Prepaid card withusd 250 or rs. 25,000 as per the preference of theplayers and the associated officials.

In the FY 2013-14, the bank also participated in theKumaripati - Jawalakhel Festival, jointly organized byKumaripati Jawalakhel Vyapar sangh, KumaripatiJawalakhel Kshetriya Watawaran sudhar samittee,lalitpur sub Metropolitan, chamber of commerce andIndustry, Kumaripati club and etee Youth club. The bankalso placed a dedicated stall completely branded with itsproducts and services during the event.

one of the landmark achievements for the bank in theFY 2013-14 has been the signing of Memorandum ofunderstanding for the ‘Global Trade Finance Program’ ofInternational Finance corporation (IFc) - a member ofWorld bank Group. under the agreement, IFc shallprovide the bank the agreed confirmation Facility, whichshall be used to enhance the bank’s capacity to meet thetrade finance needs of various local enterprises as well asdevelopment projects of the country. siddhartha bank isthe 6th commercial bank of nepal to avail the benefits ofIFc’s Global Trade Finance Program.


internationaleconomic outlookTalking about the international scenario in theFY 2013-14, the developed economies such as usa,eurozone, Japan etc witnessed an end to themultitude of adverse effects of the global recessionthat had been hampering their economic growthfrom quite a time. This has created a hope for furthereconomic improvements in these nations’economies in the days to come. however, it is to benoted that there still exists probable risks of recessionin the eurozone because of its minimal inflation rate.The improvements witnessed in the developednations and major economic zones accompanied byan expansion in the economic activities ofdeveloping nations have significantly widened thevolume of the global trade in the FY 2013-14. It istrue that the economies of the developing countrieshave seen some positive developments because ofan increase in the external demand of the developednations. still, it is to be kept in consideration that theTapering Policy initiated by Federal reserve bank,usa so as to reduce the asset purchase might lead toan increment in interest rates in the internationalfinancial market. This increment presents possibilitiesof capital flight in the developing countries, therebydevaluating their respective currencies.

according to the World economic outlookpublished by International Monetary Fund (IMF) inapril 2014, the global economic growth rate isexpected to remain at 3.6% in 2014 and 3.9% in 2015.as per IMF, the american economy is expected togrow by 2.8% while the economies of eurozone anddeveloping nations are expected to grow by 1.2 %and 4.9 % respectively. on the other hand, the Indianand chinese economy which had experienced agrowth of 4.4% and 7.7% respectively in the year2013 are expected to grow by 5.4 % and 7.5%respectively in 2014.

an insight intothe nepalese economyas far as the economic stance of nepal is concerned,the preliminary estimate of central bureau of statisticsproject a GdP growth of 5.2 % at basic price and 5.5 %at producers’ price in the FY 2013-14 as compared to3.5 % and 3.9 % respectively in the preceding year.also, significant improvement has been estimated inthe growth rate of agricultural and service sector. In theFY 2013-14, agriculture sector has grown by 4.7 %while non agricultural sector has grown by 5.3 % ascompared to 1.1 % and 4.6 % in the last fiscal year.

The Gross national disposable Income has grown by20.4% in the FY 2013-14, which had grown by 12.3 %in the previous fiscal year. In the FY 2013-14, thecomposition of consumption and saving in the GdPof the country remained at 91.1% and 8.9 %respectively as compared to 89.9 % and 10.1 % lastyear. similarly, the portion of total investment in theGdP increased from 36.9 % in the last fiscal year to37.1 % in the FY 2013-14. also, the portion of nationalsaving in the GdP escalated from 40.3% in theprevious year to 46.4 % in the FY 2013-14.

banking and finance sectorThe fiscal year 2013-14 witnessed some positivedevelopments in the banking and finance sector of thenepalese economy in the year 2013-14. The depositmobilization of the banks and Financial Institutions(bFIs) have increased by 18.4 % (rs. 218.68 billion) thisfiscal year compared to a growth of 17.4 %(rs. 176.27 billion) last year. specifically, the depositmobilization of commercial banks, development banksand finance companies have grown by 17.8%, 29.1%and 25.7% respectively in comparison to 17.9 %, 27.1%and 9.6% respectively in the last fiscal year.

Director’s report


There have been considerable changes in the loans and investment side aswell. The total loans and investments of bFIs have increased by 14.4%(rs. 165.48 billion) compared to a growth of 18.6% (rs. 180.20 billion) in thepreceding fiscal year.

specifically, the growth rate of loans and investments of commercial banks,development banks and finance companies remained at 13.7%, 27% and4.3% respectively in the FY 2013-14. In the same period, the loans extendedby bFIs to the private sector of the national economy have increased by18.7% (rs. 176.14 billion) as compared to 20.8% (rs. 161.92 billion) last year.of the total loans extended to the private sector, the percentage of loansprovided by commercial banks and development banks has increased by18.7% and 29.3% respectively while the loans provided by financecompanies has decreased by 2.1% in the fiscal year 2013-14.

new initiativessbl has always placed paramount emphasis on identifying and capitalizingunexplored possibilities and opportunities in the market. In the reviewperiod also, the bank undertook several initiatives so as to further enhanceits market offerings, service experience, operational efficiency as well as itscorporate social responsibility initiatives.

network expansionsbl has always believed in reaching out to its customers so that they canenjoy high quality banking services at their vicinity. In the review period also,the bank continued its expansion drive and established branches at differentlocations of the country. In order to enhance the bank’s presence in theeastern region of the country, sbl established branches in birtamod andItahari in the FY 2013-14. In order to further strengthen the bank’s drive toinclude the rural populace of the country in the formal banking net, sblestablished a full fledged branch at dadeldhura - one of the remote locationsof the country.


The bank also expanded aTM outlets in various locations namelydattatraya durbar square, birtamod, Itahari, sunauli, banasthali,halanchowk etc.

Following the expansion of the bank’s branch as well as aTMnetwork, today, the bank boasts 46 branches and 60 aTMs that havebeen serving its diverse clientele all over the country. sbl plans tocontinue its expansion drive in the days to come as well.

Deposit schemesIn the review period, the bank continued offering various depositproducts of the bank such as siddhartha bachat, siddharthasarvottam bachat, siddhartha nari bachat, siddhartha Jesthanagarik bachat, siddhartha students’ savings, remit account,super salary accounts, siddhartha Investors savings etc to name afew.

apart from the regular deposit services, the bank also developedcustomized application interfaces so as to assist various educationalinstitutions for their fees management. sbl is the first commercialbank in the country to offer such customized application interfacesand it is committed to continue and expand this innovative servicein the future as well.

as a result of the bank’s intense focus to diversify its deposit base andto reduce the associated costs, the bank was able to significantlyimprove the composition of saving deposits and current deposits inits aggregate deposit portfolio. sbl plans to come up withappropriate corrective as well as promotional measures in thesedeposits in the days ahead.

agreement for human Developmentsocial protection pilot projectIn the review period, sbl entered into agreementwith Ministry of Federal affairs and local development (MoFald)for distribution of ‘child education allowance’ to the beneficiaries inKanchanpur and dadeldhura under the “human developmentsocial Protection Pilot”. The project targets a total of 15,725 childrenin the districts. sbl has been serving the beneficiaries through itsbranchless banking service – ‘sajilo banking sewa’ and has currentlyappointed 31 agents (17 in Kanchanpur and 14 in dadeldhura). Thebank has already completed the registration of the beneficiariesalong with allowance disbursement in 3 payment cycles.hence at present sbl has been serving the rural populace with

basic banking services under the ‘sajilo banking sewa’ at 48different locations of the country. The bank plans to further expandand enhance this dynamic service in the days to come.

rebranding of ‘siddhartha remit’as ‘sbl remit’In the FY 2013-14, the bank officially rebranded its remittanceservice ‘siddhartha remit’ as sbl remit. The rebranding was doneso as to make the bank’s remittance service simple, globallyacceptable and easily assimilated brand throughout the globe. Withthe new brand, the bank is looking forward to further enhance andexpand its remittance service in the international arena as a reliable,fast and efficient remittance service.

In the verge of expanding its remittance service sbl remit hasstarted its national remittance service from september 2013 so thatthe customers can send and receive money from any part of thecountry as well. In order to enable the customers from India to sendmoney back home in a safe and convenient manner, the bank hasalso started remittance service from India. In addition to this, thebank has association with various local and global remittanceservice providers in various the major cities and countries of theworld.

In the FY 2013-14, the bank entered into an agreement with civilbank limited for their national and international remittance service.under this agreement, money sent through sbl remit can bereceived from any branches of civil bank and vice versa enablingcustomers to enjoy faster, smoother and widely acceptedremittance service.

In order to enable the customers from India to send money backhome in a safe and convenient manner, the bank has also startedremittance service from India. In addition to this, the bank hasassociation with various local and global remittance serviceproviders in various major cities and countries of the world for itsremittance service – sbl remit.

currently, sbl remit boasts a wide agent network of more than3700 agents, offering qualitative and efficient remittance service tothe customers all over nepal. sbl remit, at present is cateringremittance facility in various countries of the world including saudiarabia, Qatar, Kuwait, bahrain, Malaysia, oman, uae and southKorea.


siddhartha equityoriented scheme (seos)siddhartha capital limited, the subsidiary company of sbl,launched its second scheme named siddhartha equity orientedscheme (seos) on august 2014. This scheme is a 5 years closedended scheme with a basic size of rs. 800 million. It is a balancedscheme investing 20 % - 30 % fixed income instruments and rest inequities to ensure minimum risk yet enhanced returns at the sametime. The scheme aims to offer regular and balanced return overthe scheme period with focus on higher possible capitalappreciation at the end of the maturity.

Depository participant (Dp) servicesiddhartha capital limited has been registered as a depositoryParticipant of the central depository system, implemented by cdsand clearing limited and has started opening demat accounts bothfrom its own office as well as sbl branches. by opening the demataccounts, customers can dematerialize their securities (shares,debentures etc) from physical certificates to electronic ones. Thisdemat account shall facilitate the customers to make sharetransactions in a paperless and hassle free way.

adherence to kyc/amlrequirementssbl has fully adhered to the regulations and requirements definedby prevalent acts related to ‘Know You customer (KYc)’ and “antiMoney laundering (aMl)’. The bank has already implemented arevised customer Information Form as stated by nrb and has beenupdating the details of its existing customers as well. In addition tothis, in order to ensure the compliance towards KYc/aMlregulations, the bank has in place a dedicated department which isresponsible to monitor and review the bank’s compliance to theserules and regulations.

business and financial achievementssimilar to the past years, the bank made significant achievements inexpansion of its market share, business portfolio, financial statureand assets quality in the fiscal year 2013-14. The bank registered agrowth of 24.73 % in its deposit portfolio, thereby making a depositvolume of rs. 35.41 billion and 17.98 % in its lending portfoliowhich made its lending portfolio to reach at rs. 27.98 billion.

assets Qualitydespite the monumental growth of the bank, sbl has nevercompromised on its assets quality. as a result of this intense focusto maintain excellent asset quality standards as well as the bank’sprudent lending mechanism, sbl has successfully contained itsnon-performing assets at 2.75 %, lower than the nrb requirement.

profitability of the bankIn the FY 2013-14, sbl achieved a landmark operating profit (beforeprovision) of rs. 1.16 billion, which is growth of 14.84 % from that oflast year. similarly, the bank’s net profit stood at rs. 700 million,thereby registering a growth of 45.17 % compared to that of lastyear.

total incomeIn the FY 2013-14, the bank’s total income reached rs. 1.84 billion,which clearly states a growth of 14.67 % than that of FY 2012-13.

interest incomeduring the review period, the bank registered a net interest incomeof rs. 1.34 billion, which signifies a growth of 16.60 % as comparedto the preceding fiscal year.

shareholders’ equityIn the FY 2013-14, sbl’s net worth stood at rs. 3 billion, which is agrowth of 19.91 % than that of last year. The bank also provided12% bonus shares to its shareholders.


going aheadever since its initial years, siddhartha bank has maintained anundeterred focus to be the ‘bank for Your Prosperity’ for itsshareholders, customers, employees and other stakeholders. Thebank has never comprised when it comes to growth of its portfolio,scope of operations and area of representations and at the sametime has diverted ample attention and resources towardsdeveloping necessary infrastructure as well as a competent humanresource base. as a result of this the bank today boasts acomprehensive branch and aTM network, well maintainedinternational and correspondent networks, a healthy and growingbusiness portfolio and a plethora of innovative and customeroriented products and services.

Today sbl has a full range of banking services to address the diverseneeds of its valued customers regardless of their geographic oreconomic background which makes it a full fledged financialpartner for its customers. at the same time, the bank has beenproactive in redesigning its existing market offerings as well as inenhancing the efficiency and effectiveness of its service deliverychannels.

sbl has always been a pioneer in introducing dynamictechnologically driven market offering such as branchless banking,

card related products, mobile wallet, internet banking etc. all ofthese services of the bank are adequately backed by robust securityand encryption mechanism, thereby ensuring confidentiality ofpertinent data and information.

The bank’s dedicated and competent human resource have alwaysworked wholeheartedly to create a delighting experience for eachand every customers whenever and wherever they opt for thebank’s products and services. The bank provides equitablecompensation, adequate training and development programs andabove all ample opportunities for the individual growth of all of itsemployees which has enabled it to retain the best talents in themarket.

In the days ahead, the bank shall continue maintaining a keen eyeon identifying and capitalizing market opportunities, enhancingcustomer service experience, developing dynamic products andservices and most importantly exceeding the expectations of itsshareholders in every way possible. While doing so, the bank shallcontinue focusing on fulfilling its social responsibility towards thesociety at large through various social welfare activities andinitiatives.

sbl has always been a pioneer in introducing dynamic technologically driven marketoffering such as branchless banking, card related products, mobile wallet, internetbanking etc.

SIDDHARTHA BANk LTD. | ��

as at 32 Ashad 2071 (16 July 2014)

Consolidated Balance Sheet

Capital & Liabilities This Year Rs. Previous Year Rs.

1. Share Capital 2,031,180,032 1,813,553,616

2. Reserves and Surplus 969,714,550 686,420,835

3. Non- Controlling Interest 49,493,796 47,904,768

4. Debenture and Bonds 931,290,000 931,290,000

5. Borrowings 106,415,000 787,465,822

6. Deposit Liabilities 35,408,654,296 28,383,286,527

7. Bills Payables 104,740,547 13,018,950

8. Proposed Dividend 202,354,402 163,628,898

9. Income Tax Liabilities - 7,078,003

10. Other Liabilities 525,007,502 857,576,372

TTOOTTAALL CCAAPPIITTAALL && LLIIAABBIILLIITTIIEESS 4400,,332288,,885500,,112244 3333,,669911,,222233,,779911

Assets This Year Rs. Previous Year Rs.

1. Cash Balance 1,116,413,036 761,812,599

2. Balance with Nepal Rastra Bank 5,953,656,422 2,656,846,863

3. Balance with Banks & Financial Institutions 191,206,673 87,207,904

4. Money at Call & Short Notice 1,150,000,000 1,375,253,337

5. Investment 3,343,285,438 4,468,620,808

6. Loans, Advances & Bills Purchased 27,186,905,349 23,086,563,330

7. Fixed Assets 450,416,738 465,018,998

8. Non- Banking Assets -

9. Other Assets 936,966,468 789,899,952

TTOOTTAALL AASSSSEETTSS 4400,,332288,,885500,,112244 3333,,669911,,222233,,779911

Ram Chandra Khanal Head - Finance

Sundar Prasad KadelChief Operating Officer

Chiranjilal Agrawal Chairman

Shambhu Nath GautamChief Business Officer

Surender BhandariChief Executive Officer

Poonam Chand AgrawalManoj Kumar Kedia Bishwa Nath ShahRatan Lal KediaMahesh P. PokharelHemant GyawaliRajesh Kumar KediaBhagat Bista

Directors

Shashi Satyal Managing Partner For T. R. Upadhya & Co. Chartered Accountants

As Per our report of even date

Date: 16 September,2014Place: Kathmandu, Nepal

Particular This Year Rs. Previous Year Rs.

1. Interest Income 3,056,286,677 2,901,913,856

2. Interest Expenses 1,708,119,486 1,741,467,061

Net Interest Income 1,348,167,192 1,160,446,795

3. Commission & Discount 176,689,684 113,066,701

4. Other Operating Income 205,317,871 189,367,484

5. Exchange Fluctuation Gain 132,327,198 156,644,586

Total Operating Income 1,862,501,945 1,619,525,566

6. Employees Expenses 249,148,116 221,530,340

7. Other Operating Expenses 446,987,120 386,257,627

8. Exchange Fluctuation Loss - -

Operating Profit Before Provision for Possible Loan Loss 1,166,366,708 1,011,737,599

9. Provisions for possible losses 423,229,271 245,494,574

Operating Profit 743,137,437 766,243,025

10. Non- Operating Income/(Expenses) 96,819,665 943,581

11. Possible Loss Provision Written Back 266,402,956

Profit from Regular Activities 1,106,360,059 767,186,606

12. Income/Expenses from Extraordinary Activities (24,285) (12,794,019)

Net Profit after inclusing all activities 1,106,335,774 754,392,588

13. Provision for Staff Bonus 100,575,979 68,784,341

14. Provision for Income Tax (a+b-c) 301,446,551 205,286,966

a. This year provision 306,068,243 214,877,704

b. Provision upto last year 2,594,250 754,835

c. Deferred Tax Income/(Expenses) 7,215,942 10,345,574

15. Share of Non-Controlling interest in the Profit/Loss of Subsidiary 1,851,340 (1,095,232)

NeT PRofT/ (LoSS) 706,164,584 481,416,512

For the period from 01 Shrawan 2070 to 32 Ashad 2071 (16 July 2013 to 16 July 2014)

Consolidated Profit & Loss Accounts







Directors




�� | SIDDHARTHA BANk LTD.


Consolidated Profit & Loss Appropriation Accounts







Directors




Particulars This Year Rs. Previous Year Rs.

Income

1. Accumulated restated Profit upto Previous Year 14,400,029 103,072,222

2. This Year's Profit 706,164,584 481,416,512

3. Exchange Equalisation Fund

4. Transfer from Capital Adjustment Fund

5. Share Premium

TOTAL 720,564,612 584,488,735

Expenditures

1. Accumulated loss upto Previous Year -

2. Current year's loss -

3. General Reserve 140,107,000 96,511,289

4. Contingent Reserves - -

5. Institutional Development Fund - -

6. Dividend Equalization Fund - -

7. Employees Related Reserve Fund - -


9. Proposed Bonus Share 217,626,432 194,309,316

10. Specific Reserve Fund - -

11. Exchage Fluctuation Fund 2,149,504 4,090,114

12. Capital Redemption Reserve Fund - -

13. Capital Adjustment Fund - -

14. Investment Adjustment Reserve 1,321,789 4,750,799

15. Deferred Tax Reserve 7,875,971 10,345,574

15. Others - -

a. Debenture Redemption Reserve 133,041,429 96,452,716

TOTAL 704,476,526 570,088,706

15. Accumulated Profit/ (Loss) 16,088,086 14,400,029




Consolidated Cash flow Statement


A. CAsh FLOws FROm OPERATINg ACTIvITIEs 4,003,827,874 (803,922,899)

1. Cash Receipts 3,679,953,848 3,361,380,333

1.1 Interest Income 3,074,528,538 2,908,491,432

1.2 Commission & Discount Income 378,399,685 113,066,701

1.3 Exchange Fluctuation Gain 132,327,198 156,644,586

1.4 Recovery of Loans Written Off - 80,000

1.5 Other Income 94,698,426 183,097,614

2. Cash Payments 2,663,966,476 2,584,174,970

2.1 Interest Expenses 1,708,819,079 1,757,983,487

2.2 Staff Expenses 280,433,100 290,314,681

2.3 Office Operating Expenses 355,646,906 297,323,281

2.4 Income Tax Paid 318,539,617 225,679,501

2.5 Other Expenses 527,773 12,874,019

CAsh FLOws BEFORE ChANgEs IN wORkINg CAPITAL 1,015,987,372 777,205,362

Increase/(Decrease) in Current Assets (3,041,184,563) (5,041,204,667)

1. (Increase)/Decrease in Money at Call and Shortnotice 225,253,337 (727,773,837)

2. (Increase)/Decrease in Short-term Investments 1,145,135,370 (1,078,922,275)

3. (Increase)/Decrease in Loan and Bills Purchased (4,264,110,849) (3,114,318,622)

4. (Increase)/Decrease in Other Assets (147,462,421) (120,189,933)

Increase/(Decrease) in Current Liabilities 6,029,025,065 3,460,076,406

1. Increase/(Decrease) in Deposits 7,021,185,304 2,444,316,507

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

3. Increase/(Decrease) in Short-term Borrowings (681,050,822) 742,465,822

4. Increase/(Decrease) in Other Liabilities (311,109,417) 273,294,077

B. CAsh FLOws FROm INvEsTINg ACTIvITIEs (85,399,246) (178,700,145)

1. (Increase)/Decrease in Long-term Investments (16,800,412) 3,169,600

2. (Increase)/Decrease in Fixed Assets (76,725,249) (184,730,546)

3. Interest Income from Long term Investments - 2,321,301

4. Dividend Income 8,126,416 539,500

5. Others - -


C. CAsh FLOws FROm FINANCINg ACTIvITIEs (172,555,621) 167,113,991

1. Increase/(Decrease) in Long-term Borrowings (Bond, debentures etc.) - 303,471,406

2. Increase/(Decrease) in Share Capital (16) -

3. Increase/(Decrease) in Other Liabilities - -

4. Increase/(Decrease) in Refinance/facilities received from NRB - -

5. Increase/(Decrease) in Proposed dividends and Dividend Payables (172,555,605) (136,357,415)

D. INCOmE/ExPENsEs FROm ChANgEs IN ExChANgE RATE ON CAsh AND BANk BALANCEs -

E. NET CAsh FLOw FOR ThE YEAR FROm ALL ACTIvITIEs (A+B+C+D) 3,745,873,007 (815,509,052)

F. OPENINg CAsh AND BANk BALANCE 3,515,403,124 4,330,912,176

g. CLOsINg CAsh AND BANk BALANCE 7,261,276,131 3,515,403,124







Directors





Contingent Liabilities Schedule 4.17 Declaration of Directors Schedule 4.29 Capital Adequacy Table Schedule 4.30 Details of Risk Weighted Expousre Table Schedule 4.30 (A) Principal Indicators Schedule 4.31 Significant Accounting Policies Schedule 4.32 Notes to Accounts Schedule 4.33

Schedule 4.1 to 4.17 form integral part of the Balance Sheet.

Assets Schedule This Year Rs. Previous Year Rs.

1. Cash Balance 4.8 1,121,761,910 761,809,818

2. Balance with Nepal Rastra Bank 4.9 5,953,656,422 2,656,846,863

3. Balance with Banks & Financial Institutions 4.10 181,628,032 67,119,493

4. Money at Call & Short Notice 4.11 1,150,000,000 1,375,253,337

5. Investment 4.12 3,327,655,038 4,472,790,408

6. Loans, Advances & Bills Purchased 4.13 27,186,905,349 23,086,563,330

7. Fixed Assets 4.14 440,491,043 453,510,172

8. Non- Banking Assets 4.15 - -

9. Other Assets 4.16 915,654,405 779,962,337

TOTAL AssETs 40,277,752,199 33,653,855,758

Capital & Liabilities Schedule This Year Rs. Previous Year Rs.

1. Share Capital 4.1 2,031,180,032 1,813,553,616

2. Reserves and Surplus 4.2 969,200,600 688,646,434

3. Debenture and Bonds 4.3 931,290,000 931,290,000

4. Borrowings 4.4 106,415,000 787,465,822

5. Deposit Liabilities 4.5 35,414,007,591 28,392,822,287

6. Bills Payables 4.6 104,740,547 13,018,950


8. Income Tax Liabilities 7,078,003

9. Other Liabilities 4.7 518,564,027 856,351,748

TOTAL CAPITAL & LIABILITIEs 40,277,752,199 33,653,855,758

as at 32 Ashad 2071 (16 July 2014)

Balance Sheet







Directors





Particulars Schedule This Year Rs. Previous Year Rs.

1. Interest Income 4.18 3,056,286,677 2,898,414,698

2. Interest Expenses 4.19 1,708,865,575 1,742,838,625

Net Interest Income 1,347,421,102 1,155,576,072

3. Commission & Discount 4.20 159,355,124 113,066,701

4. Other Operating Income 4.21 204,085,093 182,092,830

5. Exchange Fluctuation Gain 4.22 132,327,198 156,644,586

Total Operating Income 1,843,188,517 1,607,380,190

6. Employees Expenses 4.23 242,446,594 216,516,361

7. Other Operating Expenses 4.24 436,309,023 376,891,063

8. Exchange Fluctuation Loss 4.22 - -

OOppeerraattiinngg PPrroofifitt BBeeffoorree PPrroovviissiioonn ffoorr PPoossssiibbllee LLooaann LLoossss 11,,116644,,443322,,990000 11,,001133,,997722,,776666

9. Provisions for possible losses 4.25 423,229,271 245,494,574

Operating Profit 741,203,629 768,478,192

10. Non- Operating Income/(Expenses) 4.26 93,180,277 943,581

11. Possible Loss Provision Written Back 4.27 266,402,956 -

Profit from Regular Activities 1,100,786,862 769,421,773

12. Income/Expenses from Extraordinary Activities 4.28 (24,285) (12,794,019)

Net Profit after inclusing all activities 1,100,762,577 756,627,755


14. Provision for Income Tax (a+b-c) 300,158,253 205,286,966

a. This year provision 305,439,974 214,877,704

b. Provision upto last year 2,594,250 754,835

c. Deferred Tax Income/(Expenses) 7,875,971 10,345,574

NET PROFT/ (LOss) 700,534,999 482,556,447

Schedule 4.18 to 4.28 form integral part of this profit & loss account


Profit & Loss Accounts







Directors






Profit & Loss Appropriation Accounts







Directors




Particular Schedule This Year Rs. Previous Year Rs.

Income

1. Accumulated restated Profit upto Previous Year 16,096,201 103,628,460

2. This Year's Profit 700,534,999 482,556,447

3. Exchange Equalisation Fund - -

4. Transfer from Capital Adjustment Fund -

5. Share Premium -

TOTAL 716,631,201 586,184,907

Expenditures

1. Accumulated loss upto Previous Year - -

2. Current year's loss - -

3. General Reserve 140,107,000 96,511,289

4. Contingent Reserves - -

5. Institutional Development Fund - -

6. Dividend Equalization Fund - -

7. Employees Related Reserve Fund - -


9. Proposed Bonus Share 217,626,432 194,309,316

10. Specific Reserve Fund - -

11. Exchage Fluctuation Fund 2,149,504 4,090,114

12. Capital Redemption Reserve Fund - -


14. Investment Adjustment Reserve 1,321,789 4,750,799

15. Deferred Tax Reserve 7,875,971 10,345,574

15. Others - -

a. Debenture Redemption Reserve 133,041,429 96,452,716

TOTAL 704,476,526 570,088,706

15. Accumulated Profit/ (Loss) 12,154,675 16,096,201

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Cash flow Statement


A. CAsh FLOws FROm OPERATINg ACTIvITIEs 4,012,613,048 (792,266,158)

1. Cash Receipts 3,663,949,098 3,351,556,258

1.1 Interest Income . 3,073,782,448 2,899,268,060

1.2 Commission & Discount Income 363,440,217 113,066,701

1.3 Exchange Fluctuation Gain 132,327,198 156,644,586

1.4 Recovery of Loans Written Off 80,000

1.5 Other Income 94,399,234 182,496,911

2. Cash Payments 2,645,019,177 2,572,024,150

2.1 Interest Expenses 1,708,072,989 1,757,983,487

2.2 Staff Expenses 273,731,578 285,300,702

2.3 Office Operating Expenses 347,574,610 290,186,440

2.4 Income Tax Paid 315,112,227 225,679,501

2.5 Other Expenses 527,773 12,874,019

CAsh FLOws BEFORE ChANgEs IN wORkINg CAPITAL 1,018,929,920 779,532,108

Increase/(Decrease) in Current Assets (3,039,735,011) (5,032,273,501)

1. (Increase)/Decrease in Money at Call and Shortnotice 225,253,337 (727,773,837)

2. (Increase)/Decrease in Short-term Investments 1,145,135,370 (1,078,922,275)

3. (Increase)/Decrease in Loan and Bills Purchased (4,264,110,849) (3,114,318,622)

4. (Increase)/Decrease in Other Assets (146,012,870) (111,258,767)

Increase/(Decrease) in Current Liabilities 6,033,418,138 3,460,475,234

1. Increase/(Decrease) in Deposits 7,021,185,304 2,444,316,507

2. Increase/(Decrease) in Certificate of Deposits

3. Increase/(Decrease) in Short-term Borrowings (681,050,822) 742,465,822

4. Increase/(Decrease) in Other Liabilities (306,716,344) 273,692,905

B. CAsh FLOws FROm INvEsTINg ACTIvITIEs (68,787,236) (180,962,426)

1. (Increase)/Decrease in Long-term Investments - -

2. (Increase)/Decrease in Fixed Assets (75,715,284) (181,501,926)

3. Interest Income from Long term Investments

4.Dividend Income 6,928,048 539,500

5. Others


C. CAsh FLOws FROm FINANCINg ACTIvITIEs (172,555,621) 167,113,991

1. Increase/(Decrease) in Long-term Borrowings (Bond, debentures etc.) - 303,471,406

2. Increase/(Decrease) in Share Capital (16)

3. Increase/(Decrease) in Other Liabilities

4. Increase/(Decrease) in Refinance/facilities received from NRB

5. Increase/(Decrease) in Proposed dividends and Dividend Payables (172,555,605) (136,357,415)

D. INCOmE/ExPENsEs FROm ChANgEs IN ExChANgE RATE ON CAsh AND BANk BALANCEs - -

E. NET CAsh FLOw FOR ThE YEAR FROm ALL ACTIvITIEs (A+B+C+D) 3,771,270,191 (806,114,593)

F. OPENINg CAsh AND BANk BALANCE 3,485,776,173 4,291,890,766

g. CLOsINg CAsh AND BANk BALANCE 7,257,046,363 3,485,776,173







Directors





as at 32 Asadh 2071 (16 July 2014)

Share Capital & ownership

as at 32 Asadh 2071 (16 July 2014)

Share ownership Details


1. share Capital - -

1.1 Authorized Capital 3,000,000,000 3,000,000,000

a. 30,000,000 Ordinary shares of Rs. 100 each share 3,000,000,000 3,000,000,000

b. Non-redeemable Preference Shares of Rs……..each - -

c. Redeemable Preference Shares of Rs…….each - -

1.2 Issued Capital 1,813,553,600 1,619,244,300

a. 18,135,536 Ordinary shares of Rs.100 each share 1,813,553,600 1,619,244,300



1.3 Paid up Capital 1,813,553,600 1,813,553,616

a. 18,135,536 Ordinary shares of Rs.100 each share 1,813,553,600 1,813,553,616



1.4 Proposed Bonus share 217,626,432

1.5 Calls in Advance -

1.6 TOTAL AmOuNT(1.3+1.4+1.5) 2,031,180,032 1,813,553,616

Schedule 4.1

Share ownership Details This Year Rs. Previous Year Rs.

% Share Capital Share Capital %

1. Domestic Ownership 100 1,813,553,600 1,619,244,300 100

1.1 Government of Nepal - - -

1.2 "A" Class Licensed Institutions - - -

1.3 Other Licensed Institutions - - -

1.4 Other Entities - - -

1.5 General Public 49 888,641,300 793,429,700 49

1.6 Others (Promoter) 51 924,912,300 825,814,600 51

2. Foreign Ownership - - - -

TOTAL 100 1,813,553,600 1,619,244,300 100


List of Shareholders' Holding more than 0.5 % Share Capital

S. N. Name No. of shares Paid Amount Rs. %

1. PRUDENTIAL INVESTMENT CO. PVT.LTD. 726,497 72,649,696 4.01%

2. CHIRANJILAL AGRAWAL 724,982 72,498,160 4.00%

3. NARENDRA kUMAR AGRAWAL 683,826 68,382,640 3.77%

4. HIRALAL kEDIA 601,738 60,173,792 3.32%

5. RATANLAL kEDIA 598,109 59,810,912 3.30%

6. MAHAVIR INVESTMENT PVT.LTD 543,739 54,373,872 3.00%

7. SUBODH TODI 456,738 45,673,824 2.52%

8. GOMATI DEVI kEDIA 398,741 39,874,128 2.20%

9. PAWAN kUMAR AGRAWAL 396,152 39,615,184 2.18%

10. DINANATH kEDIA 391,492 39,149,152 2.16%

11. ASHOk kUMAR BAHETI 359,992 35,999,248 1.99%

12. NARPAT SINGH JAIN 346,641 34,664,104 1.91%

13. RAMAUTAR kEDIA 333,492 33,349,232 1.84%

14. MADANLAL kEDIA 333,492 33,349,232 1.84%

15. SAVITA kEDIA 326,856 32,685,632 1.80%

16. POONAM CHAND AGRAWAL 292,104 29,210,384 1.61%

17. SURESH kUMAR RUNGTA 271,871 27,187,104 1.50%

18. SANTOSH RATHI 271,871 27,187,104 1.50%

19. SANJAY kUMAR SHARDA 270,705 27,070,504 1.49%

20. BINOD kUMAR AGRAWAL 212,729 21,272,944 1.17%

21. PUSHPANJALI INTERNATIONAL PVT.LTD. 188,081 18,808,108 1.04%

22. RAJ kUMAR TIBREWALA 181,247 18,124,736 1.00%

23. RAJENDRA AGRAWAL 181,247 18,124,736 1.00%

24. SHYAM SUNDER AGRAWAL 167,954 16,795,408 0.93%

25. NIkITA kUMARI BHIMSARIA 164,770 16,476,992 0.91%

26. RABINDRANATH SHARMA 161,403 16,140,320 0.89%

27. MANISH JAIN 160,458 16,045,792 0.88%

28. SURESH CHANDA AGRAWAL 160,144 16,014,384 0.88%

29. SHASHI kALA AGRAWAL 147,587 14,758,688 0.81%

30. BINAY kUMAR SHAH MARWARI 141,232 14,123,200 0.78%

31. kABINDRA BAHADUR SHRESTHA 138,469 13,846,896 0.76%

32. SAROJ SHARMA 135,246 13,524,560 0.75%

33. SHAMBHU kUMAR kANDOI 132,860 13,286,032 0.73%

34. BISHWONATH SHAH 127,492 12,749,244 0.70%

35. SATIS AND DAMODAR PRASAD GAUTAM 127,334 12,733,392 0.70%

36. kRISHNA MURARI AGRAWAL 126,354 12,635,392 0.70%

37. NIRMAL PRADHAN 102,566 10,256,616 0.57%

38. RAHUL AGRAWAL 101,849 10,184,892 0.56%

39. BIRENDRA kUMAR SHAH 95,710 9,570,968 0.53%

40. JAGADISH kUMAR AGRAWAL 92,436 9,243,584 0.51%

41. OM PRAkASH RUNGTA 90,625 9,062,480 0.50%

Schedule 4.1.1


1. general Reserve Fund 531,547,525 391,440,524

2. Capital Reserve Fund - -

3. Capital Redemption Reserve - -


5. Other Reserves and Fund 407,994,091 265,754,903

5.1. Contingent Reserve - -

5.2. Institution Development Fund - -

5.3. Dividend Equalization Fund - -

5.4. Specific reserve Fund - -

5.5. Assets Revaluation Reserve - -

5.6. Investment Adjustment Reserve 7,414,288 6,092,499

5.7. Deferred Tax Reserve 27,937,244 20,061,272

5.8. Other Free Reserves - -

5.9. Other Reserve Funds - -

5.10. Debenture Redemption Reserve 372,642,559 239,601,131

5.11. Share Premium

6. Accumulated Profit/ Loss 12,154,675 16,096,201

7. Exchange Fluctuation Fund 17,504,310 15,354,805

TOTAL 969,200,600 688,646,434

Schedule 4.2

as at 32 Asadh 2071 (16 July 2014)

Reserves and Surplus



as at 32 Asadh 2071 (16 July 2014)

Debentures and Bonds


1. 8.5% of sBL Debentures 2072 of Rs. 1,000 each 227,770,000 227,770,000

Issued on 2065.07.29 and to be redeemed on 2072.07.28 227,770,000 227,770,000

(Outstanding balance of Redemption Reserve Rs 195,231,428.29)

2. 11 % of sBL Debentures 2075 of Rs 1,000each 400,000,000 400,000,000

Issued 2069.01.12 and to be redemeed on 2076.01.13 400,000,000 400,000,000


3. 8 % of sBL Debentures 2076 of Rs 1,000 each 303,520,000 303,520,000

Issued 2070.02.06 and to be redemeed on 2077.02.05 303,520,000 303,520,000


TOTAL (1+2+3) 931,290,000 931,290,000

Schedule 4.3

as at 32 Asadh 2071 (16 July 2014)

Borrowings


A. Local

1. Government of Nepal - -

2. Nepal Rastra Bank 92,000,000 183,846,915

3. Repo - Liabilities - -

4. Inter Bank & Financial Institution 14,415,000 603,618,908

5. Other Organized Institutions - -

6. Others - -

Total 106,415,000 787,465,822

B. Foreign

1. Banks - -

2. Others - -

Total - -

TOTAL (A + B) 106,415,000 787,465,822

Schedule 4.4

as at 32 Asadh 2071 (16 July 2014)

Deposits


1. NON-INTEREsT BEARINg DEPOsIT ACCOuNTs

A. Current Deposits 2,166,994,386 895,029,086

1. Local Currency 1,937,354,763 811,703,771

1.1 Government of Nepal 355,088,225 88,780,311

1.2 "A" Class Licensed Institutions 8,727,005 1,478,383

1.3 Other Licensed Financial Institutions 71,758,683 50,773,780

1.4 Other Organized Institutions 1,398,603,583 590,539,098

1.5 Individuals 101,029,245 80,024,037

1.6 Others 2,148,023 108,161

2. Foreign Currency 229,639,623 83,325,315

2.1 Government of Nepal - -

2.2 "A" Class Licensed Institutions - -

2.3 Other Licensed Financial Institutions - -

2.4 Other Organized Institutions 229,639,623 83,325,315

2.5 Individuals - -

2.6 Others -

B. margin Deposits 337,640,290 259,446,137

1. Employees Guarantee 3,194,533 2,501,837

2. Guarantees Margin 196,166,152 114,077,079

3. Letters of Credit Margin 138,279,605 142,867,221

C. Others - -

1. Local Currency - -

1.1 Financial Institutions - -

1.2 Other Organized Institutions - -

1.3 Individuals - -

2. Foreign Currency - -

2.1 Financial Institutions - -

2.2 Other Organized Institutions - -

2.3 Individuals - -

TOTAL OF NON-INTEREsT BEARINg ACCOuNTs 2,504,634,676 1,154,475,223

Schedule 4.5

Continue...deposits



Continue...deposits


2. INTEREsT BEARINg ACCOuNTs

A. savings Deposits 9,523,215,715 7,385,578,203

1. Local Currency 9,473,870,698 7,350,399,839

1.1 Organized Institutions 66,912,060 -

1.2 Individuals 9,405,945,855 7,186,997,090

1.3 Others 1,012,783 163,402,748


2.1 Organized Institutions 3,803,096 -

2.2 Individuals 45,541,921 35,178,365

2.3 Others - -

B. Fixed Deposits 11,876,223,355 10,708,836,223

1. Local Currency 11,491,823,355 10,325,636,223

1.1 Organized Institutions 8,672,989,686 7,617,429,160

1.2 Individuals 2,808,333,668 1,934,587,590

1.3 Others 10,500,000 773,619,473


2.1 Organized Institutions 384,400,000 383,200,000

2.2 Individuals - -

2.3 Others - -

C. Call Deposit 11,509,933,846 9,143,932,637

1. Local Currency 11,341,575,971 8,918,454,561

1.1 "A" Class Licensed Institutions -

1.2 Other Licensed Financial Institutions 3,324,739,146 3,121,074,160

1.3 Other Organized Institutions 6,551,146,486 4,199,617,020

1.4 Individuals 1,407,099,777 1,335,208,305

1.5 Others 58,590,563 262,555,076


2.1 "A" Class Licensed Institutions - -

2.2 Other Licensed Financial Institutions - -

2.3 Other Organizations 168,357,875 225,478,077

2.4 Individuals - -

2.5 Others - -

D. Certificate of Deposit - -

1. Organized Institutions - -

2. Individuals -

3. Others - -

Total of Interest Bearing Accounts 32,909,372,916 27,238,347,064

(1 + 2) TOTAL DEPOsIT 35,414,007,591 28,392,822,287



1. Local currency 101,327,416 1,644,643

2. Foreign currency 3,413,131 11,374,306

-

TOTAL 104,740,547 13,018,950

Schedule 4.6

as at 32 Asadh 2071 (16 July 2014)

Bills Payable

as at 32 Asadh 2071 (16 July 2014)

other Liabilities


1. Pension/Gratuity Fund 13,878,515 14,530,955

2. Employees Provident Fund

3. Employees Welfare Fund - -


5. Interest Payable on Deposits 35,494,531 43,165,852

6. Interest Payable on Borrowings 401 16,767

7. Unearned Discount & Commission 4,670,079 4,995,059

8. Sundry Creditors 4,887,826 9,197,242

9. Branch Adjustment Account

10. Deferred Tax Liability - -

11. Dividend Payable 21,959,077 30,885,784

12. Others 337,604,273 684,775,747

a. Audit fees & Expenses Payable 649,750 604,550

b. Provision for Leave Encashment 44,026,246 37,812,985

c. Interest Payable on Debentures 44,023,846 35,543,573

d. Provision for Teller Allowance 379,739 367,362

e. Payable for Bullion 2,992,432 170,229,688

f. Payable for Remittance 73,245,158 67,547,210

g. TDS payable 50,808,948 45,976,223

h. Forward Payable - 208,168,478

i. Others 121,478,155 118,525,679

TOTAL 518,564,027 856,351,748

Schedule 4.7



1. Local Currency (Including Coins) 1,060,114,772 725,772,440


TOTAL 1,121,761,910 761,809,818

Schedule 4.8

as at 32 Asadh 2071 (16 July 2014)

Cash Balance

as at 32 Asadh 2071 (16 July 2014)

Balance with Nepal Rastra Bank

Schedule 4.9

Particulars Local Currency Rs. foreign Currency in Rs. Total Rs. Previous Year Rs.

INR Convertible fCY Total

1. Nepal Rastra Bank

a. Current Account 5,934,061,717 19,594,705 19,594,705 5,953,656,422 2,656,846,863

b. Other Accounts - - - -

TOTAL 5,934,061,717 - 19,594,705 19,594,705 5,953,656,422 2,656,846,863

Balance as per balance confirmation certificates is Rs. 5,97,56,91,560

as at 32 Asadh 2071 (16 July 2014)

Balance with Bank & financial Institutions

Schedule 4.10

Particulars Local Currency Rs. foreign Currency Total Rs. Previous Year Rs.

INR Convertible fCY Total

1. Local Licensed Institutions 116,645,387 - 506,962 506,962 117,152,349 34,240,820

a. Current Account 116,645,387 - 506,962 506,962 117,152,349 34,240,820

b. Other Accounts - - - - - -

2. Foreign Banks - - 64,475,683 64,475,683 64,475,683 32,878,673

a. Current Account - - 64,475,683 64,475,683 64,475,683 32,878,673

b. Other Accounts - - - - - -

TOTAL 116,645,387 - 64,982,645 64,982,645 181,628,032 67,119,493

Balance as per balance confirmation certificates is Rs 2,298,90,697

as at 32 Asadh 2071 (16 July 2014)

Money at Call & Short Notice


1. Local Currency 1,150,000,000 1,300,000,000

2. Foreign Currency - 75,253,337

TOTAL 1,150,000,000 1,375,253,337

Schedule 4.11

as at 32 Asadh 2071 (16 July 2014)

Investments

Schedule 4.12

Particulars Purpose This Year Previous Year

Trading other Rs. Rs.

1. Govt. of Nepal Treasury Bills - - - 1,762,729,750

2. Govt. of Nepal Saving Bonds - - - -

3. Govt. of Nepal Other Securities - 2,135,831,110 2,135,831,110 1,435,470,683

4. Nepal Rastra Bank Bonds - - - -

5. Foreign Securities - - - -

6. Local Licensed Institutions - 28,830,000 28,830,000 28,740,000

7. Foreign Banks - 517,135,993 517,135,993 744,366,000

8. Corporate's Shares 87,530,966 238,357,018 325,887,984 223,495,739

9. Corporate's Bonds /Debentures/Mutual Fund - 128,275,029 128,275,029 86,436,830

10. Others - 192,200,000 192,200,000 191,600,000

Total Investment 87,530,966 3,240,629,149 3,328,160,115 4,472,839,002

Provision - 505,077 505,077 48,594

NET INvEsTmENT - 3,240,124,072 3,327,655,038 4,472,790,408



Schedule 4.12 (a)

Particulars Cost Price Market Price Provision This Year Previous Year

Rs. Rs. Amount Rs. Rs. Rs.

1. Investment in Shares

1.1 Credit Information Center Limited 1,607,600 Not listed 1,607,600 1,607,600

29,100 Ordinary Share (including bonus

shares) of Rs.100 paid up

1.2 Siddhartha Insurance Limited 32,820,000 142,560,000 32,820,000 15,000,000

376,200 Ordinary Share of Rs. 100 paid up

1.3 Nepal Clearing House Limited 2,500,000 Not listed 2,500,000 2,500,000

25,000 Ordinary Shares of Rs.100 Paid up

1.4 National Banking Training Institute 1,200,000 Not listed 1,200,000 1,200,000

12,000 Ordinary Shares of Rs.100 paid up

1.5 Siddhartha Capital Ltd 51,000,000 Not listed 51,000,000 51,000,000

510,000 Ordinary Shares of Rs.100 each

1.6 ICRA Nepal Ltd 760,000 Not listed 760,000 760,000


1.7 Mero Micro Finance Bittiya Sanstha Ltd 6,500,000 Not listed 6,500,000 6,500,000


1.8 Paschimanchal Grameen Bikash Bank 2,426,800 listed 2,426,800 2,426,800


1.9 Rural Micro Finance Development Center 39,480,000 118,720,000 39,480,000 39,480,000

140,000 Promoters Shares

1.10 Nepal Electronic Payment System Ltd 15,000,000 Not listed 15,000,000 2,500,000

150,000 Ordinary Shares of Rs. 100 each

1.11 NLG Insurance Company Limited - - 78,300

783 Ordinary Shares of Rs. 100 each

1.12 Others

1.12.a Nepal Insurance Company Limited 4,399,519 5,191,100 4,399,519 1,107,422

8,510 Ordinary Shares of Rs. 100 Paid up

1.12.b National Life Insurance Company

Ltd. 10,415 Ordinary Shares of Rs. 100 Paid up 23,618,055 27,079,000 23,618,055 43,366,908

1.12.c NLG Insurance Company Limited 11,323,300 21,123,651 11,323,300 1,177,554


1.12.d Gurans Life Insurane Co Nepal Ltd 3,462,694 5,362,500 3,462,694


1.12.e Life Insurance Co. Nepal 68,800 2,817,360 68,800 7,287,992

688 Ordinary Shares of Rs. 100 Paid up

1.12.f Butwal Power Co. Limited 4,842,104 8,296,222 4,842,104 1,362,070


1.12.g Alliance Insurance Co. Ltd 4,914,897 4,664,000 250,897 4,914,897


1.12.h Bottlers Nepal P. Ltd 4,602,275 7,521,920 4,602,275 4,602,275


Continue...investment in shares, debentures & bonds

as at 32 Asadh 2071 (16 July 2014)

Investment in Shares, Debentures & Bonds


Particulars Cost Price Market Price Provision This Year Previous Year

Rs. Rs. Amount Rs. Rs. Rs.

1.12.i Nepal Lube oil Limited 1,080 1,050 1,080 1,080 1,050


1.12.j Himalayan General Insurance 21,623,762 26,936,450 21,623,762


1.12.k Nepal Film Dev. Company Limited 569 539 569 569 539


1.12.l Nepal Doorsanchar Co. Ltd 37,146,790 39,012,320 37,146,790 77,705


1.12.m Ridi Hydropower 9,400 31,584 9,400


1.12.n Chilime Hydro Power Limited 16,527,518 28,851,120 16,527,518


1.12.o United Insurance Limited 30,949 111,000 30,949 1,096,248


1.12.p RMDC Development Center 20,053,961 20,343,520 20,053,961


1.12.q Sana kisan Bank Ltd 10,935,840 17,299,612 10,935,840


1.12.r Neco Insurance Ltd 9,032,071 8,779,540 252,531 9,032,071


1.12.s UniLever Nepal Limited 10,766,960


1.12.t Soaltee Hotel Limited 29,549,311


1.12.u Jyoti Spennings Miils Company Limited 1,302


1.12.v Birat Shoe Company Limited 14,028


1.12.w Necon Air Limited 10,143


1.12.x Ace Labrotories Nepal Ltd 966


1.12.y Himal Cement Ltd 2,170


1.12.z Lethreage Bansbari Co. Ltd. 18,396


Total Investment 325,887,984 484,702,488 505,077 325,887,984 223,495,739

2. Investment in Debentures/ Bonds/mutual Funds - -

2.1 Siddhartha Growth Scheme - -

7,500,000 Mutual Fund Unit of Rs. 10 each 75,000,000 122,550,000 75,000,000 75,000,000

2.2 NABIL Balance Fund I -

4,407,067 Mutual Fund Unit of Rs. 10 each 53,275,029 70,072,365 53,275,029 11,436,830

2.3 …………….. - -

Total Investment 128,275,029 192,622,365 128,275,029 86,436,830

3. Provision for Loss

3.1 Up to Previous Year 1589

3.2 Additions/Deductions of this year 503,488.01

Total Provision - - 505,077 505,077 1,589

NET INvEsTmENT 454,163,013 677,324,853 505,077 453,657,936 309,930,980

Continue...investment in shares, debentures & bonds


as at 32 Asadh 2071 (16 July 2014)

Held for Trading

as at 32 Asadh 2071 (16 July 2014)

Held to Maturity

Schedule 4.12.1

Cost price Previous Current This Year Previous

Particulars Market Price Market Price gain/loss Year Remarks

(A) (B) (Rs) (B-A) gain/loss Rs.

1. Govt. of Nepal Treasury Bills - - - - -

2. Govt. of Nepal Saving Bonds - - - - -

3. Govt. of Nepal Other Bonds - - - - -

4. Nepal Rastra Bank Bonds - - - - -

5. Foreign Bonds - - - - -

6. Local Licensed Institutions Shares - - - - -

7. Local Licensed Institutions Debenture & Bonds - - - - -

8. Local Corporate's Shares, Debenture & Bonds 87,530,966 - - - -

9. Investment /Placement in Foreign Banks - - - - -

10. Interbank Lending - - - - -

11. Other Investment - - - - -

TOTAL INvEsTmENT 87,530,966 - - - -

Schedule 4.12.2

Cost Price Loss upto This year This Year Previous Year

Particulars (a) current year Loss Gain/(Loss) Gain/(Loss) Remarks

(b) (c) (a-b-c) (Rs.)



3. Govt. of Nepal Other Bonds 2,135,831,110 - - - -



6. Local Licensed Institutions 28,830,000 - - - -


8. Local Corporate's Shares, Debenture & Bonds 128,275,029 - - - -

9. Investment / Placement in Foreign Banks 517,135,993 - - - -

10. Other Investments 192,200,000 - - - -

TOTAL INvEsTmENT 3,002,272,131 - - - -


as at 32 Asadh 2071 (16 July 2014)

Available for Sale

Schedule 4.12.3

Cost price Previous Current This Year fund Previous

Particulars Market Price Market Price adjustment Year gain/ Remarks

(A) (B) amount (B-A) loss Rs.



3. Govt. of Nepal Other Bonds - - - - -



6. Local Licensed Institutions Shares - - - - -


8. Local Corporate's Shares, Debenture,

Bonds & Mutual Fund 238,357,018 - - -

9. Investment/ Placement in Foreign Banks - - - - -

10. Other Investment - - - - -

TOTAL INvEsTmENT 238,357,018 - - - -

Loan

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1,06

7,62

7 47

,996

,230

40

9,06

3,85

7 27

,985

,729

,627

23

,721

,618

,779

3. L

oan

Loss

Pro

visio

n

3.1

Pass

Loa

n-

10

,390

,820

25

8,89

3,24

6 26

9,28

4,06

6 3,

443,

226

479,

962

3,92

3,18

9 27

3,20

7,25

4 23

3,76

8,91

7

3.2

Resc

hdul

ed/R

estr

uctu

red

Loan

-

-

7,64

2,50

0 7,

642,

500

-

-

-

7,64

2,50

0 -

3.3

Sub

stan

dard

-

-

8,95

9,14

6 8,

959,

146

-

-

-

8,95

9,14

6 46

,555

,167

3.4

Dou

btfu

l-

-

16

2,29

7,23

5 16

2,29

7,23

5 -

-

-

16

2,29

7,23

5 26

,916

,294

3.5

Loss

-

139,

621

329,

833,

522

329,

973,

144

16,7

45,0

00

-

16,7

45,0

00

346,

718,

144

327,

815,

071

(B) T

otal

Loa

n Lo

ss P

rovi

sion

-

10,5

30,4

41

767,

625,

649

-

778,

156,

090

20,1

88,2

26

479,

962

20,6

68,1

89

798,

824,

279

635,

055,

448

4. P

rovi

sion

upt

o Pr

evio

us Y

ear

4.1

Pass

-

8,39

9,60

0 21

9,05

9,30

8 22

7,45

8,90

8 1,

203,

320

5,10

6,68

9 6,

310,

009

233,

768,

917

203,

131,

423

4.2

Resc

hdul

ed/R

estr

uctu

red

Loan

-

-

-

-

-

-

-

-

10,7

07

4.3

Sub

stan

dard

-

-

46,5

55,1

67

46,5

55,1

67

-

-

-

46,5

55,1

67

5,70

3,21

5

4.4

Dou

btfu

l-

-

26

,916

,294

26

,916

,294

-

-

-

26

,916

,294

10

9,13

7,86

0

4.5

Loss

-

139,

621

325,

675,

449

325,

815,

071

2,00

0,00

0 -

2,

000,

000

327,

815,

071

71,7

32,3

63

(C) T

otal

Pro

visi

on u

pto

Prev

ious

Yea

r -

8,

539,

222

618,

206,

218

626,

745,

440

3,20

3,32

0 5,

106,

689

8,31

0,00

9 63

5,05

5,44

8 38

9,71

5,56

7

(D) w

ritte

n Ba

ck fr

om P

revi

ous Y

ear's

Pro

visi

on-

25

8,25

5,95

1

(E) A

dditi

onal

Pro

visi

on o

f Th

is Y

ear

-

1,99

1,22

0 14

9,41

9,43

0 -

15

1,41

0,65

0 16

,984

,906

(4

,626

,726

)12

,358

,180

42

2,02

4,78

1 14

7,42

4,56

3

Net

Add

ition

s/D

educ

tions

of T

his Y

ear

-

10,5

30,4

41

767,

625,

649

-

778,

156,

090

20,1

88,2

26

479,

962

20,6

68,1

89

163,

768,

830

635,

055,

448

NET

LO

AN (A

-B)

-

1,02

8,69

1,18

0 25

,769

,818

,500

-

26

,798

,509

,680

34

0,87

9,40

1 47

,516

,268

38

8,39

5,66

8 27

,186

,905

,349

23

,086

,563

,330

as a

t 32

Asad

h 20

71 (1

6 Ju

ly 2

014)

Clas

sific

atio

n of

Loa

ns a

nd B

ills P

urch

ased

and

Pro

visi

onin

g


as at 32 Asadh 2071 (16 July 2014)

Security Wise Loans, Advances & Bills Purchased


A. secured 28,241,564,335 23,997,090,573

1. Collateral of Movable/Immovable Assets 25,192,764,672 22,613,705,147

2. Guarantee of Local Licensed institutions 466,339,442 -

3. Government Guarantee 135,050,000 135,050,000

4. Internationally Rated Bank Guarantee -

5. Collateral of Export Documents 285,666,563 178,730,000

6. Fixed Deposit Receipts 255,834,707 275,471,794

(a) Own FDR 255,834,707 275,471,794

(b) FDR of Other Licensed Institutions -

7. Government Bonds -

8. Counter Guarantee -

9. Personal Guarantee 15,164,250 2,501,837

10. Other Securities 1,634,909,992 516,160,000

B. unsecured - -

TOTAL(A+B) 27,985,729,627 23,721,618,779

Schedule 4.13 (a)


Sche

dule

4.1

4

Part

icul

ars

Asse

ts R

s.Th

is Y

ear

Prev

ious

Yea

r

Build

ing

Vehi

cles

Mac

hine

ryo

ffice

equ

ipm

ent

oth

ers

Rs.

Rs.

1. A

t Cos

t

(a) P

revi

ous Y

ear's

Bal

ance

51,4

04,9

53

93,1

04,4

12

247,

166,

673

391,

676,

038

367,

162,

870

(b) A

dditi

on T

his Y

ear

25,6

08,9

00

33,9

80,3

51

59,5

89,2

51

44,2

01,9

03

(c) R

eval

uatio

n/Re

-Writ

ten

of T

his Y

ear

-

-

(d) T

his Y

ear's

Sol

d(1

2,80

0,00

0)(1

2,80

0,00

0)(1

4,13

0,90

0)

(e) T

his Y

ear's

writ

ten

off(1

51,9

00)

(154

,884

)(3

06,7

84)

(5,5

57,8

35)

(f) N

et T

rans

fer

-

Tota

l Cos

t (a+

b+c+

d+e)

51,4

04,9

53

105,

761,

412

-

280,

992,

141

-

438,

158,

506

391,

676,

039

2. D

epre

ciat

ion

(a) U

pto

Prev

ious

Yea

r3,

044,

924.

61

33,4

05,9

04

137,

832,

149

174,

282,

978

141,

879,

748

(b) F

or T

his Y

ear

2,41

8,00

1.44

14

,594

,236

30

,844

,261

47

,856

,499

46

,615

,062

(c) D

epre

ciat

ion

on R

eval

uatio

n/ R

e-w

ritte

n -

-

(d) D

epre

ciat

ion

Adju

stm

ent/

Writ

ten

Back

(6,9

92,3

17)

(128

,926

)(7

,121

,242

)(1

4,21

1,83

1)

Tota

l Dep

reci

atio

n(a+

b+c+

d)5,

462,

926.

05

41,0

07,8

24

-

168,

547,

484

-

215,

018,

234

174,

282,

979

3. B

ook

valu

e (w

Dv*

) (1-

2)45

,942

,027

64

,753

,588

-

11

2,44

4,65

6 -

22

3,14

0,27

2 21

7,39

3,06

0

4. L

and

-

-

-

-

169,

457,

419

169,

457,

419

169,

457,

419

5. C

apita

l Con

stru

ctio

n (P

endi

ng C

apita

lizat

ion)

-

-

-

-

992,

230

992,

230

6. L

eash

old

Asse

ts-

-

-

-

46

,901

,123

46

,901

,123

66

,659

,694

TOTA

L (3

+4+5

+6)

45,9

42,0

27

64,7

53,5

88

-

112,

444,

656

217,

350,

772

440,

491,

043

453,

510,

172

as a

t 32

Asad

h 20

71 (1

6 Ju

ly 2

014)

fixe

d As

sets


as a

t 32

Asad

h 20

71 (1

6 Ju

ly 2

014)

Non-

Ban

king

Ass

ets

Nam

e an

d Ad

dres

s of

Date

of a

ssum

ing

ofTo

tal N

on B

anki

ng

Loss

Pro

visi

onN

et N

on

Borr

ower

/Par

tyno

n- b

anki

ng a

sset

sAs

sets

Rs.

Perc

ent

Amou

nt R

s.Ba

nkin

g As

sets

Rs.

Prev

ious

Yea

r Rs.

00

00

0-

-

-

TOTA

L

-

-

-

-

-

-

Sche

dule

4.1

5


as at 32 Asadh 2071 (16 July 2014)

other Assets

as at 32 Asadh 2071 (16 July 2014)

other Assets (additional statements)


1. Stock of Stationery 4,469,060 3,669,984

2. Income Receivable on Investments 31,717,963 49,213,735

3. Accrued Interest on Loan 141,207,608 21,218,242 46,075,897

Less: Interest Suspense Amount (119,989,366) - -

4. Commission Receivable - -

5. Sundry Debtors 14,275,897 120,395,653

6. Staff Loans and Advances 372,306,833 306,447,761

7. Advance/Prepayments 366,150,168 17,537,127

8. Cash in Transit - -

9. Other Transit Items (including cheques) - 3,708,673

10. Draft Paid Without Notice - -

11. Expenses Not Written-off 15,474,777 24,659,654

12. Branch Adjustment Account

13. Deferred Tax 27,937,244 20,061,272

14. Bullion (Gold) - 168,334,092

15. Account Receivable Card 29,626,778

16. Others 17,949,633 19,858,487

TOTAL 901,126,594 779,962,337

Particulars This Year Rs. Previous Year

Up to 1 Year 1 to 3 Years Above 3 Years Total Rs.

1. Accrued Interest on Loans 97,529,257 25,628,143 18,050,208 141,207,608 193,380,948

2. Drafts Paid without notice - - - - -

3. Branch Adjustment Account - - -

4. Domestic/Foreign Agency Balance

TOTAL 97,529,257 25,628,143 18,050,208 141,207,608 193,380,948

Schedule 4.16 (a)

Schedule 4.16

as at 32 Asadh 2071 (16 July 2014)

Contingent Liabilities


1. Claims on bank but not accepted by the Bank - -

2. Letters of Credit (Full Amount) 2,442,112,029 1,428,792,075

(a) Less than 6 months maturity 1,881,618,766 815,663,422

(b) More than 6 months maturity 560,493,263 613,128,653

3. Rediscounted bills -

4. Unmatured Guarantees/Bonds 2,357,423,377 2,210,400,693

(a) Bid Bonds 173,476,367 95,774,342

(b) Performance Bonds 2,183,947,010 2,114,626,350

(c) Other Guarantees/ Bonds - -

5. Unpaid Shares in Investment - -

6. Forward Exchange Contract Liabilities - -

7. Bills Under Collection 53,093,651 29,641,780

8. Acceptance & Endorsements 445,494,938 743,936,370

9. Underwriting Commitment - -

10. Irrevocable Loan Commitment 1,893,340,302 1,559,525,638

11. Counter guarantees against the guarantees of Internationally Rated Bank - -

12. Advance Payment Guarantee 130,799,843 148,353,124

13. Financial Guarantee - -

14. Contingent Liabilities on Income Tax 12,952,930 8,580,390

15. Others

TOTAL 7,335,217,070 6,129,230,069

Schedule 4.17




Interest Income


A. On Loan, Advances and Overdraft 2,909,851,862 2,734,011,743

1) Loan and Advances 1,815,324,659 1,653,698,889

2) Overdraft 1,094,527,203 1,080,312,853

B. On Investment 123,751,594 138,802,625

1. Government of Nepal Securities 110,841,370 108,278,128

a) Treasury Bills 24,883,832 42,088,396

b) Development Bonds 85,957,538 66,189,733

c) National Saving Bonds - -

2. Foreign Securities - -

a) …………………………

b) …………………………

3. Nepal Rastra Bank Bonds - -

4. Debenture and Bonds

5. Interest on Inter Bank Lendings 12,910,224 30,524,497

a) Banks/ Financial Institutions 12,910,224 30,524,497

b) Other Institutions - -

C. On Agency Balances 298,188 298,232

1. Local Banks/ Financial Institution

2. Foreign Banks 298,188 298,232

D. On money at Call and short Notice 13,101,876 19,983,837

1. Local Banks/ Financial Institutions 13,101,876 19,971,153

2. Foreign Banks 12,684

E. On Others 9,283,157 5,318,261

1. Certificate of Deposits - -

2. Inter Bank/ Financial Institution Loan - -

3. Others 9,283,157 5,318,261

TOTAL 3,056,286,677 2,898,414,698

Schedule 4.18


Interest expenses


A. On Deposit Liabilities 1,612,538,222 1,665,282,194

1. Fixed Deposits 803,646,834 877,060,038

1.1 Local Currency 791,328,031 861,854,737

1.2 Foreign Currency 12,318,803 15,205,301

2. Saving Deposits 358,496,255 344,369,134

2.1 Local Currency 357,625,701 343,734,446

2.2 Foreign currency 870,553 634,688

3. Call Deposits 450,395,133 443,853,022

3.1 Local Currency 447,996,547 442,259,474

3.2 Foreign Currency 2,398,585 1,593,548

4. Certificate of Deposits -

B. On Borrowings 96,327,354 77,556,431

1. Debenture & Bonds 87,695,092 67,152,371

2. Loan from NRB/Refinance 7,992,127 -

3. Inter Bank/Financial Institutions Loan 640,134 10,404,060

4. Other Corporate Body - -

5. Other Loans - -

C. On Others - -

1. ……………………………

2. ……………………………

TOTAL 1,708,865,575 1,742,838,625

Schedule 4.19




Commission & Discount


A. Bills Purchased & Discounted 7,326,828 7,703,071

1. Local 7,326,828 7,703,071

2. Foreign - -

B. Commission 150,792,321 104,717,833

1. Letters of Credit 20,111,318 17,854,519

2. Guarantees 37,192,073 24,707,435

3. Collection Fee 2,066,556 1,996,575

4. Remittance Fee 81,464,097 55,423,191

5. Credit Cards - -

6. Share Underwriting/Issues - -

7. Government Transactions - -

8. Agency Commission 9,918,005 4,736,113

9. Exchange Fee 40,271

C. Others 1,235,976 645,797

TOTAL 159,355,124 113,066,701

Schedule 4.20


other operating Income


1. Rental Charges of Safe Deposit Vault 1,388,750 948,510

2. Issue and Renewal of Credit Cards 3,260,450 1,069,800

3. Issue and Renewal of ATM Cards 51,769,134 54,765,820

4. Telex / T.T. 6,240,283 4,678,140

5. Services Charges 90,402,658 70,311,901

6. Renewal Fees

7. Others 51,023,818 50,318,659

a. Rent Income

b. Postage & Courier 368,038 484,050

C. Bullion Income 25,369,530 31,741,133

d. Miscellaneous Income 25,286,250 18,093,476

TOTAL 204,085,093 182,092,830

Schedule 4.21


exchange fluctuation Gain/Loss


Staff expenses


1. Revaluation Gain / (Loss) 8,598,015 16,360,455

2. Trading Gain (Except Exchange Fee) 123,729,183 140,284,132

TOTAL gAIN/(LOss) 132,327,198 156,644,586

Schedule 4.22


1. Salary 110,890,246 95,950,545

2. Allowance 79,445,671 69,613,954

3. Contribution to Provident Fund 10,140,653 8,855,424

4. Training Expenses 1,405,408 1,900,378

5. Uniform 2,662,350 755,818

6. Medical 4,072,970 3,716,348

7. Insurance 4,524,368 3,718,816

8. Pension and Gratuity Provision 14,202,591 14,931,256

9. Others 15,102,336 17,073,823

a. Leave Encashment Expenses 13,699,366 16,030,369

b. Staff Incentives - -

c. Other 1,402,971 1,043,454

TOTAL 242,446,594 216,516,361

Schedule 4.23




other operating expenses

Particulars This Year Rs. Previous Year Rs. 1. House Rent 54,230,729 46,534,285 2. Electricity and Water 10,416,347 10,142,851 3. Repairs and Maintenance 12,562,410 10,261,281 a) Building 35,768 22,871 b) Vehicles 1,996,364 1,744,320 c) Others 10,530,279 8,494,090 c.1 Software 5,465,523 5,020,535 c.2 Other 5,064,756 3,473,555 4. Insurance 13,933,217 10,857,135 5. Postage, Telex, Telephone, Fax, SWIFT 15,084,577 14,480,497 a. Postage & Courier Expenses 998,696 628,128 b. Internet & Connectivity 6,633,332 6,469,194 c. Telephone & Fax Expenses 5,125,941 5,020,774 d. SWIFT Expenses 2,326,608 2,362,400 6. Repair & Maintenance of Office Equipment, Furniture & Fixtures 3,637,292 3,305,785 7. Traveling Allowances and Expenses 5,446,479 5,185,319 8. Stationery and Printing 10,915,174 7,482,380 9. Periodicals and Books 523,739 449,423 10. Advertisements 2,916,986 2,545,459 11. Legal Expenses 409,108 299,200 12. Donations 47,210 109,225 13. Expenses relating to Board of Directors 3,957,259 3,925,420 a ) Meeting Fees 1,380,000 1,258,000 b) Other Board related Expenses 2,577,259 2,667,420 b.1 Tavelling Expenses 314,539 261,915 b.2 Communication & Newspaper 527,500 540,000 b.3 Other Committee Fees & Expenses 745,000 752,000 b.4 Other Expenses 990,220 1,113,505 14. Annual General Meeting Expenses 755,413 366,651 15. Expenses relating to Audit 709,209 650,849 a) Audit Fees 649,750 604,550 b) Other Expenses 59,459 46,299 16. Commission & Promotional Expenses on Remittances 61,501,352 41,026,518 17. Depreciation on Fixed Assets 47,853,647 46,615,062 18. Amortization of Deferred Expenses - - 19. Share Issue Expenses 1,071,658 2,172,404 a) Share & Debenture Annual/Listing/Registration Fee 547,342 1,871,200 b) Other share related expenses 524,316 301,204 20. Technical Services Reimbursement - - 21. Entertainment,Business Promotion and Development Expenses 7,484,619 6,819,101 a. Business Entertainment Expenses 1,543,164 1,347,200 b. Business Promotion & Development Expenses 5,941,455 5,471,902 22. Expenses Write off 40,880,766 40,089,561 23. Security Expenses 30,667,321 25,795,471 24. Credit Guarantee Premium - - 25. Commission and Discount 1,864,326 1,891,303 26. Other Expenses 109,440,185 95,885,884 26.a Professional Fees-Internal Audit 1,695,000 1,464,480 26.b Professional Fees-Other 2,440,695 2,319,434 26.c Fuel (Petrol/Diesel) & Gas 19,434,833 18,689,769 26.d Rates & Taxes 3,210,669 1,762,582 26.e SCT Expenses - - 26.f Other Card Related Expenses 34,433,257 30,631,159 26.g Janitorial Expenses\Wages\Cleaning\ Gardening etc. 7,138,256 6,374,890 26.h Subscriptions & Membership Fees 2,746,478 3,308,000 26.i Non Capitalized Items 1,548,334 1,187,663 26.j Error, fines & losses - 28,200 26.k Recruitment Expenses 424,449 118,170 26.l Vehicle Rental Exepnses 9,928,259 8,601,076 26.m Inaguration Expenses 454,167 1,137,492 26.n Outsourcing Expenses (Driver & Messenger) 16,305,749 13,024,055 26.o Other Office Expenses 2,220,658 2,224,367 26.p Branches Banking Related Expenses 2,895,643 1,304,318 26.q Miscellaneous 4,563,738 3,710,229 TOTAL 436,309,023 376,891,063

Schedule 4.24



1. Loans and Advances 422,024,781 245,339,881

2. Investments 503,488 48,594

3. Non- Banking Assets - -

4. Other Assets 701,001 106,099

TOTAL 423,229,271 245,494,574

Schedule 4.25


Provision for Possible Losses


Non-operating Income/(Loss)


1. Profit (Loss) on sale of Investment 85,702,909 -

2. Profit (Loss) on sale of assets 549,320 404,081

3. Dividend 6,928,048 539,500

4. Subsidies Received from Nepal Rastra Bank -

a. Reimbursement of losses of specified branches - -

b. Interest Subsidy - -

c. Exchange Counter - -

5. Others -

a. Gain on Sale of NBA - -

TOTAL NON-OPERATINg INCOmE/(LOss) 93,180,277 943,581

Schedule 4.26


Fiscal Year 2070/71 (2013/14)

Loss Provision Written Back


1. Loan Loss Provision Written Back 258,255,951 -

2. Provision against Non- Banking Assets' Written Back 8,100,000 -

3. Provision on Investment Written Back 47,005 -

4. Provision against Other Assets Written Back - -

TOTAL 266,402,956 -

Schedule- 4.27


Income/(expenses) from extraordinary Activities


1. Recovery of Written off Loan - 80,000.00

2. Volunteering Retirement Scheme Expenses - -

3. Irrecoverable Loans Written Off (4.28 a) 24,285 12,874,019

4. Other (Expenses)/Income - -

TOTAL 24,285 12,794,019

Schedule- 4.28


Loan

Cat

egor

yW

ritte

n off

Am

ount

Rs.

Type

s of S

ecur

ity &

Basi

s of S

ecur

ity V

alua

tion

Loan

San

ctio

ning

effor

ts m

ade

for R

ecov

ery

Rem

arks

Amou

nt R

s.

offi

cial

/ Ran

k

Wor

king

Cap

ital L

oan

-

-

-

-

-

-

Proj

ect L

oan

-

-

-

-

-

-

Fixe

d Ca

pita

l Loa

n-

-

-

-

-

-

Pers

onal

Loa

n-

-

-

-

-

-

Oth

er L

oans

24

,285

Eich

er B

us(1

,459

,000

) In

voic

e Va

lue

S.N

.Gau

tam

Writ

ten

follo

wup

s is c

ontin

ued

(Offi

ciat

ing

CEO

)&

Not

ice

publ

ised

in N

ewap

aper

s.

TOTA

L LO

ANs

24,2

85

-

-

-

-

-

Sche

dule

4.2

8 (a

)

Fisc

al Y

ear 2

070/

71 (2

013/

14)

Stat

emen

t of L

oans

writ

ten

off

as a

t 32

Asad

h 20

71 (1

6 Ju

ly 2

014)

Stat

emen

t of l

oans

and

adv

ance

s ext

ende

d to

Dire

ctor

s /Ch

ief e

xecu

tive

/ Pro

mot

er /

empl

oyee

s and

Sha

reho

lder

s

Nam

e of

Pro

mot

er/

Prev

ious

Yea

r's B

alan

ce

This

Yea

r's R

ecov

ery

This

Yea

r Add

ition

sBa

lanc

e as

of A

shad

end

Dire

ctor

/Chi

ef e

xecu

tive

Prin

cipa

l In

tere

stPr

inci

pal

Inte

rest

Prin

cipa

l In

tere

st

(A) D

irect

ors

1 2 (B) C

hief

Exe

cutiv

e

1 2 (C) P

rom

oter

s

1 2 (D) E

mpl

oyee

s

1 2 (E) S

hare

hold

ers

1 2 TOTA

L-

-

--

--

-

Sche

dule

4.2

9

The

Stat

emen

t of l

oans

und

er to

tal a

mou

nt o

f Bill

s Pur

chas

ed a

nd D

iscou

nted

, Loa

ns, A

dvan

ces a

nd O

verd

raft,

pro

vide

d to

the

Dire

ctor

s, Ch

ief E

xecu

tive,

Prom

oter

s, Em

ploy

ees,

Shar

ehol

ders

and

to th

e in

divi

dual

mem

bers

of "

thei

r und

ivid

ed fa

mily

" OR

agai

nst t

he g

uara

ntee

of s

uch

pers

ons O

R to

the

orga

niza

tions

or c

ompa

nies

in w

hich

such

indi

vidu

als a

re m

anag

ing

agen

t, ar

e as

follo

ws:

Not

e: L

oan

give

n to

em

ploy

ees a

s per

Em

ploy

ees'

Serv

ice

Rule

s are

pre

sent

ed in

oth

er A

sset

s Sch

edul

e -4

.16


Schedule 4.30 (A1)

Rs. in ‘000

1.1 Risk Weighted exposures 2071 Asadh end 2070 Asadh end

A. Risk Weighted Exposure for Credit Risk 31,937,169 27,723,423

B. Risk Weighted Exposure for Operational Risk 1,913,886 1,444,553

C. Risk Weighted Exposure for Market Risk 38,073 25,596

Total RwE before adjustment under Pillar II 33,889,128 29,193,573 Adjustments under Pillar IIAdd: 3% of Gross income of last FY due to supervisor is not satisfied with sound practice of

management of operational risk (6.4 a 7) 501,881 241,008

Add: 2% of the total RWE due to inadequate risk management policies and procedures of

the Bank (6.4 a 9) 677,783 583,871

Total RwE (after Banks' adjustments of Pillar II) 35,068,791 30,018,453

1.2 Capital Current Period Previous Period

Core Capital (Tier I) 2,942,642 2,465,753 A. Paid Up Equity Share Capital 1,813,554 1,813,554

B. Irredeemable non-cumulative preference shares - -

C. Share Premium - -

D. Proposed Bonus Equity shares 217,626 -

E. Statutory General Reserves 531,548 391,441

F. Retained Earnings 12,155 16,096

G. Current year cumulative profit/(Loss)

H. Capital Reedemption Reserve - -

I. Capital Adjustment Reserve - -

J. Dividend Equalisation Reserves - -

k. Debenture Redemption Reserves 372,643 239,601

L. Other Free Reserves ( Deferred Tax Reserve) 27,937 20,061

Less:A. Goodwill - -

B. Not written off miscellaneous assets - -

C. Investment in equity in licensed Financial institutions - -

D. Investment in equity of institutions with financial interest 32,820 15,000

E. Investment in equity of institutions in excess of limits - -

F.Investments arising out of underwriting commitments - -

G. Reciprocal crossholdings - -

H. Other Deductions - -

1.2 Capital Current Period Previous Periodsupplementary Capital (Tier II) 1,053,132 1,047,813A. Cumulative and/or Redeemable preference share - -

B. Subordinated Term Debt 749,074 794,628

C. Hybrid Capital Instruments - -

D. General loan loss provision 279,139 231,737

E. Exchange Equalisation Reserve 17,504 15,355

F. Investment Adjustment Reserve 7,414 6,092

G. Asset Revaluation Reserve - -

H. Other Reserves - -

TOTAL CAPITAL FuND (TIER I AND TIER II) 3,995,774 3,513,565

1.3 Capital Adequacy Ratio Current Period Previous Period Core Capital to Total Risk Weighted Assets (Tier I) 8.39 8.21

Capital Fund to Total Risk Weighted Assets (Tier I & Tier II) 11.39 11.70

As on Asadh end 2071

Capital Adequacy Table

As o

n As

adh

end

2071

Cred

it Ri

sk

As o

f Asa

dh e

nd 2

071

Prev

ious

fis

cal Y

ear

Asse

tsBo

ok V

alue

Spec

ific

elig

ible

N

et V

alue

Risk

Wei

ght

Risk

Wei

ghte

dN

et A

mou

nt

Risk

Wei

ghte

dPr

ovis

ion

CRM

ex

posu

res

Amou

nto

n Ba

lanc

e Sh

eet e

xpos

ures

ab

cd=

a-b-

ce

f=d*

e

Cash

Bal

ance

1,

121,

762

1,12

1,76

2 0%

-

761,

810

-

Bala

nce

With

Nep

al R

astr

a Ba

nk

5,95

3,65

6 5,

953,

656

0%-

2,

656,

847

-

Gol

d60

2,28

8 60

2,28

8 0%

-

-

Inve

stm

ent i

n N

epal

ese

Gov

ernm

ent S

ecur

ities

2,13

5,83

1 2,

135,

831

0%-

3,

198,

200

-

All c

laim

s on

Gov

ernm

ent o

f Nep

al45

6,66

1 45

6,66

1 0%

-

342,

850

-

Inve

stm

ent i

n N

epal

Ras

tra

Bank

secu

ritie

s-

-

0%

-

0-

All o

ther

cla

ims o

n N

epal

Ras

tra

Bank

-

-

0%-

0

-

Inve

stm

ent i

n Fo

reig

n G

over

nmen

t Sec

uriti

es a

nd

Cent

ral B

ank

(ECA

ratin

g 0-

1)-

0%

-

0-

Inve

stm

ent i

n Fo

reig

n G

over

nmen

t Sec

uriti

es a

nd

Cent

ral B

ank

(ECA

ratin

g 2)

-

20%

-

0-

Inve

stm

ent i

n Fo

reig

n G

over

nmen

t Sec

uriti

es a

nd

Cent

ral B

ank

(ECA

ratin

g 3)

-

50%

-

0-

Inve

stm

ent i

n Fo

reig

n G

over

nmen

t Sec

uriti

es a

nd

Cent

ral B

ank

(ECA

ratin

g 4-

6)-

10

0%-

0

-

Inve

stm

ent i

n Fo

reig

n G

over

nmen

t Sec

uriti

es a

nd

Cent

ral B

ank

(ECA

ratin

g 7)

-

150%

-

0-

Clai

ms o

n BI

S,IM

F, E

CB, E

C an

d M

ultil

ater

al

Dev

elop

men

t Ban

k re

cogn

ised

by th

e fra

mew

ork

-

0%-

0

-

Clai

ms o

n ot

her M

ultil

ater

al D

evel

opm

ent B

anks

-

100%

-

0-

Clai

ms o

n Pu

blic

Sec

tor E

ntity

(ECA

0-1

)-

20

%-

0

-

Clai

ms o

n Pu

blic

Sec

tor E

ntity

(ECA

2)

-

50%

-

0-

Clai

ms o

n Pu

blic

Sec

tor E

ntity

(ECA

3-6)

-

100%

-

0-

Clai

ms o

n Pu

blic

Sec

tor E

ntity

(ECA

7)

-

150%

-

0-

Clai

ms o

n do

mes

tic b

anks

that

mee

t

capi

tal a

dequ

acy

requ

irem

ents

1,40

4,57

0 -

-

1,

404,

570

20%

280,

914

1,53

5,74

1 30

7,14

8

Sche

dule

4.3

0 (B

)

Am

ount

in ‘0

00

CCoonntt

iinnuuee

...cre

dit r

isk

As o

f Asa

dh e

nd 2

071

Prev

ious

fis

cal Y

ear

Asse

tsBo

ok V

alue

Spec

ific

elig

ible

N

et V

alue

Risk

Wei

ght

Risk

Wei

ghte

dN

et A

mou

nt

Risk

Wei

ghte

dPr

ovis

ion

CRM

ex

posu

res

Amou

nto

n Ba

lanc

e Sh

eet e

xpos

ures

ab

cd=

a-b-

ce

f=d*

e

Clai

ms o

n do

mes

tic b

anks

that

do

not m

eet

capi

tal a

dequ

acy

requ

irem

ents

83,6

12

83,6

12

100%

83,6

12

26,0

44

26,0

44

Clai

ms o

n fo

reig

n ba

nk (

ECA

Ratin

g 0-

1)53

9,70

9 53

9,70

9 20

%10

7,94

2 73

2,43

1 14

6,48

6

Clai

ms o

n fo

reig

n ba

nk (

ECA

Ratin

g 2)

1,28

3 1,

283

50%

642

6,46

4 3,

232

Clai

ms o

n fo

reig

n ba

nk (E

CA R

atin

g 3-

6)3,

082

3,08

2 10

0%3,

082

7,18

5 7,

185

Clai

ms o

n fo

reig

n ba

nk (E

CA R

atin

g 7)

-

150%

-

-

-

Clai

ms o

n fo

reig

n ba

nk in

corp

orat

ed in

SAA

RC re

gion

oper

atin

g w

ith a

buff

er o

f 1%

abo

ve th

eir r

espe

ctiv

e

regu

lato

ry c

apita

l req

uire

men

t37

,537

37

,537

20

%7,

507

99,2

14

19,8

43

Clai

ms o

n D

omes

tic C

orpo

rate

s 15

,316

,035

-

20

2,98

6 15

,113

,049

10

0%15

,113

,049

12

,656

,542

12

,656

,542

Clai

m o

n Fo

reig

n Co

rpor

ates

(ECA

0-1

)-

-

20

%-

-

-

Clai

m o

n Fo

reig

n Co

rpor

ates

(ECA

2)

-

-

50%

-

-

-

Clai

m o

n Fo

reig

n Co

rpor

ates

(ECA

3-6

)-

-

10

0%-

-

-

Clai

m o

n Fo

reig

n Co

rpor

ates

(ECA

7)

-

-

150%

-

-

-

Regu

lato

ry R

etai

l Por

tfolio

(Not

Ove

rdue

)6,

832,

256

-

85,2

83.3

5 6,

746,

973

75%

5,06

0,22

9 5,

469,

250

4,10

1,93

7

Claim

s ful

fillin

g all

crite

rion

of re

gulat

ory r

etail

exc

ept g

ranu

larity

-

100%

-

-

-

Clai

ms s

ecur

ed b

y re

siden

tial p

rope

rtie

s45

8,52

9.05

-

-

45

8,52

9 60

%27

5,11

7 -

-

Clai

ms n

ot fu

lly se

cure

d by

resid

entia

l pro

pert

ies

-

150%

-

-

-

Clai

ms s

ecur

ed b

y re

siden

tial p

rope

rtie

s( o

verd

ue)

8,48

0.04

5,

627

-

2,85

3 10

0%2,

853

-

-

Clai

ms s

ecur

ed b

y Co

mm

erci

al re

al e

stat

e1,

265,

637

-

1,26

5,63

7 10

0%1,

265,

637

1,33

7,97

4 1,

337,

974

Past

due

claim

s(exc

ept f

or cl

aim se

cure

d by

resid

entia

l pro

perti

es)

729,

652

436,

610

-

293,

042

150%

439,

563

246,

550

369,

824

Hig

h Ri

sk c

laim

s3,

270,

523

4,28

8 -

3,

266,

236

150%

4,89

9,35

3 3,

226,

162

4,83

9,24

3

Inve

stm

ents

in e

quity

of i

nstit

utio

ns l

isted

in th

e st

ock

exch

ange

& o

ther

inve

stm

ent i

n ca

pita

l ins

trum

ents

86,4

37

86,4

37

100%

86,4

37

86,4

37

86,4

37

Inve

stm

ents

in e

quity

of i

nstit

utio

ns n

ot li

sted

in th

e

stoc

k ex

chan

ge &

oth

er in

vest

men

t in

capi

tal i

nstr

umen

ts28

3,90

6 28

3,90

6 15

0%42

5,85

9 15

7,49

6 23

6,24

4

Inve

stm

ents

in M

utua

l fu

nd51

,000

51

,000

10

0%51

,000

51

,000

51

,000

Staff

Loa

n se

cure

d by

resid

enta

l pro

pert

y32

2,57

4 32

2,57

4 60

%19

3,54

4 25

9,71

4 15

5,82

8

Inte

rest

Rec

eiva

ble/

Cla

im o

n G

over

nmen

t Sec

uriti

es26

,743

26

,743

0%

-

36,1

19

-

Cash

In tr

ansit

and

oth

er c

ahs i

tem

s in

the

proc

ess o

f col

lect

ion

-

-

20%

-

3,70

9 74

2

Oth

er A

sset

s1,

486,

472

527,

066

959,

406

100%

959,

406

680,

781

680,

781

TOTA

L42

,478

,237

97

3,59

0 28

8,26

9 41

,216

,377

29

,255

,748

33

,578

,519

25

,026

,490

Am

ount

in ‘0

00

CCoonntt

iinnuuee

...cre

dit r

isk

CCoonntt

iinnuuee

...cre

dit r

isk

As o

f Asa

dh e

nd 2

071

Prev

ious

fis

cal Y

ear

Asse

tsBo

ok V

alue

Spec

ific

elig

ible

N

et V

alue

Risk

Wei

ght

Risk

Wei

ghte

dN

et A

mou

nt

Risk

Wei

ghte

dPr

ovis

ion

CRM

ex

posu

res

Amou

nto

ff Ba

lanc

e Sh

eet e

xpos

ures

ab

cd=

a-b-

ce

f=d*

e

Revo

cabl

e Co

mm

itmen

ts-

0%

-

-

-

Bills

Col

lect

ion

53,0

94

53,0

94

0%-

29

,642

-

Forw

ard

Exch

ange

Con

trac

t Lia

bilit

ies

-

-

10%

-

-

-

LC C

omm

itmen

ts W

ith O

rigin

al M

atur

ity U

p to

6 m

onth

s

dom

estic

cou

nter

part

y1,

881,

619

110,

355

1,77

1,26

4 20

%35

4,25

3 76

5,80

8 15

3,16

2

ECA

Ratin

g 0-

1

-

-

20%

-

-

-

ECA

Ratin

g 2

-

-

50

%-

-

-

ECA

Ratin

g 3-

6-

-

10

0%-

-

-

ECA

Ratin

g 7

-

-

150%

-

-

-

L C

Com

mitm

ents

With

Orig

inal

Mat

urity

Ove

r 6 m

onth

s

dom

estic

cou

nter

part

y56

0,49

3 -

56

0,49

3 50

%28

0,24

7 61

3,12

9 30

6,56

4

ECA

Ratin

g 0-

1

-

-

20%

-

-

-

ECA

Ratin

g 2

-

-

50

%-

-

-

ECA

Ratin

g 3-

6-

-

10

0%-

-

-

ECA

Ratin

g 7

-

-

150%

-

-

-

Bid

Bond

and

Per

form

ance

Bon

d an

d Co

unte

r gua

rant

ee

dom

estic

cou

nter

part

y2,

357,

423

125,

364

2,23

2,06

0 50

%1,

116,

030

2,10

9,89

6 1,

054,

948

ECA

Ratin

g 0-

1

-

-

20%

-

-

-

ECA

Ratin

g 2

-

-

50

%-

-

-

ECA

Ratin

g 3-

6-

-

10

0%-

-

-

ECA

Ratin

g 7

-

-

150%

-

-

-

Und

erw

ritin

g co

mm

itmen

ts

-

-

50%

-

-

-

Lend

ing

of B

ank's

Sec

uriti

es o

r Pos

ting

of S

ecur

ities

as c

olle

tral

-

-

100%

-

-

-

Repu

rcha

se A

gree

men

ts, A

sset

s sal

e w

ith re

cour

se

(incl

udin

g re

po,re

vers

e re

po)

-

-

100%

-

-

-

Adva

nce

Paym

ent G

uara

ntee

130,

800

8,99

5 12

1,80

5 10

0%12

1,80

5 13

7,31

7 13

7,31

7

Fina

ncia

l Gua

rant

ee-

-

10

0%-

-

-

Acce

ptan

ces a

nd E

ndro

sem

ents

445,

495

28,0

29

417,

466

100%

417,

466

724,

456

724,

456

Unp

aid

port

ion

of p

artly

pai

d sh

ares

& S

ecur

ities

-

100%

-

-

-

Irrev

ocab

le C

redi

t Com

mitm

ents

(sho

rt te

rm)

1,89

3,34

0 -

1,

893,

340

20%

378,

668

1,55

9,52

6 31

1,90

5

Clai

ms o

n fo

reig

n ba

nk in

corp

orat

ed in

SAA

RC re

gion

oper

atin

g w

ith a

buff

er o

f 1%

abo

ve th

eir r

espe

ctiv

e

regu

lato

ry c

apita

l req

uire

men

t20

%-

Am

ount

in ‘0

00

CCoonntt

iinnuuee

...cre

dit r

isk

CCoonntt

iinnuuee

...cre

dit r

isk


As o

f Asa

dh e

nd 2

070

Prev

ious

fis

cal Y

ear

Asse

tsBo

ok V

alue

Spec

ific

elig

ible

N

et V

alue

Risk

Wei

ght

Risk

Wei

ghte

dN

et A

mou

nt

Risk

Wei

ghte

dPr

ovis

ion

CRM

ex

posu

res

Amou

nto

ff Ba

lanc

e Sh

eet e

xpos

ures

ab

cd=

a-b-

ce

f=d*

eIrr

evoc

able

Cre

dit C

omm

itmen

ts (l

ong

term

)-

50

%-

-

-

Oth

er C

ontin

gent

Lia

bilit

ies

12,9

53

-

12,9

53

100%

12,9

53

8,58

0 8,

580

Clai

m lo

dge

on g

uara

ntee

-

200%

-

-

-

Tota

l7,

335,

217

-

272,

743

7,06

2,47

4 2,

681,

421

5,94

8,35

4 2,

696,

933

Tota

l Cre

dit R

isk

49,8

13,4

54

973,

590

561,

012

48,2

78,8

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Particulars Preceding Year of Current fiscal Year As of Asadh

fY 2069/70 fY 2068/69 fY 2067/68 end 2070

Net Interest Income 1,155,576 857,352 765,051 1,155,576

Commission & Discount Income 113,067 108,181 68,049 113,067

Other Operating Income 182,093 94,507 62,252 182,093

Exchange Fluctuation Income 156,645 115,627 38,690 156,645

Additional Interest Suspense during the period 65,556 29,375 15,753 65,556

gross Income(a) 1,672,936 1,205,041 949,795 1,672,936

Alfa (b) 15% 15% 15%

Fixed Percentage of Gross Income[c=(a*b)] (c) 250,940 180,756 142,469 250,940

Capital Requirement for operational risk(d) (average of c) 191,389 191,389

Risk Weight(reciprocal of capital requirement of 10%) in times (e) 10 10

Equivalent Risk weight Exposure for Operational Risk [f=(d*e)] 1,913,886 1,913,886

PILLAR-II ADJusTmENTs

If gross Income for all the last three years is negative (6.4 a 8)

Total Credit and Investment (net of Specific Provision)

Capital requirement for operational risk (5%)

Risk Weight (reciporcal of capital requirement of 10%) in times

Equivalent Risk Weight Exposure (g)

EquIvALENT RIsk wEIghT ExPOsuRE (h=F+g) 1,913,886 1,913,886

Schedule 4.30 (D)

Rs. in ‘000


operational Risk


Market Risk

2071 Asadh end Relevant Net

Particulars Net open Position Net open Position Relevant Net open Position

(fCY) (NPR) open as of Asadh

Position (NPR) end 2070 (NPR)

1. INR 28,889.99 46,245.65 46,245.65 16,494.07

2. USD 75.06 7,213.45 7,213.45 20,214.09

3. GBP 12.02 1,976.55 1,976.55 227.84

4. EUR 6.40 831.71 831.71 1,783.33

5. THB 3.01 8.85 8.85 59.83

6. CHF 10.03 1,071.50 1,071.50 1,122.39

7. AUD 20.38 1,824.47 1,824.47 878.08

8. CAD 12.69 1,131.97 1,131.97 277.50

9. SGD 18.40 1,422.09 1,422.09 222.52

10. JPY 3,882.17 3,658.95 3,658.95 934.49

11. HkD 9.57 118.57 118.57 40.60

12. Dkk 0.50 8.71 8.71 -

13. SEk 4.16 58.45 58.45 109.81

14. SAR 87.64 2,240.83 2,240.83 5,466.44

15. QAR 14.07 370.24 370.24 1,360.91

16. AED 13.10 341.52 341.52 1,383.32

17. MYR 27.24 817.86 817.86 282.37

18. kRW 471.00 4,269.62 4,269.62 91.63

19. CNY 27.28 413.53 413.53 243.71

20. BDT 1,696.59 2,120.74 2,120.74

21. kWD - - -

22. BHD 0.00 0.25 0.25

23. ……..

Total Open Position (a) 76,146 51,193

Fixed Percentage (b) 5% 5%

Capital Requirement for market Risk[c=(a*b)] 3,807 2,560

Risk weight (reciprocal of capital requirement of 10%)

in times(d) 10 10

Equivalent Risk weight Exposure for market Risk[e=(c*d)] 38,073 25,596

Schedule-4.30 (e)

Rs. in ‘000



From the Beginning Year of the Bank

Principal Indicators

Schedule- 4.31

Particulars Indicators f.Y f.Y f.Y f.Y f.Y

2009/2010 2010/2011 2011/2012 2012/2013 2013/2014

1. Percent of Net Profit/Gross Income Percent 11.34% 10.89% 10.25% 14.40% 19.72%

2. Earning Per Share Rs 21.99 19.82 20.41 29.80 38.63

3. Market Value Per Share Rs. 444.00 270.00 345.00 300.00 810.00

4. Price Earning Ratio Ratio 20.19 13.62 16.91 10.07 20.97

5. Dividend on Share Capital (Including Bonus) Percent 10.03% 15.79% 8.42% 22.11% 23.16%

6. Cash Dividend on Share Capital Percent 10.03% 12.79% 8.42% 10.11% 11.16%

7. Interest Income/Loan and Advances Percent 10.86% 13.01% 13.26% 11.53% 10.40%

8. Staff Expenses/Total Operating Expenses Percent 6.15% 6.64% 6.79% 9.27% 10.15%

9. Interest Expenses/Total Deposit & Borrowing Percent 7.66% 9.13% 7.88% 5.97% 5.28%

10. Exchange Gain/Total Income Percent 0.57% 1.35% 3.59% 4.68% 3.73%

11. Staff Bonus/ Total Staff Expenses Percent 33.63% 28.73% 27.13% 31.77% 41.27%

12. Net Profit/ Loan and Advances Percent 1.43% 1.67% 1.60% 2.03% 2.50%

13. Net Profit/ Total Assets Percent 1.06% 1.28% 1.12% 1.43% 1.74%

14. Total Credit/ Deposit Percent 83.65% 86.43% 79.42% 83.55% 79.02%

15. Total Operating Expenses/Total Assets Percent 7.39% 9.61% 8.65% 6.94% 5.93%

16. Adequacy of Capital Fund on Risk Weighted Assets - 0 -

a) Core Capital Percent 8.00 9.05 8.18 8.28 8.39

b) Supplementary Capital Percent 2.04 1.73 2.85 3.52 3.00

c) Total Capital Fund Percent 10.04 10.78 11.03 11.80 11.39

17. Liquidity (CRR) Percent 5.66% 5.61% 11.86% 9.60% 17.22%

18. Non-performing Credit/Total Credit Percent 0.53% 0.79% 1.52% 2.39% 2.75%

19. Weighted Average Interest Rate Spread Percent 3.94% 3.94% 3.82% 4.39% 4.65%

20. Book Net - worth Per Share Rs. 146 127 135 155 165

21. Total Shares Nos. 10,950,300 15,711,300 16,192,443 16,192,443 18,135,536

22. Total Staff Nos. 329 375 363 370 401

23. Other


Principal Accounting Policies

1. Corporate Information Siddhartha Bank Limited (“the Bank”) is a limitedliability company domiciled in Nepal with itsregistered office at Hattisar, kathmandu. The Bank’sshares are listed and traded in Nepal Stock ExchangeLimited.

The Bank is licensed by Nepal Rastra Bank, (TheCentral Bank of Nepal) as Class “A” institution to carryout commercial banking activities in Nepal under theBank and Financial Institution Act, 2063. The FinancialStatements are authorized for issue by the Board ofDirectors and approved by the central bank.

2. Consolidated financialstatementThe consolidated financial statement of the Bank forthe year ended on July 16, 2014 comprises of theaccounts of the Bank and its subsidiary, SiddharthaCapital Limited. The Bank consolidates the financialstatements of subsidiary in which it holds directly orindirectly, more than 50% of voting rights or where itexercises control.

Siddhartha Capital Limited ("Siddhartha Capital" or"Subsidiary") is a subsidiary incorporated on 2068-11-02 as a public limited company as per the CompanyAct 2006. Siddhartha Bank Ltd, as at the BalanceSheet date holds 51 % of total paid up capital inSiddhartha Capital.

The financial year of the subsidiary has a commonfinancial year with that of the Bank that ended onJuly 16, 2014. The Bank and its subsidiary are jointlycalled as the Group.

3. Principal Activities� The principal activities of the Bank are to provide allcommercial banking services, trade finance servicesincluding wide areas of products and services backedby cutting-edge technology through its wide branchnetwork.

� The principal activities of its subsidiary are tooperate the mutual fund services that includemanagement of public offerings, portfoliomanagement, underwriting of securities andadministration and record keeping of securities of itsclients.

4. Approval of financialStatement by Board ofDirectorsThe accompanying financial statements includingconsolidated financial statements have beenapproved by the Board of Directors for ratification ofAGM, vide its meeting held on 15 September, 2014.

5. Summary of SignificantAccounting PoliciesThe principal accounting policies applied in thepreparation of these financial statements are set outbelow. These policies have been consistently appliedto all the years presented, unless otherwise stated.

55..11 SSttaatteemmeenntt ooff CCoommpplliiaanncceeThe financial statements have been prepared inaccordance with Nepal Accounting Standards(“NAS”) issued by the Nepal Accounting StandardBoard except otherwise stated, Generally AcceptedAccounting Principles (“GAAP”), Banks & FinancialInstitutions Act, 2063, presentation requirement ofNRB Directives and in conformity with the CompanyAct 2063.

55..22 BBaassiiss ooff PPrreeppaarraattiioonnThe financial statements are presented in NPR,rounded to the nearest Rupee. They are prepared onthe historical cost basis. The preparation of financialstatements in conformity with NAS and GAAPrequires the use of certain critical accountingestimates. It also requires management to exercisejudgment in process of applying the Bank’saccounting policies.

Schedule- 4.32


55..33 IInntteerreesstt IInnccoommeeInterest income on loans and advances arerecognized on cash basis as per the Nepal RastraBank Directive although this practice is not inaccordance with the Nepal Accounting Standard,NAS 7 (Revenue Accounting), which prescribes thatthe revenue should be recognized on accrual basis.The practice followed by the Bank (as per NRBDirectives) is more conservative. Interest income onInvestments and money market placements areaccounted for on accrual basis.

55..44 FFeeeess aanndd CCoommmmiissssiioonn IInnccoommeeGuarantee commission incomes in excess of Rs.100,000 and having a maturity in the next fiscal yearis accounted for on accrual basis. All other fees andcommission income is recognized at the time of thetransaction on cash basis.

55..55 DDiivviiddeenndd IInnccoommeeDividend income is recognized with net ofwithholding tax when the right to receive dividend isestablished. When bonus shares are received, onlynumbers of shares are increased without changingthe cost price of shares.

55..66 IInntteerreesstt EExxppeennsseeInterest expenses on deposit liabilities,debenture/bonds and borrowings from other banksare accounted for on accrual basis.

55..77 FFoorreeiiggnn EExxcchhaannggee TTrraannssaaccttiioonnssa) Assets and liabilities denominated in foreigncurrencies are converted into Nepalese Rupees atmid rates as on Balance Sheet date.

b) Profit or loss arising from difference betweenbuying and selling rates of foreign currencies isaccounted as trading gain or loss on foreignexchange.

c) Profit or Loss arising due to change in the value ofFCY assets or liabilities and owing to fluctuation inexchange rate is accounted as revaluation gain orloss. Twenty five percent of such revaluation gain is

transferred to Exchange Fluctuation Fund chargingProfit & Loss Appropriation Account as per the NepalRastra Bank Directive.

55..88 LLooaannss,, AAddvvaanncceess,, OOvveerrddrraaffttss aanndd BBiillllss PPuurrcchhaasseeddLoans and advances, overdrafts and bills purchasedinclude direct finance provided to customers. Theseinclude overdrafts, term loans, consumer loans,working capital and loans given to priority anddeprived sectors. All credit exposures are classifiedas per Nepal Rastra Bank’s Directives into performingand non-performing loans. Performing loans arefurther classified as pass loan and non-performingloans are classified as re-structured/rescheduledloans, substandard, doubtful and loss based on thecriteria stipulated by NRB directives. Loans andadvances, overdrafts and bills purchased are shownnet of provisions for loan losses.

55..99 SSttaaffff LLooaannssLoans and advances to staff are granted inaccordance with the policy of the Bank and areshown under Other Assets.

55..1100 PPrroovviissiioonn ffoorr PPoossssiibbllee LLoosssseessThe provision for possible losses from loans andadvances and bills purchased are provided at therates ranging from 1% to 100% according to theclassification of such risk assets as per Nepal RastraBank Directives.55..1111 LLooaann && AAddvvaannccee WWrriittee OOffffWherever it is felt that the loan accounts graded‘Loss’ according to the Nepal Rastra Bank Directives,is unrecoverable, are written off in the books as percriteria/policy approved by the Board, withoutprejudice to Bank’s right to recovery. Amounts recovered against loans written off inearlier years are recognized as income in the year ofrecovery.

55..1122 IInnvveessttmmeennttssThe Bank has categorized its investment portfoliointo the following three categories:a) Held for Trading: Investments that are made forthe purpose of generating profit from short term


fluctuations in price are classified under thiscategory. These investments are marked to marketon a daily basis and differences to be reflected in theprofit and loss account.b) Held to Maturity: The investments made withpositive intent and ability of the bank to hold tillmaturity is classified under this category. Theseinvestments are valued at amortized cost i.e. the costprice less any impairment which is included in theprofit and loss accounts for the period.c) Available for Sale: All other investments that areneither “Held for Trading” nor “Held to Maturity” areclassified under this category. These investments aremarked to market on a regular basis and thedifferences are adjusted through reserves. The Bankmaintains Investment adjustment reserve (eligible astier 2 capital) to the extent of 2 % of available for saleportfolio.

All Investments are regularly reviewed as required byNepal Rastra Bank Directives.

55..1133 FFiixxeedd AAsssseettss aanndd DDeepprreecciiaattiioonna) Fixed Assets are stated at cost less accumulateddepreciation.

b) Fixed assets are depreciated on diminishingbalance method. Land is not depreciated. Thedepreciation rates applied for various categories ofassets are as follows:

c) Fixed assets under construction, advances paidtowards acquisition of fixed assets and costs of assetsnot ready for use before year end are shown ascapital work in progress (Pending capitalization).

5.14 Non Capitalized AssetsNon-Consumable item normally having life less than

1 year and/or costing less than Rs 5,000 is expensedoff during the year of purchase.

5.15 AmortizationAmortization is charged to Profit and Loss Accounton a straight line basis over the estimated useful livesof the intangible assets. Intangible assets arerecognized from the date they are available for use.

Software expense is recorded at cost incurred duringthe purchase and implementation of the softwareand amortized over a period of 5 years, the estimateduseful life.

Leasehold improvements are amortized over aperiod of 5 years or lease period, whichever is earlieron straight line basis.

5.16 Non Banking AssetsNon-Banking assets are valued at receivable amount(Principal and Interest) due from borrower orprevailing market price of the asset whichever islower. Provision for non-banking assets is providedas per the directives of Nepal Rastra Bank.

5.17 Employee BenefitsThe undiscounted amount of short-term employeebenefits, such as salaries, medical benefit, staff bonusetc. which are expected to be paid in exchange forthe service rendered by employees is recognizedduring the period when the employee renders theservice.

The Bank offers retirement benefits to its employeesmainly provident fund, gratuity & accumulatedleave payable at the time of separation from services.

a) Defined Contribution PlanBank contributes 10% of Basic Salary of all permanentemployees as provident fund and same amount iscontributed from employee. Bank’s contribution ischarged as expense when employee has renderedservice to bank.

Bank pays insurance premium of its permanentemployee as per Staff Service Rules of the Bank.Insurance policy is in the name of a specified planparticipant and bank has no legal liability to coverany loss on the policy and insurer has soleresponsibility for paying the benefit. The amount of

Assets Rate of Depreciation

Building 5%

Office Equipments 25%

Computers and Accessories 25%

Furniture & Fixtures 25%

Vehicles 20%

Other Assets 15%


insurance premium paid is charged as expense forthe period.

b) Defined Benefit Plan Permanent employees of the bank are eligible forgratuity payment on their separation from service asper Staff Service Rule. Provision for gratuity is madeon accrual basis determined by the management asper Staff Service Rule taking the proportion of serviceperiod served by permanent employees. Gratuity isaccumulated as provision and has not beentransferred to approve retirement funds.

c) Accumulated leaveThe Bank offers leave encashment facility to itsconfirmed employees which may be encased duringthe service period as per the Staff Service Rule of theBank and unused leave is accumulated and paid atthe time of separation from service. Provision forleave is made on accrual basis determined by themanagement as per Staff Service Rules of the Bank.

5.18 stationery stockStationery purchased for consumption are valued atcost or net realizable value whichever is lower andare expensed at the time of consumption. Thispractice is in accordance with NAS04.

5.19 Income Tax Income tax expense represents the sum of the taxcurrently payable and deferred tax.Provision for taxation has been made on the basis ofthe Income Tax Act 2058 and amendments thereto.Deferred tax assets and liabilities are recognized forthe future tax consequences attributable todifferences between the financial statement carryingamounts of existing assets and liabilities, and theirrespective tax bases using the asset and liabilitymethod. Deferred tax assets and liabilities aremeasured using enacted tax rates expected to applyto taxable income in the years in which thosetemporary differences are expected to be recoveredor settled. The effect of changes in tax rates ondeferred tax assets and liabilities is recognized asincome in the period that includes the enactmentdate.

5.20 LeaseAssets held under finance leases are initiallyrecognized as assets of the Bank at their fair value atthe inception of the lease or, if lower, at the presentvalue of the minimum lease payments. Thecorresponding liability to the lessor is included in thefinancial statement as a finance lease obligation.However the Bank has no such assets as on theBalance Sheet date.

Operating lease payments are recognized as anexpense on a straight-line basis over the lease term,except where another systematic basis is morerepresentative of the time pattern in whicheconomic benefits from the leased asset areconsumed.

5.21 Provisions, Contingent Liabilities andcontingent AssetsThe Bank creates a provision when there is a presentobligation as a result of past events that probablyrequires an outflow of resources and a reliableestimate can be made of the amount of theobligation. A disclosure for a contingent liability ismade when there is a possible obligation or apresent obligation that may, but probably will not,require an outflow of resources. When there is apossible obligation or a present obligation in respectof which the likelihood of outflow of resources isremote, no provision or disclosure is made.

Contingent assets are not recognized in the financialstatements. However, contingent assets are assessedcontinually and if it is virtually certain that aneconomic benefit will arise, the asset and relatedincome are recognized in the period in which thechange occurs.

All known contingent liabilities provided in theschedule forming part of the Balance Sheet.

6. Previous Year’s figures,Rounding off & ComparativefiguresThe Financial Statements are presented in NepaleseRupees, rounded off to the nearest rupee. Previousyear’s figures are grouped or regrouped wherevernecessary in order to facilitate comparison.


Notes to Accounts

1. Interest income andinterest SuspenseBank has recognised the interest income on loanwhich was accrued till ashad collected within 15Shrawan as income due to facility given by NepalRastra Bank. Interest receivable on loans andadvances outstanding as of year end after deductionof interest collected up to 15 Shrawan 2071 of Rs21,218,242 amounting to Rs. 119,989,366 istransferred to interest suspense account.

2. Provision for Staff BonusProvision for staff bonus is computed at 10% of netprofits before tax after bonus.

3. Staff Housing fundAs the Bank’s personnel policies have a provision forextending housing loans to the eligible staff, aseparate housing fund has not been created asrequired under the Labour Act, 2048.

4. Paid up Share CapitalPaid up share capital of the Bank from beginning ofits operation has moved as follows:

5. General Reserve20 percent of the profit is transferred to GeneralReserves as per the requirement of Banks andFinancial Institutions Act 2063. The Bank hastransferred Rs.140,107,000 ( FY 2070/71) to theGeneral Reserve Fund from the current year 's profit.

6. exchange fluctuationfund25% of the revaluations gain on foreign exchange istransferred to exchange fluctuation fund through theprofit & loss appropriation account .The Bank hastransferred Rs.2,149,504 to Exchange fluctuation Fundin the current year through the P/L Appropriation A/C.

7. Investment AdjustmentReserveInvestment Adjustment reserve has been created bytransferring Rs. 13,21,789 (2% of the investment inshares available for sale) from Profit and LossAppropriation Account as per the Directive of NepalRastra Bank during the fiscal year. Total outstandinginvestment adjustment reserve till this fiscal year is Rs74,14,288. Total amount of Rs. 238,357,018, Rs.87,530,966 and Rs. 3,002,272,131 has beensegregated as available for sale, Held for Trading &Held to Maturity respectively out of whichinvestment of Rs. 60,67,600 comprising ofinvestment in Credit Information Centre Limited,Nepal Clearing House Limited., ICRA Nepal Ltd &National Banking Training Institute do not requireInvestment Adjustment Reserve.

8. Gratuity fundDuring the year, the Bank has provided Rs13,878,515(FY 2070/71) on account of staff gratuityand Rs 324,075 was paid to staff who separated fromthe service of the Bank from the fund.

9. Accumulated Leave The Bank has provided Rs 44,026,246 (FY 2070/71) onaccount of accrued leave encashment and Rs7,486,104 (FY 2070/71) was paid from the provisions.

10. Borrowing against itsown assetsNone of the Bank’s borrowings are against thecollateral of its own assets except collateral of T-Bills.

11. Tax Assessment

Schedule- 4.33

fiscal Year Cumulative Paid Remarks

up Capital (Rs.)

2059/60 (2002/03) 350,000,000

2060/61 (2003/04) 350,000,000

2061/62/ (2004/05) 350,000,000

2062/63 (2005/06) 500,000,000 IPO of Rs.150 million

2063/64 (2006/07) 600,000,000 20% Bonus Share

2064/65 (2007/08) 828,000,000 15% Bonus Share and

then 20% Right Share

2065/66 (2008/09) 952,200,000 15% Bonus Share

2066/67 (2009/10) 1,095,030,000 15% Bonus Share

2067/68 (2010/11) 1,571,130,000 50% right share on FY

2065/66 Paid up

Capital

2068/69 (2011/12) 1,619,244,300 3 % Bonus share on

FY2067/68

2069/70 (2012/13) 1,813,553,600 12% Bonus share on FY

2069/70

2070/71 (2013/14) 2,031,180,032 12% Bonus share on FY

2070/71


The Large Taxpayer’s Office (LTO) has raised theadditional demand of Rs 0.96 million for FY 2061/62,Rs.3.21 million for FY 2062/63, Rs 1.66 Million for FY2063/64, Rs. 0.96 million for FY 2064/65 and Rs 2.5million for FY 2065/66 ; the Bank has disputed thedemand and filed the case in the Revenue Tribunal.Pending final assessment, no provision for additionaldemand has been made but disclosed as contingentliabilities.

Amended Tax Assessment by the Large Taxpayer’sOffice (LTO) raised additional demand of Rs.3.71million for FY 2066/67 on the balance sheet date; theBank has disputed the demand and filed a case at theInland Revenue Department for administrativereview, which is shown as Contingent Liabilitieshence no provision for additional demand has beenmade.Annual income tax returns filed by the Bank underself-assessment procedure for the years 2067/682068/69 and 2069/70 are pending final assessmentby tax authorities.

12. Investment in ShareCapital of other CorporateThe Bank has made investment in different corporateshare as mentioned in schedule no 12.

13. Debenture RedemptionReserve fundDebenture Redemption Fund has been created asper Directive of NRB and Rs. 133,041,429 has been setaside for the fund from this year’s profit. Totaldebenture redemption reserve as at 16 July 2014 isRs.372,642,560.

14. Unpaid DividendAs on balance sheet date, some of the shareholders

have not collected their dividend of FY 2009/10, FY2010/11, FY 2011/12 and FY 2012/13 amountingRs.21, 959,077 which has been shown in schedule4.7.

15. Proposed Bonus Share &Cash Dividend The Bank has proposed 12 % Bonus Share and 11.16% cash dividend (including corporate dividend taxon bonus share and cash dividend) from retainedearning including current year profit.

16. Provision foraccumulated leave liabilityIn order to fully provide for the liabilities against staffaccumulated leave, the Bank has made a provision ofRs. 6.21 million in the current year’s 2070-71.

17. LeaseFinance LeaseThe Bank has not entered into any finance lease anddoes not have any obligations in respect of financelease.

Operating LeaseThe Bank has entered into a lease arrangement foroffice premises and ATM space outside of the branchfor different periods, which can be terminated byeither party giving prior notice as stipulated in thecontract/agreement. The future minimum leasepayment under non-cancellable operating leases,where the Bank is lessee is NIL. There is no rentalexpense under non-cancellable operating leases.

18. Deferred TaxesDeferred tax assets and liabilities have beencomputed in accordance with NAS 9, Income Taxesand are attributable to the following:

Particulars Carrying Amount Tax Base Difference

as on 16 July 2014 as on 16 July 2014

Fixed Assets 285,516,171 320,735,556 35,219,384.68

Provision for staff gratuity 13,878, 515 - 13,878,515.42

Provisions for leave liability 44,026,246 - 44,026,245.91

TOTAL 93,124,146.01

Applicable Tax Rate 30%

Deferred Tax Assets as on 16 July 2014 27,937,243.80

Deferred Tax Assets as on 15 July 2013 20,061,272.41

Deferred tax recognized in the income statement 7,875,971.39

(Amount in Rs.)


19. Reconciliation StatusThe Bank reconcile branches and other agency accounts regularly. The difference has been identified, reviewed andreconciled and it has been or will be adjustment in due course of business.

20. Summary of Loans and Advances Disbursed, Recovered andPrincipal & Interest Written-off:The loan disbursed, recovered and written off during the year is given below:

22. Weighted Average Interest Rate Spread

21. Summary status of the of Deposit Liabilities

Reconciliation Status Total Amount Rs. < 3 months >3<9 months >9 months

Branch Reconciliation - - - -

Agency Accounts 219,976.08 219,611.98 201.50 162.60

(Rs in 000)

Particulars Amount

Loans Disbursed 62,847.38

Loans Recovered 19,076.17.

Loans Written off -

Interest written off -

(Rs in million)

Particulars Current Year Previous Year Change %

Current /margin deposit 2,505 1,154 116.96

Local Currency 2,275 1,071 112.38

Foreign Currency 230 83 176.01

saving Deposits 9,523 7,385 28.95

Local Currency 9,474 7,350 28.90


Call Deposits 11,510 9,143 25.88

Local Currency 11,342 8,918 27.17

Foreign Currency 168 225 (25.24)

Fixed deposits 11,876 10,709 10.90

Local Currency 11,492 10,326 11.29


TOTAL 35,414 28,392 24.73

(Rs in million)

Particulars Rate (%)

Average Rate of return from loans and advances & Investments 10.06

Average Rate of interest on deposits & borrowings 5.40

Net Spread 4.65


23. Particulars of expenses yet to be expensed-offSoftware & Leasehold Improvement costs are amortized and the remaining to be amortized is given below,

24. Summary of Concentration of exposure

25. Classification of Assets and Liabilities based on Maturity

original Value Rs. Written off Rs. Book Value Rs.

Software 50,532,056.92 35,057,280.05 15,474,776.87

Leasehold Improvement 182,686,795.22 135,785,672.44 46,901,122.78

(Amount in Rs.)

Particulars Loans and Advances Deposits and Contingents

and Bills Purchased Borrowings

Total Amount as on 16 July 2014 27,985,730 35,522,463 2,398,990

Highest exposure to a single unit 584,392 1,195,635 432,271

Percentage of exposure to/from singe unit (%) 2.09% 3.37% 18.02%

Rs. In "000"

1-90 days 91-180days 181-270 days 271-365days over 1 Year Total

AA)) AASSSSEETTSS

Cash Balance 1,122 1,122

Balance With Banks 5,522 5,522

Investment in Foreign Banks 162 327 29 - 96 613

GON Securities 930 256 950 2,136

Investment in Shares 454 454

Nepal Rastra Bank Bonds -

Other Investment 1,150 1,150

Inter Bank Lending 546 192 738

Loans & Advances 9,353 3,320 2,770 2,773 9,769 27,986

Other Assets 865 440 1,306

TOTAL AssETs 18,719 3,647 3,729 3,029 11,902 41,027

AA)) LLIIAABBIILLIITTIIEESS

Borrowings 106 - - 106

Current Deposits & Margins 1,638 867 2,505

Savings Deposit & Call Deposits 10,517 10,517 21,033

Fixed Deposits 1,648 2,352 3,207 3,893 776 11,877

Debentures 931 931

Other Liabilities 1,574 1,574

Capital & Reserves 3,000 3,000

Total Liabilities 15,483 2,352 3,207 3,893 16,091 41,027

Net Financial Assets 3,490 1,295 522 (864) (4,189) (0)

Cumulative Net Financial Assets 3,490 4,785 5,307 4,443 254

(Rs. In (millions)


Name Nature of Transaction Amount- CY Amount - PY

Siddhartha Insurance Ltd Investment in Share 32,820,000 15,000,000

Siddhartha Capital Ltd Equity Investment in Mutual Fund 51,000,000 51,000,000

Siddhartha Growth Scheme 1st Equity Investment in Seed Capital 75,000,000 75,000,000

Siddhartha Equity Oriented Scheme Advance for Seed Capital 150,000,000 -

26. Related Partiesa) Transaction with related party

27. Agreement with IfC The Bank has signed an Agreement with International Finance Corporation (IFC) - a member of World Bank Group,as an Issuing Bank for the Corporations’ Global Trade Finance Program. As an Issuing Bank, IFC shall provide theBank the agreed Confirmation Facility, which shall be used to enhance the Bank’s capacity to meet the tradefinance needs of various local enterprises as well as development projects of the country.

28. NRB Guidelines on Annual General Meeting Clearance andDividend Approval The Bank has purchased cheque of Cube International Pvt. Ltd. for Rs. 44.30 million on 16th July 2014 for full andfinal settlement of the outstanding loan. The cheques were realized in the normal clearing process after thebalance sheet date. As per Annual General Meeting and Dividend Approval Guidelines (2071), bank has consideredthe same as adjusting event and accordingly 1 % Loan Loss Provision has provided while preparing financialstatement.

Further in respect of Star Holding Pvt. Ltd. and kohinoor Hill Housing Pvt. Ltd. loan loss provision @ 50 % has beenprovided for on total outstanding as on 16th July 2014 amounting to Rs. 164.97 million based on the abovementioned NRB guidelines.

b) key Managerial Personnel

• Bank also provides meeting fee and other benefits to directors as approved by Annual General Meeting.

Details of Key Management Personnel Total Compensation (NPR) Remarks

Short-term employee benefits 60,466,310 Salary, PF and allowances of management level staff

(Management level staff comprises of all staff of

assistant manager level and above)

Post employee benefits Nill

Terminal benefits 6,395,767 Gratuity benefits of eligible management staff

Share based payments Nill

Other long term benefits Nill


1. Capital Structure and Capital Adequacy:Tier 1 capital and a breakdown of its components:

Tier 2 capital and a breakdown of its components:

Disclosures of Basel-II

Particulars Amount

a. Paid up Equity Share Capital 1,813,554

b. Share Premium -

c. Proposed Bonus Equity Share 217,626

d. Statutory General Reserve 531,548

e. Retained Earnings 12,155

f. Unaudited current year cumulative profit

g. Capital Redemption Reserve

h. Capital Adjustment Reserve

i. Dividend Equlization Reserves -

j. Debenture Redemption Reserve 372,643

k. Deffered Tax Reserve 27,937

l. Other Reserves

m. Less:Investment in equity of institutions with financial interests (32,820)

Total Tier 1 Capital 2,942,642

Rs. In “000”

Particulars Amount

a. Cumulative and/or Redeemable preference Share -

b. Subordinated Term Debt 749,074

c. Hybrid Capital Instruments -

d. General Loan Loss Provision 279,139

e. Investment Adjustment Reserve 7,414

f. Assets Revaluation Reserve

g. Exchange Equilisation Reserve 17,504

h. Other Reserves -

Total Tier 2 Capital 1,053,132

Rs. In “000”


Detailed information about the subordinated Term Debts with information on the outstanding amount,maturity, amount raised during the year and amount eligible to be reckoned as capital funds:The Bank issued Siddhartha Bank Limited Debenture 2072 in FY 2008/09 for Rs.228 million having face value of Rs.1,000. Main features of Siddhartha Bank Limited Debenture 2072 are as follows:� Maturity period: 7 Years.� Interest rate: 8.5% 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 Exchange

Likewise, the Bank issued SBL Debenture 2075 in FY 2011/12 for Rs.400 million with face value of Rs.1000. Thesalient features of SBL Debebture 2075 are as follows:� Maturity period: 7 Years.� Interest rate: 11% 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 Exchange

Likewise, the Bank issued SBL Debenture 2076 in FY 2011/12 for Rs. 303 million with face value of Rs.1000. Thesalient features of SBL Debebture 2076 are as follows:� Maturity period: 7 Years.� Interest rate: 8% 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 Exchange

Deductions from Capital:The Bank has investments of Rs.32.82 million in the equity shares of Siddhartha Insurance Limited, which has beendeducted from the core capital while computing capital adequacy.

Total qualifying Capital

Particulars Amount

Core Capital 2,942,642

Supplementary Capital 1,053,132

Total Capital Fund 3,995,774

Rs. In “000”


summary of the Bank's internal approach to assess the adequacy of its capital to support current and futureactivities, if applicable:Siddhartha Bank is committed to comply with the regulatory guidelines in every aspect of its business andoperations. Accordingly for the capital adequacy purpose also, the Bank has an approved capital plan in place inorder to meet the capital requirement of Rs. 2 billion by the end of FY 2070/71. In line with this, the Bank raised itspaid up capital to Rs.1,813,553,600 through issuance of 12 % Bonus shares of Rs. 194,309,316 as declared inprevious year’s AGM. Further, The Bank follows prudential norms to maintain a healthy capital adequacy to supportits current and future business plans. Bank regularly reviews its exposures in different risk areas including CreditRisk, Market Risk and Operational Risk. In accordance with NRB guidelines, the Bank has adopted SimplifiedStandardized Approach (SSA) to measure credit risk while Basic Indicator Approach and indigenous Net OpenPosition Approach for measurement of Operational Risk and Market Risk respectively. The Bank continues to applyBasel II with prescribed approaches by NRB with effect from Mid July 2008 (FY 2065/66). Nepal Rastra Bankprescribes Banks to maintain a minimum capital to Risk Weighted Exposure of 10% with regard to credit risk,market risk and operational risk on an ongoing basis. The Bank has followed the NRB guidelines in force, to arrive atthe eligible capital, risk weighted assets and CAR. The sufficient headroom available for the Bank for mobilizing TierI and Tier II capital shall additionally support capital structure to meet the required CAR against future activities.

Bank’s activities are weighted in terms of risk and return in light of capital requirement. Bank has established aculture whereby return on capital is justified in light of risk involved in each investing and operating activity. Inorder to assess the adequacy of capital, all major risks such as credit, credit concentration, operational, market,liquidity, reputational etc are identified, measured and reported on periodic basis. These are monitored by theBank’s Board, Assets Liability Management Committee and senior management periodically in addition to themonthly review and certification by the Internal Audit and Compliance Department of the Bank.

summary of the terms, conditions and main features of all capital instruments, especially in case of subordinatedterm debts including hybrid capital instruments.For subordinated term debts, described as above.

2. Risk exposuresRisk weighted exposures for Credit Risk, market Risk and Operational Risk:

Particulars Amount

Risk Weighted Exposure for Credit Risk 31,937,169

Risk Weighted Exposure for Operational Risk 1,913,886

Risk Weighted Exposure for Market Risk 38,073

Adjustments under Pillar II:

Add: 3% of Gross income of last FY due to supervisor is not satisfied

with sound practice of management of operational risk (6.4 a 7) 501,881

Add: 2% of the total RWE due to supervisor is not satisfied with

the overall risk management policies and procedures of the bank (6.4 a 9) 677,783

Total Risk weighted Exposure (After Pillar II Adjustment) 35,068,791

Rs. In “000”


Risk weighted Exposures under each of 11 categories of Credit Risk:

Total Risk weighted Exposure calculation table:

Categories Risk Weighted exposure

1. Claims on Government & Central Bank

2. Claims on Other Financial Entities -

3. Claims on Domestic Banks that meet CAR 280,914

4. Claims on Domestic banks that do not meet CAR 83,612

5. Claims on Foreign Banks (ECA 0-1) 107,942

6. Claims on foreign bank ( ECA 2) 642

7. Claims on foreign bank ( ECA Rating 3-6) 3,082

8. Claims on foreign bank incorporated in SAARC region

operating with a buffer of 1% above their respective regulatory capital requirement 7,507

9. Claims on Domestic Corporates 15,113,049

10. Claims on Regulatory Retail Portfolio (Not Overdue) 5,060,229

11. Claims secured by residential properties 275,117

12. Claims secured by residential properties( overdue) 2,853

13. Claims Secured by Commercial Real Estate 1,265,637

14. Past due claims(except for claim secured by residential properties) 439,563

15. High Risk Claims 4,899,353

16. Investments in equity and other capital instruments of institutions listed in the stock exchange 86,437

17. Investment in Equity of Institution not listed in the Stock Exchange 425,859

18. Investments in Mutual Fund 51,000

19. Staff Loan secured by residental property 193,544

20. Cash In transit and other cahs items in the process of collection -

21. Other Assets 959,406

22. Off Balance Sheet Items 2,681,421

Total 31,937,169

Rs. In “000”

Particulars Amount

Total Risk Weighted Exposures 35,068,791

Total Core Capital Fund 2,942,642

Total Capital Fund 3,995,774

Total Core Capital to Total Risk Weighted Exposures % 8.39

Total capital to Total Risk Weighted Exposures % 11.39

Rs. In “000”

Amount of Non performing Assets (both gross and Net)

Particulars Amount Loan Loss Provision Net NPL

Restructured/Rescheduled 61,140 7,643 53,498

Sub-Standard 35,837 8,959 26,877

Doubtfull 324,594 162,297 162,297

Loss 346,718 346,718 -

Total 768,289 525,617 242,672

Rs. In “000”


movement in Non Performing Assets

Particulars This Year Previous Year Change (%)

Non-Performing Assets 768,289 567,868 35.29

movements in Loan Loss Provision and Interest suspense:

Details of Additional Loan Loss Provisions:

segregation of Investment Portfolio:

Particulars This Year Previous Year Change (%)

Loan Loss Provision 798,824 635,055 25.79

Interest Suspense 119,989 81,749 46.78

NPA Ratios

Particulars in %

Gross NPA to Gross Advances 2.75

Net NPA to Net Advances 0.89

written Off Loans and Interest suspense

Particulars Amount

Loan Written Off -

Interest Suspense -

Rs. In “000”

Rs. In “000”

Rs. In “000”

Particulars This Quarter

Pass 39,438

Restructured/Rescheduled 7,643

Sub-Standard (37,596)

Doubtfull 135,381

Loss 18,903

Total 163,769

Rs. In “000”

Particulars This Quarter

Held for Trading 87,531

Held to Maturity 3,002,272

Available for Sale 238,357

Total Investment 3,328,160

Rs. In “000”


3. Risk Management function:� Siddhartha Bank has specific internal review mechanism to assess its position regarding each separate risk areaincluding Credit Risk, Market Risk and Operational Risk.

Credit RiskThe Bank has its own Credit Policy Guidelines to handle the Credit Risk Management philosophy that involves acontinual measurement of probability of default/loss; identification of possible risks and mitigations. The provisionsof Capital Adequacy Framework -2007 updated July, 2008 are complied in line to line basis to overcome the CreditRisk. In order to manage and eliminate the credit risk, the Bank has a practice of maintaining the best quality assetsin its book. The Bank’s Credit Policy elaborates detailed procedures for proper risk management. The Bank hasdelegated credit approval limits to various officials to approve and sanction various amount of credit request basedon their individual expertise and risk judgement capability.

As a check and balance mechanism, each credit case requires dual approval. Regular monitoring of the creditportfolio ensures that the Bank does not run the risk of concentration of portfolio in a particular business sector or asingle borrower. Similarly the Bank also exercises controlled investment policy with adequately equipped resourcelooking after the investment decisions.

To cap these all, the Bank has a strong Credit Committee in place comprising of various Directors from the Board ofthe Bank which reviews all credit proposals beyond a specified amount

market RiskAs for the monitoring of market and liquidity risk, the Bank has an active Assets and Liability ManagementCommittee (ALCO) in place which meets regularly and takes stock of the Bank’s assets and liability position andprofile of assets & liabilities, monitors risks arising from changes in exchange rates in foreign currencies. All foreignexchange positions are managed by treasury consisting of front office dealers with specific dealing limits and anindependent back office. The back office executes the deals made by the dealers and also monitors the liquidityposition of the Bank. For the purpose of proper check and control, the front dealing room of treasury and the backoffice have different reporting line.

Operational RiskThe Bank has adopted dual control mechanism in its all operational activities where each and every financial andnon financial transaction is subject to approval from an authority higher than the transaction initiator. Regularreview meetings are conducted to assess the adequacy of risk monitoring mechanism and required changes aremade as and when felt necessary. Independent reconciliation unit is established to conduct daily reconciliation ofall Nostro/agency accounts, Inter-Branch and Inter-Department account under direct supervision of Head ofFinance, Head Office. 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. Inorder to have better focus on managing operational risks across branches and to monitor them from Head Officelevel, the Bank has separate Branch Operation and Control & Compliance Department at Head Office. The Bank hasstrong MIS in place to monitor the regular operational activities.

Types of eligible credit risk mitigants used and the benefits availed under CRM.

Particulars eligible CRM( Rs 000)

Deposit with Bank 288,269

Deposit with Other Bank/FI -

Total 288,269


Schedule 4.34

Promoters/Shareholders Promoter's Share Loan details Remarks

classified under ownership

Promoter group Total No. % of Total Name of the Bank & Loan Amount Total no. of

of Shares paid up capital financial Institutions Pledged Shares

1. Pushpanjali Internatiol Pvt.Ltd 121,946 0.67% Himalayan Bank/

Ndep Bank 45,000 Pro-converted to

public share Nos.

10113

2. Raj Kumar Tibrewala 132,051 0.73% Laxmi Bank Limited 64,468 Pro-converted to

public share Nos.

43925

3. Rajendra Agrawal 132,051 0.73% NMB Bank Limited 40,000,000.00 117,903 Pro-converted to

public share Nos.

43925

4. Rubika Agrawal 36,528 0.20% United Finance Limited 32,615 Pro-converted to

public share Nos.

639

5. Sudha Agrawal 34,608 0.19% 30,900

6. Smriti Agrawal 37,421 0.21% 33,412

End of 32 Ashad 2071

Statements of loans availed byPromoters/Shareholders classified under

promoter's group from other banks and financialinstitutions by pledging shares under their

ownership


Schedule 4.35

Rs in ‘000

Particulars As per Unaudited As per Audited Variance Reasons for Variance

financial Statement financial Statement In Amount In %

1. Total Capital and Liabilities (1.1 to 1.7) 41,022,909 40,277,752 (745,156) (1.82 Due to below changes

1.1. Paid Up Capital 1,813,554 2,031,180 217,626 12.00 Due to proposed Bonus

share

1.2. Reserve and Surplus 1,480,114 969,201 (510,913) (34.52) Due to Changes in LLP &

Proposed cash dividend

1.3. Debenture and Bond 931,290 931,290 - -

1.4. Borrowings 106,415 106,415 - -

1.5. Deposits (a+b) 35,414,008 35,414,008 - -

a. Domestic Currency 34,582,265 34,582,265 - -

b. Foreign Currency 831,743 831,743 - -

1.6. Income Tax Liability 37,997 - (37,997) (100.00) Due to decrease in net profit

1.7. Other Liabilities 1,239,532 825,659 (413,873) (33.39) Due to change in staff bouns

due to profit

2. Total Assets (2.1 to 2.7) 41,022,909 40,277,752 (745,156) (1.82) Due to below changes

2.1. Cash and Bank Balance 7,257,046 7,257,046 - -

2.2. Money at Call and Short Notice 1,150,000 1,150,000 - -

2.3. Investments 3,328,158 3,327,655 (503) (0.02) Due to the Additional

Provision for investment

2.4. Loans and Advances (a+b+c+d+e+f) 27,330,868 27,186,905 (143,963) (0.53) Due to Changes in LLP

a. Real Estate Loan 3,449,851 3,449,851 - -

1. Residental Real Estate Loan

(Except Personal Home Loan upto Rs.100 Lacs) 26,542 26,542 - -

2. Business Complex & Residental Apartment

Construction Loan 1,214,944 1,214,944 - -

3. Income generating Commercial Complex Loan 501,104 501,104 - -

4. Other Real Estate Loan

(Including Land purchase & plotting) 1,707,262 1,707,262 - -

b. Personal Home Loan of Rs. 100 Lacs or Less 1,707,993 1,687,881 (20,112) (1.18) Due to Changes in LLP

c. Margin Type Loan 262,407 262,407 - -

d. Term Loan 5,513,143 5,513,143 - -

e. Overdraft Loan/ TR Loan/ WC Loan 12,863,325 12,739,474 (123,851) (0.96) Due to Changes in LLP

f. Others 3,534,149 3,534,149 - -

2.5. Fixed Assets (Net) 440,491 440,491 - -

2.6. Non- Banking Assets - - - -

2.7. Other Assets 1,516,345 915,654 (600,690) (39.61) Due to Change in Defered

Tax Assets

Continue...comparison of unaudited and audited financial statement


Comparison of Unaudited and Audited financial Statement


Continue...comparison of unaudited and audited financial statement Rs in ‘000

Particulars As per Unaudited As per Audited Variance Reasons for Variance

financial Statement financial Statement In Amount In %

3. Profit and Loss Account

3.1. Interest Income 3,056,287 3,056,287 - -

3.2. Interest Expenses 1,708,866 1,708,866 - -

A. Net Interest Income (3.1 -3.2) 1,347,421 1,347,421 - -

3.3. Fees, Commission and Discount 159,355 159,355 - -

3.4. Other Operating Income 289,788 204,085 (85,703) (29.57) Due to reclassification of

share trading income

3.5. Foreign Exchange Gain/Loss (Net) 132,327 132,327 - -

B. Total Operating Income (A.+3.3+3.4+3.5) 1,928,891 1,843,189 (85,703) (4.44) Due to reclassification of


3.6. Staff Expenses 242,447 242,447 - -

3.7. Other Operating Expenses 436,309 436,309 - -

C. Operating Profit Before Provision (B.-3.6-3.7) 1,250,136 1,164,433 (85,703) (6.86) Due to reclassification of


3.8. Provision for Possible Losses 278,763 423,229 144,466 51.82 Due to Changes in LLP

D. Operating Profit (C.-3.8) 971,373 741,204 (230,169) (23.70) Due to Changees in LLP

3.9. Non- Operating Income/Expenses (Net) 7,477 93,180 85,703 1,146.16 Due to reclassification of


3.10. Write Back of Provision for Possible Loss 266,403 266,403 - -

E. Profit from Regular Activities (D+3.9+3.10) 1,245,253 1,100,787 (144,466) (11.60) Due to above changes

3.11. Extraordinary Expenses (Net) (24) (24) - -

F. Profit Before Bonus and Taxes (E+3.11) 1,245,229 1,100,763 (144,466) (11.60) Due to above changes

3.12. Provision for Staff Bonus 113,203 100,069 (13,133) (11.60) Due to above changes

3.13. Provision for Taxes 340,559 300,158 (40,401) (11.86) Due to creation of More

Defered Tax Assets

g. Net Profit/Loss (F.- 3.12-3.13) 791,467 700,535 (90,932) (11.49) Due to all avove changes


Particulars This Quarter ending Previous Quarter ending Corresponding Previous Year

16.07.2014 13.04.2013 Quarter ending 15.07.2013

Siddhartha Bank Group Siddhartha Bank Group Siddhartha Bank Group

1. Total Capital and Liabilities (1.1 to 1.8) 41,022,909 41,075,616 37,962,298 38,003,649 33,653,856 33,691,224

1.1. Paid Up Capital* 1,813,554 1,813,554 1,813,554 1,813,554 1,813,554 1,813,554

1.2. Reserve and Surplus 1,480,114 1,479,763 1,052,330 1,049,024 688,646 686,421

1.3. Debenture and Bond 931,290 931,290 931,290 931,290 931,290 931,290

1.4. Borrowings 106,415 106,415 67,000 67,000 787,466 787,466

1.5. Deposits (a+b) 35,414,008 35,408,654 32,481,512 32,470,784 28,392,822 28,383,287

a. Domestic Currency 34,582,265 34,576,912 31,620,076 31,609,347 27,665,641 27,656,105

b. Foreign Currency 831,743 831,743 861,437 861,437 727,182 727,182

1.6. Income Tax Liability 37,997 38,655 - 7,078 7,078

1.7. Other Liabilities 1,239,532 1,245,959 1,616,612 1,623,512 1,033,000 1,034,224

1.8. Non Controlling Interest - 51,325 48,486 - 47,905

2. Total Assets (2.1 to 2.7) 41,022,909 41,075,616 37,962,298 38,003,649 33,653,855 33,691,223

2.1. Cash and Bank Balance 7,257,046 7,261,275 5,581,258 5,585,422 3,485,776 3,505,867

2.2. Money at Call and Short Notice 1,150,000 1,150,000 1,160,000 1,160,000 1,375,253 1,375,253

2.3. Investments 3,328,158 3,343,789 4,087,492 4,103,322 4,472,790 4,468,621

2.4. Loans and Advances (a+b+c+d+e+f)** 27,330,868 27,330,868 25,318,985 25,318,985 23,086,563 23,086,563

a. Real Estate Loan 3,449,851 3,449,851 3,329,802 3,329,802 3,646,283 3,646,283

1. Residental Real Estate Loan

(Except Personal Home Loan upto Rs.100 Lacs) 26,542 26,542 16,055 16,055 - -

2. Business Complex & Residental

Apartment Construction Loan 1,214,944 1,214,944 1,255,020 1,255,020 1,389,709 1,389,709

3. Income generating Commercial Complex Loan 501,104 501,104 490,874 490,874 566,094 566,094

4. Other Real Estate Loan

(Including Land purchase & plotting) 1,707,262 1,707,262 1,567,854 1,567,854 1,690,481 1,690,481

b. Personal Home Loan of Rs. 100 Lacs or Less 1,707,993 1,707,993 1,525,289 1,525,289 1,283,290 1,283,290

c. Margin Type Loan 262,407 262,407 283,802 283,802 300,060 300,060

d. Term Loan 5,513,143 5,513,143 5,178,046 5,178,046 4,260,045 4,260,045

e. Overdraft Loan/ TR Loan/ WC Loan 12,863,325 12,863,325 11,810,787 11,810,787 10,507,490 10,507,490

f. Others 3,534,149 3,534,149 3,191,258 3,191,258 3,089,394 3,089,394

2.5. Fixed Assets (Net) 440,491 450,417 461,451 471,836 453,510 465,019

2.6. Non- Banking Assets - - -

2.7. Other Assets 1,516,345 1,539,267 1,353,112 1,364,084 779,962 789,900

Rs in ‘000

Continue...unaudited financial results

As at 4th Quarter (16/07/2014) of the Fiscal Year 2070/71

Unaudited financial Results (Quarterly)


3. Profit and Loss Account Up to this Up to Previous Up to corresponding

Quarter Quarter Previous Year Quarter

3.1. Interest Income 3,056,287 3,057,033 2,166,805 2,166,286 2,898,415 2,901,914

3.2. Interest Expenses 1,708,866 1,708,119 1,286,345 1,285,895 1,742,839 1,741,467

A. Net Interest Income (3.1 -3.2) 1,347,421 1,348,913 880,460 880,392 1,155,576 1,160,447

3.3. Fees, Commission and Discount 159,355 178,221 122,093 122,093 113,067 113,067

3.4. Other Operating Income 289,788 289,788 181,250 189,853 182,093 189,367

3.5. Foreign Exchange Gain/Loss (Net) 132,327 132,327 102,211 102,211 156,645 156,645

B. Total Operating Income (A+3.3+3.4+3.5) 1,928,891 1,949,249 1,286,015 1,294,550 1,607,380 1,619,526

3.6. Staff Expenses 242,447 249,117 180,360 185,413 216,516 221,530

3.7. Other Operating Expenses 436,309 446,946 303,470 311,072 376,891 386,258

C. Operating Profit Before Provision (B-3.6-3.7) 1,250,136 1,253,186 802,185 798,065 1,013,973 1,011,738

3.8. Provision for Possible Losses 278,763 278,763 245,814 245,814 245,495 245,495

D. Operating Profit (C-3.8) 971,373 974,423 556,371 552,251 768,478 766,243

3.9. Non- Operating Income/Expenses (Net) 7,477 11,863 6,452 9,454 944 944

3.10. Write Back of Provision for Possible Loss 266,403 266,403 8,147 8,147 - -

E. Profit from Regular Activities (D+3.9+3.10) 1,245,253 1,252,689 570,970 569,852 769,422 767,187

3.11. Extraordinary Income/Expenses (Net) (24) (24) 525 525 (12,794) (12,794)

F. Profit Before Bonus and Taxes (E+3.11) 1,245,229 1,252,665 571,495 570,377 756,628 754,393

3.12. Provision for Staff Bonus 113,203 113,203 51,954 51,954 68,784 68,784

3.13. Provision for Taxes 340,559 340,559 155,862 155,862 205,287 205,287

3.14. Share of Non-Controlling interest in

the Profit/Loss of Subsidiary - 2,325 - (514) - (1,095)

G. Net Profit/Loss (F- 3.12-3.13) 791,467 798,903 363,679 362,561 482,556 480,321

4.1. Capital Fund to RWA 12.22% 12.24% 11.71% 11.73% 11.70% 11.72%

4.2. Non- Performing Loan (NPL) to Total Loan 1.69% 1.69% 3.14% 3.14% 2.39% 2.39%

4.3. Total Loan Loss Provision to Total NPL 138.15% 138.15% 106.97% 106.97% 111.83% 111.83%

4.4. Cost of Funds 5.40% 5.40% 5.57% 5.57% 6.34% 6.34%

4.5. Credit to Depoist Ratio

(Calculated as per NRB Directive) 73.34% 73.34% 75.28% 75.28% 76.53% 76.53%

4.6. Base Rate % 8.81% 8.81% 9.00% 9.00% 10.25% 10.25%

4.7. Net Interest Spread

(Calculated as per NRB Directives) 4.94% 4.94% 0.00% 0.00% 0.00% 0.00%

Additional Information

a. Average Yield 10.06% 10.06% 9.74% 9.74% 10.73% 10.73%

b. Average Cost 5.37% 5.37% 5.53% 5.53% 6.40% 6.40%

c. Net Interest Spread 4.65% 4.65% 4.17% 4.17% 4.39% 4.39%

d. Return on Equity 24.03% 24.03% 16.92% 16.92% 19.29% 19.29%

e. Return on Assets 1.93% 1.93% 1.28% 1.28% 1.43% 1.43%

4. Ratios At the end of This Quarter At the end of Previous Quarter At the end of corresponding

Previous Year Quarter

Continue...unaudited financial results


HattisarBranch Manager - Jit AdhikariPhone: 01-4442919/4442920Fax: 01-4442921

New RoadBranch Manager - Biplavi SinghPhone: 01-4224616/4239535 Fax: 01-4239590

TripureshworBranch Manager - Navaraj KarkiPhone: 01-4232504/4232509Fax: 01-4232521

Gwarko (B & B) Extension CounterBranch Manager - Usha AcharyaPhone: 01-5007621

PatanBranch Manager - Anant ShresthaPhone: 01-5005531/ 5005533Fax: 01-5005532

Old BaneshworBranch Manager - Ajay Singh BhandariPhone: 01-4484996/4492850Fax: 01-4484997

ThamelBranch Manager - Gyanendra MaharjanPhone: 01-4701340/4701342Fax: 01-4701341

TinkuneBranch Manager - Binu BhandaryPhone: 01-4111941/4111881Fax: 01-4111754

KumaripatiBranch Manager - Shila TajyaPhone: 01-5008648/ 5008650Fax: 01-5552648

GongabuBranch Manager - Subash ShresthaPhone: 01-4389227 / 4389226Fax: 01-4389203

KalankiBranch Manager - Bidur PuriPhone: 01-4272570Fax: 01-4276122

Gatthaghar Branch Manager - Rajiv RanjitPhone: 01-5639435 / 6630302Fax: 01-5639788

SatdobatoBranch Manager - Milan KoiralaPhone: 01-5151327 / 5151828Fax: 01-5151829

BouddhaBranch Manager - Saroja RegmiPhone: 01-4490797Fax: 01-4486516

SankhamulBranch Manager - Sunil MaharjanPhone: 01-4781516 / 4781396Fax: 01-4781616

SwoyambhuBranch Manager - Prabin AmatyaPhone: 01-4033606 / 4033607Fax: 01-4033608

MaharajgunjBranch Manager - Neema NepalPhone: 01-4374909 / 4374974Fax: 01-4375413

Manahara Extension CounterBranch Manager - Gopi Krishna RegmiPhone: 01-5639109

SaraswotinagarBranch Manager - Jyotsna KunwarPhone: 01-4822730 / 4822728Fax: 01-4822729

B R A N C H L I S T

Inside Valley :-

Outside Valley :-

BirgunjBranch Manager - Upendra Prakash GadtaulaPhone: 051-531011/531022Fax: 051-531055

BiratnagarBranch Manager - Kamal BasnetPhone: 021-532901/532902Fax: 021-532904

PokharaBranch Manager - Hari Prasad TimalsenaPhone: 061-551338/551405Fax: 061-551339

DamakBranch Manager - Prajwal Kumar SubediPhone: 023-585206/585127Fax: 023-585128

NarayangarhBranch Manager - Ramji BaniyaPhone: 056-571127/571128Fax: 056-571129

TikapurBranch Manager - Mahendra RawalPhone: 091-561163/561164Fax: 091-561165

DhangadhiBranch Manager - Tej Raj TimilsinaPhone: 091-527463Fax: 091-527465

MahendranagarBranch Manager - Mohan Bahadur ShahPhone: 099-520163/520164Fax: 099-520165

ButwalBranch Manager - Sushil NepalPhone: 071-551540/551541Fax: 071-551539

BhairahwaBranch Manager - Babuji ThapaPhone: 071- 523645/523646Fax: 071- 523733

NepalgunjBranch Manager - Pawan Chandra AdhikariPhone: 081-527933 / 527934Fax: 081-527932

TulsipurBranch Manager - Samartha UpretiPhone: 082-521707 / 521708Fax: 082-521709

GhorahiBranch Manager - Ranjan KoiralaPhone: 082-563174 / 563175Fax: 082-563176

JanakpurBranch Manager - Jiwan Kumar ChalisePhone: 041-528081 / 528082Fax: 041-528083

BardibasBranch Manager - Ujwal ShahiPhone: 044-550640 / 550641Fax: 044-550642

SindhuliBranch Manager - Arjun PokhrelPhone: 047-520747 / 520748Fax: 047-520647

ChandragadiBranch Manager - Sudhir BhandariPhone: 023-456939 / 456998Fax: 023-456940

HetaudaBranch Manager - Shankar KCPhone: 057-526767 / 526768Fax: 057-526769

DharanBranch Manager - Suman DahalPhone: 025-534022 / 534023Fax: 025-534024

BagarBranch Manager - Kiran AdhikariPhone: 061-527747 / 527748Fax: 061-527749

KrishnanagarBranch Manager - Kapil KaflePhone: 076- 520655 / 520656Fax: 076-520660

Namche Branch Manager - Ujjwol ShresthaPhone: 038-540451 / 540452Fax: 038-540453

KalaiyaBranch Manager - Akhilesh Prasad YadavPhone: 053- 551920Fax: 053-551921

DailekhBranch Manager - Laxmi Narayan SharmaPhone: 089-410060 / 410061

BirtamodBranch Manager - Subash ShresthaPhone: 023- 545661Fax: 023- 545760

Itahari Branch Manager - Megh Nath DhakalPhone: 025- 584721 / 584722Fax: 025 -584205

DadeldhuraBranch Manager - Mukunda Prasad BhattaPhone: 096-410014 / 410015


Banasthali Bhairabnath Gan, MaharajgunjBouddhaB.P. Eye Hospital (CHEERS), ManaharaBudhanilkantha(Park Village Resort)Chabahil (ATM Lounge)Civil Mall (ATM Lounge)Dattatraya Durbar Square, BhaktapurGatthagharGongabuGwarkoHalchowkHattisarKalankiKumaripatiMaharajgunjNew Baneshwor (ATM Lounge)New Road (ATM Lounge)Old BaneshworPatanSatdobatoSundarijalThamel (Branch & ATM Lounge)TinkuneVayodha Hospital, Balkhu

A T M L O C A T I O N S

Inside Valley :-

BardibasBhairahawaBiratnagarBirgunjBirtamodButwal (Lumbini Zonal Hospital)ChandragadhiDamak DadeldhuraDailekhDhangadhiDharanGhorahiHetaudaItahariJanakpurKalaiyaKrishnanagarMahendranagarNamcheNarayangarhNepalgunjPokhara (Branch, Halanchowk, Lakeside and Center Point)SindhuliSunauliTikapurTulsipur

Outside Valley :-

N

Branch Network


Head Office: Hattisar, KathmanduP.O.Box. 13806Phone: 01-4442919 / 4442920Fax: 977-1-4442921 SWIFT: SIDDNPKAEmail: [email protected]

www.siddharthabank.com

AnnualReport2013/14

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