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7/31/2019 19th Annual Report
1/84
How we are
building
a better bank
every day
ANNUAL REPORT
2010/11
7/31/2019 19th Annual Report
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7/31/2019 19th Annual Report
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Contents07 Chairmans Message
09 Working Together With Employees
10 Board Of Directors13 CEOs Message
14 ExecuveTeam
16 Management Team
19 Working Together With Customers
20 Report Of The Board Of Directors To The 19Th
AnnualGeneralMeeng
26 Financial Highlights
29 Working Together With Shareholders
30 OurServices
32 Corporate Social Responsibility (CSR)
35 Working Together With Society
36 CorporateGovernance
38 Working Together With Global Partners
40 AddionalDisclosure
42 Auditors Report
43 Balance Sheet
44 ProtAndLossAccount
45 ProtAndLossAppropriaonAccount
46 Statement Of Changes In Equity
47 Cash Flow Statement
48 Schedules
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Himalayan Bank Ltd2
HimalayanBanksmissionistobecomethepreferredprovider
ofqualityfinancialservicesinthecountry.Therearetwo
componentstoourmission:preferredproviderandquality
financialservices.Webelievethatourmissionwillbe
accomplishedonlybysasfyingthesetwoimportantcomponents
withthecustomeratthefocalpointofalloureorts.
HimalayanBankhasthevisionofbecomingaleadingbankofthe
countrybygainingsubstanalbusinessgrowththroughpremium
productsandservicestocustomers,thusensuringaracveand
substanalreturnstoallourstakeholders.
Vision
Mission
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Annual Report 2010/11 3
I have been banking
here for many years
now and it is always a
pleasant surprise to me
when I get the same
type of respect and
service consistently
without fail.
When I see the grateful
smile on my customers
faces, I feel that our
bank is doing a good
job of living up to its
promise of meeng
their needs swily
and effecvely.
It is a pleasure working
with Himalayan Bank
because of its singleminded focus on
ensuring customer
sasfacon. This
makes my work
very grafying.
One of the wisest
decisions I made was
to buy and hold on
to Himalayan Bank
shares because I have
been receiving good
dividends year aer
year without fail.
Our employees arehighly movated so this
makes my job easier. Of
course, there is always
room for improvement
and my efforts are
geared towards further
enhancing producvity
and e ciency.
As a premier bank of
the country, HBL has
a lot of responsibility
on its shoulders not
only as a nancial
instuon but also
as a responsible
corporate cizen.
Himalayan Bank has
always been at the
forefront in fullling
its corporate social
responsibilies. Our
organizaon has
received substanal
assistance to conduct
social welfare works.
ShareholderCashier
Remiance
Departmen
Senior Mana
Human Reso
Departme
Himalayan Bank played
a very important part in
se ng up my business.
Without their help, I
wouldnt have been
able to succeed.
HBL believes in
developing long
standing relaonships
with its clients and will
always be there to
give a helpinghand if needed.
Security Guard
Employee
I have been workinghere for the last 15
years. I feel that I am
fortunate to be working
with Himalayan
Bank because of
the excellent work
environment in
the organizaon.
HBL e eves n
eve op ng ong
standing relaonships
w t ts c ents an w
a ways e t ere to
g ve a e p nghand if needed.
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Himalayan Bank Ltd4
AboutHBLWeatHimalayanBankbelievethatweareasmuchapartofsocietyasanyotherandwehaveaproacveroletoplayfor
thosewhoarestrivingtoriseabovetheircircumstancesonthe
basisofenterpriseandeorttopursuetheirdreams.Webelieve
wehaveastrongroletoplayintheirendeavorsbysteppinginto
helpnanciallyandwithsoundadvice.Whetheritisforbusiness
establishmentorbusinessgrowth,importantsocialobligaons
orchildrenshighereducaon, orhousingneedsormedical
expenses,wecanstepinasahelpinghand.
Withsomanybanksandnancial instuons inthemarket,
whatmakesusdierent?Amongotherreasons,wehaveasolid
foundaon.HBLwasestablishedin1993injointventurewith
HabibBankLimitedofPakistanasoneoftherstfourprivate
commercialbanksinNepal.Thismakesusoneofthemost
experiencedbankshere.Throughtheyears,wehavesupportedmanyintheirmeofneedbyhelpingthosestrugglingtostandon
theirownfeet.Wehavealsoassistedenterprisingentrepreneurs
tosetuptheirbusinessesbyprovidingexibleandcustomized
productstosuitindividualneeds.
Forsuchreasonsanddespitethecut-throatcompeoninthe
Nepalibankingsector,HBLhasbeenabletomaintainaleadin
theprimarybankingacviesloans,deposits,savingsandsupportservices.
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Annual Report 2010/11 5
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Himalayan Bank Ltd6
With relatively improvedoverall market conditions, I
am anticipating encouraging
growth in all business sectors
of the Bank.
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Annual Report 2010/11 7
Chairmans Message
Dear Shareholders,
I am happy to inform you of yet another successful
year of the Bank.Despite variouschallenges in the
bankingindustry,theBankwasabletoregistergrowth.
The banking industry reeled under an unprecedented
liquidity crunch intheyear2010-11.A fewnancial
instuons were brought under the Central Banksscanner. Tough market condions compelled the
bankstoconsolidatetheirprevailingporoliosrather
thantakeupgrowthstrategies.Marketinterestrates
consistently went up with deposit interest rates going
upashighas12%p.a.andlendingratessoaringup
to18%p.a.Therealestateindustry,hitbyregulatory
changesinthepreviousscalyear,connuedtoremain
sluggish.Banksthathaverelavelygreaterexposure
ontherealestatebusinesshavestartedshowingsigns
ofdeterioraonasreectedthroughincreasinglevels
ofnon-performing assets intheirbooksofaccount.
The banking industry, being an integral part of thecountrys economic system, could not isolate itself
fromthecountryseconomicstagnaon.Theeconomy
ofthecountrygrewbyonlyaround3.5%.Thepolical
stalemate, changing governments, inconclusive
peace process, strikes and blockades, labor unrest,
lack of government expenditure or modest capital
expenditure by the government and frequent long
hoursofpowercutswerethemajorhurdlesfacedby
theindustriesinthecountry.
The Bank achieved major nancial targets despitevarious challenges in the banking industry. This
performance of the Bank has been possible through
the perseverance of the management. I would like
to thank the management team for steering the
Bankwellthroughthetoughmarketcondions
Members of the BoardofDirectors (BOD), too
have contributed greatly to formulang and
implemenngrightpoliciesandstrategiestode
overtheupheavalsintheeconomy.AsChairman
oftheBOD,Iwouldliketopersonallythankallthemembers of the BOD and the management team
fortheirvaluable contribuonstoconsolidang
uncompromising corporate governance with al
necessarychecksandbalancesinplace.TheBank
keptitsunwaveringcommitmenttoallregulatory
andstatutorynormstoavoidregulatoryhassles
The Banks robust internal control mechanism
ensured that no operaonal risk was involved
The overall asset quality of the Bank remained
goodvis--visoverallmacro-economiccondions.
Themanagementshall,however,connuetopu
inextraeortstospeedilyrecoverbadloansandbringdowntheNPAoftheBank.
Withrelavelyimprovedoverallmarketcondions,
I am ancipang encouraging growth in al
businesssectorsoftheBank.Iamlookingforward
to another successful year for Himalayan Bank as
itembarksuponits19thyearofoperaons.
Thankyou
ManojBahadurShrestha
Chairman,BoardofDirectors
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Himalayan Bank Ltd8
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Annual Report 2010/11 9
We aim to maintain our
premier standing among
other banks in Nepal. In this
regard, we will sustain our
compeve advantage by
consistently improving
the quality of our
human resources.
We will connue to provide regular
training and create an environment in
which producvity is increased and all
employees can take pride in their work.
toget r
Worki
with
emplo ees
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Himalayan Bank Ltd10
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Himalayan Bank LtdAnnual Report 2010/11 11
Board of Directors
From le to right:
Sing
Mr.ManojBahadurShrestha,Chairman
Mr.HimalayaSJBRana,ChiefAdvisortotheBoard
Mr.PremPrakashKhetan,SecondViceChairman
Mr.AshrafM.Wathra,FirstViceChairman
Mr.UpendraKeshariPoudyal,ProfessionalDirector
Mr.BijayaBahadurShrestha,Director
Mr.SushilBikramThapa,Director
Mr.RajendraKumarKae,AlternateDirector
Mr.PrachandaBahadurShrestha,Director
Standing
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Himalayan Bank Ltd12
HBL has been
in the bankingbusiness in Nepal
for the last 19
years and has
risen to its premier
status mostly due
to its sound basic
principles, viz.:
prudency in its
banking methods,
transparency in its
business dealings,
and accountability
for all its actions.
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Himalayan Bank LtdAnnual Report 2010/11 13
Thelasttwoyearshasseenmanyupsanddownsinvarioussectorsof
thecountry.Theeconomyisinthedoldrumsandthenancialsector
asawholehasnotbeendoingwell.Thediculeswerefurther
compoundedbythefailureofthebudgettocomeoutinmefor
twoconsecuveyears,whichnaturallydiscouragedinvestments.
Moreover,thisperiodalsosawplummengbusinessintherealty
sector,whichisconnuingeventothisday.Further,NepalRastra
BankcameoutwithnewpromulgaonssuchastheAn-Money
LaunderingAct,whichaddedtothewoesoftherealtybusiness
besidesencouragingcapitalightfromthecountry.Policalstability
isyettobeinplaceand,althoughthingsseemtobemovinginthe
rightdirecon,thereareuncertainmesahead.
Itisknowntoallthatbanksinparcularhavetobearthebrunt
becausetheyareattheforefrontoftheeconomy.Itisalsoobviousthat
bankscannotfuncontotheirpotenalinaclimateofuncertainty.
Thepresentmesaredisturbingandwecannotbutbewaryofwhat
thefuturemighthaveinstore.Thisisaperiodinwhichthecountry
willundergofar-reachingchangesinitsverystructure,onewhichwill
certainlyhaveadeepinuenceonthenancialscenarioaswell.We
havetoponderwhatnewrulesandregulaonsmightbebroughtinto
forceintherestructuringofthestate.Wecanexpectthattherewill
alsobearestructuringofscalrulesandregulaonsinharmonywith
thefederalchangesbeingbroughtaboutinthecountry.
Somedegreeofunpredictabilityisaninherentpartofanychange.
Banks,ontheotherhand,thrivebestwhentheresultsarepredictableandtheycannotaordtohavetheluxuryofexperimentaon.Insuch
asituaon,bankshavetoadheretothefundamentalprinciplesof
responsiblebanking.IampleasedtostatethatHimalayanBankLtd.
(HBL)standsheadandshouldersoverothersinthisrespect.TheBank
has been in the banking business in Nepal for the last 19 years and
hasrisentoitspremierstatusmostlyduetoitssoundbasicprinciples,
viz.:prudencyinitsbankingmethods,transparencyinitsbusiness
dealingsandaccountabilityforallitsacons.
Aswenearour20thAnniversaryin2013,wepledgeanewtobe
answerabletoallourstakeholdersbydeliveringconsistentlygood
resultsthroughcustomer-friendlyservicesandresult-oriented
processes.Thatthelastdecadehasseenatremendousupsurgeinthenumberofnancialinstuonsinthecountry,naturallygiving
risetocompeon,cannotbeignoredinourmodusoperandiand
whilemakingourfutureplans.Oneofthemainreasonsforour
consistentsuccessisourdeterminaontofocusonspecicgoalsand
marketsandnottobeswayedbyshorttermgains.Instead,wehave
alwaysgonebyourownjudgmentsbasedonourowninformaon
andcalculaons.Inthisreviewyear,I ampleasedtosaythatour
non-interestincomeregisteredsasfactorygrowthandwemade
substanalgainsinourcardbusiness.Infact,fortherstme,we
areseeingarealacceleraoninthissector.Wearealsointalkswith
therelevantparestoacquireChineseandJapanesecards(JCB
Internaonal).InInternetbanking,ofwhichwearethepioneer,we
havenowinstalledadoubleauthencaonsystem,thusensuring
moresafetyintransacons.
Inthepast,ourprimaryfocuswasontradenanceandcorporate
lending,andthis,nodoubt,haspaidrichdividends.However,theme
hasnowcometodiversifyourmarketandwidenourhorizons.Even
underthepresentdicultcircumstancesinthecountry,wemust
keepinmindthattherearenewopportuniesthatwemustavailof
One such opportunity comes from the fact that almost 50 % of the
populaonconnuestoremainisolatedfromanysortofbanking
services.TheBankmustnowexpand itsoutreachandmakeits
servicesavailabletothissector,which,byanyaccount,issubstanallylarge.Thiswillobviouslyincludetheagriculturalsectoraswell.We
intendtohaveatleast15%ofourporoliointhelow-endsector
inthecomingyears.Atthesameme,itmustbekeptinmindthat
thiswillnotbeaneasytasksincethissectorisrelavelyunawareof
modernnancialmethodsforconducngtheirbusinesses,whether
itisfarming,livestockorothers.Therearemanyinherentproblems
thathavetobeovercome.
Weare,however,confidentofresolvingsuchissuesandthi
condencearisesmainlyfromourwealthofexperienceandthelarge
poolofskilledmanpowerwehave.Becauseofourexcellentrecordof
thelasttwodecadeswhich,addedtoourreputaonasaninstuon
thatbelieves inresponsiblebanking,theBank iscomparavely
beerinsulatedagainstthenegaveeectsofcurrentlyprevailin
circumstances,whichmaypersistforsomemetocome.Atthesame
me,weasaleadingbankcannotremainalooffromthemainstream.
Wewill,however,bemakingthebestofthesituaonbyimplemenng
planstoconsolidateourgainsandenhanceourproducvity.Weare
alsointheprocessofadvancingourtechnologicalexperse,whic
willfurtherreneourinformaonsystemsandinternalcontrol
mechanismsbesidescungcostsandminimizingrisks.
Here,itwouldberelevanttoinformyouthatNepalRastraBank
hasuppedtheanteregardinggoodcorporategovernancethe
boom-linebeingthatbanksandothernancialinstuonsshould
bemanagedmoreprofessionally.Inthisregard,theManagement
CommieemustconsidertheinterestofalltheBanksstakeholdersinthecourseofconducngitsaairsandfulllingitsdues.
Finally,I,onbehalfofHimalayanBank,wouldliketowholeheartedly
thankyouforsupporngtheBankingoodmesandbadandIam
condentthatyouwillconnuetosupporttheBankinthecoming
daysaswell.IwishyouandyourfamiliesaveryHappyNewYear2012
andhopethatitwillbringyoupeaceandprosperity.
AshokSJBRana
ChiefExecuveOce
HimalayanBankLtd
CEOs Message
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Himalayan Bank Ltd14
ExecuveTeam
Mr. Banshidhar
Sharma
Senior Manager
Informaon
Technology
& SWIFT
Department
Mr. Kapil Pd.
Lohani
Senior Manager
ExecuveHuman
ResourcesOcer
Mr. Pradeep N.
Rayamajhi
Senior Manager
Mr. Muhammed
Siddique
Chief Internal
Auditor
Internal Audit
Department
Mr. Ashoke SJB
Rana
ChiefExecuve
Ocer
From Le:
Standing
Mr. Ujjal R.
Rajbhandary
Assistant General
Manager
Sing
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Himalayan Bank LtdAnnual Report 2010/11 15
Mr. Rabindra N.
Pradhan
Senior Manager
Risk Management
Department
Mr. Maheshwor
P. Joshi
Senior Manager
LegalandShare
Department
Mr. Basu Dahal
Chief Manager
Execuve
Administrave
Ocer
Mr. Sushiel Joshi
General Manager
Mr. Anup Mas
Assistant Gene
Manager
Mr. Sulap Raj
Aryal
Senior Manager
Execuve
OperangOcer
From Le:
Standing
Mr. Masood Ul
Hassan
Senior General
Manager
Sing
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Himalayan Bank Ltd16
Management Team
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Himalayan Bank LtdAnnual Report 2010/11 17
Standing
Ms.SisamPradhanangJoshi
Ms.SunitaShrestha
Ms.BinaPandey
Mr.RajeshBhaarai
Mr.MrigendraPradhan
Sing
Mr.AnantaRajbhandary
Mr.NaveenPoudyal
Mr.BijayaManNakarmi
Mr.SashRajJoshi
Mr.SunilPrasadGorkhali
Mr.BipinHada
From le to right:
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Himalayan Bank Ltd18
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Annual Report 2010/11 19
custo ers
HBL has a well-stocked porolio
of products and services tailor-
made for every individual. We
also have an extensive network
of branches throughout the
country and a large number of
ATMs for the convenience of ourvalued customers.
We provide our services to
many SMEs. In remiance,
our online money transfer
system, HimalRemit, is fast
and reliable with a network
covering over 2300 locaons
in all cies, towns and villages
of Nepal.
toget r
Worki
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Himalayan Bank Ltd20
Report of the Board of Directorsto the 19thAnnualGeneralMeeng
DearShareholders,
OnbehalfoftheBoardofDirectors,wecordially
welcome all the shareholders present at this 19th
AnnualGeneralMeengofHimalayanBankLimited.
IwouldliketopresenttheBalanceSheetasonJuly
16,2011,theProtandLossAccountforthescal
year2010-11,theProtandLossAppropriaon
Accountandothernancialstatementsforapproval
bytheAnnualGeneralMeeng.
Havingprovidedecientservicesoverthelast19
years,theBanktodaystandsasoneoftheleading,
secureanddependablebanksinthecountry.As
ofF.Y.2010-11,theBankwasabletomaintaina
depositofRs.40.92billion.Ascomparedtolast
year,theloanporoliooftheBankincreasedby13.20%andtheoperangprotby75.27%.
Duringthereviewperiod,theBankestablisheda
totalofsixnewbranchesthreeinthevalleyand
asmanyoutsidethevalley,whileatthesameme,
theBankintroduceditsATMservicesatvenew
locaons,bringingthetotalnumberofbranchesto
36andthatofATMsto57.
Iamgladtoinformyouthattheconstruconofthe
corporate building has been completed and thatmostoftheheadocedepartmentshavebeen
relocatedtothisnewbuilding.
ReviewoftheBanksOperaonsDuringtheperiodunderreview,theBankstotal
depositreachedRs.40.92billion,recordingan
increaseof8.80%overthepreviousyear.Similarly,
theloansandadvancesreachedRs.32.96billion
duringtheperiodunderreview,recordingan
increaseof13.20%overthepreviousyear.
ThenetassetsoftheBankincreasedby16.17%
reachingRs.3.99billionduringthereviewperiod,
whilethegrossassetsincreasedby9.75%andare
valuedatRs.48.13billion.
TheBankwasabletomakeanoperangprot
ofRs.1.15billionduringthereviewperiod.The
netprotoftheBankreachedRs.89.31million,
registeringanincreaseof75.53%overthatofthe
previousyear.
ThenancialstatusoftheBankasonOctober17,
2011(rstquarter-end)isgivenbelow.
S.N.Parculars 2010-11 2010-11 Increase
As on Oct 16 As on Oct 17 (Decrease)%
1. GrossAssets 46,759 52,602 12.49
2. Deposits 39,883 44,515 11.62
3. Loans,OverdrasandBills
PurchasedandDiscounted 31,239 34,442 10.25
4. Investments 8,095 9,327 15.22
(InRs.million)
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Annual Report 2010/11 21
S.N.Parculars 2009 2010 Increase
AsonJuly16 AsonJuly16(Decrease)%
1. NetAssets(NetWorth) 3,439 3,995 16.17
2. GrossAssets 43,860 48,137 9.75
3. Deposits 37,611 40,920 8.80
4. Loans,OverdrasandBills 29,123 32,968 13.20
Purchased and Discounted
5. Investments 8,444 8,769 3.85
6. NetInterestIncome 1,595 1,911 19.86
7. OtherIncome 815 1,021 25.36
8. OperangandStaExpenses 886 1,099 24.139. OperangProt 579 1,015 75.27
10.NetProt 508 893 75.53
(InRs.million)
Duringtheyearunderreview,theBank,pursuant
tothedirectivesofNepalRastraBank,wrote
oloanstothetuneofRs.1.625million.The
Banks NPA, which was 3.52 % during the
previousyear,increasedto4.22%duringtheyear
underreview.
ComparaveFinancialIndicatorsofthe
BankThecomparavenancialindicatorsofthescal
years2008-09and2009-10arepresentedbelow.
Thecomparativecompositionsofthedeposit,
credit,incomeandexpenditureoftheBankduring
thescalyear2067/68andtheyearunderreview
are presented under the following annexes:
Depositcomposion : AnnexA
Creditcomposion : AnnexBIncomecomposion : AnnexC
Expenditurecomposion : AnnexD
NaonalandInternaonalEventsand
their Impact on the BankTheglobalnancialcrisisthathasbeenprevailing
forthelastfewyearshasgraduallysubsided.
However,theinconsistenteconomygrowth
insomeEuropeancountries,theUSA,African
andAsiancountrieshasadverselyaectedthe
globaleconomy.TheemergingnaonsofAsia
andAfricawereabletoachievegoodgrowth.
AmongtheSouthAsiancountries,Nepalcould
notsubstanallyimproveitseconomy.Therecentdevelopmentsseeninpeaceandsecurityissuesin
thecountryare,however,expectedtohelppickup
momentuminmostofthesectors.
AsperNepalRastraBank,NepalsGDPgrowth
stoodat3.47%duringthescalyear2067/68
againstthatof3.97%.lastyear.Theinaonrate
thatwas9.6%lastyearremainedunchangedin
theF.Y.2067/68.Overthelast10years,thecountry
was able to notch up more growth in imports than
inexports,thegrowthinexportsbeing10.2%lastyear.Exportgrowthduringthereviewyearstood
at6.1%whileimportgrowth,whichstoodat31.6
%duringthepreviousyear,stoodat5.5%during
thereviewyear.TheBalanceofPaymentsthat
hadadecitofRs.3.63billionduringtherstnine
monthsofthereviewperiodmadeasurplusof
Rs.2.93billionbytheendoftheyear.Lastyear,it
facedadecitofRs.3.63billion.Similarly,theFCY
reservesthatwentdownby6.2%asofAshad-end
of2067,increasedby1.2%byAshad-endof2068.
Broadmoneysupplyincreasedby14.1%inthepreviousyear;however,duringthereviewperiod,
itincreasedby9.5%only.
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Himalayan Bank Ltd22
Duringtheyearunderreview,thetotaldepositsin
thebankingsectorincreasedbyRs.59.62billion.Similarly,theloansandadvancesinthebanking
sectorincreasedbyRs.79.80billion.Lastyear,
thetotaldepositsincreasedbyRs.69.93billion,
whereastheloansandadvancesincreasedbyRs.
76.71billion.
Current Financial and Banking
EnvironmentThe countrys economy that stayed modest during
thepreviousyearandduring thereviewperiod
is also expected to remain modest in the days to
come.Theregulatoryandpolicyinterventions
adoptedtocontrolcreditcreaoninunproducve
sectors,coupledwithsluggishexpansionintrading
andbusinesssectors,haslebankswithlilechoice
forcreditcreaon.Itseemsthatthiscondionwill
persistinthecomingdaysaswell.Althoughthe
NepalTourismYear2011campaigncouldnot
achieveitstarget,thegeneralachievementsare
signicant.Duringthecampaignyear,thecountry
couldattractaround775,000touristsagainst
thetargetofonemillion.Theimprovingsecurity
situaoninthecountryhashadaposiveimpact
onthebusinessenvironment,asaresultofwhich,
investmentsinsmallandmediumenterpriseshave
increased.Themonetarypolicybroughtoutby
Nepal Rastra Bank is also expected to ameliorate
theinvestmentenvironment inthe country.All
thesedevelopments contributed tomakingthe
bankingindustrysomewhatvibrant.
Duringthescalyear2067/68,anaddionalfour
commercialbanks,eightdevelopmentbanksandthree
micro-nancecompanieswereincorporated.Thus,
thenumberofnancialinstuonsincreasedby15,
increasingthetotalnumberofnancialinstuonsto279.Similarly,thenumberofbranchesofthenancial
instuonshasalsowitnessedaremarkableincrease.
The recently issued circular of NRB is expected to
slowdownunnecessarybranchexpansion;however,
thenumberofnancialinstuonsintheindustryis
expectedtoconnuetogoupduetoincreasinglytough
compeonintheindustry.
ImplementaonStatusoftheStrategy
andProgramoftheBankduringF.Y.
2010-20111. NPAlimitedto4.22percent.
2. Connuitygiventotherecoveryofwrien-o
loansinanacvemanner.
3. BranchesestablishedatGorkha,Barahabishe,
Kawaso,Kalanki,SatdobatoandBasputali.
The total number of branches of the Bank
reached36.
4. ATMsinstalledatGorkha,Kalanki,Satdobato,
SaurahaandBarahabishe.Thetotalnumberof
ATMshasreached57.5. ExpandedremiancebusinesstoAsian,European,
American and Australian markets with focus on
sophiscatedservices.
6. IntroduceddepositandloanproductsSpecial
PayrollAccount.
7. Installedanaddional128POSmachinesforthe
convenienceofdebitandcreditcardcustomers.
8. IntroducedEMV-compliantchip-basedcards.
9. The Bank has createdand successfully
implemented its own online payment module
soware,HimalRemit,foruseofremiances,whichwaspreviouslybeingsuppliedbya
secondparty.
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Annual Report 2010/11 23
10. Setup10HimalCenterFlagshipCountersat
strategiclocaons.11. The Bank obtained Worker Remittance
Certification.This isthe firsttimethatany
Nepalibankhasbeenawardedthiscercaon
anditisthesecondbankinAsiatohavebeen
soawarded.
12. InlinewiththeagreementsignedwithBankof
BhutanLimitedtoassistincardservices,theBank
helpedinbringingintooperaonitsVisaDebit
Cardacquiringbusinessservice.
13. The Bank signed anagreement with JCB
International for credit card issuing and
acquiringbusiness.
14. Construction of Corporate Building at
Kamaladicompleted.
Strategies and Programs for F.Y.
2011/20121. TolimitNPAto2.41percent.
2. Toestablish6brancheswithinandoutside
thevalley.
3. To expand and consol idate remittancebusinesstoAsian,European,American
and Australian markets with a focus on
sophiscatedservices.
4. Toestablish10HimalCenterFlagshipCountersat
strategiclocaons.
5. To introduceLoyalty Card for customers
ofHimalRemit.
6. Toinstallanaddional200POSmachines.
7. Tosetupanadditional16ATMs at various
places(Tillnow,threeATMsalreadyinstalledat
CorporateOceandNagarkot).8. TobringalltheATMsunderCCTVsurveillance.
9. Tointroducenewdepositandcreditproducts.
10. Togiveconnuitytorecoveryofwrien-oloans
inanacvemanner.11. Tomakedepositandloanproductsmorearacve
asperthedemandofthegeneralpublic.
12. TheBankhasalreadyinstalledweb-camerasatthe
CustomerServiceDepartmentofThamelBranch
fortheconvenienceofnewaccountopening
customers.Theservicewillbereviewedand
extendedtootherbranches.
13. ToupgradeGlobusbankingsowaretoTemenos
ArcInternetBanking.(Tillnow,Himal@net
alreadyintroduced).
14. ToupgradetheWeb-basedT24version.
15. Tomake availablemorning andevening
counterservicesinallthebranchesofthe
Bank.(Tilldate,18branchesThamel,New
Road,Patan,Maharajgunj,Bhaktapur,Pokhara,
BharatpurandTandiareprovidingextended/
morning/holiday counterservices, whereas
Chabahil,Teku,Nepalgunj,Butwal,Bhairahawa,
Parsa,Palpa,Itahari,BiratnagarandDharan
are providing extended/morning/evening
counterservices.
16. To take theinitiative inthe establishment
ofaprivatesectorbankinBhutanasajoint
ventureutilizingthetechnicalandeconomic
excellence/resources.
17. ToshitheICTinfrastructuretothenewcorporate
ocepremises.
18. Tomake theambienceofvariousbranches
convenientandeco-friendly.
19. TointroducetheWeb-basedsystemtomonitor
andmanagexedassets.
20. TostartcreditcardbusinesswithUnionPay.
21. Totaketheiniaveinhaving10%ofthetotal
loan&advancesundertheSMEporolio.
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Himalayan Bank Ltd24
Corporate Social ResponsibilitySinceitsincorporaon,theBankhasbeenacvely
involvedinsocialresponsibiliesthroughvarious
socialandalliedinstuons.Themainservices
being rendered by the Bank on this front include
thoserelangtoeducaon,healthcare,sports,
cultureandsocialservices.Thisyear,theBankhas
providedsuitablesolarpanelsforhouseholdlighng
touplithestandardoflivingoftheChepangs,
oneofthecountrysmostunderprivilegedand
undeveloped communies,who liveanomadic
lifeinthejungle.TheBankprovidedfinancial
assistanceforthe60thanniversaryprogramof
NepalCulturalAssociation.Further,theBank
alsoprovidednancialassistanceduringWorld
AusmDay.Similarly,theBankprovidednancial
assistance for the sanitation program outside
thevalleyandsponsoredWheelchairCricketfor
thedisabled.
TheBankhasbeencontinuouslyinvolvedin
thedevelopmentofsportsculturesuchas
cricket,football,basketball,golfandbadminton,
besides sponsoring dance and other cultural
programs.Similarly,theBanksponsoredvarious
cultural programs like painting exhibitions
anddanceandmusiccompetitions.Likewise,
the Bank sponsored the Made in Pakistan
Exhibition here to help promote products made
inneighboringPakistan.TheBankiswellaware
of its responsibilities in such and other similar
fieldsinthesocialsector.
Board of DirectorsMr.ManojBahadurShrestha,represenngN.
Trading;Mr.AshrafM.Wathra,representing
HabibBankLimited,Pakistan,andMr.P.PKhetan,
represenngMutualTradingCompany,connue
ontheBoardasChairman,FirstVice-ChairmanandSecondVice-Chairmanrespecvely.
Mr.PrachandaBahadurShrestha,represenng
ChhayaInternaonal,Mr.SushilBikramThapa,
represenngAvaInternaonal,Dr.RameshKumar
Bhaarai,represenngEmployeesProvidentFund
andMr.BijayBahadurShrestha,represenngthe
generalpublic,connueontheBoardasDirectors.
Similarly,Mr.UpendraKeshariPoudyalconnues
ontheBoardasProfessionalDirector.
In a s imilar vein,Miss Menuka Shrestha,
represenngChhayaInternaonal,Mrs.Ranjana
Shrestha,representingN.Trading,Mr.Sunil
BahadurThapa,represenngAvaInternaonal,
Mr.SurendraSilwal,represenngMutualTrading
CompanyandMr.RajendraKae,represenng
EmployeesProvidentFund,connueontheBoard
asAlternateDirectors.
Further,Mr.HimalayaSJBRanaisontheBoardin
thecapacityofChiefAdvisor.
Furthermore,eecvefromFebruary04,2011,
Mr.UpendraKeshariPoudyalhasbeenre-
appointed as Professional Director for the next
fouryears.Similarly,eecvefromSeptember
23,2011,DirectorDr.RameshKumarBhaarai
andAlternateDirectorMr.RajendraKafle,
represenngEmployeeProvidentFund,havebeen
re-appointedforthenextfouryears.
I would like to congratulate the re-appointedDirectors and Alternate Director to the Board
andexpecttheircooperaontowardstheBanks
progressandprosperity.Further,theBoard,on
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Annual Report 2010/11 25
thisoccasion,expressesitsfirmcommitment
to always working towards the best interests of
theBank.
Audit , Balance Sheet and Other
FinancialsTheBalanceSheetasonJuly16,2011,theProt
andLossAccountforthescalyear2010-11,the
ProfitandLossAppropriationAccountforthe
scalyear2010-11,theCashFlowStatementfor
thescalyear2010-11,relevantannexesandthe
AuditorsReportareenclosedwiththisreport.
Further,informaonrequiredtobedisclosedas
pertheprovisionsofCompanyAct2063,Chapter
7,Clause109,andSub-Clause(4)ispresented
asAnnexE.
ProtandLossAppropriaonThenetprotoftheBankamountedtoRs.893.11
million for thescal year2010-11.Besides, the
retainedearningsofRs.13.65millionfromthe
previousyear,20%ofRs.17.86million,havebeen
appropriatedtotheStatutoryGeneralReserve
Fund.AsumofRs.5.453milliontransferredfrom
theSuspenseFundandasumofRs.38.61million
transferredfromtheCapitalAdjustmentFundare
availablefortheappropriaon.Similarly,outofthe
netprotofthisyear,Rs.6.682millionhasbeen
Thank you.
On behalf of the Board of DirectorsP.P.Khetan ManojBahadurShrestha
Second Vice-Chairman Chairman
appropriatedtotheExchangeFluctuaonFund,
Rs.71.4milliontotheHBLBondRedemponFundandRs.47.25milliontotheInvestmentAdjustment
FundaspertheNRBdirecves.
I would like to announce with pleasure a special
resoluonongivinga 20%bonusshareand a
16.8421%cashdividendonthepaid-upcapitalto
theshareholdersforthescalyear2010/11.For
thebonussharesanddividends,anamountof
Rs.73.68millionhasbeenearmarked.Aerthe
distribuonofthebonusshares,thepaid-upcapital
oftheBankwillamounttoRs.2.40billion.
Vote of ThanksOnbehalfoftheBoardofDirectors,Iwouldlike
toextendsincerethankstotheshareholders,
esteemedcustomers,ocialsoftheGovernment
ofNepalandNepalRastraBank.Iwouldalsoliketo
place on record special thanks to the management
ofourpartner,HabibBankLimited,Pakistan,the
BanksChief ExecutiveOfficer, SeniorGeneral
Manager,GeneralManager,SeniorExecuves,sta
andassociatesformakingdynamiccontribuons
totheprogressandprosperityoftheBank.Finally,
I would like to extend hearty thanks to the media
forgivingwidecoveragetoouracviesandtoall
ourwell-wishers.
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Himalayan Bank Ltd26
Financial Highlights
Deposit Composition Loan Composition
Financial Year 2066/67Financial Year 2066/67
Financial Year 2067/68Financial Year 2067/68
SavingDeposit
Current Deposit
Call Deposit
Fixed Deposit
Other Deposit
WorkingCapitalLoan
HirePurchaseLoan
Bills Purchased & Discounted
TermLoan
RealEstateLoan
Import/ExportLoan
MarginLending
DeprivedSectorLoan
OtherLoan
WorkingCapitalLoan
HirePurchaseLoan
Bills Purchased & Discounted
TermLoan
RealEstateLoan
Import/ExportLoan
MarginLending
DeprivedSectorLoan
OtherLoan
SavingDeposit
Current Deposit
Call Deposit
Fixed Deposit
Other Deposit
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Annual Report 2010/11 27
Income Composition Expense Composition
Financial Year 2066/67Financial Year 2066/67
Financial Year 2067/68Financial Year 2067/68
Interest
ExchangeFluctuaon
Income
Commission & Discount
Other Income
Interest Expenses
StaExpenses
AdministraonExpenses
Interest Expenses
StaExpenses
AdministraonExpenses
Interest
ExchangeFluctuaon
Income
Commission & Discount
Other Income
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Himalayan Bank Ltd28
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Annual Report 2010/11 29
togeth rWorki g
shareholders
HBL is commied to
exploring and capitalizing on
new opportunies without
in any way deviang from
its empirical and me-testedmethods of risk management
so that all stakeholders
interests are secure
and protable.
Aspecialresoluonhasbeen
announced to award 20 % bonus
shareand16.84%cashdividend
on the paid-up capital to the
shareholdersforthescal
year2010/11.
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Himalayan Bank Ltd30
WeatHimalayanBankoeravarietyofproducts
andservicestoourcustomersfocusingon
their diverse andvaried financialneeds.Our
productdevelopmentandmodicaonprocess
is directly targeted towards catering to the needs
of our existing as well as potential customers
andweconnuouslyengageourresearchunit
in understanding the needs of the market and
customerbehavior,whichiscrucialtocustomer
sasfacon.Likewise,weareconvincedthatthis
enabledustoexploreanddiscovervariedkinds
ofemergingnancialneeds.Further,wearealso
constantly on the look-out for emerging market
trends.Thishas,meandmeagain,enabled
ustotapunchartednichesinthemarket.Such
astrategyhasenabledustocapitalizeonour
potenalforachievinga comparaveadvantage
and to be known as a trendsetter among our
competitorsandcounterparts.Wefeelproudtoberecognizedasapioneerinintroducing
many innovativeproducts andservices.We
arewellknowninthemarketasaconvenient
bank forperformingnancial transacons.Our
customersandstakeholdersenjoysecurenancial
transaconswithus.Ourinnovaveandquick-
learnapproachinthetechnicaleldhasenabledus
tostandoutasatechno-savvybankinthemarket.
Inshort,westrivetobringbankingservicestoour
customersdoorsteps.
Deposit Products
We offer a choice of deposit products that
customerscanchoosefromtosuittheirindividual
requirements.SavingsproductsincludeNormal
SavingsAccount,PremiumSavingsAccount(with
OurServicesexclusivecounterservices),SuperPremiumSavings
Account(withhighreturns),HimalSavingsAccount
(zerobalanceaccount),HimalRemitSavings
Account(customizedforremiers),BisheshSavings
Account(forminors,seniorcizens,thephysically
handicapped and the illiterate) and Shareholders
Savings Account ( for the convenience of
ourshareholders).
We offer Current Account for daily business
transactions.CallAccountgivesanearning
opportunityforbusinessesintheircurrentaccount,
whileNon-ProtOrganizaonCurrentCallAccount
isdesignedforNGOs,INGOsandcharitabletrusts
andhasanaracveinterestrate.FixedDeposit
productsincludeFixedTermDeposit,Three-Year
RecurringDeposit(formonthlydeposits)andJumbo
Term Deposit (for those willing to deposit funds for
3to5yearsandearnaracvereturns).
CreditServices
We offer a wide range of tailor-made funded
andnon-fundedcreditfacilitiestoindividuals
and companies to meet their different funding
requirements.Suchfacilities includeCorporate
Lending(includingProjectFinancingandConsorum
Financing),FixedTermLoan,WorkingCapital
Financing,TradeFinancingandLoanagainstFirst-
ClassBankGuarantee.
Similarly, Retail/Consumer Lending includes
HirePurchaseLoan,MortgageLoan,CreditCard
Loan,HousingLoan,SubidhaLoan(ahassle-free
loan)andFDwithanODfacility.RetailLending
alsoincludesCardMerchantLoan,Educational
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Himalayan Bank LtdAnnual Report 2010/11 31
InstuonFinancing,LoanagainstFixedDeposit
Receipt,LoanagainstGovernmentBonds/SecuriesandLoanagainstShares.SpecializedLendingis
directedtowards providing credit facilities for
smallandmediumenterprises(SMEs),while
TradeServicesincludeLC(Advising,Conrmaon,
NegoaonandReimbursement)andGuarantee
(BidBond,PerformanceBond,AdvancePaymentand
Counter-Guarantee).
CardServices
Wearetherstnancialinstuontointroduce
CreditCardinthedomescmarketHBLCard.It
was the most popular card in the country at one
me.Currently,weoerVisaandMasterCard,a
furtherreeconofourcommitmenttoproviding
productstailoredtomatchclientsrequirements.
ThevariouscardservicesincludeHBLSCT/Visa
/MasterDebitCard,HBLVisaCreditCard,HBL
MasterCreditCardandHBLPrepaidVisaCard.
Recently,HimalayanBankLimitedandJCBI
havesignedacreditcardissuingandacquiring
licenseagreement.JCBInternaonal(JCBI)isthe
internaonalsubsidiaryofJCB,theonlyglobal
payment brand and leading credit card issuer and
acquirerbasedinJapan.Throughthisagreement,
JCBcardmemberswillbeabletouseJCBcredit
cardsatapproximately1,200HBLmerchantoutlets
andATMsstarngthisfall,andtheBankwillbethe
rsttoissueJCBcardsinNepal,whichisscheduled
nextyear.
HimalRemit
Wearethepioneerintheeldofretailmoney
transferbusinesswithoveradecade-longcustomized
servicedeliveryexperienceintheeld.Weconduct
thisbusinessthroughHimalRemit,astate-of-the-
art web-based online money transfer system that
is easily accessible through our main web domain
www.himalayanbank.com. It can be directly
accessedbyallourbranchesandnetworks,thusensuringpromptexecuonofremiancepayment.
Theproductismonitoredandservicedbyour
RemiancePromoonDepartmentdedicatedto
deliveringfastandreliableservicestocustomers.
HimalRemit has the largest payment network
coveringallcies,townsandvillagesofthecountry
andovertwothousandthreehundred locaons
acrossNepalrelyon thisserviceforremiance
payment.Infact,wehaverepresentavesinmajor
remianceoriginangcountries tofacilitateand
assistourremiancecustomers.
AncillaryServices
Weoerahostofancillaryservicesthatprovide
convenience,securityandcomfortforour
customers.Theyare:
SafeDepositLockers:Lockersof various
sizesasperourcustomerspreferenceand
convenienceoflocaon.
SMSBanking:Allowsourcustomerstocheck
theirbalance,statusofcheque(encashedor
not),HBLsforeignexchangerateandcontact
numbersofbranches.
InternetBanking:Bankingcanbedonesafely
and securely through internet access round
theclock.
TCsales/purchase.
24/7AutomatedTellerMachines(ATMs):in
morethan50locaons.
EverydayEasyBankingService.
AnyBranchBankingServices.
Funds Tr an sf er : W ithi n and out si de
thecountry.
Fee Co llect ion/Payment Serv i ces : For
educaonalinstuons.
ServicePackageforStudents:Forthosegoing
abroadforhigherstudies.
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Himalayan Bank Ltd32
C o r p o r a t e S o c i a l
Responsibility (CSR) is a
very important aspect
o f H B L s a c t i v i t i e s .
Right from the time of
itsestablishment,ithas
been discharging its social
responsibilities through
varioussocialandallied
institutions.We always
considerourselvesasan
active and responsible
corporate citizens of the
countryandhavealwayspromotedsocialwelfare
acvies.Manyacviesthatarebenecialto
societyhavebeenundertakenbytheBankinthe
past and we are determined to do so in the future
aswell.Themajorservicesbeingrenderedby
theBankonthisfrontincludethoserelangto
educaon,healthcare,sports,cultureandsocial
services.TheBankallocatesasignicantporon
ofitsAnnualSponsorshipandDonaonBudget
towardsfulllingsocialresponsibilies.
SomeofthemajorCSRactivitiesbyHBLare
listed below:
Corporate Social Responsibility
4 2011:SponsorshipofANBUGrallyforsocial
drive supporng schools, cle lip support
surgeries,etc.
4 2011: Blooddonaonprogramorganizedby
theBankatBhaktapurDurbarSquare.4 2010:DonaonofRs.0.5milliontoEmbassy
ofPakistan,Kathmandu,ashumanitarianaid
toconductrescueandreliefoperaonsinthe
oodaectedareasofPakistan.
4 2010: Sponsorship of cricket tournament
organizedbyWATONepalaimedatraisingfunds
for planng of 2000 trees in Kathmandu city.
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Himalayan Bank LtdAnnual Report 2010/11 33
WATONepalisamemberofCleanUpTheWorld
which, inpartnershipwith the United Naons
EnvironmentProgramme(UNEP),workstowards
inspiringandempoweringcommuniestoclean
upandconservetheenvironmentthroughwaste
removal,treeplantaonandwaterandenergy
conservaonprojects.
4 2010: Acve parcipaon in the opening
ceremony of Nepal Tourism Year 2011
organized by NTY 2011 Coordinang
Commiee in coordinaon with Nepal
TourismBoard.
4 2009-10: Financial contribuon to Spinal
InjuryRehabilitaonCenter,Kavre.
4 2009: Financial assistance to Muscular
DystrophyChildCareSocietyNepal.
4 2009: Entered into agreement with Dairy
Development Corporaon (DDC) to extend
nancingofuptoRs.1milliontothelocaldairy
productprocessingcentersforinstallaonof
hi-techequipment.
4 2009: Financial assistance for renovaon/
construconofvarioustemplesandhistorical
placesinKathmanducity.
4 2009: DonaontooodvicmsofNepal.
4 2009: Founder Member of Naonal
Children Eye Hospital and Rehabilitaon
Center,Bhaktapur.
4 2008-10: Extensionofhelpinghandtovarious
government bodies for maintaining peace
andsecurityinvariousregionsofthecountry.
4 2008-09: Assistance to various
instuons including Friends of
Bagma to conduct acvies relang to
environmentalconservaon.
4 2008-09: Assistance to dierently abled
cizenstopublishnewsleersandmagazines
aspartof intellectualdevelopmentacvies
designedforthembyvariousinstuons.
4 2008: Charity to various orphanages and
physicallychallengedpoorchildren.
4 2008: Sponsorship of a dental health checkup
camporganizedbyBudhanilkanthaSchool.
4 2008: Sponsorship of various blood
donaoncamps.
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Himalayan Bank Ltd34
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Annual Report 2010/11 35
-
ogeth r withsociet
Worki g
Wearenotjustanimportantpartofthe
countrysnancialsectorbutalsoan
equallyresponsiblecorporatecizenof
thecountry.Eversinceourincepon,we
havebeenawareofourCorporateSocial
Responsibility(CSR).Inthisregard,wehavepromotedmanysocial
welfarecauses.
Wehavesponsoredblooddonaon
programs,organizedsporngevents(to
raisefundsforconservaon),donated
forhumanitarianaid,providednancial
assistanceforspecializedmedicalcare
centersandforpreservaonofheritage,
andgivencharitytovariousorphanages.
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Himalayan Bank Ltd36
Wearecommiedtocarryingonallouroperaons
in full compliance with Nepal Rastra Bank
(NRB)s guidelines and our own sets of internal
guidelines and policies to maintain good corporate
governance,someofwhichgobeyondmandatory
regulatorydirecvesandrequirements.Similarly,
all the Board members and Bank employees fully
adhere to the code of ethics as prescribed byNRB.Wehaveadoptedadequateinternalcontrol
systemsindierentareasofouroperaons.This
hashelpedustoensureimplementaonofgood
corporategovernance.ExecuveOcers,Branch
Managers,DepartmentHeadsandManagement
Teammembersarealwaysup-to-datewiththelevel
of responsibility and accountability designated
to them to monitor and manage internal control
mechanismsintheBank.Aboveall,wehavean
Internal Audit Department that reports directly
totheAuditCommiee.TheAuditCommieeis responsible for monitoring and ensuring
compliancewithNRBdirectives/guidelines/
circularsbyallunitsoftheBank.Italsomaintains
imparalchecksandbalancesforcompliancewith
setstandards,internalpolicies,guidelinesand
manualsinthedailycourseofaconofallunits
oftheBank.TheAuditDepartmentvisitsvarious
unitsfrequentlyandreviewsandcomparesactual
performancewiththesetstandards.Itprovides
grades for the units on the basis of the outcome
achievedinthesurvey.Ittakestheiniaveinformulangwork-friendlypoliciesandcorrecves,
iffoundnecessary,aerthesurvey.Basedonthe
feedbackfromtheInternalAuditDepartment,
theAuditCommieereviewstheBanksnancial
posionandtheadequacyofitsinternalcontrol
systemsandprovidesneededguidelines.
Furthermore,weareincompliancewithdirecves
laiddownbyNepalRastraBankfortheprevenon
ofmoneylaundering.WehaveaKYCDueDiligence
andAn-MoneyLaunderingPolicywhereCustomerIdentification Procedures (CIP), Customer
AcceptancePolicy(CAP)andCustomerTransacon
MonitoringProcedures(CTMP)arewelldenedand
arebeingfollowed.Wecategorizetheclientsashigh
risk,mediumriskorlowriskatthemeofopening
accounts.Accountgradingisreviewedperiodically
basedonthetransacon/volumeintheaccount.
Sourcesoffundsfordeposit/remianceabovethe
thresholdareascertainedandtransaconsabove
thethresholdareregularlyreviewed/monitoredto
ensurelegimatebusiness.
Thepastandpresentenvironmentsofthecountry
withitssuccessiveunstablegovernmentshindering
governmentpolicies;disruponsinpowersupply
duetopoweroutages;unionproblemsinindustries;
slowGDPgrowth;risinginaon;decliningexports;
worseningtradedecit;ourishinghundi(illegal
fundtransfers)businessandoulowofenormous
amounts of money to foreign lands are a setback
toa desirablelevelofprogressinthecountrys
economicsector.However,wehaveanexcellentrecordofsteadygrowththroughwhichwehave
beenabletoupholdourbrandimage.Because
ofthis,wearecondentthatwecanweather
CorporateGovernance
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Annual Report 2010/11 37
anystorminthefutureaswell.Wehaveplanned
a course of action that will help in sustaining
our efforts at maintaining a leading position
inthecountry.Wewillendeavortomaintain
ourwell-deservedreputaonasareliableand
prudentinstuon.
Atthesameme,weareconnuouslyexploringnewbusinessopportunies.Simultaneously,we
areconnuouslystrivingtoenhancecustomer
networksbydiscoveringnewandwiderservice
deliverychannels.Providingnancialproductsand
servicesexactlyasdesiredbyourcustomers,along
withanexcellent customer-friendlyapproach,
is the main reasons for our ability to retain our
customers.Weareverymuchcommittedto
maintainingthisposion.
Inthecomingdays,theBankwillbededicatedto
maintaining its lead as a customer-centric bank by
ulizingworld-classtechnologicaladvancesand
customercare.Asalways,wewillputinallou
eortstodevelopexcellentcustomerrelaonship
throughour customizedqualityservices.We
believe in serving our customers beyond
theirexpectaons.
Thesinglemostimportantthingthatwebelieve
inisCustomerSasfaconfromallourcustomer
contactpoints.Allourunitsarededicatedto
gengtheendresultofSasedCustomers.The
wisdom gained through years of experience of our
enreworkforcehasempowereduswithThe
PowerToLead.Wewanttosharethispowerwith
ourcustomers.
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Himalayan Bank Ltd38
Himalayan Bank has access to the
worldwide correspondent network
of Habib Bank for fund transfer, leer
of credit or any banking business
anywhere in the word.
1. Canadian Imperial Bank Of Commerce, Canada2. Standard Chartered Bank, USA
3. Habib Bank Limited, USA
4. Habib American Bank, USA
5. J.P. Morgan Chase Bank, USA
6. Mashreqbank, USA
7. Standard Chartered Bank, UK
8. Habib-UK Plc, UK
9. Standard Chartered Bank, Germany
10. Commerz Bank, Germany
togetherwith
globalpartners
Working
1
2
53
4
6
7
9
8
1213
11
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Himalayan Bank LtdAnnual Report 2010/11 39
Habib Bank is the largest and oldest
bank in Pakistan having over 1800
correspondents worldwide. Besides,
Himalayan Bank has correspondent
arrangement with 178 internaonally
renowned banks like ABN, Amro, etc.
11. Unicredit Bank, Germany12. WESTLB, Germany
13. Habib Bank, Switzerland
14. Nordea Bank, Norway
15. Bank Of China, China
16. Bank Of India, India
17. Standard Chartered Bank, India
18. HDFC Bank Limited, India
19. Bank Of America, India
20. ICICI Bank Limited, India21. Axis Bank Limited, India
22. Habib Finance Internaonal Ltd., Hongkong
23. Korea Exchange Bank, South Korea
24. Kookmin Bank, South Korea
25. Standard Chartered Bank, Japan
26. Naonal Bank Of Pakistan, Japan
27. Habib Bank Limited, Singapore
28. Commonwealth Bank, Australia
14
15
1617 18
1920
21
22
23
24
25
26
28
27
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Himalayan Bank Ltd40
1) Detail of Share Forfeiture:
Noshareswereforfeitedduringtheyear.
2) Transacon with Subsidiaries:
The Bank has no subsidiaries
3) Information provided to the Company by its
Substanal Shareholders:
NIL
4) Shares purchased by Directors and Ocials of the
Company during the year:
NosuchtransaconwasreportedtotheBank.
5) Information received on the personal
interest of Directors and their close relatives
in any Agreement/Contract entered into by
the Company:
Nosuchinformationwasreceivedduringthe
year.
6) Detail of Share Buy-Back during the year:
The Bank didnt buy back its own shares during the
year.
7) Detail of Internal Control System:
TheBankhasaveryeecveInternalControl
Systeminoperaonwhichhasthefollowingmajor
components:
1) Strong internal checks and controls
2) Operaonmanuals,comprehensivepolicies,
procedures and guidelines for orderly conduct
ofoperaons.
3) Creditpolicyguidelinesandvariousmanuals
4) Compliance & Internal Control Department
designed for monitoring compliance of &
periodicreviewofinternalcontrolsystem
5) I n d e p e n d e n t I n t e r n a l A u d i t &
InspeconDepartment
6) Periodic reviewof internalcontrolsand
signicantauditissuesbyAuditCommiee.
8) Total Management expenses during the year:
EmployeeexpensesduringtheFY : Rs.517,591,827AdministraveexpensesduringtheFY : Rs.582,209,813
Total : Rs.1,099,801,640
9) List of Audit Commiee members, their remuneraon
and facilies and descripon (and suggesons if any)
of the Commiees performance during the year:
AuditCommieemembers:
1)Mr.AshrafMWathra Chairman
2)Dr.RameshKumarBhaarai Member
3)Mr.UpendraKeshariPoudel Member3)Mr.MuhammadSiddique Member&
Secretary
TheCommieemembershavebeenpaidnoother
remuneraon/facilityotherthantheunder-menoned
meengfees:
Chairman:Rs.4,000permeeng
Members:Rs.3,400permeeng
TheCommieeconducted8meengsduringtheFY
2067/68duringwhichitperformedthefollowingtasks,
among others:
1) Reviewed the InternalAuditReports andgave
necessary instruction to the Management for
resoluonofauditissues.
2) Reviewedinvesgaonreportsandmadevarious
recommendaonstotheManagement.
AddionalDisclosureasperSecon109(4)ofCompaniesAct,2063
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Himalayan Bank LtdAnnual Report 2010/11 41
Notes:
1) An officecarwithfacilities fora driver,fuel
andmaintenance isprovided forCEO,General
Managerandexpatriateexecuves(Sr.General
Manager&ChiefInternalAuditor).Managersare
providedwithacarloanfacilitywithfuelasperthe
Bankspolicy.
SN Particulars Directors CEO Managers
1 Meeting Fees 885,600
2 Salary 4,500,000 71,348,677
3 Allowances 4,496,000 37,699,542
4 PF Contribution 450,000 5,992,536
5 Telephone / Mobile 156,683 178,575 3,144,219
6 Others 2,964,705 219,161 6,758,952
Total 4,006,988 9,843,736 124,943,926
7 Car Facility No Yes Yes
8 Accommodation No No No*
9 Insurance Coverage Yes Yes Yes
Number of persons 13 1 76
3) Rev iewed Annua l Accounts and Auditors
Preliminary Audit Report issued by Statutory
Auditors and recommended their adoption by
theBoardofDirectorsaerincorporaonofthe
direcves/instruconsissuedbytheCommieeby
theManagement.
4) DirectedtheManagementtoimproveinternal
control systems and procedures and recommended
manuals,policiesandproceduresforimprovement
andeecvecontrol,wherevernecessary.
10) Amount receivable by the Company from Directors,
Managing Director, Substantial Shareholders
and their close relaves and associated rms,
Companies etc:
NIL
11) Remuneraon, Allowances and facilies given
to Directors, Managing Director, Chief Execuve
Ocer and Ocials during the year:
P.P.Khetan ManojBahadurShrestha
2nd Vice Chairman Chairman
MANAGERIAL REMUNERATION for the purpose of secon 109(4)
2) *FullyfurnishedaccommodaonattheBankscost
isprovidedforexpatriateexecuves.
3) (a) DirectorsarecoveredwithamedicalinsuranceofRs.200,000forselfandanaccidentInsurance
policyofRs.3,000,000.
b) CEO and Managers (except expatriate
execuves)arecoveredwithaccidentalInsurance,
medical insurance and life insurance as per the
BanksStaffRules.Expatriateexecutivesare
coveredwithaccidentalinsuranceandmedical
insuranceaspertheirtermsofcontract.
4) Mobile bills are paid by the Bank on an actualbasistorCEO,SGMandCIA.IncaseofManagers,
reimbursementuptoamaximumofRs.2,000per
monthismadebytheBankasperthepolicy.
5) Water and electricity bills are reimbursed on an
actualbasistoCEOandGM.
6) Bonusasper BonusAct,1974waspaidtoall
employeesexcepttheexpatriateexecutives.
Theexpatriateexecuveswerepaidcashgis
inlieuofBonustothetuneofRs.1,551,065to
Sr.GeneralManagerandRs.737,000toChief
InternalAuditor.
12) Amount of Dividend remaining unpaid:
TotalUnpaidDividend:Rs.21,943,031asonAsar
32,2068.
13) Others maers required to be disclosed in the
Directors Report by this Ordinance or others Laws
in force:
NIL
14) Other relevant issues:
NIL
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Annual Report 2010/11 43
Bc SAs at 16 July 2011 (32 Ashadh 2068) Amount in NPR
Capital & liaBilitieS SChedule Current Year previouS Year
1. Share Capital 1 2,400,000,000 2,000,000,000
2. Reserves and Funds 2 1,595,478,273 1,439,205,130
3. Debentures and Bonds 3 500,000,000 500,000,000
4. Borrowings 4 10,000,000 -
5. Deposits 5 40,920,627,030 37,611,202,274
6. Bills Payables 6 31,655,586 216,158,879
7. Proposed Dividend 336,842,000 189,473,600
8. IncomeTaxLiabilies - -
9. OtherLiabilies 7 941,600,995 761,084,730
TotalCapital&Liabilies 46,736,203,884 42,717,124,613
aSSetS SChedule Current Year previouS Year
1. Cash Balance 8 632,046,156 514,223,569
2. Balance with Nepal Rastra Bank 9 1,390,625,787 2,604,790,901
3. BalancewithBanks/FinancialInsituons 10 941,979,378 747,476,214
4. MoneyatCallandShortNoce 11 734,000,000 308,840,000
5. Investments 12 8,769,938,671 8,444,910,165
6. Loan Advances and Bills Purchase 13 31,566,976,755 27,980,628,760
7. Fixed Assets 14 1,187,493,049 1,061,870,757
8. Non - Banking Assets 15 - -
9. Other Assets 16 1,513,144,088 1,054,384,247
TotalAssets 46,736,203,884 42,717,124,613
ConngentLiabilies Schedule17
DeclaraonofDirectors Schedule29
StatementofCapitalFund Schedule30(A)
Credit Risk Schedule 30 (B)
CreditRiskMigaon Schedule30(C)
OperaonRisk Schedule30(D)
Market Risk Schedule 30 (E)
Principal Indicators Schedule 31
PrincipalAccounngPolicies Schedule32
Notes to Accounts Schedule 33
Schedules 1 to 17 & 32 and 33 form an integral part of this Balance Sheet
SashRajJoshi
ExecuveFinancialOcer
Asperouraachedreportofevendate
CA.RanjeevShrestha
Partner
G.P. Rajbahak & Co.
Chartered Accountants
SushielJoshi
General Manager
MasoodUlHasan
Senior General Manager
AshoeS.Rana
ChiefExecuveOcer
ManojBahadurShrestha
Chairman
Prem Prakash Khetan, Second Vice Chairman
Prachanda Bahadur Shrestha
Bijaya Bahadur Shrestha
Dr. Ramesh Kumar Bhattarai
Sushil Bikram Thapa
Upendra Keshari Poudyal
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Himalayan Bank Ltd44
ProtandlossaccountFor The Period From July 17, 2010 To July 16 , 2011 (Shrawan 1, 2067 To Ashadh 32, 2068)
partiCularS SChedule Current Year previouS Year
1. Interest Income 18 4,326,140,588 3,148,605,196
2. Interest Expenses 19 2,414,807,243 1,553,530,687
NetInterestIncome 1,911,333,345 1,595,074,509
3. Commission and Discount 20 350,365,112 270,258,732
4. OtherOperangIncome 21 129,516,981 112,346,425
5. ExchangeFluctuaonIncome 22 195,528,538 180,278,743
TotalOperangIncome 2,586,743,976 2,157,958,409
6. StaExpenses 23 517,591,827 414,983,894
7. OtherOperangExpenses 24 582,209,813 471,102,966
8. ExchangeFluctuaonLoss 22 - -
OperangProtbeforeProvisionforPossibleLosses 1,486,942,336 1,271,871,549
9. ProvisionforPossibleLosses 25 471,728,863 692,640,089
OperangProt 1,015,213,473 579,231,460
10. Non-OperangIncome/(Loss) 26 15,855,933 12,382,440
11. LoanLossProvisionWrien-Back 27 228,145,590 265,542,038
ProtfromRegularOperaons 1,259,214,996 857,155,938
12. Prot/(Loss)fromExtra-ordinaryAcvies 28 102,292,025 (25,855,926)
NetProtaerconsideringallAcvies 1,361,507,021 831,300,012
13. StaBonusProvision 123,773,366 75,572,728
14. Tax Provision 344,618,512 246,929,091
a) Current Years 338,351,341 246,070,406
b) PreviousYearsAddionalTax 813,229 1,454,373
c) DeferredTax 5,453,942 (595,688)
NetProt/(Loss) 893,115,143 508,798,193
Schedules18to28&32and33formanintegralpartofthisProtandLossAccount
Amount in NPR
SashRajJoshi
ExecuveFinancialOcer
Asperouraachedreportofevendate
CA.RanjeevShrestha
Partner
G.P. Rajbahak & Co.
Chartered Accountants
SushielJoshi
General Manager
MasoodUlHasan
Senior General Manager
AshoeS.Rana
ChiefExecuveOcer
ManojBahadurShrestha
Chairman
Prem Prakash Khetan, Second Vice Chairman
Prachanda Bahadur Shrestha
Bijaya Bahadur Shrestha
Dr. Ramesh Kumar Bhattarai
Sushil Bikram Thapa
Upendra Keshari Poudyal
7/31/2019 19th Annual Report
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Annual Report 2010/11 45
proFit and loSS appropriation aCCountFor The Period From July 17, 2010 To July 16 , 2011 (Shrawan 1, 2067 To Ashadh 32, 2068) Amount in NPR
partiCularS Current Year previouS Year
Income
1. AccumulatedProtuptoLastYear 136,587,269 36,525,513
2. CurrentYearsProt 893,115,143 508,798,193
3. TransferfromBondAdjustmentReserve - 356,000,000
4. TransferfromDeferredTaxReserve 5,453,942 -
5. TransferfromCapitalAdjustmentFund 38,610,000 -
Total 1,073,766,354 901,323,706
Epenses
1. Accumulated Loss up to Last Year - -
2. Current years Loss - -
3. General Reserve 178,623,029 101,759,639
4. ConngentReserve - -
5. InstuonalDevelopmentFund - -
6. DividendEqualizaonFund - -
7. StaRelatedReserveFund - -8. Proposed Dividend 336,842,000 189,473,600
9. ProposedIssueofBonusShare 400,000,000 400,000,000
10. Special Reserve Fund - -
11.ExchangeFluctuaonFund 6,682,321 -
12.CapitalRedemponReserveFund - -
13. Capital Adjustment Fund - -
14.BondRedemponReserve 71,428,571 71,428,571
15.DeferredTaxReserve - 595,688
16. Investment Adjusment Reserve 47,258,636 1,478,939
Total 1,040,834,557 764,736,437
17.AccumulatedProt/(Loss) 32,931,797 136,587,269
SashRajJoshiExecuveFinancialOcer
Asperouraachedreportofevendate
CA.RanjeevShrestha
Partner
G.P. Rajbahak & Co.
Chartered Accountants
SushielJoshiGeneral Manager
MasoodUlHasanSenior General Manager
AshoeS.Rana
ChiefExecuveOcer
ManojBahadurShrestha
Chairman
Prem Prakash Khetan, Second Vice Chairman
Prachanda Bahadur Shrestha
Bijaya Bahadur Shrestha
Dr. Ramesh Kumar Bhattarai
Sushil Bikram Thapa
Upendra Keshari Poudyal
7/31/2019 19th Annual Report
48/84S
tatemento
fChange
in
equ
ity
F
orThePeriodFromJ
uly16,
2010ToJuly1
6,
2011(Shrawan1,
2067ToAshadh32,2
068)
partiCularS
ShareCapital
aCCuMulated
General
pr
opoSed
Capital
SpeCial
e
XChanGe
otherreServe
deFerredtaX
inveStMent
totalaMount
PROFIT/LOSS
RESERVE
BONU
SSHARE
ADJUSTMENT
RESERVE
FLUCTUATION
FUND
RESERVE
ADJUSTMENT
reServe
Fund
reServe
O
peningBalanceasat17July2010
1,6
00,0
00,000
136,5
87,2
69
1,0
12,8
00,4
10
400,0
00,0
00
38,6
10,0
00
4,0
00,0
00
23,0
87,5
77
214,2
85,7
14
8,3
55,2
21
1,4
78,9
39
3,4
39,2
05,1
30
C
hangesinAccounngPolicies
-
-
-
-
-
-
-
-
-
-
R
estatedBalanceasat17July2010
1,6
00,0
00,000
136,5
87,2
69
1,0
12,8
00,4
10
400,0
00,0
00
38,6
10,0
00
4,0
00,0
00
23,0
87,5
77
214,2
85,7
14
8,3
55,2
21
1,4
78,9
39
3,4
39,2
05,1
30
N
etProtfortheyear
-
893,1
15,1
43
-
-
-
-
-
-
-
-
893,1
15,1
43
T
ransfertoGeneralReserve
-
(178,6
23,0
29)
178,6
23,0
29
-
-
-
-
-
-
-
-
B
ondRedemponFundtransferred
-
-
-
-
-
-
-
-
-
-
-
P
roposedDividend
(336,8
42,0
00)
-
-
-
-
-
-
-
-
(336,8
42,0
00)
IssueofBonusShare
400,0
00,000
-
-
(400
,000,0
00)
-
-
-
-
-
-
-
P
roposedIssueofBonusShares
-
(400,0
00,0
00)
-
400,0
00,0
00
-
-
-
-
-
-
-
T
ransferfromC
apitalAdjustmentFund
-
38,6
10,0
00
-
(38,6
10,0
00)
-
-
-
-
-
-
T
rasnserfromD
eferredTaxReserve
-
5,4
53,9
42
-
-
-
-
-
-
(5,4
53,9
42)
-
-
T
ransfertoExchangeFluctuaonFund
-
(6,6
82,3
21)
-
-
-
-
6,6
82,3
21
-
-
-
-
T
ransfertoBondRedemponFund
-
(71,4
28,5
71)
-
-
-
-
-
71,4
28,5
71
-
-
-
InvestmentAdjustmentReserve
(47,2
58,6
36)
-
-
-
-
-
-
-
47,2
58,6
36
-
ClosingBalance
2,0
00,0
00,000
32,9
31,7
97
1,1
91,4
23,4
39
400,0
00,0
00
-
4,0
00,0
00
29,7
69,8
98
285,7
14,2
85
2,9
01,2
79
48,7
37,5
75
3,9
95,4
78,2
73
AmountinNPR
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Annual Report 2010/11 47
CaSh FloW StateMentFor The Period From July 17, 2010 To July 16 , 2011 (Shrawan 1, 2067 To Ashadh 32, 2068)
partiCularS Current Year previouS YearA. CashFlowfromOperangAcvies 1,229,722,130 1,158,165,935
1. CashReceived 4,935,565,536 3,725,806,343
1.1 Interest Income 4,156,612,894 3,156,864,066
1.2 Commission and Discount Income 350,365,112 270,258,732
1.3 IncomefromForeignExchangeTransacon 195,528,538 180,278,743
1.4 RecoveryofLoanWrieno 103,542,011 6,058,377
1.5 Other Income 129,516,981 112,346,425
2. CashPayment (3,705,843,406) (2,567,640,408)
2.1 Interest Expenses (2,301,679,351) (1,418,373,200)
2.2 StaExpenses (474,458,856) (401,203,232)
2.3 OceOverheadExpenses (463,319,467) (366,232,241)
2.4 Income Tax Paid (390,813,004) (275,171,136)
2.5 Other Expenses (75,572,728) (106,660,599)
CashFlowbeforeChangesinWoringCapital (1,767,764,421) (291,939,156)
(Increase) / Decrease in Current Assets (4,914,320,570) (3,407,394,497) 1. (Increase)/DecreaseinMoneyatCallandShortNoce (425,160,000) 861,953,650
2. (Increase) / Decrease in Other Short-term Investment (282,115,000) (197,305,000)
3. (Increase) / Decrease in Loan & Bills Purchases (3,846,141,395) (3,647,325,111)
4. (Increase) / Decrease in Others Assets (360,904,175) (424,718,036)
Increase/(Decrease)inCurrentLiabilies 3,146,556,149 3,115,455,341
1. Increase/(Decrease) in Deposits 3,309,424,756 2,928,895,411
2. Increase/(Decrease)inCercateofDeposits - -
3. Increase/(Decrease) in Short Term Borrowing 10,000,000 184,311,488
4. Increase/(Decrease)inOthersLiabilies (172,868,607) 2,248,442
B. CashFlowfromInvestmentAcvies (138,743,550) 296,685,024
1. (Increase)/Decrease in Long Term Investments (682,555,022) 1,168,469,288
2. (Increase)/Decrease in Fixed Assets (217,817,619) (224,388,290)
3. InterestIncomefromLongTermInvestment 92,823,514 23,166,496
4. Dividend Income 8,378,920 6,996,002
5. Others 660,426,657 (677,558,472)C. CashFlowfromFinancingAcvies (225,053,522) (344,947,907)
1. Increase/(Decrease) in Long Term Borrowings (2,845,000) (198,248,497)
(Bond,Debentures etc)
2. Increase/(Decrease) in Share Capital - -
3. Increase/(Decrease)inOtherLiabilies (222,208,522) (146,699,410)
4. Increase/(Decrease)inRenance/faciliesreceivedfromNRB. - -
D. Income/LossfromchangeinechangerateinCashandBanBalances - -
E. CurrentYearsCashFlowfromAllAcvies (901,839,363) 817,963,896
F. OpeningBalanceofCashandBanBalances 3,866,490,684 3,048,526,788
G. ClosingBalanceofCashandBanBalances 2,964,651,321 3,866,490,684
Amount in NPR
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Himalayan Bank Ltd48
partiCularS Current Year previouS Year
% Share Capital % Share Capital
1. DomescOwnership 80.00 1,600,000,000 80 1,280,000,000
1.1 Nepal Government - - -
1.2 AClasssLicensedInstuons - - -
1.3 OtherLicensedInstuons - - -
1.4 OtherEnes 65.00 1,300,000,000 65 1,040,000,0001.5 General Public 15.00 300,000,000 15 240,000,000
1.6 Others - - -
2. ForeignOwnership 20.00 400,000,000 20 320,000,000
Total 100.00 2,000,000,000 100 1,600,000,000
Amount in NPRShare oWnerShip
naMe oF Shareholder nuMBer oF ShareS % Share Capital
Habib Bank Limited 4,000,000 20.00 400,000,000
Karmachari Sanchaya Kosh 2,800,000 14.00 280,000,000
N. Trading Co. Pvt. Ltd. 2,541,669 12.71 254,166,900
Mutual Trading Co. Pvt. Ltd. 2,524,000 12.62 252,400,000 AvaInternaonalPvt.Ltd. 2,276,873 11.38 227,687,300
ChhayaInternaonalPvt.Ltd. 1,777,674 8.89 177,767,400
Sumit Kumar Agrawal 529,869 2.65 52,986,900
Syakar Co. Ltd. 198,001 0.99 19,800,100
Sharma & Co. Pvt. Ltd. 132,000 0.66 13,200,000
Total 16,780,086 83.90 1,678,008,600
Amount in NPR
ParcularsofIndividual/Group/Firm/Companyholding0.5%oraboveareasfollows:
ShareCapital&Ownership
partiCularS Current Year previouS Year
1. ShareCapital
1.1 AuthorizedCapital 3,000,000,000 3,000,000,000
a. 30,000,000OrdinarySharesofRs100each. 3,000,000,000 3,000,000,000
b.Non-redeemablePreferenceShares - -
c. RedeemablePreferenceShares - -
1.2 IssuedCapital 2,000,000,000 1,600,000,000
a. 20,000,000OrdinarySharesofRs100each 2,000,000,000 1,600,000,000
(Previousyear16,000,000OrdinarySharesofRs.100each)
b.Non-redeemablePreferenceShares - -
c. RedeemablePreferenceShares - -
1.3 PaidupCapital 2,000,000,000 1,600,000,000
a. 20,000,000OrdinarySharesofRs100eachfullypaidup 2,000,000,000 1,600,000,000
(Previousyear16,000,000OrdinarySharesofRs100eachfullypaidup)
b.Non-redeemablePreferenceShares - -
c. RedeemablePreferenceShares - -
1.4 ProposedBonusShares 400,000,000 400,000,000 1.5 Calls-in-advance - -
1.6 Total 2,400,000,000 2,000,000,000
Amount in NPR
Schedule 1
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Annual Report 2010/11 49
ReservesandFundspartiCularS Current Year previouS Year
1. General Reserve Fund 1,191,423,439 1,012,800,4102. Capital Reserve Fund - -
3. CapitalRedemponReserve - -
4. Capital Adjustment Fund - 38,610,000
5. Other Reserve Fund 341,353,139 228,119,874
a. ConngentReserve - -
b. InstuonDevelopmentFund - -
c. DividendEqualizaonFund - -
d. Special Reserve Fund 4,000,000 4,000,000
e. AssetsRevaluaonReserve - -
f. DeferredTaxReserve 2,901,279 8,355,221
g. Other Free Reserves - -
h. BondRedemponReserve 285,714,285 214,285,714
i. Other Reserve (Investment Adjustment Reserve) 48,737,575 1,478,939
7. AccumulatedProt/(Loss) 32,931,797 136,587,269
8. ExchangeFluctuaonFund 29,769,898 23,087,577 Total 1,595,478,273 1,439,205,130
Amount in NPR
Schedule 2
DebenturesandBondspartiCularS Current Year previouS Year
1. 8PercentHBLBond2072ofRs1,000each 500,000,000 500,000,000
(Issued in june/july 2008 and maturing in july 2015 )
[BalanceinRedemponReserveRs285,714,285(PreviousYearRs.214,285,714)
Total 500,000,000 500,000,000
Amount in NPR
Schedule 3
BorrowingspartiCularS Current Year previouS Year
a. lc
1. Nepal Government - -
2. Nepal Rastra Bank 10,000,000 -
3. RepoObligaon - -
4. InterBankandFinancialInstuons - -
5. OtherFinancialInstuons - -
6. Others - -
Total 10,000,000 -
B. Foreign
1. Banks - -
2. Others - -
Total - - Total(A+B) 10,000,000 -
Amount in NPR
Schedule 4
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Himalayan Bank Ltd50
Deposits
partiCularS Current Year previouS Year
1. Non Interest Bearing accounts
A. CurrentDeposits 3,694,249,426 3,745,624,493
1. LocalCurrency 2,903,865,089 2,885,401,105
1.1 Nepal Government 83,561,854 137,280,881
1.2 AClasssLicensedInstuons 148,514,126 72,981,395
1.3 OtherLicensedInstuons 349,538,845 303,714,106
1.4 OtherOrganizedInstuons 1,420,274,274 1,409,944,595
1.5 Individuals 759,629,886 814,891,065
1.6 Others 142,346,104 146,589,063
2. ForeignCurrency 790,384,337 860,223,388
2.1 Nepal Government 80,814,018 70,110,875
2.2 AClasssLicensedInstuons 46,993 49,402
2.3 OtherLicensedInstuons 199,831,038 268,267,485
2.4 OtherOrganizedInstuons 223,050,691 277,301,761
2.5 Individuals 193,308,361 155,210,899
2.6 Others 93,333,236 89,282,967 B. MarginDeposits 1,219,365,273 946,871,896
1. Employees Guarantee - -
2. Guarantee Margin 776,901,606 150,133,199
3. LeersofCreditMargin 442,463,667 796,738,697
C. Others - -
1. LocalCurrency - -
1.1 FinancialInstuons - -
1.2 OtherOrganizedInstuon - -
1.3 Individual - -
2. ForeignCurrency - -
2.1 FinancialInstuons - -
2.2 OtherOrganizedInstuons - -
2.3 Individual - -
TotalofNon-InterestBearingAccounts 4,913,614,699 4,692,496,389
Amount in NPR
Schedule 5
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Annual Report 2010/11 51
Deposits
partiCularS Current Year previouS Year
2. Interest Bearing accounts A. SavingDeposits 15,994,563,707 16,294,680,337
1. LocalCurrency 15,233,399,813 15,494,591,313
1.1 OrganizedInstuons 288,345,837 234,974,920
1.2 Individuals 14,944,944,112 15,259,510,199
1.3 Others 109,864 106,194
2. ForeignCurrency 761,163,894 800,089,024
2.1 OrganizedInstuons 14,527,644 20,504,449
2.2 Individuals 738,419,962 770,360,409
2.3 Others 8,216,288 9,224,167
B. FiedDeposits 13,507,370,421 11,328,635,821
1. LocalCurrency 12,501,738,459 10,153,602,555
1.1 OrganizedInstuons 6,291,977,069 6,203,841,187
1.2 Individuals 6,059,413,840 3,838,959,968
1.3 Others 150,347,550 110,801,400
2. ForeignCurrency 1,005,631,962 1,175,033,266 2.1 OrganizedInstuons 736,692,559 728,219,395
2.2 Individuals 178,305,603 274,201,940
2.3 Others 90,633,800 172,611,931
C. CallDeposits 6,505,078,203 5,295,389,727
1. LocalCurrency 5,160,403,047 3,834,098,227
1.2 AClasssLicensedInstuons - -
1.3 OtherLicensedInstuons 3,128,728,079 2,192,821,118
1.4 OtherOrganizedInstuons 1,924,950,838 1,457,860,841
1.5 Individuals 106,724,130 183,416,267
1.6 Others - -
2. ForeignCurrency 1,344,675,156 1,461,291,500
2.1 AClasssLicensedInstuons 3,266,551 3,225,854
2.2 OtherLicensedInstuons 1,100,125,234 1,207,986,979
2.3 OtherOrganizedInstuons 241,283,371 250,078,668
2.4 Individuals - -
2.5 Others - -
D. CercateofDeposits - -
1. OtherOrganizedInstuons - -
2. Individual - -
3. Other - -
TotalofInterestBearingAccounts 36,007,012,331 32,918,705,886
TotalDeposits 40,920,627,030 37,611,202,274
Amount in NP
CONTINUESchedule
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BillsPayables Amount in NPRSchedule 6
partiCularS Current Year previouS Year
1. Local Currency 24,955,617 212,665,0932. Foreign Currency 6,699,969 3,493,786
Total 31,655,586 216,158,879
CashBalance Amount in NPRSchedule 8
partiCularS Current Year previouS Year
1. Local Currency (Including coins) 595,552,373 478,067,207
2. Foreign Currency 36,493,783 36,156,362
Total 632,046,156 514,223,569
OtherLiabilies Amount in NPRSchedule 7
partiCularS Current Year previouS Year
1. Pension / Gratuity Fund - -
2. Employees Provident Fund - -
3. EmployeesWelfareFund - -
4. ProvisionforStaBonus 123,773,366 75,572,728
5. Interest Payable on Deposit 245,726,224 172,598,332
6. Interest Payable on Borrowings/Bonds 23,751,114 23,031,5237. Unearned Discount & Commission - -
8. Sundry Creditors 72,428,981 74,282,439
9. Branch Adjustment Account - 103,494,371
10. DeferredTaxLiability - -
11. Dividend Payable 21,943,031 15,397,544
12. Others
a. ProvisionforAuditFee 678,000 678,000
b. Provisionforleaveencashment 77,383,708 62,268,078
c. Matured HBL Bond Payable 1,120,000 3,965,000
d. ProvisionforGratuity 58,946,092 30,928,751
e. Interest Suspense on NBA 892,259 892,259
f. Others 314,958,220 197,975,705
Total 941,600,995 761,084,730
BalancewithNepalRastraBan
partiCularS loCal CurrenCY ForeiGn CurrenCY Current Year p reviouS Year
inr ConvertiBle total
CurrenCY
1.NepalRastraBan 1,342,048,477 - 48,577,310 48,577,310 1,390,625,787 2,604,790,901
a. Current Account 1,342,048,477 - 48,577,310 48,577,310 1,390,625,787 2,604,790,901
b. Other Account - - - - - -
Total 1,342,048,477 - 48,577,310 48,577,310 1,390,625,787 2,604,790,901
Amount in NPR
Schedule 9
Note : Total balance as per the statement of Nepal Rastra Bank is 1,502,062,312.
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BalancewithBans/FinancialInstuons
partiCularS loCal ForeiGn CurrenCY Current previouS
CurrenCY inr ConvertiBle total Year Year
CurrenCY
1. LocalLicensedInstuons 143,838,219 - 2,668,649 2,668,649 146,506,868 383,361,221
a. Current Account 143,838,219 - 2,668,649 2,668,649 146,506,868 383,361,221
b. Other Account - - - - - -
2. ForeignBan - 182,023,235 613,449,275 795,472,510 795,472,510 364,114,993
a. Current Account - 182,023,235 613,449,275 795,472,510 795,472,510 364,114,993
b. Other Account - - - - - -
Total 143,838,219 182,023,235 616,117,924 798,141,159 941,979,378 747,476,214
Amount in NP
Schedule 1
partiCularS Current Year previouS Year
1. Local Currency 200,000,000 100,000,000
2. Foreign Currency 534,000,000 208,840,000
Total 734,000,000 308,840,000
MoneyatCallandShortNoce Amount in NPSchedule 1
Note : Total balance as per the statement received from respecve bank is 1,012,597,170.
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partiCularS purpoSe Current Year previouS Year
tradinG other1. Nepal Government Treasury Bills - 4,725,584,865 4,725,584,865 3,455,030,155
2. Nepal Government Saving Bond - - - -
3. NepalGovernmentOtherSecuries - 1,681,777,676 1,681,777,676 1,010,342,254
4. NRB Bonds - - - -
5. Foreign Bonds - - - -
6. LocalLicensedInstuons - 479,420,000 479,420,000 197,305,000
7. Foreign Banks - 1,794,368,930 1,794,368,930 3,703,350,297
8. Corporate Shares - 88,787,200 88,787,200 78,882,459
9. Corporate Bonds and Debentures - - - -
10. Other Investments - - - -
TotalInvestment - 8,769,938,671 8,769,938,671 8,444,910,165
Provision - - - -
NetInvestment 8,769,938,671 8,444,910,165
Investments Amount in NPRSchedule 12
InvestmentsinShares,DebenturesandBondspartiCularS CoSt Market proviSion Current previouS
priCe value Year Year
1.InvestmentinShares
1.1 RuralMicronanceDevCentre 48,000,000 48,000,000 - 48,000,000 48,000,000
480,[email protected],fullypaidup
1.2 Western Rural Development Bank 3,000,000 3,300,000 - 3,000,000 3,000,000
33,000 Shares (including 3,000 bonus shares)
@Rs.100pershare,fullypaidup
1.3 NirdhanUhanBankLtd. 12,793,300 44,146,160 - 12,793,300 7,752,000
187,856 Shares (including 59,923 bonus shares)
@Rs.100pershare,fullypaidup
1.4 Chhimek Bikas Bank Ltd. 7,380,100 29,597,922 - 7,380,100 7,380,100
113,402 Shares (including 39,601 bonus shares)
@Rs.100pershare,fullypaidup
1.5 Swabalamban Bikas Bank Ltd. 12,490,500 22,888,800 - 12,490,500 6,600,000
143,055 Shares (including 18,150 bonus shares)
@Rs.100pershare,fullypaidup
1.6 SwiSC 1,214,859 1,214,859 1,214,859 - 1,214,859
6 Shares
1.7 CreditInformaonCorporaonLimited 1,423,300 2,729,400 - 1,423,300 1,235,500
27,294 shares (including 13,061bonus shares)
@Rs.100pershare,fullypaidup
1.8 Nepal Clearing House 2,500,000 2,500,000 - 2,500,000 2,500,000
25,[email protected],fullypaidup
1.9 VISACardInternaonal - - - - -
5,860nos.ofCommonStock 1.10NepalBankersTrainingInstute 1,200,000 1,200,000 1,200,000 1,200,000
12000 shares @ Rs. 100 per share, partly paid
2.InvestmentinDebenturesandBonds
2.1 ..
2.2 ..
2.3 ..
TotalInvestment 90,002,059 155,577,141 1,214,859 88,787,200 78,882,459
3.ProvisionforLoss
3.1 Up to previous year -
3.2 Addionthisyear 1,214,859
TotalProvision 1,214,859
NetInvestment 88,787,200 78,882,459
Amount in NPR
Schedule 12(A)
Note : Shares of Chhimek Bikas Bank Limited, Nirdhan Uhan Bank Limited and Swabalamban Bikas Bank Limited are listed in Nepal
Stock Exchange. Companies except RMDC, Chhimek Bikas Bank Limited, Nirdhan Uhan Bank Limited, Swabalamban Bikas Bank Limited
and Western Rural Development Bank have not declared dividend in the last three years.
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InvestmentsinShares,DebenturesandBonds PARTICULARS COSTPRICE MARkETPRICEASAT PROFIT/LOSS REMARkS
16JUL2010 16JUL2011 Current Year previouS Year1. Nepal Government Treasury Bills - - - - -
2. Nepal Government Saving Bonds - - - - -
3. NepalGovernmentOtherSecuries - - - - -
4. Nepal Rastra Bank Bonds - - - - -
5. Foreign Bonds - - - - -
6. SharesofLocalLicensedInstuons - - - - -
7. DebenturesandBondsofLocalLicensed - - - - -
Instuon - - - - -
8. Shares,DebenturesandBondsof - - - - -
LocalOrganisedInstuons - - - - -
9. Placement in Foreign Banks - - - - -
10. Inter Bank Lending - - - - -
11. Other Investments - - - - -
TotalInvestments - - - - -
Amount in NPR
Schedule 12.1
HeldtoMaturityInvestments PARTICULARS COSTPRICE IMPAIREDAMOUNTTILL PROFIT/LOSS REMARkS
16JUL2010 16JUL2011 thiS Year previouS Year
1. Nepal Government Treasury Bills 4,725,584,865 - - - -
2. Nepal Government Saving Bonds - - - - -
3. NepalGovernmentOtherSecuries 1,681,777,676 - - - -
4. Nepal Rastra Bank Bonds - - - - -
5. Foreign Bonds - - - - -
6. SharesofLocalLicensedInstuons - - - - -
7. DebenturesandBondsofLocalLice- - - - - -
nsedInstuons - - - - -
8. Shares,DebenturesandBondsof - - - - -
LocalOrganisedInstuons - - - - -9. Placement in Foreign Banks 1,794,368,930 - - - -
10. Other Investments 479,420,000 - - - -
TotalInvestments 8,681,151,471
Amount in NPR
Schedule 12.2
AvailableforSaleInvestmentspartiCularS CoSt priCe Market priCe aS at thiS Year previouS Year reMarkS
16JUL2010 16JUL2011 inveStMent PROFIT/LOSS
ADJUSTMENT
RESERVEBA
1. Nepal Government Treasury Bills - - - - -
2. Nepal Government Saving Bonds - - - - -3. NepalGovernmentOtherSecuries - - - - -
4. Nepal Rastra Bank Bonds - - - - -
5. Foreign Bonds - - - - -
6. SharesofLocalLicensedInstuons 83,663,900 159,874,390 147,932,882 - -
7. DebenturesandBondsofLocal - - - - -
LicensedInstuons - - - - -