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Annual Report 2012/013 at a Aglance Glance

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Annual Report 2012/013 at a Aglance Glance www.everestbankltd.com 19 th Annual Report 2012/013 At aGlance At aGlance At (Rs. inmillion) Deposit (Rs. inmillion) Profit Operating Joint-Venture Partner,PNB,ataglance(31March2013) 2008/09 1073.5 2008/09 33322.9 2009/010 1349.1 2009/010 36932.3 2010/011 1516.7 (Growth of -2.78%YoY) of (Growth 2010/011 41127.9 (Growth of 4.00%YoY) of (Growth 2011/012 1790.4 2011/012 50006.1 INR 700285Crore 2012/013 2401.6 Total Business INR 4748Crore 2012/013 57720.4 Net Profit (Rs. inmillion) (Including BillsPurchases) Loans &Advances (Rs. inmillion) Net Profit 2008/09 638.7 2008/09 24469.6 2009/010 831.8 2009/010 28156.4 2010/011 931.3 2010/011 31661.8 2011/012 1090.6 2011/012 36616.8 2012/013 1471.1 2012/013 44197.7 (Growth of 4.51%YoY) of (Growth Book ValuePerShare INR 478877Crore Total Assets INR 884.03 (In Rs.) Share Earning Per (Rs. inmillion) Investment 2008/09 99.99 2008/09 5948.5 2009/010 100.16 2009/010 5008.3 2010/011 83.18 2010/011 7743.9 2011/012 88.55 2011/012 7863.6 2012/013 91.88 2012/013 9263.8 (Rs. inmillion) Capital &Reserve No. of Branches No. of 2008/09 32 2008/09 2203.6 2009/010 37 (Growth of 2.76%YoY) of (Growth 2009/010 2759.1 2010/011 43 Earning PerShare 2010/011 3113.6 Operating Profit INR 10907Crore 2011/012 47 2011/012 4177.3 2012/013 50 INR 139.52 2012/013 4827.8 No. of Staff No. of 2008/09 531 (Rs. inmillion) Net Worth 2008/09 2205.4 2009/010 568 2009/010 2757.1 2010/011 583 2010/011 3640.7 2011/012 625 2012/013 643 2011/012 4017.3 2012/013 4667.8 BOARD OF DIRECTORS B. K. Shrestha Ved K. Shrestha Dr. Bal Gopal Baidya Arun Man Sherchan Chairman Director Director Director K. Ram Mohan Dr. Rakesh Gupta Director Director (Punjab National Bank, India) (Punjab National Bank, India) Shiva Sharan K.C. Navin Bhakta Shrestha Director Director (Public Shareholders) (Public Shareholders) Pramod Raj Sharma Legal Advisor Auditor Company Secretary Sr. Advocate Shambhu Thapa Sundar Man Shrestha, FCA Sundar & Company Chartered Accountants MANAGEMENT TEAM A. K. Ahluwalia Chief Executive Officer A. K. Bansal H.P. Kulkarni Hum Nath Gurung Dy. General Manager Dy. General Manager Dy. General Manager Pramod Raj Sharma Company Secretary 1 Chairman’s Statement 2 2 Board of Directors’ Report 3 3 Auditors’ Report 10 4 Balance Sheet 11 5 Profit and Loss Account 12 6 Profit Appropriation Account 13 7 Statement of Changes in Equity 14 8 Cash Flow Statement 15 9 Schedules 16 10 Main Indicators 43 11 Significant Accounting Policies 44 12 Notes to Account 46 13 Disclosure Relating to Base-II Framework 55 14 Branch Offices 58 15 Branch Managers & Offices 59 16 Department Head 60 &+$,50$1·6££67$7(0(17 In the banking sector, the liquidity remained volatile. While the government has been encouraging mergers of Bank to create fewer but strong banks, no major merger have taken place. Your Bank tried its best and invited other banks to merge. Your Bank with the support of Punjab National Bank has the ability not only to complete such merger but also resolve all the likely issues that could arise as a result of such merger. Unfortunately, the effort of your Bank has not resulted in a positive manner so far. We continue to keep our doors open. One of the main reasons of merger not going through is because most of the Banks were shy to go through the valuation of the two Banks by an independent International Agency, for determining the share swap ratio. Last year I had mentioned in my statement to the respected shareholders about the turmoil and the consequent uncertainties On the part of the Government/Nepal Rastra Bank while certain created in the two largest economies of the world (a) USA and concessions were given in the areas of (a) Capital Gain Tax and (b) Europe. After the Presidential election in USA in November, (b) Land registration duties. However, important concessions 2012, there has been clear sign of improvement in the US needed in the area of (a) rate of income tax for the merged bank economy. It is reported that by introducing the technology of (b) write off of surplus assets when the two banks are merged extracting oil from the underground shell, USA is said to be now and (c) ceiling on “Golden Handshake” to surplus staff, if any, free of oil imports. This is quite a major factor. have not been pronounced. Consequently, the US Dollar has gained strength against all The Bank is continuing its fundamental policy of avoiding currencies. That may be good for USA but has affected Indian temptation of higher earnings by investing in advances with currency and Indian economy badly – with direct effect to Nepal. relatively higher risk has kept the Non Performing Assets (bad The dollar rate in Nepal has now jumped to Rs.99/-. debts) as low as possible with steady consistent growth in profit. The equity market in U.S has strengthened and hence investors Keeping in view (a) trend of profit and (b) our General Reserve are choosing to invest in US Securities compared to other countries Position including India. The Board considered and recommended issue of 50% cash The other good sign is that Germany, has stood as the pillar of dividend. This dividend is on the increased Capital based on 30% strength in Europe, in-spite of most of the countries in Europe bonus shares issued last year and hence amounts to 65%. If you continuing to flounder. The other dangerous development continues take the capital base of the year before last year. to be in Middle East and North Africa. Your Bank’s growth has been consistent not only in profit, but Near to our country, Indian politics continue to be volatile with also in size. The total business of the Bank (deposits and advances) the present Central Government reduced to a minority. This has crossed 10,000 crores. There are only two other Banks (Nabil uncertain political situation in India is likely to continue till the Bank and Nepal Investment Bank) who have crossed the benchmark general election scheduled in 2014. of 10,000 crores. However, your Banks EPS (Earning Per Share) is better compared to these two Banks. In our own country, the government has announced 19th November as the date for election. However, several issues connected with I would like to express my gratitude for all the help that we the election and several parties opposing the election continue receive from Nepal Rastra Bank as well as Punjab National Bank. to give an air of uncertainties. Likewise, I am thankful to the valuable suggestions and cooperation extended to me by my Board members as well as the entire Officer Investors seek certainty. One of the reasons why investment has and staff of the Bank. gone down all over the world is because of the aforesaid uncertainties. B. K. SHRESTHA Apart from the political uncertainties the central impediment for CHAIRMAN economic development is the continuing poor supply of the electricity in the country. Directors’ Report Ladies and Gentlemen: Other Major Performance: It gives me great pleasure to welcome you to the 19th Annual General a) Business: Rs. In crore Meeting (AGM) of your Bank. I have the privilege of presenting the Increased over Balance Sheet as at 31st Ashadh 2070 (15th July, 2013), the Profit & Previous Over Loss Account and Cash Flow Statement of your Bank for the year ending 2064/065 2068/069 2069/070 Year 5 year’s on that date and the Auditors' report made there on. Particulars (2007/08) (2011/12) (2012/13) % period % Deposit 2397.63 5000.61 5772.05 15.42 240.70 1. GENERAL ECONOMIC ENVIRONMENT OF THE COUNTRY (Please also Loans & Advances 1883.64 3661.68 4419.78 20.70 234.60 refer Annexure 1 & 2) & REVIEW OF OPERATIONS OF YOUR BANK: 2. Performance Review: b) Profitability: It is my great pleasure to present the performance of your bank Rs. In crore over a period of last five years. As per the table presented below, Increased over core strength of your Bank has consistently increased over the Previous Over 2064/065 2068/069 2069/070 Year 5 year’s period. Total shareholders' fund has gone up over the last five Particulars (2007/08) (2011/12) (2012/13) % period % years from Rs. 209.22 crore to Rs. 552.42 crore consisting of the Total Income 184.82 550.83 556.05 0.95 200.86 following: Rs. in crore Operating Profit 81.82 179.04 240.16 34.13 193.52 2064/065 2069/070 Net Profit after Tax 45.12 109.06 147.11 34.88 226.04 Particulars (2007/08) (2012/13) Paid Up Capital Ordinary Shares 49.14 160.11 The table shows consistent progress of the Bank over the last five Statutory General Reserve* 32.31 161.58 years. Share Premium 20.64 1.85 Capital Adjustment Reserve 22.01 36.71 During the year under review, your Bank has earned operating profit Other Reserves 1.92 5.93 of Rs. 240.16 crore which is 34.13% more than last year and has been Debenture Redemption Reserve 6.00 4.69 able to post a after tax net profit of Rs. 147.11 crore, which is 34.88% Capital Redemption Reserve - 14.00 higher than the last year.
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