12Th Annual Report 2015 / 16 Board of Directors

12th Annual Report 2015 / 16 Board of Directors

Binaya Kumar Shrestha Chairman

Tuk Prasad Poudel Dr. Subarna Das Shrestha

Bharat Kumar Pokheral Mahesh Ghimire Bharat Bahadur Thapa

Financial Highlights

DEPOSIT (RS. BILLION) GROSS LOAN AND ADVANCES (RS. BILLION)

46.42 40.90 34.05 28.59 24.87 20.62 17.79 15.25 11.18 9.64

2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

As at Mid July As at Mid July

INVESTMENTS (RS. BILLION) TOTAL ASSETS (RS. BILLION)

10.73 55.96

7.74 40.30

29.38 21.98 3.85 3.72 13.72 2.11

2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

As at Mid July As at Mid July

SHAREHOLDER’S FUND (RS. BILLION) NET INTEREST INCOME (RS. MILLION) 5.35

3.43 1,722.30 2.83 2.42 1,139.39 2.13 818.72 655.53 418.58418 58

2012 2013 2014 2015 2016 11/12 12/13 13/14 14/15 15/16

As at Mid July FY

OPERATIONS PFOFIT BEFORE PROVISION (RS. MILLION) NET PROFIT (RS. MILLION) 996.05

1,613.80 624.14

1,045.13 427.60 750.11 305.06 516.79 242.43 121.77

11/12 12/13 13/14 14/15 15/16 11/12 12/13 13/14 14/15 15/16

FY FY Financial Highlights

NPL/TL (%) CAR (%)

20.74 0.479

14.87 12.54 12.36 11.08 0.073 0.027 0.017 0.019

2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

As at Mid July As at Mid July

ROE (%) DIVIDEND (%) BRANCHES ATMS 47 29.03 40 22.03

17.64 28 38 40 14.32 21.05 22 24 15.79 15.79 5.75 10.53 5.50 444

11/12 12/13 13/14 14/15 15/16 11/12 12/13 13/14 14/15 15/16

FY FY

COMPOSITION OF INCOME COMPOSITION OF EXPENSE

12% Interest Interest 4%

87% Forex Personnel 9% 72% 16% Others Others Annual Report 2015/16 CONTENTS

S.No. Description Page no.

1 Chairman’s Speech 4 2 Director’s Report 5 3 Consolidated Balance Sheet 13 &RQVROLGDWHG3URȨWDQG/RVV$FFRXQW 14 &RQVROLGDWHG3URȨWDQG/RVV$SSURSULDWLRQ$FFRXQW 15 6 Consolidated Cash Flow Statement 16 6WDWHPHQWRI&KDQJHVLQ(TXLW\ 17 8 Report on the Financial Statements 18 9 Balance Sheet 20 3URȨWDQG/RVV$FFRXQW 21 3URȨWDQG/RVV$SSURSULDWLRQ$FFRXQW 22 12 Cash Flow Statement 23 6WDWHPHQWRI&KDQJHVLQ(TXLW\ 24 6FKHGXOHV 25 - 81 8QDXGLWHG)LQDQFLDO5HVXOWV 82

1 Annual Report 2015/16 3URȨOH

Sanima, promoted by prominent and dynamic Non-Resident Nepalese (NRNs) Businessman, commenced its operation in 2004 with the vision to mobilize resources for National Development. Sanima has been able to establish itself as a "A" Class Commercial Bank and has achieved the triumph to establish itself as a Strong & Reliable Commercial Bank in Nepal .In the pursuit of sustainable JURZWK 6DQLPD KDV IXOOȩHGJHG EUDQFKHV ZLWKLQ DQG RXWVLGH WKH .DWKPDQGX 9DOOH\ DQG KDV IXUWKHUSODQVWRKDYHPRUHIRRWSULQWVLQGLȧHUHQWSDUWVRIWKHFRXQWU\

(YHUVLQFHLWVLQFHSWLRQ6DQLPDKDVRȧHUHGRQHZLQGRZȨQDQFLDOVROXWLRQVDQGFXVWRPL]HGVHUYLFHVWR better suit the needs of the individual customer. Sanima is committed to exceed customer expectations in all areas of its Business through consistent processes, innovations and improvements. Every day, we’re proud to partner with many businesses, and communities, bringing them our skills and expertise WRKHOSPDNHWKHLUȨQDQFLDOOLYHVEHWWHU

Sanima has always taken initiative for the wellbeing of the society and has been contributing especially towards the education sector. We assure our commitment to give continuation to such a noble cause..

2 Annual Report 2015/16 Management Team

Bhuvan Kumar Dahal Chief Executive Officer

Tej Bahadur Chand Deputy Chief Executive Officer

Bobby Singh Gadtaula Nischal Raj Pandey Pawan Kumar Acharya Chief Deposit Officer Chief Risk Officer Chief Project Financing Officer

Saroj Guragain Sujeet Dhakal Raju Krishna Shrestha Chief Financial Officer Chief Retail Lending Officer Deputy Chief Operating Officer

Roshan Chandra Gautam Sushil Ratna Bajracharya Hitler Shrestha Deputy Chief Operating Officer Head Information Technology Head Corporate Lending

Sudip Kumar Halwai Sushil Raj Shrestha Bibhor Jha Head Credit Risk Retail Head Institutional Deposit Head Treasury Front Office

Anish Pyakurel Hem Raj Sanjyal Tanka Mani Baral Senior Credit Risk Manager Regional Manager Western Region Regional Manager Eastern Region

Narayan Prasad Khatiwada Prakash Karki Niraj Dhakal Head SME/Mid-Size Business SRM - Retail Lending Head Internal Audit

Priti Singh Bikram Shrestha Rama Khadka Head Deposit Management Retail Head, e-Banking & ISO Manager Credit Risk Business

Ramila Shrestha Sabina Shrestha Head Human Resource Head Trade Finance

Annual Report 2015/16 As a Chairman, I woud like to assure you that SSanimaanima “ shall continuouslly attempt to provide better results.esults. “Chairman's Message

Respected Shareholders,

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4 Annual Report 2015/16

DIRECTOR’S REPORT

Respected Shareholders,

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A) CURRENT YEAR VS PREVIOUS YEAR

Rs. In Million

DETAILS MID JULY 2016 MID JULY 2015 CHANGE (%)

1HW/RDQV 40,455 28,264 43

Investment 10,734 7,744 38

Deposit 46,423 34,045 36

'LYLGHQG ,QFOXGLQJ&DVK 72.48 53.69 18.79

1RQ3HUIRUPLQJ/RDQV 0.02 0.07 0.05

Details FY 2015/16 FY 2014/15 Change (%)

Net Interest Income 1,723 1,139 51

2SHUDWLQJ3URȨW %HIRUH3URYLVLRQ 1,611 1,045 54

1HW3URȩW 1,000 624 60

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B) COUNTRY’S MACROECONOMIC SITUATION

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5 Annual Report 2015/16

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CAPITAL MARKET 7KH1(36(LQGH[LQFUHDVHGWRSRLQWVLQPLG-XO\IURPSRLQWVLQWKHFRUUHVSRQGLQJSHULRGRIWKHSUHYLRXV\HDU7KHUDOO\ LQWKH1(36(LQGH[ZDVRQDFFRXQWRILQWURGXFWLRQRIWKHFDSLWDOKLNHSROLF\IRUȨQDQFLDOLQVWLWXWLRQVGHPDWHULDOL]HGWUDQVDFWLRQVIURP PLG-DQXDU\DQGULVHLQLQYHVWRUVȆFRQȨGHQFHGXHWRLPSURYHGSROLWLFDOVLWXDWLRQ 7KHWRWDOWXUQRYHURIWKHVHFXULWLHVWUDGHGURVHSHUFHQWWR5VELOOLRQLQ7KHLQFUHDVHGOLTXLGLW\RIVWRFNVGXHWRWKH GHPDWHULDOL]HGWUDQVDFWLRQVDVZHOODVWKHEXOOLVKWUHQGRIWKH1(36(LQGH[ZDVWKHSULPDU\UHDVRQIRUVXFKXSVXUJHLQWXUQRYHU (Source: Nepal Rastra Bank)

C) FINANCIAL SUMMARY A. BALANCE SHEET OF PREVIOUS FIVE YEAR Rs. In Million

CAPITAL & LIABILITIES FY 2011/12 FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16

Share Capital 2,016 2,218 2,550 3,060 4,711

5HVHUYHVDQG)XQGV 114 206 283 370 646

'HEHQWXUHVDQG%RQGV - ---370

Borrowings 88 1,480 898 1,687 3,282

'HSRVLW/LDELOLWLHV 11,179 17,789 24,874 34,045 46,344

%LOOV3D\DEOHV -- ---

Proposed Cash Dividend 111 11 18 27 36

,QFRPH7D[/LDELOLWLHV -- ---

2WKHU/LDELOLWLHV 215 272 754 1,111 502

Total Capital & Liabilities 13,722 21,977 29,377 40,301 55,891

6 Annual Report 2015/16

Assets

Cash Balance 256 313 538 691 683

Balance with NRB 1,005 1,284 2,811 687 2,575

%DODQFHZLWK%DQNV)LQDQFLDO ,QVWLWXWLRQV 112 89 162 393 155

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Investments 2,106 3,848 3,716 7,744 10,652

/RDQV$GYDQFHVDQG%LOOV3XUFKDVH 9,532 15,093 20,371 28,264 40,455

)L[HG$VVHWV 479 469 502 615 655

1RQ%DQNLQJ$VVHWV -- ---

2WKHU$VVHWV 233 516 1,276 1,907 716

Total Assets 13,722 21,977 29,377 40,301 55,891

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B. PROFIT/LOSS OF PREVIOUS FIVE YEARS Rs. In Million

PARTICULARS FY 2011/12 FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16

Interest Income 1,172.20 1,678.79 2,018.51 2,548.88 3,263.02

Interest Expenses 753.62 1,023.26 1,199.79 1,409.49 1,540.14

Net Interest Income 418.58 655.53 818.72 1,139.39 1,722.88

&RPPLVVLRQDQG'LVFRXQW 11.25 23.67 39.82 53.47 88.55

Other Operating Income 42.95 68.85 85.44 131.30 235.37

([FKDQJH)OXFWXDWLRQ,QFRPH - 27.24 146.89 178.75 153.62

Total Operating Income 472.78 775.29 1,090.87 1,502.90 2,200.42

(PSOR\HHV([SHQVHV 79.99 99.78 134.38 182.32 259.44

Other Overhead Expenses 150.19 158.73 206.38 275.45 329.61

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2SHUDWLQJ3URȩW%HIRUH3URYL- VLRQIRU3RVVLEOH/RVV 242.43 516.78 750.11 1,045.13 1,611.38

3URYLVLRQIRU3RVVLEOH/RVVHV 52.49 57.85 95.21 119.44 134.54

2SHUDWLQJ3URȩW 189.93 458.94 654.89 925.69 1,476.84

1RQRSHUDWLQJ,QFRPH([SHQVHV 0.68 2.57 21.57 7.34 70.69

3URYLVLRQ:ULWWHQ%DFN - 19.68 1.53 41.86 16.00

3URȩWIURP5HJXODU2SHUDWLRQV 190.61 481.18 677.99 974.90 1,563.53

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1HW3URȩWDIWHUFRQVLGHULQJDOO DFWLYLWLHV 190.61 481.18 677.68 974.29 1,563.53

3URYLVLRQ)RU6WDȧ%RQXV 17.33 43.74 61.61 88.57 141.61

Provision For Income Tax 51.51 132.38 188.48 261.58 421.49

1HW3URȩW /RVV 121.77 305.06 427.60 624.14 1,000.43

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7 Annual Report 2015/16

D) INFRASTRUCTURE

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L) CHANGES IN BOARD OF DIRECTORS AND ELECTION

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Thank you 2QEHKDOIRI%RDUGRI'LUHFWRUV

Binaya Kumar Shrestha Chairman

10 Annual Report 2015/16

11 Annual Report 2015/16

12 Annual Report 2015/16 Consolidated Balance Sheet $VRQ-XO\ $VKDGK

CAPITAL & LIABILITIES CURRENT YEAR (RS.) PREVIOUS YEAR (RS.)

1 Share Capital 4,710,596,500 3,060,288,000

2 5HVHUYHDQG)XQG 646,029,286 370,405,691

3 'HEHQWXUHVDQG%RQGV 370,000,000 -

4 Borrowings 3,281,939,578 1,687,185,281

5 'HSRVLW/LDELOLWLHV 46,344,181,075 34,045,316,291

6 %LOOV3D\DEOHV - -

7 Proposed Cash Dividend 36,240,253 26,844,632

8 ,QFRPH7D[/LDELOLWLHV - -

9 2WKHU/LDELOLWLHV 501,695,713 1,111,157,482

Total Liabilities 55,890,682,404 40,301,197,377

ASSETS CURRENT YEAR (RS.) PREVIOUS YEAR (RS.)

1 Cash Balance 682,823,728 690,663,251

2 Balance with NRB 2,574,787,981 687,276,091

3 %DODQFHZLWK%DQNV)LQDQFLDO,QVWLWXWLRQV 154,973,855 393,091,554

4 0RQH\DW&DOODQG6KRUW1RWLFH - -

5 Investments 10,651,936,104 7,744,240,384

6 /RDQV$GYDQFHVDQG%LOOV3XUFKDVH 40,455,086,817 28,264,050,734

7 )L[HG$VVHWV 654,874,507 614,771,604

8 1RQ%DQNLQJ$VVHWV - -

9 2WKHU$VVHWV 716,199,413 1,907,103,759

Total Assets 55,890,682,404 40,301,197,377

%KXYDQ'DKDO %LQD\D.XPDU6KUHVWKD $VSHURXUUHSRUWRIHYHQGDWH &KLHI([HFXWLYH2ȫFHU Chairman 6KDVKL6DW\DO Managing Partner 6DURM*XUDJDLQ Directors 758SDGK\D &R &KLHI)LQDQFLDO2ȫFHU 7XN3UDVDG3RXGHO &KDUWHUHG$FFRXQWDQWV 'U6XEDUQD'DV6KUHVWKD th nd 'DWH 6HSWHPEHU %KDGUD %KDUDW.XPDU3RNKUHO 3ODFH1D[DO.DWKPDQGX 0DKHVK*KLPLUH %KDUDW%DKDGXU7KDSD

13 Annual Report 2015/16 &RQVROLGDWHG3URȩWDQG/RVV$FFRXQW )RUWKHSHULRGIURP-XO\WR-XO\ 6KUDZDQWR$VKDGK

PARTICULARS CURRENT YEAR (RS.) PREVIOUS YEAR (RS.)

1. Interest Income 3,263,021,831 2,544,796,651

2. Interest Expense 1,540,143,649 1,405,406,718

Net Interest Income 1,722,878,182 1,139,389,934

3. &RPPLVVLRQDQG'LVFRXQW 88,547,034 53,468,424

4. Other Operating Income 235,374,204 131,295,145

5. ([FKDQJH)OXFWXDWLRQ,QFRPH 153,623,259 178,746,935

Total Operating Income 2,200,422,679 1,502,900,437

6. (PSOR\HHV([SHQVH 259,435,476 182,320,716

7. Other Operating Expense 329,610,183 275,445,593

8. ([FKDQJH)OXFWXDWLRQ/RVV - -

2SHUDWLQJ3URȩW%HIRUH3URYLVLRQIRU3RVVLEOH/RVV 1,611,377,019 1,045,134,128

9. 3URYLVLRQIRU3RVVLEOH/RVVHV 134,538,396 119,440,925

2SHUDWLQJ3URȩW 1,476,838,623 925,693,203

10. 1RQRSHUDWLQJ,QFRPH([SHQVH 70,694,129 7,344,065

11. 3URYLVLRQ:ULWWHQ%DFN 15,998,975 41,861,232

3URȩWIURP5HJXODU2SHUDWLRQV 1,563,531,728 974,898,501

12. 3URȨW/RVVIURPH[WUDRUGLQDU\DFWLYLWLHV -

1HW3URȩWDIWHUFRQVLGHULQJDOODFWLYLWLHV 1,563,531,728 974,289,503

13. 3URYLVLRQ)RU6WDȧ%RQXV 141,609,003 88,571,773

14. Provision For Income Tax 421,494,077 261,576,432

7KLV

3UHYLRXV

'HIHUUHG7D[([SHQVH ,QFRPH 2,230,513

1HW3URȩW /RVV 1,000,428,648 624,141,298

14 Annual Report 2015/16 &RQVROLGDWHG3URȩWDQG/RVV$SSURSULDWLRQ$FFRXQW )RUWKHSHULRGIURP-XO\WR-XO\ 6KUDZDQWR$VKDGK

PARTICULARS CURRENT YEAR (RS.) PREVIOUS YEAR (RS.)

Income

1 $FFXPXODWHG3URȨWXSWR/DVW

2 &XUUHQW

3 ([FKDQJH)OXFWXDWLRQ)XQG - -

4 6KDUH3UHPLXP - 10,563,747

Total (A) 1,001,752,336 663,044,580

([SHQVHV

1 $FFXPXODWHG/RVVXSWR/DVW

2 7KLV

3 *HQHUDO5HVHUYH 199,211,740 124,828,260

4 Contingent Reserve - -

5 ,QVWLWXWLRQDO'HYHORSPHQW)XQG - -

6 'LYLGHQG(TXDOL]DWLRQ)XQG - -

7 (PSOR\HH5HODWHG5HVHUYH)XQG - -

8 Proposed Dividend 36,240,253 26,844,632

9 3URSRVHG,VVXHRI%RQXV6KDUH 688,564,800 510,048,000

10 6SHFLDO5HVHUYH)XQG 11,922,576 -

11 ([FKDQJH)OXFWXDWLRQ)XQG 994,898 -

12 &DSLWDO5HGHPSWLRQ5HVHUYH)XQG 52,857,143 -

13 &DSLWDO$GMXVWPHQW)XQG - -

14 Deferred Tax Reserve 2,591,740 -

15 ,QYHVWPHQW$GMXVWPHQW5HVHUYH 2,195,000 -

Total (B) 994,578,150 661,720,891

$FFXPXODWHG3URȩW /RVV $% 7,174,186 1,323,688

15 Annual Report 2015/16 Consolidated Cash Flow Statement )RUWKHSHULRGIURP-XO\WR-XO\ 6KUDZDQWR$VKDGK

PARTICULARS CURRENT YEAR RS. PREVIOUS YEAR RS.

(a) &DVKȪRZIURP2SHUDWLQJ$FWLYLWLHV 1,011,295,635 812,538,723

1 Cash Receipts 3,487,607,819 2,875,557,696

1.1 Interest Income 3,099,841,259 2,503,453,593

1.2 &RPPLVVLRQDQG'LVFRXQW,QFRPH 88,547,034 53,468,424

1.3 Income from Foreign Exchange Transaction 149,643,667 182,265,837

1.4 5HFRYHU\RI:ULWWHQRȧ/RDQV - -

1.5 Other Incomes 149,575,859 136,369,843

2 Cash Payments 2,476,312,184 2,063,018,973

2.1 Interest Expenses 1,524,679,231 1,402,455,102

2.2 6WDȧ([SHQVHV 259,353,364 182,320,716

2.3 Other Operating Expenses 252,666,480 202,912,829

2.4 Income Tax Paid 439,613,109 275,330,326

2.5 Other Expenses -

&DVK)ORZ%HIRUH:RUNLQJ&DSLWDO$FWLYLWLHV 1,294,552,563 174,303,666

,QFUHDVH 'HFUHDVHRI&XUUHQW$VVHWV

1 ,QFUHDVH 'HFUHDVHLQ0RQH\DW&DOODQG6KRUW1RWLFH - -

2 ,QFUHDVH 'HFUHDVHLQ6KRUWWHUP,QYHVWPHQWV 630,447,485

3 ,QFUHDVH 'HFUHDVHLQ/RDQVDQG$GYDQFHVDQG%LOOV3XUFKDVH

4 ,QFUHDVH 'HFUHDVHLQ2WKHU$VVHWV 1,237,924,494

,QFUHDVH 'HFUHDVH RI&XUUHQW/LDELOLWLHV 11,736,931,687 9,323,427,085

1 ,QFUHDVH 'HFUHDVH LQ'HSRVLWV/LDELOLWLHV 12,298,864,783 9,171,466,933

2 ,QFUHDVH 'HFUHDVH LQ&HUWLȨFDWHRI'HSRVLWV - -

3 ,QFUHDVH 'HFUHDVH LQ6KRUWWHUP%RUURZLQJV 221,460,000

4 ,QFUHDVH 'HFUHDVH LQ2WKHU/LDELOLWLHV 248,162,556

(b) &DVKȪRZIURP,QYHVWPHQW$FWLYLWLHV (3,483,311,117) (3,609,326,667)

1 ,QFUHDVH 'HFUHDVHLQ/RQJ7HUP,QYHVWPHQW

2 ,QFUHDVH 'HFUHDVHLQ)L[HG$VVHWV

3 ,QWHUHVW,QFRPH)URP/RQJ7HUP,QYHVWPHQW 115,938,881 30,479,026

4 Dividend Income 1,835,717 1,660,370

5 Others -

1 ,QFUHDVH 'HFUHDVH LQ/RQJ7HUP%RUURZLQJV %RQGV'HEHQWXUHVHWF 370,000,000 -

2 ,QFUHDVH 'HFUHDVH LQ6KDUH&DSLWDO&DOOVLQDGYDQFH 1,071,743,700 -

3 ,QFUHDVH 'HFUHDVH LQ2WKHU/LDELOLWLHV - -

4 ,QFUHDVH 'HFUHDVH LQ5HȨQDQFH)DFLOLWLHVIURP1HSDO5DVWUD%DQN 1,373,294,297 885,119,821

(d) ,QFRPH([SHQVHVIURPFKDQJHLQ([FKDQJH5DWHLQ&DVKDQG%DQN%DODQFHV 3,979,591 (3,518,902)

(e) 7KLV

I 2SHQLQJ%DODQFHRI&DVKDQG%DQN%DODQFHV 1,771,030,896 3,511,914,255

(g) &ORVLQJ%DODQFHRI&DVKDQG%DQN%DODQFHV 3,412,585,565 1,771,030,896

16 Annual Report 2015/16 In Rs. 6KDVKL6DW\DO Managing Partner TOTAL AMOUNT 758SDGK\D &R &KDUWHUHG$FFRXQWDQWV - - 76 5,356,625,786 76 $VSHURXUUHSRUWRIHYHQGDWH AND FUND OTHER RESERVE OTHER RESERVE RESERVE INVESTMENT ADJUSTMENT - - - 2,591,740 - - RESERVE DEFERRED TAX DEFERRED TAX EXCHANGE FLUCTUATION FUND FLUCTUATION Directors Chairman 0DKHVK*KLPLUH 7XN3UDVDG3RXGHO 52,857,143 %KDUDW.XPDU3RNKUHO %KDUDW%DKDGXU7KDSD %LQD\D.XPDU6KUHVWKD CAPITAL 'U6XEDUQD'DV6KUHVWKD REDEMPTION RESERVE FUND ------994,898 ------11,922,576 - - - - - 2,195,000 - - )LQDQFLDO

17 Annual Report 2015/16

18 Annual Report 2015/16

19 Annual Report 2015/16 Balance Sheet $VRQ-XO\ $VKDGK

CAPITAL & LIABILITIES SCHEDULE CURRENT YEAR (RS.) PREVIOUS YEAR (RS.)

1 Share Capital 1 4,710,596,500 3,060,288,000

2 5HVHUYHDQG)XQG 2 641,654,766 370,405,691

3 'HEHQWXUHVDQG%RQGV 3 370,000,000 -

4 Borrowings 4 3,281,939,578 1,687,185,281

5 'HSRVLW/LDELOLWLHV 5 46,423,306,347 34,045,316,291

6 %LOOV3D\DEOHV 6 - -

7 Proposed Cash Dividend 36,240,253 26,844,632

8 ,QFRPH7D[/LDELOLWLHV - -

9 2WKHU/LDELOLWLHV 7 500,820,255 1,111,157,482

Total Liabilities 55,964,557,699 40,301,197,377

ASSETS SCHEDULE CURRENT YEAR (RS.) PREVIOUS YEAR (RS.)

1 Cash Balance 8 682,823,728 690,663,251

2 Balance with NRB 9 2,574,787,981 687,276,091

3 %DODQFHZLWK%DQNV)LQDQFLDO,QVWLWXWLRQV 10 154,973,855 393,091,554

4 0RQH\DW&DOODQG6KRUW1RWLFH 11 - -

5 Investments 12 10,734,792,678 7,744,240,384

6 /RDQV$GYDQFHVDQG%LOOV3XUFKDVH 13 40,455,086,817 28,264,050,734

7 )L[HG$VVHWV 14 646,548,160 614,771,604

8 1RQ%DQNLQJ$VVHWV 15 - -

9 2WKHU$VVHWV 16 715,544,479 1,907,103,759

Total Assets 55,964,557,699 40,301,197,377

&RQWLQJHQW/LDELOLWLHV 6FKHGXOH 17

Directors’ Declaration 6FKHGXOH 29

6WDWHPHQWRI&DSLWDO)XQG 6FKHGXOH .D

6WDWHPHQWRI5LVN:HLJKWHG$VVHWV 6FKHGXOH .KD*D*KD1JD

Principal Indicators 6FKHGXOH 31

3ULQFLSDO$FFRXQWLQJ3ROLFLHV 6FKHGXOH 32

1RWHVWR$FFRXQWV 6FKHGXOH 33

6WDWHPHQWRI/RDQWDNHQE\3URPRWHUV 6FKHGXOH 34

&RPSDULVRQ%HWZHHQ8QDXGLWHGDQG$XGLWHG)LQDQFLDOV 6FKHGXOH 35

8QDXGLWHG)LQDQFLDO+LJKOLJKWVFHUWLȨHGE\,QWHUQDO$XGLWRU 6FKHGXOH $

6FKHGXOHVWR IRUPLQWHJUDOSDUWVRIWKH%DODQFH6KHHW

20 Annual Report 2015/16 3URȩWDQG/RVV$FFRXQW )RUWKHSHULRGIURP-XO\WR-XO\ 6KUDZDQWR$VKDGK

PARTICULARS SCHEDULES CURRENT YEAR (RS.) PREVIOUS YEAR (RS.)

1. Interest Income 18 3,262,997,662 2,544,796,651

2. Interest Expense 19 1,540,695,579 1,405,406,718

Net Interest Income 1,722,302,083 1,139,389,934

3. &RPPLVVLRQDQG'LVFRXQW 20 88,542,984 53,468,424

4. Other Operating Income 21 235,620,779 131,295,145

5. ([FKDQJH)OXFWXDWLRQ,QFRPH 22 153,623,259 178,746,935

Total Operating Income 2,200,089,105 1,502,900,437

6. (PSOR\HHV([SHQVH 23 258,811,026 182,320,716

7. Other Operating Expense 24 328,201,980 275,445,593

8. ([FKDQJH)OXFWXDWLRQ/RVV 22 - -

2SHUDWLQJ3URȩW%HIRUH3URYLVLRQIRU3RVVLEOH/RVV 1,613,076,099 1,045,134,128

9. 3URYLVLRQIRU3RVVLEOH/RVVHV 25 134,538,396 119,440,925

2SHUDWLQJ3URȩW 1,478,537,702 925,693,203

10. 1RQRSHUDWLQJ,QFRPH([SHQVH 26 63,162,356 7,344,065

11. 3URYLVLRQ:ULWWHQ%DFN 27 15,998,975 41,861,232

3URȩWIURP5HJXODU2SHUDWLRQV 1,557,699,034 974,898,501

12. 3URȨW/RVVIURPH[WUDRUGLQDU\DFWLYLWLHV 28 -

1HW3URȩWDIWHUFRQVLGHULQJDOODFWLYLWLHV 1,557,699,034 974,289,503

13. 3URYLVLRQ)RU6WDȧ%RQXV 141,609,003 88,571,773

14. Provision For Income Tax 420,035,903 261,576,432

7KLV

3UHYLRXV

'HIHUUHG7D[([SHQVH ,QFRPH 2,230,513

1HW3URȩW /RVV 996,054,127 624,141,298

6FKHGXOH1RWR IRUPDQLQWHJUDOSDUWRIWKLV3URȨWDQG/RVV$FFRXQW

21 Annual Report 2015/16 3URȩWDQG/RVV$SSURSULDWLRQ$FFRXQW )RUWKHSHULRGIURP-XO\WR-XO\ 6KUDZDQWR$VKDGK

PARTICULARS SCHEDULES CURRENT YEAR (RS.) PREVIOUS YEAR (RS.)

INCOME

1 $FFXPXODWHG3URȨWXSWR/DVW

2 &XUUHQW

3 ([FKDQJH)OXFWXDWLRQ)XQG - -

4 6KDUH3UHPLXP - 10,563,747

Total (A) 997,377,816 663,044,580

EXPENSES

1 $FFXPXODWHG/RVVXSWR/DVW

2 7KLV

3 *HQHUDO5HVHUYH 199,211,740 124,828,260

4 Contingent Reserve - -

5 ,QVWLWXWLRQDO'HYHORSPHQW)XQG - -

6 'LYLGHQG(TXDOL]DWLRQ)XQG - -

7 (PSOR\HH5HODWHG5HVHUYH)XQG - -

8 Proposed Dividend 36,240,253 26,844,632

9 3URSRVHG,VVXHRI%RQXV6KDUH 688,564,800 510,048,000

10 6SHFLDO5HVHUYH)XQG 11,922,576 -

11 ([FKDQJH)OXFWXDWLRQ)XQG 994,898 -

12 &DSLWDO5HGHPSWLRQ5HVHUYH)XQG 52,857,143 -

13 &DSLWDO$GMXVWPHQW)XQG - -

14 Deferred Tax Reserve 2,591,740 -

15 ,QYHVWPHQW$GMXVWPHQW5HVHUYH 2,195,000 -

Total (B) 994,578,150 661,720,891

$FFXPXODWHG3URȩW /RVV $% 2,799,665 1,323,688

22 Annual Report 2015/16 Cash Flow Statement )RUWKHSHULRGIURP-XO\WR-XO\ 6KUDZDQWR$VKDGK

PARTICULARS CURRENT YEAR RS. PREVIOUS YEAR RS.

(a) &DVKȪRZIURP2SHUDWLQJ$FWLYLWLHV 1,014,056,392 812,538,723

1 Cash Receipts 3,487,826,176 2,875,557,696

1.1 Interest Income 3,099,817,090 2,503,453,593

1.2 &RPPLVVLRQDQG'LVFRXQW,QFRPH 88,542,984 53,468,424

1.3 Income from Foreign Exchange Transaction 149,643,667 182,265,837

1.4 5HFRYHU\RI:ULWWHQRȧ/RDQV - -

1.5 Other Incomes 149,822,434 136,369,843

2 Cash Payments 2,473,769,784 2,063,018,973

2.1 Interest Expenses 1,525,231,161 1,402,455,102

2.2 6WDȧ([SHQVHV 258,811,026 182,320,716

2.3 Other Operating Expenses 251,607,651 202,912,829

2.4 Income Tax Paid 438,119,946 275,330,326

2.5 Other Expenses

&DVK)ORZ%HIRUH:RUNLQJ&DSLWDO$FWLYLWLHV 1,373,604,433 174,303,666

,QFUHDVH 'HFUHDVHRI&XUUHQW$VVHWV

1 ,QFUHDVH 'HFUHDVHLQ0RQH\DW&DOODQG6KRUW1RWLFH - -

2 ,QFUHDVH 'HFUHDVHLQ6KRUWWHUP,QYHVWPHQWV 630,447,485

3 ,QFUHDVH 'HFUHDVHLQ/RDQVDQG$GYDQFHVDQG%LOOV3XUFKDVH

4 ,QFUHDVH 'HFUHDVHLQ2WKHU$VVHWV 1,238,448,962

,QFUHDVH 'HFUHDVH RI&XUUHQW/LDELOLWLHV 11,815,459,090 9,323,427,085

1 ,QFUHDVH 'HFUHDVH LQ'HSRVLWV/LDELOLWLHV 12,377,990,056 9,171,466,933

2 ,QFUHDVH 'HFUHDVH LQ&HUWLȨFDWHRI'HSRVLWV - -

3 ,QFUHDVH 'HFUHDVH LQ6KRUWWHUP%RUURZLQJV 221,460,000

4 ,QFUHDVH 'HFUHDVH LQ2WKHU/LDELOLWLHV 248,162,556

(b) &DVKȪRZIURP,QYHVWPHQW$FWLYLWLHV (3,455,123,744) (3,609,326,667)

1 ,QFUHDVH 'HFUHDVHLQ/RQJ7HUP,QYHVWPHQW

2 ,QFUHDVH 'HFUHDVHLQ)L[HG$VVHWV

3 ,QWHUHVW,QFRPH)URP/RQJ7HUP,QYHVWPHQW 135,550,533 30,479,026

4 Dividend Income 1,835,717 1,660,370

5 Others

1 ,QFUHDVH 'HFUHDVH LQ/RQJ7HUP%RUURZLQJV %RQGV'HEHQWXUHVHWF 370,000,000 -

2 ,QFUHDVH 'HFUHDVH LQ6KDUH&DSLWDO&DOOVLQDGYDQFH 961,743,700 -

3 ,QFUHDVH 'HFUHDVH LQ2WKHU/LDELOLWLHV -

4 ,QFUHDVH 'HFUHDVH LQ5HȨQDQFH)DFLOLWLHVIURP1HSDO5DVWUD%DQN 1,373,294,297 885,119,821

(d) ,QFRPH([SHQVHVIURPFKDQJHLQ([FKDQJH5DWHLQ&DVKDQG%DQN%DODQFHV 3,979,591 (3,518,902)

(e) 7KLV

I 2SHQLQJ%DODQFHRI&DVKDQG%DQN%DODQFHV 1,771,030,896 3,511,914,255

(g) &ORVLQJ%DODQFHRI&DVKDQG%DQN%DODQFHV 3,412,585,564 1,771,030,896

23 Annual Report 2015/16 In Rs. 6KDVKL6DW\DO Managing Partner TOTAL AMOUNT 758SDGK\D &R &KDUWHUHG$FFRXQWDQWV - - 76 5,352,251,266 76 $VSHURXUUHSRUWRIHYHQGDWH AND FUND OTHER RESERVE OTHER RESERVE RESERVE INVESTMENT ADJUSTMENT - - - 2,591,740 - - RESERVE DEFERRED TAX DEFERRED TAX EXCHANGE FLUCTUATION FUND FLUCTUATION Directors Chairman 0DKHVK*KLPLUH 7XN3UDVDG3RXGHO 52,857,143 %KDUDW.XPDU3RNKUHO %KDUDW%DKDGXU7KDSD %LQD\D.XPDU6KUHVWKD CAPITAL 'U6XEDUQD'DV6KUHVWKD REDEMPTION RESERVE FUND ------994,898 ------2,195,000 - - 11,922,576 - - )LQDQFLDO

24 Annual Report 2015/16

Share Capital and Ownership SCHEDULE 1 $VRQ-XO\ $VKDGK In Rs. PARTICULARS CURRENT YEAR PREVIOUS YEAR

1 Share Capital

1.1 Authorized Capital 5,000,000,000 3,100,000,000

D 2UGLQDU\6KDUHVRI5VHDFK 5,000,000,000 3,100,000,000

E ȎȎȎȎ1RQUHGHHPDEOH3UHIHUHQFH6KDUHVRI5VȎHDFK - -

F ȎȎȎȎ5HGHHPDEOH3UHIHUHQFH6KDUHVRI5VȎHDFK - -

1.2 Issued Capital 4,590,432,000 2,550,240,000

D 2UGLQDU\6KDUHVRI5VHDFK 4,590,432,000 2,550,240,000

E ȎȎȎȎ1RQUHGHHPDEOH3UHIHUHQFH6KDUHVRI5VȎHDFK - -

F ȎȎȎȎ5HGHHPDEOH3UHIHUHQFH6KDUHVRI5VȎȎHDFK - -

1.3 Paid up Capital 3,060,288,000 2,550,240,000

D 2UGLQDU\6KDUHVRI5VHDFK 3,060,288,000 2,550,240,000

E ȎȎȎȎ1RQUHGHHPDEOH3UHIHUHQFH6KDUHVRI5VȎHDFK - -

F ȎȎȎȎ5HGHHPDEOH3UHIHUHQFH6KDUHVRI5VȎȎȎHDFK

1.4 Proposed Bonus Shares 688,564,800 510,048,000

1.5 &DOOVLQ$GYDQFH 961,743,700 -

Total (1.3+1.4+1.5) 4,710,596,500 3,060,288,000

PARTICULARS CURRENT YEAR PREVIOUS YEAR

% Amount Amount %

1 National Ownership 100 3,060,288,000 2,550,240,000 100

1.1 *RYHUQPHQWRI1HSDO - -

1.2 )RUHLJQ,QVWLWXWLRQV - -

1.3 Ȉ$ȉ&ODVV/LFHQVHG,QVWLWXWLRQV - -

1.4 2WKHU/LFHQVH,QVWLWXWLRQV - -

1.5 2WKHU(QWLWLHV2UJDQL]DWLRQV 4.92 150,687,730 116,123,859 4.55

1.7 ,QGLYLGXDOV 95.08 2,909,600,270 2,434,116,141 95.45

1.6 Others - -

2 Foreign Ownership - - - -

Total 100 3,060,288,000 2,550,240,000 100

25 Annual Report 2015/16

/LVWRI6KDUHKROGHUVKROGLQJ6KDUH&DSLWDORIRU0RUH

NAME OF THE SHAREHOLDERS NO OF SHARE % CURRENT YEAR

1 $UXQ.XPDU2MKD 3,868,053 12.64 386,805,300

2 7HN5DM1LUDXOD 2,491,497 8.14 249,149,700

3 'U1LUDM*RYLQGD6KUHVWKD 1,912,679 6.25 191,267,900

4 -LED1DWK/DPLFKKDQH 1,755,474 5.74 175,547,400

5 %LQD\D.XPDU6KUHVWKD 1,537,733 5.02 153,773,300

6 *KDQDVK\DP7KDSD 1,432,119 4.68 143,211,900

7 Dr. Birendra Prasad Mahato 1,045,183 3.42 104,518,300

8 .KHP5DM/DPLFKKDQH 1,171,525 3.83 117,152,500

9 5DP.ULVKQD6KDK 871,903 2.85 87,190,300

10 -DL*DQHVK,QYHVWPHQW&RPSDQ\3YW/WG 1,074,410 3.51 107,441,000

11 Dilip Shrestha 363,945 1.19 36,394,500

12 Dinesh Mani Shrestha 373,906 1.22 37,390,600

13 *HHWD&KKHWUL 171,890 0.56 17,189,000

Total 18,070,317 59.05 1,807,031,700

5HVHUYHDQG6XUSOXV SCHEDULE 2 $VRQ-XO\ $VKDGK In Rs.

PARTICULARS CURRENT YEAR PREVIOUS YEAR

1 *HQHUDO5HVHUYH)XQG 564,540,000 365,328,259

2 &DSLWDO5HVHUYH)XQG - -

3 &DSLWDO5HGHPSWLRQ5HVHUYH)XQG 52,857,143 -

4 Capital Adjustment Fund - -

5 2WKHU5HVHUYHV - -

5.1 Contingent Reserve - -

5.2 ,QVWLWXWLRQ'HYHORSPHQW)XQG - -

5.3 'LYLGHQG(TXDOL]DWLRQ)XQG - -

5.4 6SHFLDO5HVHUYH)XQG - -

5.5 $VVHWV5HYDOXDWLRQ5HVHUYH - -

5.6 Deferred Tax Reserve 2,591,740 -

5.7 Other Free Reserves - -

5.8 6SHFLDO5HVHUYH)XQGV 11,922,576 -

5.9 6KDUH3UHPLXP - -

5.10 ,QYHVWPHQW$GMXVWPHQW5HVHUYH 2,750,000 555,000

6 $FFXPXODWHG3URȩW /RVV 2,799,665 1,323,688

7 ([FKDQJH(TXDOL]DWLRQ)XQG 4,193,641 3,198,743

Total 641,654,766 370,405,691

26 Annual Report 2015/16

Debentures and Bonds SCHEDULE 3 $VRQ-XO\ $VKDGK In Rs.

PARTICULARS CURRENT YEAR PREVIOUS YEAR

1. 3HUFHQW6DQLPD'HEHQWXUHRI5VHDFK 370,000,000 -

,VVXHGRQWK$XJXVWDQG0DWXULW\RQWK$XJXVW - -

2XWVWDQGLQJEDODQFHRI&DSLWDO5HGHPSWLRQ5HVHUYH)XQG5V - -

2. ȎȎȎȎȎ3HUFHQW%RQG'HEHQWXUHVRI5VȎȎȎȎHDFK - -

,VVXHGRQȎȎȎȎȎDQG0DWXUHGRQȎȎȎȎ - -

2XWVWDQGLQJ%DODQFHRI5HGHPSWLRQ5HVHUYH5VȎȎȎȎȎ - -

3. ……………… - -

Total (1+2+3) 370,000,000.00 -

Borrowings SCHEDULE 4

$VRQ-XO\ $VKDGK In Rs.

Particulars Current Year 3UHYLRXV

A. Local

1 1HSDO*RYHUQPHQW - -

2 Nepal Rastra Bank 3,060,479,578 1,687,185,281

3 5HSR2EOLJDWLRQ - -

4 ,QWHU%DQNDQG)LQDQFLDO,QVWLWXWLRQV 221,460,000 -

5 2WKHU2UJDQL]HG,QVWLWXWLRQV - -

6 Others - -

Total 3,281,939,578 1,687,185,281

B. Foreign - -

1Banks - -

2 Others - -

Total - -

Total (A+B) 3,281,939,578 1,687,185,281

27 Annual Report 2015/16

Deposits SCHEDULE 5 $VRQ-XO\ $VKDGK In Rs.

PARTICULARS CURRENT YEAR PREVIOUS YEAR

1 Non-Interest Bearing Accounts

A. Current Deposits 2,451,183,714 1,863,965,368

1. /RFDO&XUUHQF\ 2,412,873,309 1,855,462,201

1.1 1HSDO*RYHUQPHQW -

1.2 Ȉ$ȉ&ODVV/LFHQVHG,QVWLWXWLRQV 26,216,765 19,684,337

1.3 2WKHU/LFHQVHG)LQDQFLDO,QVWLWXWLRQV 207,418,724 28,770,577

1.4 2WKHU2UJDQL]HG,QVWLWXWLRQV 1,910,133,589 1,639,445,983

1.5 ,QGLYLGXDOV 269,104,232 167,561,305

1.6 Others -

2. Foreign Currency 38,310,405 8,503,167

2.1 1HSDO*RYHUQPHQW - -

2.2 Ȉ$ȉ&ODVV/LFHQVHG,QVWLWXWLRQV - -

2.3 2WKHU/LFHQVHG)LQDQFLDO,QVWLWXWLRQV 2,146 2,032

2.4 2WKHU2UJDQL]HG,QVWLWXWLRQV 38,290,212 8,303,947

2.5 ,QGLYLGXDOV 18,047 197,187

2.6 Others - -

B. Margin Deposits 231,390,730 131,140,848

1 (PSOR\HH*XDUDQWHHV - -

2 *XDUDQWHH0DUJLQ 94,672,119 62,743,539

3 /HWWHUVRI&UHGLW0DUJLQ 136,718,610 68,397,309

C. Others 5,900,000 6,209,612

1. Local Currency 5,900,000 6,209,612

1.1 )LQDQFLDO,QVWLWXWLRQV - -

1.2 2WKHU2UJDQL]HG,QVWLWXWLRQV 5,900,000 6,209,612

1.3 ,QGLYLGXDOV - -

2. )RUHLJQ&XUUHQF\ - -

2.1 )LQDQFLDO,QVWLWXWLRQV - -

2.2 2WKHU2UJDQL]HG,QVWLWXWLRQV - -

2.3 ,QGLYLGXDOV - -

7RWDORI1RQ,QWHUHVW%HDULQJ$FFRXQWV 2,688,474,444 2,001,315,828

&RQWLQXHG

28 Annual Report 2015/16

&RQWLQXHG

Deposits SCHEDULE 5

As on July 15, 2016 (Ashadh 31, 2073) In Rs.

PARTICULARS CURRENT YEAR PREVIOUS YEAR

2 Interest Bearing Accounts - -

A. 6DYLQJ'HSRVLWV 18,952,303,711 12,452,252,247

1. /RFDO&XUUHQF\ 18,624,034,217 12,323,669,784

1.1 2UJDQL]HG,QVWLWXWLRQV 75,664,150 19,504,122

1.2 ,QGLYLGXDOV 18,548,370,067 12,304,165,662

1.3 Others - -

2. Foreign Currency 328,269,494 128,582,464

2.1 2UJDQL]HG,QVWLWXWLRQV -

2.2 ,QGLYLGXDOV 320,533,025 128,582,464

2.3 Others 7,736,469 -

B. )L[HG'HSRVLWV 12,650,386,285 11,709,277,171

1. Local Currency 11,845,636,285 10,454,338,693

1.1 2UJDQL]HG,QVWLWXWLRQV 7,569,851,290 6,542,770,296

1.2 ,QGLYLGXDOV 4,275,784,995 3,911,568,397

1.3 Others - -

2. )RUHLJQ&XUUHQF\ 804,750,000 1,254,938,478

2.1 2UJDQL]HG,QVWLWXWLRQV 804,750,000 1,254,938,478

2.2 ,QGLYLGXDOV - -

2.3 Others - -

C. Call Deposits 12,132,141,908 7,882,471,045

1 Local Currency 11,159,679,127 7,013,401,429

1.1 Ȉ$ȉ&ODVV/LFHQVHG,QVWLWXWLRQV -

1.2 2WKHU/LFHQVHG,QVWLWXWLRQV 4,526,029,844 2,089,412,771

1.3 2WKHU2UJDQL]HG,QVWLWXWLRQV 6,323,977,807 4,789,622,853

1.4 ,QGLYLGXDOV 309,671,475 134,365,804

1.5 Others - -

2. Foreign Currency 972,462,781 869,069,617

2.1 Ȉ$ȉ&ODVV/LFHQVHG,QVWLWXWLRQV - -

2.2 2WKHU/LFHQVHG,QVWLWXWLRQV 543,623 512,148

2.3 2WKHU2UJDQL]HG,QVWLWXWLRQV 971,919,158 868,557,468

2.4 ,QGLYLGXDOV -

2.5 Others - -

D. &HUWLȩFDWHRI'HSRVLWV - -

1. 2UJDQL]HG,QVWLWXWLRQV - -

2. ,QGLYLGXDOV - -

3. Others - -

7RWDORI,QWHUHVW%HDULQJ$FFRXQWV 43,734,831,904 32,044,000,464

Total Deposits (1+2) 46,423,306,347 34,045,316,291

29 Annual Report 2015/16

Bills Payable SCHEDULE 6 $VRQ-XO\ $VKDGK In Rs.

PARTICULARS CURRENT YEAR PREVIOUS YEAR

1 /RFDO&XUUHQF\ - -

2 )RUHLJQ&XUUHQF\ - -

Total - -

Other Liabilities SCHEDULE 7 $VRQ-XO\ $VKDGK In Rs.

PARTICULARS CURRENT YEAR PREVIOUS YEAR

1 3HQVLRQ*UDWXLW\)XQG - -

2 (PSOR\HHV3URYLGHQW)XQG 2,058 -

3 (PSOR\HHV:HOIDUH)XQG - -

4 3URYLVLRQIRU6WDȧ%RQXV 141,609,003 88,613,731

5 ,QWHUHVW3D\DEOHRQ'HSRVLWV 1,392,399 3,899,472

6 ,QWHUHVW3D\DEOHRQ%RUURZLQJV 20,324,733 12,617,555

7 8QHDUQHG'LVFRXQWDQG&RPPLVVLRQ 31,615,430 27,509,846

8 6XQGU\&UHGLWRUV 41,067,367 32,775,598

9 %UDQFK$GMXVWPHQW$FFRXQW - -

10 'HIHUUHG7D[/LDELOLW\ - 4,651,656

11 'LYLGHQG3D\DEOH 6,199,115 7,145,535

12 Others - -

7'63D\DEOH 33,235,340 29,646,435

Provision for expenses 35,263,372 26,044,236

$XGLWIHHSD\DEOH 1,300,000 791,000

*ROG6HFXULW\0DUJLQ - 828,166,911

Others 188,811,438 49,295,507

Total 500,820,255 1,111,157,482

Cash Balance SCHEDULE 8 $VRQ-XO\ $VKDGK In Rs.

PARTICULARS CURRENT YEAR PREVIOUS YEAR

1 /RFDO&XUUHQF\ LQFOXGLQJFRLQV 668,020,285.00 666,881,939

2 )RUHLJQ&XUUHQF\ 14,803,443.21 23,781,312

Total 682,823,728 690,663,251

30 Annual Report 2015/16

Balance with Nepal Rastra Bank SCHEDULE 9 $VRQ-XO\ $VKDGK In Rs.

FOREIGN CURRENCY

INDIAN PARTICULARS LOCAL CURRENCY CURRENCY CONVERTIBLE TOTAL CURRENT YEAR PREVIOUS YEAR

1 Nepal Rastra Bank 2,566,696,006 - 8,091,975 - 2,574,787,981 687,276,091

D &XUUHQW$FFRXQW 2,566,696,006 - 8,091,975 8,091,975 2,574,787,981 687,276,091

E 2WKHU$FFRXQW ------

Balance with Banks/Financial Institutions SCHEDULE 10 $VRQ-XO\ $VKDGK In Rs.

FOREIGN CURRENCY

INDIAN PARTICULARS LOCAL CURRENCY CURRENCY CONVERTIBLE TOTAL CURRENT YEAR PREVIOUS YEAR

1 /RFDO/LFHQVHG,QVWLWXWLRQV 37,985,343 - 1,278,071 1,278,071 39,263,413 75,021,853

D &XUUHQW$FFRXQW 37,985,343 - 1,278,071 1,278,071 39,263,413 75,021,853

E 2WKHU$FFRXQW ------

2 Foreign Banks - 76,060,179 39,650,262 115,710,442 115,710,442 318,069,700

D &XUUHQW$FFRXQW - 76,060,179 39,650,262 115,710,442 115,710,442 318,069,700

E 2WKHU$FFRXQW ------

Total 37,985,343 76,060,179 40,928,333 116,988,512 154,973,855 393,091,554

Note:7RWDO%DODQFHIRUZKLFKWKHFRQȨUPDWLRQVDUHUHFHLYHGIURPWKHUHVSHFWLYHOLFHQVHGLQVWLWXWLRQVLV5VDQGDQ\GLȧHUHQFHVWKHUHRQKDVVXEVHTXHQWO\EHHQUHFRQFLOHG

Money at Call and Short Notice SCHEDULE 11 $VRQ-XO\ $VKDGK In Rs.

PARTICULARS CURRENT YEAR PREVIOUS YEAR

1 /RFDO&XUUHQF\ - -

2 )RUHLJQ&XUUHQF\ - -

Total - -

31 Annual Report 2015/16

,QYHVWPHQWV SCHEDULE 12 $VRQ-XO\ $VKDGK In Rs.

PURPOSE

PARTICULARS TRADING OTHER CURRENT YEAR PREVIOUS YEAR

1 1HSDO*RYHUQPHQW7UHDVXU\%LOOV 247,522,500 247,522,500 2,376,800,617

2 1HSDO*RYHUQPHQW6DYLQJV&HUWLȨFDWHV - - -

3 1HSDO*RYHUQPHQW2WKHU%RQG - 4,758,129,255 4,758,129,255 2,758,159,043

4 Nepal Rastra Bank Bonds - 2,000,000,000 2,000,000,000 -

5 )RUHLJQ%RQGV'HEHQWXUH - 527,608,684 527,608,684 501,169,368

6 /RFDO/LFHQVHG,QVWLWXWLRQV - 245,066,000 245,066,000 182,880,000

7 Foreign Banks - 2,738,415,335 2,738,415,335 1,887,649,236

8 2UJDQL]HG,QVWLWXWLRQ6KDUHV 95,398,304 122,652,600 218,050,904 37,582,120

9 &RUSRUDWH%RQGVDQG'HEHQWXUHV - - - -

10 Other Investments - - - -

Total Investment 95,398,304 10,639,394,374 10,734,792,678 7,744,240,384

Provision - - - -

1HW,QYHVWPHQW 95,398,304 10,639,394,374 10,734,792,678 7,744,240,384

32 Annual Report 2015/16

,QYHVWPHQWLQ6KDUHV'HEHQWXUHVDQG%RQGV SCHEDULE 12 (KA) $VRQ-XO\ $VKDGK In Rs.

PARTICULARS COST PRICE MARKET PRICE PROVISION CURRENT YEAR PREVIOUS YEAR

1 ,QYHVWPHQWLQ6KDUHV 160,874,723 196,531,304 - 218,050,904 37,582,120

1.1 1HSDO&OHDULQJ+RXVH&RPSDQ\/WG - - -

2UGLQDU\6KDUHVRI5V3DLGXSHDFK 2,302,600 - - 2,302,600 2,302,600

1.2 6DQLPD0DL+\GURSRZHU/WG - - - - -

2UGLQDU\6KDUHVRI5V3DLGXSHDFK 10,000,000 101,133,000 - 10,000,000 10,000,000

1.3 6DQLPD/LIH,QVXUDQFH&RPSDQ\/WG

2UGLQDU\6KDUHVRI5V3DLGXSHDFK )DFH9DOXH5V 350,000 350,000 350,000

1.4 6DQLPD)RXQGDWLRQ - - -

6KDUHVRI5V3DLGXSHDFK - - - - 5,000

1.5 5XUDO0LFURȨQDQFH'HYHORSPHQW&HQWUH/WG

2UGLQDU\6KDUHVRI5VSDLGXSHDFK 3,139,863 11,627,531 - 11,627,531 4,988,291

1.6 1HSDO'RRUVDQFKDU&RPSDQ\/WG

2UGLQDU\6KDUHVRI5V3DLGXSHDFK 20,600,460 21,597,582 - 21,597,582 19,936,229

1.7 +\GURHOHFWULFLW\,QYHVWPHQWDQG'HYHORSPHQW&RPSDQ\/WG

2UGLQDU\6KDUHVRI5V3DLGXSHDFK 14,481,800 62,173,191 - 62,173,191

1.8 6DQLPD&DSLWDO/WG

2UGLQDU\6KDUHVRI5V3DLGXSHDFK 110,000,000 - 110,000,000

2 ,QYHVWPHQWLQ'HEHQWXUHVDQG%RQGV - -

2.1 Foreign Bonds 527,608,684 507,831,304 527,608,684 501,169,368

7RWDO,QYHVWPHQW 688,483,408 704,362,608 - 745,659,588 538,751,488

3 3URYLVLRQIRU/RVV - - - - -

3.1 3URYLVLRQ8SWR3UHYLRXV

3.2 $GGLWLRQV7KLV

7RWDO3URYLVLRQ - - -

1HW,QYHVWPHQW 688,483,408 704,362,608 - 745,659,588 538,751,488

&RPSDQLHVPHQWLRQHGLQ KDYHQRWGHFODUHGGLYLGHQGLQODVWWKUHH\HDUV &RPSDQLHVPHQWLRQHG DUHQRW\HWLQRSHUDWLRQDQGQRVKDUHFHUWLȨFDWHVKDYHEHHQLVVXHG &RPSDQLHVDUHOLVWHGLQ1HSDO6WRFN([FKDQJH/WG %URNHU&RPPLVVLRQ#KDVEHHQDGMXVWHGLQ0DUNHGWR0DUNHW3ULFH

33 Annual Report 2015/16

+HOGIRU7UDGLQJ SCHEDULE 12.1 $VRQ-XO\ $VKDGK In Rs.

CURRENT CURRENT PREVIOUS LAST MARKET MARKET YEAR PROFIT/ YEAR PROFIT/ DESCRIPTION COST PRICE PRICE (A) PRICE (B) (LOSS) (B-A) (LOSS) REMARKS

7UHDVXU\%LOOVRI*RYHUQHPHQWRI1HSDO - - - - -

6DYLQJ%RQGVRI*RYHUQPHQWRI1HSDO - - - - -

2WKHU%RQGVRI*RYHUQPHQWRI1HSDO - - - - -

4. Bonds of Nepal Rastra Bank - - - - -

5. Foreign Bonds - - - - -

6KDUHVRI/RFDO/LFHQVHG,QVWLWXWLRQV 3,139,863 4,988,291 11,627,531 6,639,240

'HEHQWXUHDQG%RQGVRI/RFDO/LFHQVHG,QVWLWXWLRQV - - - - -

6KDUH'HEHQWXUHDQG%RQGVRI/RFDO2UJDQL]HG,QVWLWXWLRQV 35,082,260 19,936,229 83,770,773 63,834,544

,QYHVWPHQWLQ)RUHLJQ%DQNV 3ODFHPHQW - - - - -

,QWHUEDQN/HQGLQJ - - - - -

11. Other Investment - - - - -

7RWDO,QYHVWPHQW 38,222,123 24,924,520 95,398,304 70,473,783 (2,019,345)

Held to Maturity SCHEDULE 12.2 $VRQ-XO\ $VKDGK In Rs.

CURRENT CUMULATIVE CURRENT YEAR PROFIT/ PREVIOUS LOSS UPTO YEAR LOSS (LOSS) YEAR PROFIT/ DESCRIPTION COST PRICE (A) THIS YEAR (B) (C) (A-B-C) (LOSS) REMARKS

7UHDVXU\%LOOVRI*RYHUQHPHQWRI1HSDO 247,522,500 - - - -

6DYLQJ%RQGVRI*RYHUQPHQWRI1HSDO - - - - -

2WKHU%RQGVRI*RYHUQPHQWRI1HSDO 4,758,129,255 - - - -

4. Bonds of Nepal Rastra Bank 2,000,000,000 - - - -

5. Foreign Bonds 527,608,684 - - - -

6KDUHVRI/RFDO/LFHQVHG,QVWLWXWLRQV - - - - -

'HEHQWXUHDQG%RQGVRI/RFDO/LFHQVHG,QVWLWXWLRQV - - - - -

6KDUH'HEHQWXUHDQG%RQGVRI/RFDO2UJDQL]HG,QVWLWXWLRQV - - - - -

,QYHVWPHQWLQ)RUHLJQ%DQNV 3ODFHPHQW 2,738,415,335 - - - -

10. Other Investment 245,066,000 - - - -

7RWDO,QYHVWPHQW 10,516,741,774 - - - -

34 Annual Report 2015/16

$YDLODEOHIRU6DOH SCHEDULE 12.3 $VRQ-XO\ $VKDGK In Rs.

CURRENT YEAR FUND PREVIOUS CURRENT ADJUSTMENT YEAR LAST MARKET MARKET AMOUNT PROFIT/ DESCRIPTION COST PRICE PRICE (A) PRICE (B) (B-A) (LOSS) REMARKS

7UHDVXU\%LOOVRI*RYHUQHPHQWRI1HSDO - - - - -

6DYLQJ%RQGVRI*RYHUQPHQWRI1HSDO - - - - -

2WKHU/RDQ%RQGVRI*RYHUQPHQWRI1HSDO - - - - -

/RDQ%RQGVRI1HSDO5DVWUD%DQN - - - - -

)RUHLJQ/RDQ%RQGV - - - - -

6KDUHVRI/RFDO/LFHQVHG,QVWLWXWLRQV - - - - -

'HEHQWXUHDQG%RQGVRI/RFDO/LFHQVHG,QVWLWXWLRQV - - - - -

6KDUH'HEHQWXUHDQG%RQGVRI/RFDO2UJDQL]HG,QVWLWXWLRQV 122,652,600 - - - -

,QYHVWPHQWLQ)RUHLJQ%DQNV 3ODFHPHQW - - - - -

10. Other Investment - - - - -

7RWDO,QYHVWPHQW 122,652,600 - - - - -

35 Annual Report 2015/16 In Rs. ,121,460 4,050,734 SCHEDULE 13 CURRENT YEAR PREVIOUS YEAR 761,378 753,541 134,530,559 116,721,875 FOREIGN TOTAL DOMESTIC FOREIGN TOTAL $VRQ-XO\ $VKDGK OTHERS LOANS & ADVANCESLOANS BILLS PURCHASED/DISCOUNTED DOMESTIC &ODVVLȩFDWLRQRI/RDQVDQG%LOOV3XUFKDVHGDQG3URYLVLRQLQJ - - 17,099,175 424,554,629 - - 441,653,803 - 290,013 - 1,841,930 - 2,131,943 443,785,747 - 324,070,725 ------83,012 - 1,267,497 9,749 - 1,350,508 - 9,749 - - - - - 1,350,508 - 2,876,465 9,749 2,622,966 - - 332,048 5,069,986 - 19,499 5,402,034 - 19,499 - - - - - 5,402,034 - 11,505,859 19,499 5,245,931 - 1,701,616,259 - 38,976,423,316 - - 40,678,039,575 - 29,001,280 184,193,041 - 213,194,321 40,891,233,896 - 28,567,307,495 ------1,701,616,259 - 38,976,423,316 332,048 - 7,306,620 40,678,039,575 - 29,001,280 184,193,041 7,638,667 213,194,321 40,891,233,896 - 28,567,307,495 - - 7,638,667 20,813,964 - - 12,135,764 - - 310,556,560 - 125,156 - - 2,497,809 322,692,324 2,876,465 - - 297,850 - - 2,622,966 1,080,552 2,876,465 - 1,378,402 - - 324,070,725 - 248,957,246 ------2,622,966 2,876,465 713,976 153,477 - - - 4,963,411 128,813,607 - 133,777,018 - 17,099,175 424,554,629 - 441,653,803 290,013 1,841,930 2,131,943 443,785,747 324,070,725 - - - 12,135,764 310,556,560 4,963,411 - 128,813,607 - 14,815,538 322,692,324 - - 133,777,018 297,850 14,815,538 1,080,552 - 7,837 1,378,402 761,378 324,070,725 - 248,957,246 761,378 7,837 134,538,396 116,721,875 14,823,375 41,608,395 DEPRIVED INSURED UNINSURED 'RXEWIXO 5HVWUXFWXUHG 'RXEWIXO 6XEVWDQGDUG 6XEVWDQGDUG 5HVWUXFWXUHG 5HVWUXFWXUHG 'RXEWIXO 3DVV/RDQ 6XEVWDQGDUG 2.3 2.4 Bad - - 2,217,135 - 2,217,135 - - - 2,217,135 4,062,174 2.2 3HUIRUPLQJ/RDQ 1RQ3HUIRUPLQJ/RDQ 1.1 2.1 /RDQ/RVV3URYLVLRQ 3.1 Pass3.2 3.3 - 17,016,163 421,060,248 - 438,076,411 290,013 1,841,930 2,131,943 440,208,354 314,509,121 3.4 3.5 Bad7RWDO3URYLVLRQLQJ 3URYLVLRQLQJXSWR3UHYLRXV

36 Annual Report 2015/16

6HFXULW\ZLVH/RDQV$GYDQFHVDQG%LOOV3XUFKDVHG SCHEDULE 13 (KA) $VRQ-XO\ $VKDGK In Rs.

PARTICULARS CURRENT YEAR PREVIOUS YEAR

(A) Secured 40,898,872,564 28,588,121,460

1 0RYDEOH,PPRYDEOH$VVHWV 38,477,176,945 26,545,994,035

2 *XDUDQWHHRI/RFDO/LFHQVHG,QVWLWXWLRQV - -

3 *RYHUQPHQW*XDUDQWHH - -

4 ,QWHUQDWLRQDOO\5DWHG%DQN*XDUDQWHH - -

5 ([SRUW'RFXPHQWV - -

6 Fixed Deposit Receipts - -

D 2ZQ)L[HG'HSRVLW5HFHLSW 82,456,510 109,487,046

E )L[HG'HSRVLW5HFHLSWRI2WKHU/LFHQVHG,QVWLWXWLRQV - -

7 *RYHUQPHQW%RQGV 13,031,869 -

8 &RXQWHU*XDUDQWHH - -

9 3HUVRQDO*XDUDQWHH 1,701,202 2,417,212

10 2WKHU6HFXULWLHV 2,324,506,038 1,930,223,167

(B) Unsecured - -

Total 40,898,872,564 28,588,121,460

37 Annual Report 2015/16 In Rs. SCHEDULE 14 CURRENT YEAR PREVIOUS YEAR ------ ASSETS )L[HG$VVHWV $VRQ-XO\ $VKDGK - - - - 35,664,644 35,664,644 285,744 162,422 24,208,575 7,834,407 25,468,614 - 57,674,019 142,564,335 5,823,678 18,553,441 7,321,277 30,288,997 - 61,987,393 55,623,450 22,823,619 40,292,963 17,407,215 112,854,610 - 193,378,407 143,748,222 139,202,425 125,842,261 65,115,770 225,592,121 - 555,752,577 423,894,322 110,717,549 89,561,242 48,161,547 107,457,648 - 355,897,986 362,374,170 LAND & BUILDING VEHICLES MACHINERIES OFFICE EQUIPMENTS OTHERS 3UHYLRXV

38 Annual Report 2015/16

Non-Banking Assets SCHEDULE 15 $VRQ-XO\ $VKDGK In Rs.

NAME AND ADDRESS DATE OF ACCEPT TOTAL AMOUNT LOSS PROVISION NET NON-BANKING 2)%2552:(525 NON-BANKING OF NON-BANKING ASSETS CURRENT PARTY ASSETS ASSETS RS. IN PERCANTAGE IN AMOUNT YEAR RS. PREVIOUS YEAR RS.

------

Grand Total ------

Other Assets SCHEDULE 16 $VRQ-XO\ $VKDGK In Rs.

PARTICULARS CURRENT YEAR PREVIOUS YEAR

1 6WDWLRQHU\6WRFN 7,848,412 6,239,033

2 ,QFRPH5HFHLYDEOHRQ,QYHVWPHQWV 50,137,074 22,507,034

3 $FFUXHG,QWHUHVWRQ/RDQ 87,592,527 - 62,167,185

/HVV,QWHUHVW6XVSHQVH$PRXQW -

4 &RPPLVVLRQ5HFHLYDEOH - -

5 6XQGU\'HEWRUV 342,767 564,598

6 6WDȧ/RDQVDQG$GYDQFHV 249,841,973 142,932,526

7 Prepaid Expenses 24,176,545 23,722,435

8 Cash in Transit - -

9 2WKHU7UDQVLWLWHPV LQFOXGLQJFKHTXHV - -

10 'UDIWV3DLGZLWKRXW1RWLFH - -

11 ([SHQVHV1RW:ULWWHQRȧ 2,758,412 3,162,496

12 %UDQFKDFFRXQW - -

13 'HIHUUHG7D[$VVHWV 2,591,740 -

14 Others - -

$GYDQFH7D[ 438,119,946 274,901,770

/HVV3URYLVLRQIRU7D[

$GYDQFHV *ROG 6LOYHU 291,891,147 1,251,628,528

Others 74,189,922 441,465,761

Total 715,544,479 1,907,103,759

2WKHU$VVHWV $GLWLRQDO,QIRUPDWLRQ SCHEDULE 16 (KA) $VRQ-XO\ $VKDGK In Rs.

CURRENT YEAR

MORE THAN 3 PARTICULARS UP TO 1 YEAR 1 TO 3 YEARS YEARS CURRENT YEAR PREVIOUS YEAR

1 $FFUXHG,QWHUHVWRQ/RDQ 87,592,527 - - 87,592,527 62,167,185

2 'UDIWV3DLGZLWKRXW1RWLFH - - - - -

3 %UDQFK$GMXVWPHQW$FFRXQW - - - - -

4 /RFDODQG)RUHLJQ$JHQF\$&V - - - - -

39 Annual Report 2015/16

Contingent Liabilities SCHEDULE 17 $VRQ-XO\ $VKDGK In Rs.

PARTICULARS CURRENT YEAR PREVIOUS YEAR

1 &ODLPVRQ,QVWLWXWLRQEXWQRWDFFHSWHGE\WKHP - -

2 /HWWHUVRI&UHGLW )XOO$PRXQW - -

D /HVVWKDQPRQWKV0DWXULW\ 1,032,875,197 625,829,265

E 0RUHWKDQPRQWKV0DWXULW\ 264,416,674 129,145,936

3 5HGLVFRXQWHG%LOOV - -

4 8QPDWXUHG*XDUDQWHHV%RQGV - -

D Bid Bonds 438,079,438 135,970,518

E Performance Bonds 2,016,299,083 1,809,337,265

F 2WKHU*XDUDQWHHV%RQGV - -

5 Unpaid Shares in Investment - -

6 )RUZDUG([FKDQJH&RQWUDFW/LDELOLWLHV 36,973,418 129,742,981

7 %LOOVXQGHU&ROOHFWLRQ 66,213,876 87,106,203

8 $FFHSWDQFHDQG(QGRUVHPHQWV 557,173,282 261,856,456

9 Underwriting Commitments - -

10 ,UUHYRFDEOH/RDQ&RPPLWPHQWV 6,248,461,770 3,503,819,138

11 &RXQWHU*XDUDQWHHRI,QWHUQDWLRQDOO\5DWHG%DQNV - -

12 $GYDQFH3D\PHQW*XDUDQWHH 1,227,900,567 718,595,897

13 )LQDQFLDO*XDUDQWHH - -

14 &RQWLQJHQW/LDELOLWLHVRQ,QFRPH7D[ 3,015,131 2,126,284

15 Others 10,599,255 10,036,200

- -

Total 11,902,007,691 7,413,566,143

40 Annual Report 2015/16

Interest Income SCHEDULE 18 )RUWKHSHULRGIURP-XO\WR-XO\ 6KUDZDQWR$VKDGK In Rs.

PARTICULARS CURRENT YEAR PREVIOUS YEAR

A. 2Q/RDQ$GYDQFHVDQG2YHUGUDIW 3,077,731,240 2,472,344,223

1 /RDQVDQG$GYDQFHV 2,348,618,598 1,903,261,447

2Overdraft 729,112,642 569,082,776

B 2Q,QYHVWPHQW 185,209,128 72,376,144

1 1HSDO*RYHUQPHQW6HFXULWLHV 135,120,005 41,337,084

D7UHDVXU\%LOOV 12,942,392 19,973,334

E'HYHORSPHQW%RQGV 114,260,332 21,363,750

F1DWLRQDO6DYLQJV&HUWLȨFDWHV - -

G'HSRVLW,QVWUXPHQWV 7,917,281 -

2 )RUHLJQ6HFXULWLHV 21,290,201 5,028,399

3 Nepal Rastra Bank Bond - -

4 'HEHQWXUHDQG%RQGV - -

5 2Q,QWHUEDQN3ODFHPHQW 28,798,922 26,010,661

D%DQNDQG)LQDQFLDO,QVWLWXWLRQV 28,798,922 26,010,661

E2WKHU2UJDQL]DWLRQV - -

C On Agency Balances - -

1 /RFDO%DQNV - -

2 Foreign Banks - -

D On Money at Call and Short Notice 57,294 76,284

1 /RFDO%DQNV)LQDQFLDO,QVWLWXWLRQV 57,294 76,284

2 Foreign Banks - -

EOn Others - -

1 &HUWLȨFDWHRI'HSRVLWV - -

2 ,QWHU%DQN/RDQ - -

3 Others - -

Total 3,262,997,662 2,544,796,651

41 Annual Report 2015/16

,QWHUHVW([SHQVHV SCHEDULE 19 )RUWKHSHULRGIURP-XO\WR-XO\ 6KUDZDQWR$VKDGK In Rs.

PARTICULARS CURRENT YEAR PREVIOUS YEAR

A On Deposit Liabilities 1,447,503,321 1,355,210,276

1 )L[HG'HSRVLWV 555,018,064 622,951,917

/RFDO&XUUHQF\ 551,263,400 605,110,706

)RUHLJQ&XUUHQF\ 3,754,664 17,841,210

2 6DYLQJ'HSRVLWV 558,172,505 453,015,185

/RFDO&XUUHQF\ 553,888,821 451,644,046

)RUHLJQ&XUUHQF\ 4,283,684 1,371,139

3 Call Deposits 334,312,752 279,243,174

/RFDO&XUUHQF\ 326,882,997 277,727,779

)RUHLJQ&XUUHQF\ 7,429,755 1,515,395

4 &HUWLȨFDWHRI'HSRVLWV - -

B On Borrowings 93,192,257 50,196,442

1 'HEHQWXUHDQG%RQGV 24,618,465 -

2 /RDQIURP1HSDO5DVWUD%DQN 61,531,398 47,978,330

3 ,QWHU%DQN)LQDQFLDO,QVWLWXWLRQV%RUURZLQJ 7,042,395 2,218,112

4 2WKHU&RUSRUDWH%RG\ - -

5 2WKHU/RDQV - -

COn Others - -

Total 1,540,695,579 1,405,406,718

Commission and Discount SCHEDULE 20 )RUWKHSHULRGIURP-XO\WR-XO\ 6KUDZDQWR$VKDGK In Rs.

PARTICULARS CURRENT YEAR PREVIOUS YEAR

A Bills Purchase and Discount - -

1 /RFDO - -

2Foreign - -

B Commission 70,900,765 42,276,613

1 /HWWHUVRI&UHGLW 22,028,756 11,652,905

2 *XDUDQWHH 36,438,999 20,638,631

3 Collection Fee 159,962 94,766

4 Remittance Fee 11,008,844 9,881,653

5 Credit Cards - -

6 6KDUH8QGHUZULWLQJ,VVXHV - 8,657

7 *RYHUQPHQW7UDQVDFWLRQV 1,264,202 -

8 $JHQF\&RPPLVVLRQ - -

9 Exchange Income - -

C Others 17,642,220 11,191,811

- -

Total 88,542,984 53,468,424

42 Annual Report 2015/16

Other Operating Income SCHEDULE 21 )RUWKHSHULRGIURP-XO\WR-XO\ 6KUDZDQWR$VKDGK In Rs.

PARTICULARS CURRENT YEAR PREVIOUS YEAR

1 5HQWDORQ6DIH'HSRVLW/RFNHUV 2,671,943 2,066,650

2 ,VVXHDQG5HQHZDOVRI&UHGLW&DUGV - -

3 ,VVXHDQG5HQHZDOVRI$70&DUGV 48,132,315 12,788,056

4 7HOH[77 5,831,490 3,052,093

5 Service Charges 141,542,870 90,012,754

6 Renewal Fees 1,730,723 3,017,473

7 Others 35,711,438 20,358,120

Total 235,620,779 131,295,145

([FKDQJH)OXFWXDWLRQ,QFRPH/RVV SCHEDULE 22 )RUWKHSHULRGIURP-XO\WR-XO\ 6KUDZDQWR$VKDGK In Rs.

PARTICULARS CURRENT YEAR PREVIOUS YEAR

$ 5HYDOXDWLRQ*DLQ 3,979,591

% 7UDGLQJ*DLQ ([FHSW([FKDQJH)HHV 149,643,667 182,265,837

Total Income/(Loss) 153,623,259 178,746,935

(PSOR\HH([SHQVHV SCHEDULE 23 )RUWKHSHULRGIURP-XO\WR-XO\ 6KUDZDQWR$VKDGK In Rs.

Particulars Current Year 3UHYLRXV

1 6DODU\ 107,320,077 83,923,148

2 $OORZDQFHV 111,326,941 77,941,766

3 &RQWULEXWLRQWR3URYLGHQW)XQG 9,786,235 7,102,531

4 Training Expenses 4,395,400 4,060,981

5 Uniform 158,200 -

6 Medical - -

7 ,QVXUDQFH 2,002,879 1,649,167

8 3HQVLRQDQG*UDWXLW\3URYLVLRQ 9,916,429 7,643,124

9 Others 13,904,865 -

Total 258,811,026 182,320,716

43 Annual Report 2015/16

2WKHU2SHUDWLQJ([SHQVHV SCHEDULE 24 )RUWKHSHULRGIURP-XO\WR-XO\ 6KUDZDQWR$VKDGK In Rs.

PARTICULARS CURRENT YEAR PREVIOUS YEAR

1 +RXVH5HQW 34,647,897 28,193,376

2 (OHFWULFLW\DQG:DWHU 9,206,564 8,179,339

3 Repair and Maintenance 5,235,208 3,158,909

D %XLOGLQJ 2,264,486 273,047

E 9HKLFOHV 1,585,210 1,931,002

F Others 1,385,512 954,860

4 ,QVXUDQFH([SHQVHV 16,868,850 12,703,007

5 Postage, Telex, Telephone, Fax 23,122,824 21,774,076

6 2ȪFH(TXLSPHQW)XUQLWXUHDQG)L[WXUH5HSDLU 8,402,303 6,097,851

7 7UDYHOOLQJ$OORZDQFHVDQG([SHQVHV 5,064,578 6,143,274

8 6WDWLRQHU\DQG3ULQWLQJ 10,161,957 9,080,843

9 Periodicals and Books 295,918 246,323

10 $GYHUWLVHPHQWV 16,768,498 18,048,108

11 /HJDO([SHQVHV 81,488 22,183

12 Donations - 1,111,111

13 Expenses Relating to Board of Directors 2,625,641 2,033,706

D Meeting Fees 1,921,096 1,316,000

E Other Expenses 704,545 717,706

14 $QQXDO*HQHUDO0HHWLQJ([SHQVHV 98,388 285,245

15 ([SHQVHV5HODWLQJWR$XGLW 1,300,000 924,428

D $XGLW)HHV 1,300,000 791,000

E Other Expenses - 133,428

16 Commission on Remittances 869,682 1,451,673

17 'HSUHFLDWLRQRQ)L[HG$VVHWV ,QFOXGLQJ$PRUWL]DWLRQ 75,383,283 67,503,756

18 $PRUWL]DWLRQRI3UHOLPLQDU\([SHQVHV - -

19 6KDUH,VVXH([SHQVHV 3,298,987 -

20 Technical Services Fee - -

21 Entertainment 1,947,109 1,692,895

22 :ULWWHQ2ȧ([SHQVHV 1,211,047 5,029,008

23 6HFXULW\([SHQVHV 27,855,199 23,856,495

24 &UHGLW*XDUDQWHH3UHPLXP - -

25 &RPPLVVLRQDQG'LVFRXQW

26 Others 83,756,559 57,909,987

26.1 %XOOLRQ([SHQVHV 297,670 3,268,491

26.2 9HKLFOH)XHO 7D[ 14,959,732 16,469,824

26.3 0HPEHUVKLS)HH 4,490,797 3,484,269

26.4 %XVLQHVV3URPRWLRQ([SHQVH 4,995,556 4,110,888

26.5 +XPDQ5HVRXUFH2XWVRXUFLQJ 21,137,073 17,418,826

26.6 6WDȧ/XQFK 5HIUHVKPHQWV 15,017,036 3,245,169

26.7 'HEHQWXUH,VVXH([SHQVHV 89,477 2,196,984

26.8 Card related Expenses 15,147,427 1,966,114

26.9 0LVFHOODQHRXV 7,621,791 5,749,421

Total 328,201,980 275,445,593

44 Annual Report 2015/16

3URYLVLRQIRU3RVVLEOH/RVVHV SCHEDULE 25 )RUWKHSHULRGIURP-XO\WR-XO\ 6KUDZDQWR$VKDGK In Rs.

PARTICULARS CURRENT YEAR PREVIOUS YEAR

1 ,QFUHDVHLQ/RDQ/RVV3URYLVLRQ 134,538,396 116,721,875

2 ,QFUHDVHLQ3URYLVRQIRU/RVVRQ,QYHVWPHQW - -

3 3URYLVLRQ$JDLQVW1RQ%DQNLQJ$VVHWV - -

4 3URYLVLRQ$JDLQVW2WKHU$VVHWV - 2,719,050

Total 134,538,396 119,440,925

1RQ2SHUDWLQJ,QFRPH([SHQVH SCHEDULE 26 )RUWKHSHULRGIURP-XO\WR-XO\ 6KUDZDQWR$VKDGK In Rs.

PARTICULARS CURRENT YEAR PREVIOUS YEAR

1 3URȨW /RVV RQ6DOHRI,QYHVWPHQW - -

2 3URȨW /RVV RQ6DOHRI$VVHWV 1,669,128 345,535

3 Dividend 1,835,717 1,660,370

4 6XEVLGLHV5HFHLYHGIURP1HSDO5DWUD%DQN - -

D5HLPEXUVHPHQWRI/RVVHVRI6SHFLȨHG%UDQFKHV - -

E,QWHUHVW6XEVLG\ - -

F([FKDQJH&RXQWHU - -

5 Others 59,657,511 5,338,160

Total Non-Operating Income (Loss) 63,162,356 7,344,065

:ULWH%DFNRI3URYLVLRQIRU3RVVLEOH/RVVHV SCHEDULE 27 )RUWKHSHULRGIURP-XO\WR-XO\ 6KUDZDQWR$VKDGK In Rs.

PARTICULARS CURRENT YEAR PREVIOUS YEAR

1 /RDQ/RVV3URYLVLRQ:ULWWHQ%DFN 14,823,375 41,608,395

2 3URYLVLRQDJDLQVW1RQ%DQNLQJ$VVHWV:ULWWHQ%DFN - -

3 ,QYHVWPHQW3URYLVLRQ:ULWWHQ%DFN - 252,837

4 3URYLVLRQDJDLQVW2WKHU$VVHWV:ULWWHQEDFN 1,175,600 -

Total 15,998,975 41,861,232

45 Annual Report 2015/16

,QFRPH([SHQVHIURP([WUDRUGLQDU\$FWLYLWLHV SCHEDULE 28 )RUWKHSHULRGIURP-XO\WR-XO\ 6KUDZDQWR$VKDGK In Rs.

PARTICULARS CURRENT YEAR PREVIOUS YEAR

1 5HFRYHU\RIZULWHRȧ/RDQ - -

2 9ROXQWDU\5HWLUHPHQW6FKHPH([SHQVHV - -

3 /RDQ:ULWH2ȧ D -

4 Others -

- (608,998)

6WDWHPHQWRI/RDQV:ULWWHQ2Ȩ SCHEDULE 28 (KA) )RUWKHSHULRGIURP-XO\WR-XO\ 6KUDZDQWR$VKDGK In Rs.

BASIS OF LOAN APPROVED :5,77(12)) VALUATION OF BY NAME/ INITIATION MADE TYPES OF LOAN AMOUNT TYPE OF SECURITY COLLATERAL DESIGNATION FOR RECOVERY REMARKS

1 :RUNLQJ&DSLWDO/RDQ ------

2 3URMHFW/RDQ ------

3 )L[HG&DSLWDO/RDQ ------

4 3HUVRQDO/RDQ ------

5 2WKHU/RDQ ------

Total Loan ------

46 Annual Report 2015/16 In Rs. &RQWLQXHG SCHEDULE 29 \RUDJDLQVWWKH BALANCE AS OF ASHAD END HKROGHUVDQGWRWKHLQGLYLGXDOPHPEHUVRIWKHLUXQGLYLGHGIDPLO CURRENT YEAR ADDITIONS FXWLYH3URPRWHU(PSOR\HHVDQG6KDUHKROGHUV LQZKLFKVXFKLQGLYLGXDOVDUHPDQDJLQJDJHQWDUHDVIROORZV GWRWKH'LUHFWRUV&KLHI([HFXWLYH3URPRWHUV(PSOR\HHV6KDU $VRQ-XO\ $VKDGK JXDUDQWHHRIVXFKSHUVRQVRUWRWKHRUJDQL]DWLRQVRUFRPSDQLHV ------69,700 - 2,700 - - 67,000 - XUFKDVHGDQG'LVFRXQWHG/RDQV$GYDQFHVDQG2YHUGUDIWSURYLGH 55,000 - 55,000 - - - - 972,500 - 42,500 - - 930,000 - 170,000 - - - 30,000 200,000 - 356,500 - 35,700 - - 320,800 - 165,500 - 165,500 - - - - 823,000 - 823,000 - - - - 165,000 - - - - 165,000 - 998,686 - 86,590 - 1,048,726 1,960,822.34 - 684,500 2,289 595,500 2,289 - 89,000 - 245,000 - 37,000 - - 208,000 - 208,000 - 38,000 - - 170,000 - 194,000 - 2,500 - - 191,500 - 340,000 - - 10,000 350,000 - 650,000 - 91,000 - - 559,000 - 420,000 - 135,000 - - 285,000 - 640,000 - 640,000 - - - - PRINCIPAL INTEREST PRINCIPAL INTEREST PRINCIPAL INTEREST BALANCE UPTO PREVIOUS YEAR CURRENT YEAR RECOVERY 6WDWHPHQWRI/RDQVDQG$GYDQFHV([WHQGHGWR'LUHFWRUV&KLHI([H +LWOHU6KUHVWKD 5DMLY%RJDWL DirectorsPromoters5DQMDQ0DLQDOL %LQRG2MKD 3UHP%DKDGXU0DKDW ------$VND6KUHVWKD 3UDOKDG&KDQGUD1LUDXOD 6XPHHQD6KUHVWKD 0DKHVK.XPDU1LUDXOD 0DQRM.XPDU*KLPLUH $PELND'DQXZDU %KXVDQW6DPVKHU-%5 3XMDQ%DLGK\D 1DUD\DQ3G.KDWLZDGD %HHNLQD0DKDUMDQ 5DELQ6XEHGL 6XEKRGK$PDW\D 7 3 1 5 2 8 6 9 4 Prakash Baral 88,500 - 63,500 - - 25,000 - 17 13 11 15 12 18 16 Prasidhha Roka19 Depesh Pradhan 300,000 248,000 - - 23,000 248,000 - - - - 277,000 - - - 10 14 20 $ & % &KLHI([HFXWLYH ' (PSOR\HHV 7KH6WDWHPHQWRIDPRXQWLQFOXGHGXQGHUWRWDODPRXQWRI%LOOV3 NAME OF PROMOTER/DIRECTOR/ CHIEF EXECUTIVE

47 Annual Report 2015/16 In Rs. SCHEDULE 29 BALANCE AS OF ASHAD END 79,500 79,500 - 982000 982,000 - 171,000 171,000 - 765,000 765,000 - 476,000 476,000 - 150,000 150,000 - 250,000 250,000 - 200,000 200,000 - 999,000 999,000 - CURRENT YEAR ADDITIONS FXWLYH3URPRWHU(PSOR\HHVDQG6KDUHKROGHUV $VRQ-XO\ $VKDGK 85,000 - 85,000 - - - - 30,000 - 30,000 - - - - 65,000 - 65,000 - - - 145,000 - 145,000 - - - - 200,000 - - - 470,000 670,000 - WKH%DQNDQG*ROG 1,490,000 - 241,000 - - 1,249,000 - PRINCIPAL INTEREST PRINCIPAL INTEREST PRINCIPAL INTEREST BALANCE UPTO PREVIOUS YEAR CURRENT YEAR RECOVERY 6WDWHPHQWRI/RDQVDQG$GYDQFHV([WHQGHGWR'LUHFWRUV&KLHI([H 5DMX$FKDU\D 6KULMDQD5LPDO 6DELQD7DQGXNDU $QDQGD.XPDU&KDXGKDUL 6KREKD.KDWLZDGD 5XSD6KUHVWKD $QRM%KDWWDUDL $PDU'KXQJHO /D[PL.HVKDUL%R\DMX .DELU3UDVDG%DLGK\D .DULVKPD6KUHVWKD Shareholders ------%LVKZDPEKDU*\DZDOL 6XGDQ3UDVDG%KDQGDUL %LQD\%DVQHW 27 33 31 35 23 32 21 25 22 28 Neela Shrestha 34 30 ( 26 29 24 NAME OF PROMOTER/DIRECTOR/ CHIEF EXECUTIVE 1RWH$OO$ERYHORDQVDUHDJDLQVW)L[HG'HSRVLWPDLQWDLQHGZLWK Total 9,808,886 2,289 3,650,490 2,289 5,631,226 11,789,622 - &RQWLQXHG

48 Annual Report 2015/16

&DSLWDO$GHTXDF\7DEOH SCHEDULE 30 (KA) $VRQ-XO\ $VKDGK In Rs.

1.1 5,6.:(,*+7('(;32685(6 CURRENT YEAR PREVIOUS YEAR

a 5LVN:HLJKWHG([SRVXUHIRU&UHGLW5LVN 45,079,836,617 30,651,616,831

E 5LVN:HLJKWHG([SRVXUHIRU2SHUDWLRQDO5LVN 1,700,303,885 1,179,750,998

c 5LVN:HLJKWHG([SRVXUHIRU0DUNHW5LVN 824,530,436 575,610,060

7RWDO5LVN:HLJKWHG([SRVXUHV DEF 47,604,670,938 32,406,977,889

Adjustments Under Pillar II -

$/0SROLFLHV SUDFWLFHVDUHQRWVDWLVIDFWRU\DGGRIQHWLQWHUHVWLQFRPHWR5:( D 8,187,178

$GGRIWKHWRWDOGHSRVLWGXHWRLQVXȪFLHQW/LTXLG$VVHWV D

$GG5:(HTXLYDOHQWWRUHFLSURFDORIFDSLWDOFKDUJHRIRIJURVVLQFRPH D 304,742,910 330,369,208

2YHUDOOULVNPDQDJHPHQWSROLFLHVDQGSUHFHGXUHVDUHQRWVDWLVIDFWRU\$GGRI5:( D 952,093,419 972,209,337

,IGHVLUHGOHYHORIGLVFORVXUHUHTXLUHPHQWKDVQRWEHHQDFKLHYHG$GGRI5:( D

7RWDO5LVN:HLJKWHG([SRVXUHV $IWHU%DQNȇVDGMXVWPHQWVRI3LOODU,, 48,861,507,266 33,717,743,612

1.2 CAPITAL Current Year 3UHYLRXV

Core Capital (Tier 1) 5,222,365,884 3,416,584,948

a 3DLGXS(TXLW\6KDUH&DSLWDO 4,022,031,700 2,550,240,000

E ,UUHGHHPDEOH1RQFXPXODWLYHSUHIHUHQFHVKDUHV - -

c 6KDUH3UHPLXP - -

d 3URSRVHG%RQXV6KDUHV 688,564,800 510,048,000

e 6WDWXWRU\*HQHUDO5HVHUYHV 564,540,000 365,328,259

f Retained Earnings 2,799,665 1,323,688

g 8QDXGLWHGFXUUHQW\HDUFXPXODWLYHSURȨW - -

h 6SHFLDO5HVHUYH)XQG 11,922,576 -

I &DSLWDO$GMXVWPHQW5HVHUYH - -

M 'LYLGHQG(TXDOL]DWLRQ5HVHUYHV - -

k &DSLWDO5HGHPSWLRQ5HVHUYH)XQG 52,857,143

l Deferred Tax Reserve 2,591,740 -

m /HVV*RRGZLOO - -

n /HVV)LFWLWLRXV$VVHWV - -

o /HVV'HIHUUHG7D[5HVHUYH -

p /HVV,QYHVWPHQWLQHTXLW\LQOLFHQVHG)LQDQFLDO,QVWLWXWLRQV - -

q /HVV,QYHVWPHQWLQHTXLW\RILQVWLWXWLRQVZLWKȨQDQFLDOLQWHUHVWV

r /HVV,QYHVWPHQWLQHTXLW\RILQVWLWXWLRQVLQH[FHVVRIOLPLWV - -

s /HVV,QYHVWPHQWVDULVLQJRXWRIXQGHUZULWLQJFRPPLWPHQWV - -

t /HVV5HFLSURFDOFURVVKROGLQJV

X /HVV3XUFKDVHRIODQG EXLOGLQJLQH[FHVVRIOLPLW XWLOL]HG

v /HVV2WKHU'HGXFWLRQV - -

&RQWLQXHG

49 Annual Report 2015/16

&RQWLQXHG &DSLWDO$GHTXDF\7DEOH SCHEDULE 30 (KA) $VRQ-XO\ $VKDGK In Rs.

Adjustments Under Pillar II

/HVV6KRUWIDOOLQ3URYLVLRQ D

/HVV/RDQVDQG)DFLOLWLHVH[WHQGHGWR5HODWHG3DUWLHVDQG5HVWULFWHGOHQGLQJ D

Supplementary Capital (Tier 2) 817,080,248 317,913,819

a &XPXODWLYHDQGRU5HGHHPDEOH3UHIHUHQFH6KDUH - -

E 6XERUGLQDWHG7HUP'HEW 370,000,000 -

c +\EULG&DSLWDO,QVWUXPHQWV - -

d *HQHUDOORDQORVVSURYLVLRQ 440,136,607 314,160,075

e ([FKDQJH(TXDOL]DWLRQ5HVHUYH 4,193,641 3,198,743

f ,QYHVWPHQW$GMXVWPHQW5HVHUYH 2,750,000 555,000

g $VVHWV5HYDOXDWLRQ5HVHUYH - -

h Other Reserves - -

Total Capital Fund (Tier 1 and Tier 2) 6,039,446,132 3,734,498,766

1.3 CAPITAL ADEQUACY RATIOS Current Year 3UHYLRXV

7LHU&DSLWDOWR7RWDO5LVN:HLJKWHG([SRVXUHV

7LHUDQG7LHU&DSLWDOWR7RWDO5LVN:HLJKWHG([SRVXUHV

50 Annual Report 2015/16 In Rs. &RQWLQXHG 5,6.:(,*+7$02817 SCHEDULE 30 (KHA) - - PREVIOUS YEAR NET VALUE NET VALUE ------26,913,241 - - - 690,663,251 - 687,276,091 5,134,959,660 ------1,538,100 6,815,521 6,815,521 EXPOSURES 791,413,026 501,169,368 751,754,052 158,603,119 1,017,541,773 203,508,355 315,652,036 934,177,162 186,835,432 243,926,548 842,429,526 168,485,905 241,425,000 254,000,000 127,000,000 19,607,302,264 15,009,607,025 15,009,607,025 5,6.:(,*+7(' 5,6.:(,*+7 - - - - CURRENT YEAR $VRQ-XO\ $VKDGK ------A B C D=A-B-C E F=D*E 1,538,100 - 1,538,100 38,998,913 - 38,998,913 793,015,597 - 793,015,597 682,823,728 - 682,823,728 527,608,684 - 527,608,684 482,850,000 - 482,850,000 BOOK VALUE BOOK VALUE SPECIFIC PROVISION ELIGIBLE CRM NET VALUE 2,574,787,981 - 2,574,787,981 1,578,260,179 - 1,578,260,179 1,219,632,741 - 1,219,632,741 5,005,651,755 - 5,005,651,755 2,000,000,000 - 2,000,000,000 19,609,744,643 2,442,379 19,607,302,264 5LVN:HLJKWHG([SRVXUHIRU&UHGLW5LVN V LUHPHQWV LWKDEXȧHURIDERYHWKHLUUHVSHFWLYH

&ODLPVRQGRPHVWLFEDQNVWKDWGRQRWPHHWFDSLWDODGHTXDF\UHTX &ODLPVRQIRUHLJQEDQN (&$5DWLQJ &ODLPVRQIRUHLJQEDQN (&$5DWLQJ &ODLPVRQGRPHVWLFEDQNVWKDWPHHWFDSLWDODGHTXDF\UHTXLUHPHQW $OOFODLPVRQ1HSDO5DVWUD%DQN &ODLPVRQ)RUHLJQ*RYHUQPHQWDQG&HQWUDO%DQN (&$ &ODLPVRQ)RUHLJQ*RYHUQPHQWDQG&HQWUDO%DQN (&$ &ODLPVRQ)RUHLJQ*RYHUQPHQWDQG&HQWUDO%DQN (&$ &ODLPVRQ)RUHLJQ*RYHUQPHQWDQG&HQWUDO%DQN (&$ &ODLPVRQ)RUHLJQ*RYHUQPHQWDQG&HQWUDO%DQN (&$ &ODLPV2Q%,6,0)(&%(&DQGRQ0XOWLODWHUDO 'HYHORSPHQW%DQNV 0'%ȆV UHFRJQL]HGE\WKHIUDPHZRUN &ODLPVRQ2WKHU0XOWLODWHUDO'HYHORSPHQW%DQNV &ODLPVRQ3XEOLF6HFWRU(QWLW\ (&$ &ODLPVRQ3XEOLF6HFWRU(QWLW\ (&$ &ODLPVRQ3XEOLF6HFWRU(QWLW\ (&$ &ODLPVRQ3XEOLF6HFWRU(QWLW\ (&$ ,QYHVWPHQWLQ1HSDO5DVWUD%DQNVHFXULWLHV %DODQFH:LWK1HSDO5DVWUD%DQN *ROG ,QYHVWPHQWLQ1HSDOHVH*RYHUQPHQW6HFXULWLHV $OO&ODLPVRQ*RYHUQPHQWRI1HSDO Cash Balance A. BALANCE SHEET EXPOSURES &ODLPVRQIRUHLJQEDQN (&$5DWLQJ &ODLPVRQIRUHLJQEDQNLQFRUSRUDWHGLQ6$$5&UHJLRQRSHUDWLQJZ UHJXODWRU\FDSLWDOUHTXLUHPHQW &ODLPVRQIRUHLJQEDQN (&$5DWLQJ Claims on Domestic Corporates

51 Annual Report 2015/16 In Rs. ([SRVXUHV &RQWLQXHG 5LVN:HLJKWHG SCHEDULE 30 (KHA) Net Value Net Value 24,924,520 24,924,520 ------11,128,395 - - 87,106,202.91 - - - - 5,121,943 4,596,605 4,596,605 ([SRVXUHV 3,453,900 2,302,600 3,453,900 5,800,256 42,034,830 8,406,966 59,572,062 26,882,246 40,323,370 463,885,177 384,623,586 384,623,586 130,493,178 127,758,949 76,655,369 3,697,341.79 129,742,980.54 12,974,298 7,533,958,848 2,053,661,128 3,080,491,692 8,235,643,612 7,666,615,147 5,749,961,360 1,102,636,156 897,973,190 897,973,190 1,945,058,486 2,394,863,154 1,436,917,892 5LVN:HLJKWHG 190,272,663.65 567,120,450.02 113,424,090 119,001,129.60 129,145,936.37 64,572,968 5LVN:HLJKW - - - - Eligible CRM Net Value 6SHFLȩF3URYLVLRQ $VRQ-XO\ $VKDGK ------5,715,639 593,696 - 5,121,943 2,302,600 - 2,302,600 36,973,418 36,973,418 66,213,876 66,213,876 34,317,064 - 34,317,064 42,698,404 2,983,696 - 39,714,708 463,885,177 - 463,885,177 217,488,630 - 217,488,630 264,416,674 26,414,414.94 238,002,259 1,032,875,197 81,511,878.47 951,363,318 5,037,336,979 71,747 14,626,000 5,022,639,232 3,241,764,144 - 3,241,764,144 1,529,366,094 426,729,938 - 1,102,636,156 11,492,885,956 512,027,806 10,980,858,149 56,605,939,593 430,379,078 529,096,185 55,646,464,330 40,839,749,016 38,742,916,969 28,162,334,741 Gross Book Value Gross Book Value 5LVN:HLJKWHG([SRVXUHIRU&UHGLW5LVN XQWHUSDUW\ RXQWHUSDUW\ WLHV LRQVOLVWHGLQWKHVWRFNH[FKDQJH LRQVQRWOLVWHGLQWKHVWRFNH[FKDQJH QXODULW\ &ODLPVVHFXUHGE\UHVLGHQWLDOSURSHUWLHV &ODLPV)XOOȨ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ȧ/RDQ6HFXUHGE\UHVLGHWLDOSURSHUW\ ,QWHUHVW5HFHLYDEOH&ODLPRQ*RYW6HFXULWLHV of collectionCash in Transit and other cash items process 29,001,280 - 29,001,280 /&&RPPLWPHQWV:LWK2ULJLQDO0DWXULW\8SWRPRQWKV'RPHVWLF& %2Ȩ%DODQFH6KHHW([SRVXUHV )RUZDUG)RUHLJQ([FKDQJH&RQWUDFW/LDELOLWLHV Bills Under Collection 5HYRFDEOH&RPPLWPHQWV &RQWLQXHG

52 Annual Report 2015/16 In Rs. SCHEDULE 30 (KHA) ------8,958,940.94 1,697,000.00 3,394,000 13,614,386.18 12,162,484.82 12,162,485 557,173,282.27 261,856,456.23 261,856,456 882,749,816.27 1,247,945,654.29 623,972,827 1,214,927,686.37 709,135,436.61 709,135,437 1,249,692,354.02 3,503,819,137.70 700,763,828 - - - - $VRQ-XO\ $VKDGK ------4,479,470 4,479,470 13,614,386 - 13,614,386 557,173,282 - 557,173,282 1,227,900,567 12,972,881 1,214,927,686 6,248,461,770 - 6,248,461,770 2,449,899,050 600,230,000 84,169,417.65 1,765,499,633 68,507,947,284 1,030,609,078 734,164,777 66,743,173,429 45,079,836,617 45,392,648,708 30,664,591,129 11,902,007,691 600,230,000 205,068,592 11,096,709,099 4,240,087,601 6,649,731,739 2,502,256,389 5LVN:HLJKWHG([SRVXUHIRU&UHGLW5LVN HUSDUW\ LWKDEXȧ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nderwriting commitments /HQGLQJRI%DQNȆV6HFXULWLHVRU3RVWLQJRI6HFXULWLHVDVFROODW 5HSXUFKDVH$JUHHPHQWV$VVHWVVDOHZLWKUHFRXUVH $GYDQFH3D\PHQW*XDUDQWHH 8QSDLGSRUWLRQRI3DUWO\SDLGVKDUHVDQG6HFXULWLHV ,UUHYRFDEOH&UHGLWFRPPLWPHQWV 6KRUW7HUP ,UUHYRFDEOH&UHGLWFRPPLWPHQWV /RQJ7HUP )RUHLJQ&RXQWHUSDUW\ (&$5DWLQJ Adjustments under Pillar II $GGRIWKHORDQDQGIDFLOLWLHVLQH[FHVVRI6LQJOH2EOLJR $GGRIWKHFRQWUDFW VDOH YDOXHLQFDVHRIWKHVDOHRIFUH 7RWDO5:(IRU&UHGLW5LVN $IWHUEDQNȆV$GMXVWPHQWVRI3LOODU, )LQDQFLDO*XDUDQWHH $FFHSWDQFHVDQG(QGRUVHPHQWV &RQWLQXHG

53 Annual Report 2015/16 ------In Rs. &RQWLQXHG SCHEDULE 30 (GA) SEC/G’TEE OF FOREIGN BANKS TOTAL G’TEE OF DOMESTIC BANKS G’TEE OF MDBS OF OTHER SEC/G’TEE SOVEREIGNS OF NEPAL OF NEPAL G’TEE OF GOVT. SECURITIES GOVT.& NRB $VRQ-XO\ $VKDGK Eligible Credit Risk Mitigants '(326,76:,7+ OTHER BANKS/FI GOLD D E F G H I J K , BANK '(326,76:,7+ V LUHPHQWV %DODQFH6KHHW([SRVXUHV Cash Balance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

54 Annual Report 2015/16 ------In Rs. 2,442,379 &RQWLQXHG 81,511,878 26,414,415 14,626,000 512,027,806 SCHEDULE 30 (GA) $VRQ-XO\ $VKDGK Eligible Credit Risk Mitigants 81,511,878 66,514,131 445,513,675 26,414,415 13,500,000 1,126,000 LWKDEXȧHURI WLHV LRQVOLVWHGLQWKH LRQVQRWOLVWHGLQ QXODULW\ &ODLPVRQIRUHLJQEDQNLQFRUSRUDWHGLQ6$$5&UHJLRQRSHUDWLQJZ DERYHWKHLUUHVSHFWLYHUHJXODWRU\FDSLWDOUHTXLUHPHQW Claims on Domestic Corporates Claims on Domestic Corporates &ODLPVRQ)RUHLJQ&RUSRUDWHV (&$ &ODLPVRQ)RUHLJQ&RUSRUDWHV (&$ &ODLPVRQ)RUHLJQ&RUSRUDWHV (&$ &ODLPVRQ)RUHLJQ&RUSRUDWHV (&$ 5HJXODWRU\5HWDLO3RUWIROLR 1RW2YHUGXH 2,442,379 &ODLPV)XOOȨOOLQJDOOFULWHULRQRIUHJXODWRU\UHWDLOH[FHSWJUD &ODLPVVHFXUHGE\UHVLGHQWLDOSURSHUWLHV &ODLPVQRWIXOO\VHFXUHGE\UHVLGHQWLDOSURSHUWLHV &ODLPVVHFXUHGE\UHVLGHQWLDOSURSHUWLHV 2YHUGXH &ODLPVVHFXUHGE\&RPPHUFLDOUHDOHVWDWH 3DVWGXHFODLPV H[FHSWIRUFODLPVHFXUHGE\UHVLGHQWLDOSURSHU +LJK5LVN&ODLPV ,QYHVWPHQWVLQHTXLW\DQGRWKHUFDSLWDOLQVWUXPHQWVRILQVWLWXW stock exchange ,QYHVWPHQWVLQHTXLW\DQGRWKHUFDSLWDOLQVWUXPHQWVRILQVWLWXW the stock exchange 2WKHU$VVHWV DVSHUDWWDFKPHQW Total2Ȩ%DODQFH6KHHW([SRVXUHV )RUZDUG)RUHLJQ([FKDQJH&RQWUDFW/LDELOLWLHV /&&RPPLWPHQWV:LWK2ULJLQDO0DWXULW\8SWRPRQWKV GRPHVWLF (&$5DWLQJ (&$5DWLQJ (&$5DWLQJ (&$5DWLQJ /&&RPPLWPHQWV:LWK2ULJLQDO0DWXULW\2YHUPRQWKV GRPHVWLF (&$5DWLQJ 82,456,510 - 446,639,675 ------529,096,185 &RQWLQXHG

55 Annual Report 2015/16 ------In Rs. 12,972,881 84,169,418 SCHEDULE 30 (GA) $VRQ-XO\ $VKDGK Eligible Credit Risk Mitigants 12,972,881 84,169,418 HUSDUW\ RUHYHUVH HUDO (&$5DWLQJ (&$5DWLQJ (&$5DWLQJ %LG%RQG3HUIRUPDQFH%RQGDQG&RXQWHU*XDUDQWHH'RPHVWLF&RXQW (&$5DWLQJ (&$5DWLQJ (&$5DWLQJ (&$5DWLQJ *XDUDQWHH,QYRNHGEXW\HWQRWKRQRXUHG Underwriting commitments /HQGLQJRI%DQNȆV6HFXULWLHVRU3RVWLQJRI6HFXULWLHVDVFROODW 5HSXUFKDVH$JUHHPHQWV$VVHWVVDOHZLWKUHFRXUVH LQFOXGLQJUHS UHSR $GYDQFH3D\PHQW*XDUDQWHH )LQDQFLDO*XDUDQWHH $FFHSWDQFHVDQG(QGRUVHPHQWV 8QSDLGSRUWLRQRI3DUWO\SDLGVKDUHVDQG6HFXULWLHV ,UUHYRFDEOH&UHGLWFRPPLWPHQWV 6KRUW7HUP ,UUHYRFDEOH&UHGLWFRPPLWPHQWV /RQJ7HUP 2WKHU&RQWLQJHQW/LDELOLWLHV TotalGrand Total 287,525,102 205,068,592 - - 446,639,675 ------734,164,777 - 205,068,592 &RQWLQXHG

56 Annual Report 2015/16

5LVN:HLJKWHG([SRVXUH)RU2SHUDWLRQDO5LVN SCHEDULE 30 (GHA) $VRQ-XO\ $VKDGK In Rs.

ASHADH 31, 2072 PARTICULARS YEAR 1 (2012/13) YEAR 2 (2013/14) YEAR 3 (2014/15) (JULY 16, 2015)

Net Interest Income 655,532,497 818,717,766 1,139,389,934

&RPPLVVLRQDQG'LVFRXQW,QFRPH 23,667,788 39,824,742 53,468,424

Other Operating Income 68,853,461 85,437,840 131,295,145

([FKDQJH)OXFWXDWLRQ,QFRPH 27,237,310 146,889,410 178,746,935

$GGLWLRQ'HGXFWLRQ,QWHUHVW6XVSHQVHGXULQJWKHSHULRG 371,471 10,360,936 20,814,111

Gross income (a) 775,662,527 1,101,230,694 1,523,714,548 -

$OID E 15% 15% 15%

)L[HG3HUFHQWDJHRI*URVV,QFRPH>F DE @ 116,349,379 165,184,604 228,557,182

&DSLWDO5HTXLUHPHQWIRURSHUDWLRQDOULVN G DYHUDJHRIF 170,030,388 117,975,100

5LVN:HLJKW UHFLSURFDORIFDSLWDOUHTXLUHPHQWRI LQWLPHV H 10 10

(TXLYDOHQW5LVN:HLJKW([SRVXUH>I GH @ 1,700,303,885 1,179,750,998

PILLAR-II ADJUSTMENTS

,I*URVV,QFRPHIRUDOOWKHODVWWKUHH\HDUVLVQHJDWLYH D

7RWDO&UHGLWDQG,QYHVWPHQW QHWRI6SHFLȨF3URYLVLRQ

&DSLWDO5HTXLUHPHQWIRURSHUDWLRQDOULVN

5LVN:HLJKW UHFLSURFDORIFDSLWDOUHTXLUHPHQWRI LQWLPHV 10 10

(TXLYDOHQW5LVN:HLJKW([SRVXUH>J@

(TXLYDOHQW5LVN:HLJKW([SRVXUH>K IJ@ 1,700,303,885 1,179,750,998

57 Annual Report 2015/16

5LVN:HLJKWHG([SRVXUH)RU0DUNHW5LVN SCHEDULE 30 (NGA) $VRQ-XO\ $VKDGK In Rs.

CURRENT YEAR

S.NO. CURRENCY OPEN POSITION (FCY) OPEN POSITION (NPR) RELEVANT OPEN POSITION PREVIOUS YEAR

1 INR 1,019,974,619 1,632,724,372 1,632,724,372 1,108,228,940

2 USD 73,887 7,928,036 7,928,036 23,103,262

3 *%3 25,988 3,741,601 3,741,601 2,561,454

4EUR 401,480 10,186,072

5 7+% 6,250 18,719 18,719 231

6 &+) 340 37,113 37,113 102,563

7 $8' 12,672 1,035,445 1,035,445 1,681,040

8 &$' 475 39,021 39,021 85,744

9 6*' 795 63,318 63,318 22,245

10 -3< 384,663 391,202 391,202 1,212,046

11 +.' 17,430 240,273 240,273 30,169

12 '.. 141,290 -

13 6(. - - - 5,933

14 6$5 19,210 537,304 537,304 1,038,272

15 4$5 8,535 246,021 246,021 231,340

16 $(' 11,105 317,325 317,325 2,205,099

17 0<5 18,011 476,571 476,571 215,615.85

18 .5: 1,266,000 120,207 120,207 620.90

19 &1< 37,669 601,574 601,574 309,474.16

Total Open Position (a) 1,649,060,872 1,151,220,121

)L[HG3HUFHQWDJH E 5% 5%

&DSLWDO&KDUJHIRU0DUNHW5LVN>F DE @ 82,453,044 57,561,006

5LVN:HLJKW UHFLSURFDORIFDSLWDOUHTXLUHPHQWRI LQWLPHV G 10 10

(TXLYDOHQW5LVN:HLJKW([SRVXUH>H FG @ 824,530,436 575,610,060

58 Annual Report 2015/16

Principal Indicators SCHEDULE 31 $VRQ-XO\ $VKDGK In Rs.

PARTICULARS INDICATORS FY 2011/12 FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16

1 3HUFHQWRI1HW3URȨW*URVV,QFRPH Percent 9.92 16.96 18.67 21.46 26.63

2 Earning Per Share Rs. 6.04 15.13 19.28 24.47 32.55

3 0DUNHW9DOXH3HU6KDUH Rs. 225.00 260 638 555 750

4 Price Earning Ratio Times 37.25 17.18 33.09 22.68 23.04

5 'LYLGHQG ,QFOXGLQJ%RQXV RQ6KDUH&DSLWDO Percent 5.50 10.53 15.79 21.05 15.79

6 Cash Dividend on Share Capital Percent 5.50 0.53 0.79 1.05 0.79

7 ,QWHUHVW,QFRPH/RDQ $GYDQFHV Percent 12.16 11.01 9.79 8.92 7.98

8 6WDȧ([SHQVHV7RWDO2SHUDWLQJ([SHQVHV Percent 34.50 38.60 39.44 39.83 44.09

9 ,QWHUHVW([SHQVHV7RWDO'HSRVLWDQG%RUURZLQJ Percent 6.69 5.31 4.66 3.94 3.10

10 ([FKDQJH*DLQ7RWDO,QFRPH Percent 1.51 6.41 6.14 4.11

11 6WDȧ%RQXV7RWDO6WDȧ([SHQVHV Percent 21.66 43.84 45.85 48.58 54.72

12 1HW3URȨW/RDQDQG$GYDQFHV Percent 1.26 2.00 2.07 2.18 2.44

13 1HW3URȨW7RWDO$VVHWV Percent 0.89 1.39 1.46 1.55 1.78

14 7RWDO&UHGLW'HSRVLW Percent 86.25 85.72 82.90 83.97 88.10

15 7RWDO2SHUDWLQJ([SHQVHV7RWDO$VVHWV Percent 1.69 1.18 1.16 1.14 1.05

16 $GHTXDF\RI&DSLWDO)XQGRQ5LVN:HLJKWHG$VVHWV

D &RUH&DSLWDO Percent 19.82 13.91 11.52 10.13 10.69

E 6XSSOHPHQWDU\&DSWLDO Percent 0.93 0.96 1.02 0.97 1.67

F 7RWDO&DSLWDO)XQG Percent 20.74 14.87 12.54 11.08 12.36

17 /LTXLGLW\ Percent 30.24 30.96 26.68 22.32 24.24

18 1RQ3HUIRUPLQJ/RDQ7RWDO&UHGLW Percent 0.479 0.027 0.017 0.070 0.019

19 :HLJKWHG$YHUDJH,QWHUHVW5DWH6SUHDG Percent 3.38 3.39 4.01 3.83 4.63

20 %RRN1HW:RUWK Rs. 2,129,580,522 2,424,031,128 2,833,397,025 3,430,693,691 3,701,942,766

21 7RWDO1XPEHURI6KDUHV Nos. 20,160,000 20,160,000 22,176,000 25,502,400 30,602,880

22 7RWDO6WDȧ Nos. 232 231 311 415 470

23 1RRI%UDQFKHV LQFOXGLQJ+HDG2ȪFH Nos. 22 24 28 38 40

24 Base Rate Percent - 10.04 8.22 7.50 6.07

24 5HWXUQRQ(TXLW\ Percent 5.72 12.58 15.09 18.19 22.69

25 5HWXUQRQ$VVHWV Percent 0.88 1.39 1.46 1.55 1.78

26 7RWDO$VVHWVWR6KDUHKROGHUV)XQG Times 6.44 9.03 10.30 11.66 14.97

59 Annual Report 2015/16

6&+('8/( 6LJQLȨFDQW$FFRXQWLQJ3ROLFLHV

1. GENERAL INFORMATION Sanima %DQN/LPLWHG Ȉ7KH%DQNȉ LVDOLPLWHGOLDELOLW\FRPSDQ\GRPLFLOHGLQ1HSDO7KHUHJLVWHUHGRȪFHRIWKH%DQNLVORFDWHGDW$ODNDSXUL %XLOGLQJ1D[DO.DWKPDQGX1HSDO

7KH%DQNKDVUHJLVWHUHGZLWKWKH2ȪFHRIWKH&RPSDQ\5HJLVWUDURQth-XQH th$VKDGK REWDLQHGOLFHQVHIURP1HSDO5DVWUD Bank on 26th1RYHPEHU th0DQJVLU DQGFDPHLQWRRSHUDWLRQIURPth'HFHPEHU st0DQJVLU WRFRQGXFWEDQNLQJ EXVLQHVVLQ1HSDO7KH%DQNLVOLVWHGLQ1HSDO6WRFN([FKDQJH/LPLWHG)XUWKHUPRUHWKH%DQNKDVREWDLQHGOLFHQVHWRRSHUDWHDVȅ$ȆFODVV )LQDQFLDO,QVWLWXWLRQRQth)HEUXDU\ st)DOJXQ DQGVWDUWHGRSHUDWLRQDVȅ$ȆFODVV)LQDQFLDO,QVWLWXWLRQZHIth)HEUXDU\ 2012 (3rd)DOJXQ LHXSJUDGHGWRȅ$ȆFODVV)LQDQFLDO,QVWLWXWLRQ

2. APPROVAL OF FINANCIAL STATEMENTS BY BOARD OF DIRECTORS 7KHDFFRPSDQLHGȨQDQFLDOVWDWHPHQWVKDYHEHHQDGRSWHGE\WKH%RDUGRI'LUHFWRUVRQLWVPHHWLQJKHOGRQth6HSWHPEHU nd Bhadra DQGUHFRPPHQGHGIRULWVDSSURYDOE\WKH$QQXDO*HQHUDO0HHWLQJRIWKHVKDUHKROGHUV

3. BASIS OF PREPARATION & USE OF ESTIMATES 7KHȨQDQFLDOVWDWHPHQWVDUHSUHSDUHGXQGHUKLVWRULFDOFRVWFRQYHQWLRQIROORZLQJDFFUXDOEDVLVRIDFFRXQWLQJH[FHSWIRULQWHUHVWLQFRPHRQ ORDQVDQGDGYDQFHZKLFKLVDFFRXQWHGIRURQFDVKEDVLV7KHSUHSDUDWLRQRIȨQDQFLDOVWDWHPHQWVKDVEHHQPDGHLQFRQIRUPLW\ZLWK*$$3DQG LQWKHIRUPDWSUHVFULEHGE\15%'LUHFWLYHQR,WDOVRUHTXLUHVPDQDJHPHQWWRH[HUFLVHMXGJPHQWLQSURFHVVRIGHYHORSLQJDQGDSSO\LQJ WKH%DQNȆVDFFRXQWLQJSROLFLHV7KH0DQDJHPHQWEHOLHYHVWKDWHVWLPDWHVDQGSROLFLHVVRDSSOLHGDUHUHDVRQDEOHLQWKHFLUFXPVWDQFHVRIWKH FDVHV$OOWKHIRUPDWVRIWKHȨQDQFLDOVWDWHPHQWVDUHLQDFFRUGDQFHZLWKWKH15%'LUHFWLYHV

4. STATEMENT OF COMPLIANCE

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5. SIGNIFICANT ACCOUNTING POLICES

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5.1. INTEREST INCOME

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5.2. COMMISSION INCOME

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5.3. DIVIDEND INCOME

'LYLGHQGRQHTXLW\VKDUHVLVUHFRJQL]HGDVLQFRPHZKHQWKHULJKWWRUHFHLYHWKHVDPHLVHVWDEOLVKHG&DVKGLYLGHQGVGHFODUHGE\ resident companies are recorded at net of withholding tax.

5.4. FOREIGN EXCHANGE TRANSACTIONS

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)RUHLJQ FXUUHQF\ DVVHWV DQG OLDELOLWLHV DV RQ EDODQFH VKHHW GDWH DUH WUDQVODWHG LQWR 1HSDOHVH 5XSHHV DW WKH PLGH[FKDQJH UDWH SUHYDLOLQJRQWKH%DODQFH6KHHWGDWHDQGDQ\GLȧHUHQFHDULVLQJRXWRIVXFKWUDQVDFWLRQLVUHFRJQL]HGDVȈ5HYDOXDWLRQ*DLQ /RVV ȉ

60 Annual Report 2015/16

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5.5. INTEREST EXPENSE

,QWHUHVWRQGHSRVLWOLDELOLWLHVDQGERUURZLQJVLVDFFRXQWHGIRURQDFFUXDOEDVLVLQIXQFWLRQDOFXUUHQF\

5.6. EMPLOYMENT BENEFITS

7KH%DQNSURYLGHVLWVHPSOR\HHVZLWKWKHIROORZLQJUHWLUHPHQWEHQHȨWV

A. PROVIDENT FUND: 3URYLGHQWIXQGFRQWULEXWLRQLVUHFRJQL]HGDVH[SHQVHVDQGGHSRVLWHGLQWRWKHDSSURYHGUHWLUHPHQWIXQG (PSOR\HH3URYLGHQW )XQG2ȪFH

B. ACCUMULATED LEAVE : $FFXPXODWHGOHDYHSD\DEOHWRVWDȧLVUHFRJQL]HGRQDFFUXDOEDVLVDVSHUWKH(PSOR\HH6HUYLFH%\/DZVRIWKH%DQN

C. GRATUITY: *UDWXLW\OLDELOLW\RIVWDȧLVDFFUXHGRQO\DIWHUFRPSOHWLRQRIDȨ[HGSHULRGRIIXOOWLPHHPSOR\PHQWZLWKWKH%DQNLQDFFRUGDQFH ZLWKWKH(PSOR\HH6HUYLFH%\/DZV

/HDYHDQGJUDWXLW\OLDELOLW\LVQRWUHFRUGHGDVSHUDFWXDULDOYDOXDWLRQ

5.7. TAXATION

A) CURRENT INCOME TAX 3URYLVLRQIRULQFRPHWD[KDVEHHQPDGHRQWKHEDVLVRIWKH,QFRPH7D[$FWDQGDPHQGPHQWVWKHUHWR

B) DEFERRED INCOME TAX 'HIHUUHGWD[HVDUHDFFRXQWHGXVLQJWKHDVVHWDQGOLDELOLW\PHWKRG'HIHUUHGWD[DVVHWVDQGOLDELOLWLHVDUHUHFRJQL]HGIRUWKH IXWXUHWD[FRQVHTXHQFHVDWWULEXWDEOHWRWHPSRUDU\GLȧHUHQFHVEHWZHHQWKHȨQDQFLDOVWDWHPHQWȆVFDUU\LQJDPRXQWVRIH[LVWLQJ DVVHWVDQGOLDELOLWLHVDQGWKHLUUHVSHFWLYHWD[EDVHV'HIHUUHGWD[DVVHWVDQGOLDELOLWLHVDUHPHDVXUHGXVLQJWD[UDWHVH[SHFWHG WRDSSO\WRWD[DEOHLQFRPHLQWKH\HDUVLQZKLFKWKRVHWHPSRUDU\GLȧHUHQFHVDUHH[SHFWHGWREHUHFRYHUHGRUVHWWOHGEDVHGRQ WKHODZVWKDWKDYHEHHQHQDFWHGRUVXEVHTXHQWO\HQDFWHGE\WKHUHSRUWLQJGDWH'HIHUUHGWD[DVVHWVDULVLQJIURPWHPSRUDU\ GLȧHUHQFHDQGXQXVHGWD[ORVVHVDUHUHFRJQL]HGWRWKHH[WHQWWKHUHLVYLUWXDOFHUWDLQW\WKDWVXȪFLHQWIXWXUHWD[DEOHLQFRPHZLOO EHDYDLODEOHDJDLQVWZKLFKVXFKGHIHUUHGWD[DVVHWVFDQEHUHDOL]HG

5.8. LOANS AND ADVANCES INCLUDING BILLS PURCHASED

A) CLASSIFICATION /RDQVDQGDGYDQFHVRYHUGUDIWVDQGELOOVSXUFKDVHGLQFOXGHGLUHFWȨQDQFHSURYLGHGWRFXVWRPHUV7KHVHLQFOXGHRYHUGUDIWVWHUP ORDQVFRQVXPHUORDQVHWF$OOFUHGLWH[SRVXUHVDUHVXEMHFWWRUHJXODUUHYLHZDQGDUHJUDGHGDFFRUGLQJWRWKHOHYHORIFUHGLW ULVNDQGDUHFODVVLȨHGDVSHU15%'LUHFWLYHV/RDQVDQGDGYDQFHVRYHUGUDIWVDQGELOOVSXUFKDVHGDUHVKRZQQHWRIPDQGDWRU\ SURYLVLRQVDVUHTXLUHGE\15%'LUHFWLYHV

B) LOAN LOSS PROVISION 7KHSURYLVLRQIRUSRVVLEOHORVVHVRQORDQVDGYDQFHVDQGELOOVSXUFKDVHGDUHSURYLGHGDWWKHUDWHVEHWZHHQSHUFHQWDQG SHUFHQWDFFRUGLQJWRFODVVLȨFDWLRQRIVXFKULVNDVVHWVDVSHU1HSDO5DVWUD%DQN'LUHFWLYHV

C) :5,7(2)) 8QUHFRYHUDEOHORDQVDQGDGYDQFHVDUHZULWWHQRȧLQDFFRUGDQFHZLWKWKHZULWHRȧ%\ODZVDSSURYHGE\WKH%RDUGRI'LUHFWRUV DQG15%ZLWKRXWSUHMXGLFHWR%DQNȆVULJKWWRUHFRYHUVXFKORDQVDQGDGYDQFHV

D) 5(&29(5<)520:5,77(12))/2$16 5HFRYHU\IURPZULWWHQRȧORDQVLQHDUOLHUDVZHOODVFXUUHQW\HDULVUHFRJQL]HGDVLQFRPHLQWKH\HDUVXFKDPRXQWLVDFWXDOO\ UHFRYHUHGIURPWKHERUURZHU

E) INTEREST RECEIVABLE

,QWHUHVWDFFUXHGRQORDQVDQGLQYHVWPHQWVDUHUHFRJQL]HGRQGDLO\EDVLVRQWKHRXWVWDQGLQJEDODQFHVDWWKHHQGRIWKHGD\ ,QWHUHVWUHFHLYDEOHVRQORDQVDUHVWDWHGDWIXOOYDOXHDQGDUHGLVFORVHGQHWRILQWHUHVWVXVSHQVHXQGHUȅ$FFUXHG,QWHUHVWRQ/RDQȆ XQGHUȅ2WKHU$VVHWVȆLQ6FKHGXOHRIWKH)LQDQFLDO6WDWHPHQWV

F) RECOVERY OF LOAN AND INTEREST /RDQLVUHFRYHUHGLQWKHVHTXHQFHRISHQDOLQWHUHVWDQGSULQFLSDODPRXQW

61 Annual Report 2015/16

G) STAFF LOANS AND ADVANCES 7KH%DQNKDVDSROLF\WRSURYLGHORDQVWRLWVVWDȧXQGHU(PSOR\PHQW6HUYLFH%\/DZVDWDVXEVLGL]HGLQWHUHVWUDWH7KHVHORDQV DUHSUHVHQWHGXQGHUȅ2WKHU$VVHWVȆLQ6FKHGXOHDVSHU15%'LUHFWLYHV

5.9. INVESTMENTS

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A. HELD FOR TRADING : ,QYHVWPHQWVWKDWDUHPDGHIRUWKHSXUSRVHRIJHQHUDWLQJSURȨWIURPVKRUWWHUPȩXFWXDWLRQVLQSULFHDUHFODVVLȨHGXQGHUWKLV FDWHJRU\7KHVHLQYHVWPHQWVDUHPDUNHGWRPDUNHWRQDGDLO\EDVLVDQGGLȧHUHQFHLVUHȩHFWHGLQWKHSURȨWDQGORVVDFFRXQW

B. HELD TO MATURITY: 7KHLQYHVWPHQWVPDGHZLWKSRVLWLYHLQWHQWDQGDELOLW\RIWKH%DQNWRKROGWLOOPDWXULW\LVFODVVLȨHGDV+HOGWR0DWXULW\7KH+HOG WR0DWXULW\LQYHVWPHQWVDUHYDOXHGDWDPRUWL]HGFRVWLHWKHFRVWSULFHOHVVDQ\LPSDLUPHQW LIDSSOLFDEOH 7KHLPSDLUPHQWVDUH LQFOXGHGLQWKHSURȨWDQGORVVDFFRXQWIRUWKHSHULRG

C. AVAILABLE FOR SALE: $OORWKHULQYHVWPHQWVWKDWDUHQHLWKHUȈ+HOGWR0DWXULW\ȉQRUȈ+HOGWR0DWXULW\ȉDUHFODVVLȨHGXQGHUWKLVFDWHJRU\7KHVH LQYHVWPHQWV DUH PDUNHG WR PDUNHW RQ D UHJXODU EDVLV DQG WKH GLȧHUHQFH LV DGMXVWHG WKURXJK UHVHUYHV RI LQYHVWPHQW FODVVLȨHGDVȅ$YDLODEOHIRU6DOHȆLVDSSURSULDWHGWR,QYHVWPHQW$GMXVWPHQW5HVHUYHDVUHTXLUHGE\15%'LUHFWLYHV7KHUHVHUYH is considered as Tier 2 Capital. ,QFDVHRILQYHVWPHQWVXQTXRWHGZLWKLQVWLSXODWHGWLPHIUDPHSUHVFULEHGE\15%'LUHFWLYHV,QYHVWPHQW$GMXVWPHQW5HVHUYHLV PDLQWDLQHGWRWKHH[WHQWRIRIVXFKLQYHVWPHQWV

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$OO,QYHVWPHQWVDUHVXEMHFWWRUHJXODUUHYLHZDVUHTXLUHGE\1HSDO5DVWUD%DQN'LUHFWLYHV

5.10. PROPERTY, PLANT AND EQUIPMENT & DEPRECIATION

A) FIXED ASSETS )L[HGDVVHWVH[FHSWODQGDUHVWDWHGDWDFTXLVLWLRQFRVWOHVVDFFXPXODWHGGHSUHFLDWLRQ$FTXLVLWLRQFRVWLQFOXGHVH[SHQGLWXUHV WKDWDUHGLUHFWO\DWWULEXWDEOHWRWKHDFTXLVLWLRQRIWKHDVVHWV

$VVHWVZLWKDYDOXHOHVVWKDQ5VDUHFKDUJHGRȧDVDUHYHQXHH[SHQVHLUUHVSHFWLYHRILWVXVHIXOOLIHLQWKH\HDURI SXUFKDVH

/HDVHKROGLPSURYHPHQWVDUHFDSLWDOL]HGDWFRVWDQGDPRUWL]HGRYHUWKHOHDVHSHULRGRUWHQ\HDUVZKLFKHYHULVHDUOLHU7KHDPRXQW RIDPRUWL]DWLRQLVFKDUJHGDVUHYHQXHH[SHQVHV

B) &20387(562)7:$5( $FTXLUHGFRPSXWHUVRIWZDUHOLFHQVHVDUHFDSLWDOL]HGRQWKHEDVLVRIFRVWLQFXUUHGWRDFTXLUHDQGEULQJWRXVHWKHVSHFLȨF VRIWZDUHDQGDUHDPRUWL]HGRYHUWKHLUXVHIXOOLIHHVWLPDWHGDV\HDUVIURPWKHGDWHRIDFTXLVLWLRQRURYHUWKHSHULRGRIWKH license, whichever is less.

C) DEPRECIATION /DQGLVQRWGHSUHFLDWHG7KHGHSUHFLDEOHDPRXQWRIDQLWHPRISURSHUW\SODQWDQGHTXLSPHQWLVDOORFDWHGRQV\VWHPDWLFEDVLV RYHULWVXVHIXOOLIHDQGLVGHSUHFLDWHGDVIROORZV

NATURE OF ASSET USEFUL LIFE (IN YEARS) DEPRECIATION RATE %XLOGLQJ 50 5 )XUQLWXUH 10 25 2ȪFH(TXLSPHQWV 10 25 9HKLFOHV 720 &RPSXWHUV 725 3ODQWDQG0DFKLQHU\ 10 15 /HDVHKROG$VVHWV

DHSUHFLDWLRQRQDVVHWVDFTXLUHGGXULQJWKH\HDULVFRPSXWHGRQDSURSRUWLRQDWHEDVLVIURPGDWHRISXUFKDVHRUSXWWRXVH whichever is earlier.

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62 Annual Report 2015/16

5.11. STATIONERY STOCK

6WDWLRQHU\VWRFNLVYDOXHGDWFRVWDQGH[SHQGHGDVDQGZKHQLWLVXVHGIRUFRQVXPSWLRQRQ),)2PHWKRG

5.12. BULLION STOCK UNDER CONSIGNMENT

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5.13. NON-BANKING ASSETS (NBA)

1RQ%DQNLQJ$VVHWVLVYDOXHGDWORZHURIORDQDPRXQWRUIDLUPDUNHWYDOXHRIWKHDVVHWVDFTXLUHG3URYLVLRQVIRU1%$DUHPDGHLQ accordance with the Nepal Rastra Bank Directives.

5.14. OTHER ASSETS

2WKHUDVVHWVDUHVKRZQQHWRIRWKHUOLDELOLWLHVZKHQSDUW\LVVDPHDQGWKH%DQNKDVOHJDOULJKWWRVHWRȧ

5.15. %2552:,1*6

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5.16. DEPOSITS

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5.17. UNEARNED INCOME

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5.18. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

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5.19. OPERATING LEASE COMMITMENT

7KH%DQNKDVWDNHQYDULRXVSURSHUWLHVRQFDQFHOODEOHORQJWHUPOHDVH6LQFHWKH%DQNSRVVHVVHVWKHULJKWWRWHUPLQDWHWKHVDLGOHDVH EHIRUHLWVPDWXULW\E\JLYLQJDQRWLFHRIVSHFLȨHGSHULRGWKHIXWXUHOLDELOLW\WKH%DQNLVOLPLWHGWROHDVHSD\DEOHIRUQRWLFHSHULRGRQO\

7KHH[SHQVHVXQGHURSHUDWLQJOHDVHVDUHERRNHGXQGHUȅ/HDVHKROG$VVHWVȆDQGZULWWHQRȧLQ\HDUVRUWHUPRIOHDVHZKLFKHYHULV less.

5.20. ROUNDING OFF AND REGROUPING/RECLASSIFICATION

7KH)LQDQFLDO6WDWHPHQWVDUHSUHVHQWHGLQ1HSDOHVH5XSHHVURXQGHGWRWKHQHDUHVW5XSHH3UHYLRXV\HDUDPRXQWKDVEHHQUHJURXSHG UHFODVVLȨHGZKHUHYHUQHFHVVDU\WRIDFLOLWDWHFRPSDULVRQ

63 Annual Report 2015/16

6&+('8/( 1RWHVWR$FFRXQWV 1. EQUITY

1.1. PAID-UP EQUITY CAPITAL

3DLGXSFDSLWDORIWKH%DQNKDVLQFUHDVHGIURP\HDUWR\HDUDVIROORZV

FINANCIAL YEAR PAID UP SHARE REMARKS CAPITAL (RS.) 224,000,000 Opening Share Capital 224,000,000 --- 320,000,000 ,VVXHRISXEOLFVKDUHV 384,000,000 ,VVXHRIULJKWVKDUHV 805,165,800 ,VVXHRIULJKWDQGERQXVVKDUHVDIWHULVVXHRIULJKW 806,400,000 3XEOLFVDOHRIQRRIXQVXEVFULEHGULJKWVKDUHV 2,016,000,000 ,VVXHRIULJKWVKDUHV 2,016,000,000 --- 2,217,600,000 %RQXVVKDUHVLQFOXGHG 2,550,240,000 %RQXVVKDUHVLQFOXGHG 3,060,288,000 3URSRVHG%RQXVVKDUHVLQFOXGHG 4,710,596,500 ,QFOXGLQJ&DOOVLQ$GYDQFH5V0LOOLRQDQG%RQXV shares

1HSDO5DVWUD%DQN 15% KDVGLUHFWHGWKHFRPPHUFLDOEDQNVWRUDLVHWKHLUSDLGXSFDSLWDOWR5VELOOLRQE\PLG-XO\$FFRUGLQJO\ WKH%DQNLVSODQQLQJWRUDLVHSDLGXSFDSLWDOWKURXJKLVVXHRI%RQXVDQG5LJKWVKDUHV3DLG8SFDSLWDOVKRZQRQWKHIDFHRI%DODQFH 6KHHWLQFOXGHV5VFDOOVLQDGYDQFHIURPVKDUHKROGHUVKROGLQJRUPRUH

1.2. GENERAL RESERVE

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1.3. DEFERRED TAX RESERVE

15%'LUHFWLYHQRUHTXLUHVOLFHQVHGLQVWLWXWLRQVWRPDLQWDLQ'HIHUUHG7D[5HVHUYHHTXLYDOHQWWRWKHDPRXQWRI'HIHUUHG7D[$VVHW 7KH%DQNPDLQWDLQVHTXLYDOHQWUHVHUYHWRWKHDPRXQWRIGHIHUUHGWD[DVVHWLQFRPSOLDQFHZLWKUHJXODWRU\UHTXLUHPHQWV7KHPRYHPHQW RIGHIHUUHGWD[DVVHW OLDELOLW\ LVSUHVHQWHGLQWKHWDEOHEHORZ Rs.

PARTICULARS CURRENT YEAR PREVIOUS YEAR 2SHQLQJ%DODQFH'HIHUUHGWD[DVVHWV OLDELOLW\ 'HIHUUHGWD[DVVHWV OLDELOLW\ RQWHPSRUDU\GLȧHUHQFHV 2,591,740 &ORVLQJ%DODQFH'HIHUUHGWD[$VVHWV /LDELOLW\ 7,243,396 (4,651,656)

64 Annual Report 2015/16

1.4. INVESTMENT ADJUSTMENT RESERVE (IAR)

7KH%DQNKDVPDLQWDLQHGDGHTXDWHUHVHUYHLQFRPSOLDQFHZLWK15%'LUHFWLYHVDQGIRULQYHVWPHQWVFDWHJRUL]HGDV ȅ$YDLODEOHIRU6DOHȆH[FHSWIRUWKH,QYHVWPHQWPDGHLQWKHVKDUHVRI6DQLPD0DL+\GURSRZHU/WGZKLFKLVYDOXHGDWFRVW7KHPRYHPHQW RI,$5IRUWKH\HDULVSUHVHQWHGEHORZ Rs.

PARTICULARS NET INVESTMENT REQUIRED RESERVE MOVEMENT Opening Balance 555,000 6KDUHVRI/RFDO2UJDQL]HG,QVWLWXWLRQ /LVWHG6HFXULWLHV# 10,000,000 200,000 - 8QOLVWHG6HFXULWLHV# 110,000,000 2,200,000 2,200,000 8QOLVWHG6HFXULWLHV# 355,000 350,000 ([HPSWHG6HFXULWLHV 2,302,600 - - Closing Balance 2,195,000

7KH%DQNKDVLQYHVWHG5VLQSURPRWHUVKDUHVRI6DQLPD0DL+\GUR3RZHUZKLFKLVYDOXHGDWFRVWDVWKHORFNLQSHULRG (till 31st2FWREHU KDVQRWHODSVHG\HW+DGWKHVKDUHVEHHQDFFRXQWHGEDVHGRQ15%'LUHFWLYHV RQ0DUNHGWR0DUNHWEDVLV WKHLQYHVWPHQWZRXOGEHYDOXHGDW5VDQG,QYHVWPHQW$GMXVWPHQW5HVHUYHRI5VZRXOGKDYHEHHQFUHDWHG

1.5. CAPITAL REDEMPTION RESERVE FUND (DEBENTURE REDEMPTION RESERVE FUND)

$VSHUSURYLVLRQVLQFODXVHRI15%'LUHFWLYHQR%DQNVDUHUHTXLUHGWRPDLQWDLQDUHGHPSWLRQUHVHUYHLQUHVSHFWRI'HEHQWXUH /LDELOLW\DWOHDVWRQSURSRUWLRQDWHEDVLVRYHULWVOLIH15%KDVDSSURYHGRI'HEHQWXUHLVVXDQFHYLGHWKHLUOHWWHUGDWHGst0D\ %6 7KH%DQNKDVDSSURSULDWHG5VLQWKHFXUUHQW\HDU

1.6. SPECIAL RESERVE FUND

&HUWDLQORDQVZHUHUHVWUXFWXUHGUHVFKHGXOHGGXHWRWKHHDUWKTXDNHDQGEORFNDGHLQWKHFRXQWU\DVSHU15%&LUFXODUV DQGGDWHG UHVSHFWLYHO\7KHFLUFXODUVDOVRUHTXLUHWRDSSURSULDWHLQWHUHVWFDSLWDOL]HGRQVXFK UHVWUXFWXUHGUHVFKHGXOHGORDQVWRDVHSDUDWHUHVHUYHIXQGXQWLOWKHORDQVDUHIXOO\UHSDLG,QWHUHVWFDSLWDOL]HGRQUHVWUXFWXUHG UHVFKHGXOHGORDQVGXHWRWKHHDUWKTXDNHDPRXQWVWR5VDQGVXFKDPRXQWLVDSSURSULDWHGWR6SHFLDO5HVHUYH)XQGDV VKRZQLQ6FKHGXOH

1.7. EXCHANGE FLUCTUATION FUND (EFF)

6HFWLRQRI%$),$UHTXLUHVDWOHDVWRIUHYDOXDWLRQJDLQVRIVXFKSURȨWV H[FHSWJDLQIURPUHYDOXDWLRQRI,QGLDQ&XUUHQF\ WR EHFUHGLWHGWRWKH([FKDQJH)OXFWXDWLRQ)XQG7KH%DQNKDVHDUQHG5VIURP([FKDQJH)OXFWXDWLRQGXULQJWKH\HDU7KH PRYHPHQWLQ())LVSUHVHQWHGKHUHXQGHU PARTICULARS AMOUNT (RS.) Opening Balance 3,198,743 5HVHUYH#RIUHYDOXDWLRQDPRXQWVSHFLȨHGLQ6FKHGXOH 994,898 Closing Balance 4,193,641

2. PROPOSED BONUS SHARE AND CASH DIVIDEND

7KH%RDUGRI'LUHFWRUVKDVSURSRVHG%RQXVVKDUHVDWWKHUDWHRI RQSDLGXSFDSLWDODIWHUDOORWPHQWRI5LJKW6KDUHVDQQRXQFHG LQ)< DQG&DVKGLYLGHQGDWWKHUDWHRIVXEMHFWWRDSSURYDORI15%DQG$QQXDO*HQHUDO0HHWLQJ%RQXVVKDUHVKDYHEHHQ SURSRVHGIURPFXUUHQW\HDUȆVSURȨWDQGODVW\HDUȆVDFFXPXODWHGSURȨW

3. UNPAID DIVIDEND

$VRQEDODQFHVKHHWGDWHWRWDOGLYLGHQGSD\DEOHDPRXQWVWR5V 3<5V RIZKLFKQRDPRXQWLVXQSDLGRYHUȨYH\HDUV 'HWDLOVKDYHEHHQSUHVHQWHGDVXQGHU DIVIDEND PAYABLE OF FY CURRENT YEAR (RS.) PREVIOUS YEAR (RS.) 2,552,345 2,982,748 1,926,222 2,269,155 1,720,547 1,893,632 Total 6,199,115 7,145,535

65 Annual Report 2015/16

4. RECONCILIATION STATUS

7KH%DQNUHFRQFLOHVLQWHUEUDQFKWUDQVDFWLRQVRQGDLO\EDVLV7KHUHDUHQRXQUHFRQFLOHGWUDQVDFWLRQVXQGHULQWHUEUDQFKWUDQVDFWLRQVRQ EDODQFHVKHHWGDWH

6LPLODUO\UHFRQFLOLDWLRQRIWKHORFDODQGIRUHLJQEDQNDQGȨQDQFLDOLQVWLWXWLRQDFFRXQWVLVFRQGXFWHGGDLO\ZHHNO\IRUWQLJKWO\PRQWKO\7KH GLȧHUHQFHVLGHQWLȨHGDUHUHYLHZHGDQGUHFRQFLOHG Rs.

RECONCILIATION STATUS TOTAL AMOUNT <3 MONTHS >3<9 MONTHS >9<12 MONTHS >12 MONTHS Branch Reconciliation - - - - - $JHQF\$FFRXQWV 193,775,389 192,006,989 1,700,009 68,390

5. LOANS AND ADVANCES

5.1. SECTORAL CLASSIFICATION

15%KDVVSHFLȨHGWKHPD[LPXPFHLOLQJRIOHQGLQJWRWRWDOUHDOHVWDWHVHFWRUDWRIJURVVORDQVDQGDGYDQFHV7KH%DQNVȆH[SRVXUH WR5HDO(VWDWHVHFWRUJUHZE\$VDW%DODQFHVKHHWGDWHWKHUHDOHVWDWHH[SRVXUHRIWKH%DQNZDV

5.2. MOVEMENT OF LOANS Rs ’000

CHANGE IN VOL- CHANGE S. N. PARTICULARS CURRENT YEAR PREVIOUS YEAR UME (%) 1 7HUP/RDQ 6,572,777 4,445,878 2,126,899 48 2 Overdraft 5,350,165 3,493,900 1,856,265 53 3 7UXVW5HFHLSW,PSRUW%LOOV 1,117,838 1,024,509 93,329 9 4 'HPDQG/RDQ:RUNLQJ&DSLWDO/RDQ 6,016,947 5,579,799 437,148 8 ,QGLYLGXDO5HVLGHQWLDO+RPH/RDQ 8SWR 5 5V/DNKV 2,916,910 2,192,791 724,119 33 6 5HDO(VWDWH/RDQ 3,985,379 1,958,358 2,027,021 104 7 0DUJLQ/HQGLQJ/RDQ 463,985 381,614 82,371 22 8 +LUH3XUFKDVH/RDQ 3,514,841 2,362,102 1,152,739 49 9 'HSULYHG6HFWRU/HQGLQJ 1,684,712 1,189,500 495,212 42 10 %LOOV3XUFKDVH 211,062 136,462 74,600 55 11 2WKHUV3URGXFWV 8,611,039 5,499,139 3,111,900 57 1HW/RDQVDQG$GYDQFHV 40,445,655 28,264,052 12,181,603 43

7KH%DQNȆV\HDURQ\HDU1HW/RDQVDQG$GYDQFHVHVFDODWHGE\5V12,181,603WKRXVDQGV LQFUHDVLQJWKHQHWEDODQFHWR5V WKRXVDQGV7KHPDMRUYROXPHJURZWKZDVDFKLHYHGXQGHU7HUP/RDQV %LOOLRQV 5HDOHVWDWHORDQ %LOOLRQV 2YHUGUDIWV %LOOLRQV DQGRWKHUSURGXFWV %LOOLRQV

5.3. 6800$5<2)/2$16$1'$'9$1&(6',6%856('5(&29(5('$1'35,1&,3$/$1',17(5(67:5,77(12))

PARTICULARS AMOUNT (‘000) Opening Balance 28,588,121 /RDQV'LVEXUVHG 47,879,343 /RDQV5HFRYHUHG 35,568,589 3ULQFLSDO:ULWWHQRȧ - ,QWHUHVW:ULWWHQRȧ - Closing Outstanding (Gross) 40,898,875

66 Annual Report 2015/16

5.4. CONCENTRATION OF LOANS & ADVANCES (FUNDED & NON FUNDED FACILITIES)

)XQGHGDQGQRQIXQGHGIDFLOLWLHVDQGVHFWRUZLVHORDQVDUHZLWKLQWKHOLPLWVSUHVFULEHGE\15%'LUHFWLYHV7KHGHWDLOVDUHSUHVHQWHG EHORZ

5Vȅ

CURRENT YEAR PREVIOUS YEAR % % PARTICULARS NRS. NRS. 7RWDO/RDQVDQG$GYDQFHV 40,898,873 28,588,121 /RDQVWR7RS%RUURZHU 3,512,303 8.6 3,091,013 10.8 /RDQVWR6LQJOH/DUJHVW%RUURZHU 425,380 1.0 420,795 1.5

5Vȅ

CURRENT YEAR PREVIOUS YEAR % % PARTICULARS NRS. NRS. Total Non Funded Liabilities 5,613,557 3,777,878 ([SRVXUHWR7RS3DUWLHV 1,908,331 34.0 2,034,805 53.9 ([SRVXUHWR6LQJOH/DUJHVW3DUW\ 349,525 6.2 796,175 21.1

5.5. DEPRIVED SECTOR LENDING (DSL)

15%'LUHFWLYHUHTXLUHVȈ$ȉFODVVOLFHQVHGLQVWLWXWLRQVWROHQGDWOHDVWȨYHSHUFHQWRIWKHLUWRWDORXWVWDQGLQJORDQVDQGDGYDQFHV LQFOXGLQJELOOVSXUFKDVHGDQGGLVFRXQWHG LQGHSULYHGVHFWRU7KH%DQNVȆH[SRVXUHLQGHSULYHGVHFWRUOHQGLQJLV5V 3< 5V RU 3< DJDLQVWWKHUHTXLUHPHQWRI 3< .

6. INVESTMENT

7KH%DQNȆVWRWDOLQYHVWPHQWSRUWIROLRLVVHJUHJDWHGDVEHORZ

CATEGORY CURRENT YEAR PREVIOUS YEAR (RS.) (RS.) +HOGIRU7UDGLQJ 95,398,304 24,924,520 +HOGWR0DWXULW\ 10,516,741,774 7,706,658,264 $YDLODEOHIRU6DOH 122,652,600 12,657,600 Total 10,734,792,678 7,744,240,384

7. DEPOSIT LIABILITIES

7.1. MOVEMENT OF DEPOSITS

7KHPRYHPHQWRIGHSRVLWOLDELOLWLHVLVSUHVHQWHGLQWKHWDEOHEHORZ Rs ’000

CURRENT YEAR PREVIOUS YEAR PARTICULARS NRS. NRS. CHANGE IN VOLUME % Non Interest Bearing 2,682,574 2,001,316 687,158 34.3 Saving Deposit 18,952,304 12,452,252 6,500,052 52.2 Call Deposit 12,132,142 7,882,471 4,249,671 53.9 Fixed Deposit 12,656,286 11,709,277 941,109 8.0 Total 46,423,306 34,045,316 12,377,990 36.4

7KH%DQNȆV\HDURQ\HDUGHSRVLWOLDELOLW\LQFUHDVHGE\5V12,377,990WKRXVDQGV WRUHDFK5V46,423,306WKRXVDQGV

67 Annual Report 2015/16

7.2. CONCENTRATION OF DEPOSITS

'HSRVLWVFRQFHQWUDWLRQLVSUHVHQWHGDVXQGHU 5Vȅ

CURRENT YEAR PREVIOUS YEAR PARTICULARS NRS.% NRS. % Total deposits 46,423,306 34,045,316 Deposits of Top 10 Parties ,QGLYLGXDO 906,466 2.0 494,446 1.5 ,QVWLWXWLRQDO 7,996,259 17.2 7,360,762 21.6

8. :(,*+7('$9(5$*(,17(5(675$7(635($'

7KHZHLJKWHGDYHUDJHLQWHUHVWUDWHVSUHDGDVSUHVFULEHGE\1HSDO5DVWUD%DQNDVRQEDODQFHVKHHWGDWHLVSUHVHQWHGDVXQGHU

3UHYLRXV\HDUUDWH Particulars Current year rate (%) (%)

$YHUDJH5DWHRI5HWXUQRQ5LVN$VVHWV ,QYHVWPHQWV 8.45 8.19

$YHUDJH5DWHRQ'HSRVLWVDQG%RUURZLQJV 3.82 4.36

Net Spread 4.63 3.83

9. STAFF LOANS

/RDQVWRVWDȧVDUHSURYLGHGLQOLQHZLWK(PSOR\HH6HUYLFH%\/DZVRIWKH%DQN/RDQVH[WHQGHGWRVWDȧKDYHLQFUHDVHGGXULQJWKH\HDUDV PRUHVWDȧVEHFDPHHOLJLEOHDQGKDYHDYDLOHGVXFKIDFLOLWLHV7KHORDQVRXWVWDQGLQJDVDWWKHEDODQFHVKHHWGDWHDUHDVXQGHU

PARTICULARS CURRENT YEAR (RS.) PREVIOUS YEAR (RS.) (PSOR\HH2'/RDQ 12,849,644 4,985,284 +RXVLQJ/RDQ 217,488,630 127,758,949 +LUH3XUFKDVH/RDQ 14,081,616 8,666,138 Total 244,419,890 141,410,371

10. TAXATION

A) ADVANCE TAX $GYDQFH7D[5V 3<5V KDVEHHQSDLGDJDLQVWWKHWD[OLDELOLW\IRU)<

B) INCOME TAX ,QFRPH WD[ UHWXUQ ȨOHG XQGHU VHOI DVVHVVPHQW SURFHGXUHV IURP WR LV SHQGLQJ DVVHVVPHQW E\ WKH /DUJH 7D[SD\HUV2ȪFH

68 Annual Report 2015/16

C) INCOME TAX LIABILITY

,QFRPHWD[OLDELOLW\KDVEHHQFDOFXODWHGDVSHU,QFRPH7D[$FWDQGDPHQGPHQWVWKHUHWRDVIROORZV PARTICULARS AMOUNT (RS.) 3URȨWEHIRUH%RQXVDQG7D[DVSHUȨQDQFLDO 1,557,699,034 /HVV%RQXV 141,609,003 3URȩWDIWHU%RQXV 1,416,090,031 Add: %RQGSUHPLXPZULWHRȧ 10,264,313 3URYLVLRQIRUVWDȧOHDYH 8,575,084 'HSUHFLDWLRQ LQFODPRUWL]DWLRQ DVSHU)LQDQFLDO 75,383,586 )L[HG$VVHWV:ULWWHQ2ȧ 21,672 %RQXVGLVWULEXWHGIURPGLYLGHQG 166,883 ,QYHVWPHQWLQ6DQLPD)RXQGDWLRQZULWWHQRȧ 5,000 94,416,539 Less: 3UHPLXPRQIRUHLJQERQGVSXUFKDVHGLQ)< 5,561,488 /HDYH(QFDVKPHQWSDLGGXULQJWKH\HDU 1,589,158 Depreciation as per Tax 77,390,751 Dividend Income 1,835,717 *DLQRQVDOHRI)L[HG$VVHWV 1,669,128 Training and Meeting fees 27,200 88,073,442

7D[DEOHSURȩW 1,422,433,127 &RUSRUDWH7D[/LDELOLW\ 30% 426,729,938

D) DEFERRED TAX ASSETS/ (LIABILITY)

'HIHUUHGWD[DVVHWVDQGOLDELOLWLHVKDYHEHHQFRPSXWHGLQDFFRUGDQFHZLWK*$$3DQGDUHDWWULEXWDEOHWRWKHIROORZLQJ Rs.

AS PER BOOKS OF TEMPORARY PARTICULARS TAX BASE ACCOUNTS DIFFERENCE )L[HG$VVHWV 355,897,986 341,245,493 14,652,493 /HDVHKROG$VVHWVDQG&RPSXWHU6RIWZDUH 86,143,942 82,032,938 4,111,004 3UHPLXPSDLGRQ%RQG - 4,702,825 3URYLVLRQIRU6WDȧ/HDYH - 1HW7HPSRUDU\'LȨHUHQFH (8,639,133) 'HIHUUHG7D[/LDELOLW\ $VVHWV DVDW$VKDGHQG # 'HIHUUHG7D[/LDELOLW\ $VVHWV WLOO$VKDGHQG 2072 4,651,656 'HIHUUHG7D[([SHQVH ,QFRPH IRUFXUUHQW year (7,243,396)

11. STAFF HOUSING

6WDȧ+RXVLQJ5HVHUYHUHTXLUHGXQGHUWKH/DERU$FWKDVQRWEHHQFUHDWHGDVWKH%DQNSURYLGHVKRXVLQJORDQWRLWVVWDȧDVSHUWKH (PSOR\HH6HUYLFH%\/DZV

69 Annual Report 2015/16

12. GRATUITY

7KH%DQNKDVPDGHDQDGGLWLRQDOSURYLVLRQRI5V 3<5V DJDLQVWJUDWXLW\OLDELOLW\LQWKHFXUUHQW\HDU7KHJUDWXLW\ OLDELOLW\LVIXOO\IXQGHGDQGGHSRVLWHGDW&LWL]HQ,QYHVWPHQW7UXVW &,7

13. STAFF LEAVE

7RWDO OHDYH OLDELOLW\ SURYLVLRQHG IRU FXUUHQW ȨQDQFLDO \HDU LV 5V 3< 5V %DQN KDV SDLG 5V 3< 5V DVOHDYHHQFDVKPHQWWRH[LVWLQJDQGWRWKRVHVWDȧZKRUHVLJQHGGXULQJ)<

14. PROVISION FOR STAFF BONUS

6WDȧERQXVKDVEHHQFDOFXODWHGDQGSURYLGHGDWSHUFHQWRIQHWSURȨWDIWHUPDNLQJDGMXVWPHQWVIRUORDQORVVSURYLVLRQDQGVWDȧERQXV

15. INTEREST REALIZATION AFTER YEAR END

%DQNKDVQRWXWLOL]HGWKHIDFLOLW\JLYHQLQ15%'LUHFWLYHIRUDFFRXQWLQJLQLQFRPHWKHLQWHUHVWRQFXVWRPHUORDQVDQGDGYDQFHVZKLFK ZHUHGXHDWWKHHQGRIȨQDQFLDO\HDUDQGZHUHFROOHFWHGZLWKLQGD\VRIHQGRIȨQDQFLDO\HDUDVLWLVQRWLQDFFRUGDQFHZLWKFDVKEDVLVRI DFFRXQWLQJIRULQWHUHVWLQFRPHIURP/RDQVDQG$GYDQFHV

16. %2552:,1*%<7+(%$1.$*$,167&2//$7(5$/2)2:1$66(761,/

17. EARNINGS PER SHARE, SHARE PRICE AND SHARE TRANSACTION

(DUQLQJV3HU6KDUH (36 LVFDOFXODWHGDVSHU*$$3DQGGLVFORVHGDVIROORZV PARTICULARS BASIC EPS DILUTED EPS 1HWSURȨWDWWULEXWDEOHWRHTXLW\VKDUHKROGHUV 5V 996,054,127 996,054,127 7RWDO1XPEHURIRXWVWDQGLQJVKDUHV 1R 30,602,880 30,602,880 :HLJKWHG$YHUDJH1XPEHURIVKDUHV 1R 30,602,880 30,602,880 Current Year Earnings Per Share (Rs.) 32.55 32.55 3UHYLRXV

&RPSDUHGWRODVW\HDUWKH(36JUHZE\5V 3

18. DETAILS OF NON BANKING ASSETS

7KH%DQNKDVQRWWDNHQSRVVHVVLRQRIDQ\DVVHWVWDNHQDVVHFXULW\DJDLQVWWKHORDQVDQGDGYDQFHV

19. DETAILS OF LEASEHOLD ASSETS AMORTIZATION In Rs

COST PRICE AMORTIZED UP :5,77(12)) AMORTIZED TOTAL AMOR- NET BOOK TO LAST YEAR DURING THE YEAR DURING THE YEAR TIZED AMOUNT VALUE

131,365,072 35,420,459 1,184,374 11,374,709 47,979,543 83,385,530

20. FIXED ASSETS USED BY GOVERNMENT IN ROAD EXPANSION

*RYHUQPHQWXVHGWRWDODUHD $QD RIWKH%DQNZLWKRULJLQDOFRVW5VIRUURDGH[SDQVLRQLQIURQWRILWV$ONDSXUL %XLOGLQJ1D[DO.DWKPDQGX7KH%DQNKDGORGJHGDFODLPRI5VRQrd6HSWHPEHU th$VKRM ZLWK.DWKPDQGX 9DOOH\'HYHORSPHQW$XWKRULW\IRUFRPSHQVDWLRQ&ODLPVDUHDFFRXQWHGIRURQFDVKEDVLV

21. ACQUISITION OF BAGMATI DEVELOPMENT BANK

7KH%DQNKDVVLJQHGD0HPRUDQGXPRI8QGHUVWDQGLQJWRDFTXLUH%DJPDWL'HYHORSPHQW%DQN/LPLWHG%DQNKDVDOVRUHFHLYHGLQSULQFLSOH DSSURYDO /HWWHURI,QWHQW IURP1HSDO5DVWUD%DQNRQth$XJXVW %6

70 Annual Report 2015/16

22. CLASSIFICATION OF ASSETS AND LIABILITIES BASED ON MATURITY Rs. Millions

91-180 181-270 271-365 OVER 1 TOTAL PARTICULARS 1-90 DAYS DAYS DAYS DAYS YEAR AMOUNT

Assets

1 Cash Balance 683----683

2 %DODQFHZLWK%DQNV ),V 2,895 - - - - 2,895

3 Investment in Foreign Banks 2,086 429 - 268 - 2,784

4 &DOO0RQH\ ------

5 *RYHUQPHQW6HFXULWLHV 248 - - - 4,758 5,006

6 Nepal Rastra Bank Bonds -- --2,0002,000

7 ,QWHU%DQN ),/HQGLQJ 200----200

8 /RDQV $GYDQFHV 7,706 4,623 4,918 2,698 20,953 40,899

9 ,QWHUHVW5HFHLYDEOH 134----134

10 Reverse Repo ------

5HFHLYDEOHVIURPRWKHU,QVWLWXWLRQVXQGHU 11 Commitment ------

3D\PHQWWREHPDGHIRUIDFLOLWLHVXQGHUVQR 12 6,593 1,720 566 744 - 9,623

13 Others - - - - 16,994 16,994

Total Assets (A) 20,544 6,772 5,484 3,711 44,705 81,216

Liabilities

14 &XUUHQW'HSRVLWV 585---2,0932,678

15 Saving Deposits 3,730 - - - 27,354 31,084

16 Fixed Deposits 3,309 2,525 2,782 3,886 149 12,650

17 'HEHQWXUHV -- --370370

18 %RUURZLQJV 1,616 1,666 - - - 3,282

(a) &DOO6KRUW1RWLFH ------

E ,QWHUEDQN)LQDQFLDO,QVWLWXWLRQV 200----200

F 5HȨQDQFH 1,395 1,666 - - - 3,060

G 2WKHUV 22- --- 22

19 2WKHU/LDELOLWLHVDQG3URYLVLRQV 1,119 - - - - 1,119

D 6XQGU\&UHGLWRUV 48- --- 48

E %LOOV3D\DEOH ------

F ,QWHUHVW3D\DEOH 22- --- 22

G 3URYLVLRQV 709----709

H 2WKHUV 341----341

20 3D\DEOHWRRWKHULQVWLWXWLRQVXQGHU&RPPLWPHQW ------

21 8QXWLOL]HG$SSURYHG)DFLOLWLHV 547----547

22 /HWWHURI&UHGLW*XDUDQWHH 1HWRI0DUJLQ 6,046 1,720 566 744 - 9,076

23 Repo ------

24 3D\PHQWWREHPDGHIRUIDFLOLWLHVXQGHU61R ------

25 Others -- --12,95012,950

Total Liabilities (B) 16,952 5,910 3,348 4,630 42,916 73,757

Net Financial Assets (A-B) 3,592 862 2,136 (920) 1,789 7,459

&XPXODWLYH1HW)LQDQFLDO$VVHWV 3,592 4,454 6,590 5,670 7,459 -

71 Annual Report 2015/16

23. RELATED PARTIES

7KH%DQNKDVHQWHUHGLQWRȨQDQFLDOWUDQVDFWLRQVZLWKWKHIROORZLQJUHODWHGSDUWLHV Rs. ’000

NATURE OF NATURE OF CURRENT PREVIOUS RELATED PARTY RELATIONSHIP TRANSACTION YEAR YEAR .DQWLSXU7HOHYLVLRQ3YW/WG 13 13 0HGLFDUH1DWLRQDO+RVSLWDO 5HVHDUFK&HQWUH 1,355 11,232 6DQLPD+\GUR (QJLQHHULQJ3YW/WG 362 33 6DQLPD/LIH,QVXUDQFH&RPSDQ\/WG 2,589 2,529 6DQLPD,QVXUDQFH&RPSDQ\/WG 594 586 6DQLPD)RXQGDWLRQ 3,365 3,549 6DQLPD&DSLWDO/WG 83,429 - 6DQLPD0DL+\GURSRZHU/WG Deposits 22,071 22,048 6DQLPD3YW/WG 6,433 7,227 7DPRU6DQLPD(QHUJ\3YW/WG 71,010 .KXPEX&DUSHW,QGXVWULHV 00 6RSDQ0XOWLSOH&RPSDQ\/WG Common Promoters 14 13 )XQGIRU+\GUR,QYHVWPHQW 1494 1,480 6DQLPD+\GURSRZHU/WG 43,26 666 %DYDUL&RQVWUXFWLRQ3YW/WG 284 - 6DQLPD+\GUR (QJLQHHULQJ3YW/WG 6DQLPD0DL+\GURSRZHU/WG Rental income 2462 2402 6DQLPD+\GURSRZHU3YW/WG ,QGHSHQGHQW3RZHU3URGXFHUVȆ$VVRFLDWLRQ1HSDO 216 211 )DPLO\6HUYLFH6XSHUPDUNHW3YW/WG Deposits -- %KULNXWL7UDGLQJ&RPSDQ\3YW/WG 2142 6DQLPD0DL+\GURSRZHU/WG 10,000 10,000 6DQLPD/LIH,QVXUDQFH&RPSDQ\/WG Investment in Shares 350 350 6DQLPD)RXQGDWLRQ -5 Investment in Shares 110,000 - 6DQLPD&DSLWDO/WG 6XEVLGLDU\ Deposit 83,429 -

3HQGLQJJUDQWRIOLFHQVHIURP,QVXUDQFH%RDUGWKH&RPSDQLHVKDYH\HWWRFRPPHQFHRSHUDWLRQ

7KH%DQNKDVLQFRUSRUDWHGDPHUFKDQWEDQNLQJVXEVLGLDU\QDPHGȈ6DQLPD&DSLWDO/LPLWHGȉLQWKHFXUUHQW\HDUZLWKSDLGXSFDSLWDORI5V 110,000,000. 7KH%DQNKHOG5VPLOOLRQLQ&DOODQG&XUUHQWGHSRVLWVRILWVVXEVLGLDU\DWWKH\HDUHQG7KH%DQNKDGSDLGQHWLQWHUHVWDPRXQW5V PLOOLRQLQWKHȨVFDO\HDU

7KH%DQNKDVHQWHUHGLQWR6HUYLFH/HYHO$JUHHPHQW 6/$ ZLWKLWVVXEVLGLDU\WRSURYLGHRSHUDWLRQDODQGWHFKQLFDODVVLVWDQFHIRUDQDQQXDO IHHRI5VPLOOLRQ$FFRUGLQJO\WKH%DQNKDVUHFHLYHG5VGXULQJWKH)<

72 Annual Report 2015/16

24. TOTAL OF KEY MANAGEMENT PERSONNEL COMPENSATION (DISCLOSURE AS PER GAAP): Rs. CHIEF EXECUTIVE OTHER KEY MANAGEMENT DETAILS OF KEY MANAGEMENT REMARKS OFFICER PERSONNEL (AM- DCEO) 6KRUW7HUP(PSOR\HH%HQHȨWV )< 10,962,000 58,108,112 3RVW(PSOR\PHQW%HQHȨWV 2WKHU.H\0DQDJHPHQW 1,745,333 24,981,317 3)3D\DJDLQVWOHDYH *UDWXLW\ 3HUVRQQHO,QFOXGH'HSXW\&KLHI ([HFXWLYHRȪFHUDQGRWKHU 7HUPLQDWLRQ%HQHȨWV 1,/ 1,/ management team of assistant 6KDUH%DVHG3D\PHQWV 1,/ 1,/ PDQDJHUOHYHO DERYH 2WKHU/RQJ7HUP%HQHȨWV 1,/ 1,/

6KRUWWHUPHPSOR\PHQWEHQHȨWH[FOXGHVPHGLFDOLQVXUDQFHLQFRPHFRXQWHGXQGHUFDUIDFLOLW\GLȧHUHQWLDOLQWHUHVWLQFRPHDQGSUL]HPRQH\

.H\PDQDJHPHQWSHUVRQQHODUHDOVRHOLJLEOHIRUWKHIROORZLQJEHQHȨWV

1. %HQHȨWVDVSHU(PSOR\HH6HUYLFH%\/DZVRIWKH%DQN 2. %RQXVRXWRISURȨWDVSHU%RQXV$FW 3. +RXVLQJORDQVDQGDGYDQFHVDVSHU+RXVLQJ/RDQ6FKHPHRIWKH%DQN 4. 9HKLFOHIDFLOLWLHV

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25. COMPENSATION TO BOARD OF DIRECTORS (BODS)

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PARTICULARS CURRENT YEAR (RS.) PREVIOUS YEAR (RS.) Meeting Fees 1,921,096 1,316,000 Other Expenses 704,545 717,706

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73 Annual Report 2015/16

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E) CAPITAL STRUCTURE AND CAPITAL ADEQUACY

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PARTICULARS AMOUNT (RS.) a 3DLGXS(TXLW\6KDUH&DSLWDO 4,022,031,700 E ,UUHGHHPDEOH1RQFXPXODWLYHSUHIHUHQFHVKDUHV - c 6KDUH3UHPLXP - d 3URSRVHG%RQXV6KDUHV 688,564,800 e 6WDWXWRU\*HQHUDO5HVHUYHV 564,540,000 f Retained Earnings 2,799,665 g 8QDXGLWHGFXUUHQW\HDUFXPXODWLYHSURȨW - h 6SHFLDO5HVHUYH)XQG 11,922,576 I &DSLWDO$GMXVWPHQW5HVHUYH - M 'LYLGHQG(TXDOL]DWLRQ5HVHUYHV - k &DSLWDO5HGHPSWLRQ5HVHUYH)XQG 52,857,143 l Deferred Tax Reserve 2,591,740 m /HVV*RRGZLOO - n /HVV)LFWLWLRXV$VVHWV - o /HVV'HIHUUHG7D[$VVHW p /HVV,QYHVWPHQWLQHTXLW\LQOLFHQVHG)LQDQFLDO,QVWLWXWLRQV - q /HVV,QYHVWPHQWLQHTXLW\RILQVWLWXWLRQVZLWKȨQDQFLDOLQWHUHVWV r /HVV,QYHVWPHQWLQHTXLW\RILQVWLWXWLRQVLQH[FHVVRIOLPLWV - s /HVV,QYHVWPHQWVDULVLQJRXWRIXQGHUZULWLQJFRPPLWPHQWV - t /HVV5HFLSURFDOFURVVKROGLQJV - X /HVV3XUFKDVHRIODQG EXLOGLQJLQH[FHVVRIOLPLW XWLOL]HG - v /HVV2WKHU'HGXFWLRQV - Total Tier 1 Capital 5,222,365,884

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PARTICULARS AMOUNT (RS) a &XPXODWLYHDQGRU5HGHHPDEOH3UHIHUHQFH6KDUH E 6XERUGLQDWHG7HUP'HEW 370,000,000 c +\EULG&DSLWDO,QVWUXPHQWV - d *HQHUDOORDQORVVSURYLVLRQ 440,136,607 e ([FKDQJH(TXDOL]DWLRQ5HVHUYH 4,193,641 f ,QYHVWPHQW$GMXVWPHQW5HVHUYH 2,750,000 g $VVHWV5HYDOXDWLRQ5HVHUYH - h Other Reserves - Total Tier 2 Capital 817,080,248

74 Annual Report 2015/16

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PARTICULARS AMOUNT (RS.) &RUH&DSLWDO 7LHU 5,222,365,884 6XSSOHPHQWDU\&DSLWDO 7LHU 817,080,248 Total Capital Fund 6,039,446,132

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F) RISK EXPOSURES

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S.N. CATEGORIES AMOUNT (RS.) 1 &ODLPVRQ*RYHUQPHQWDQG&HQWUDO%DQN 791,413,026 2 Claims on Other Financial Entities - 3 Claims on Banks 961,144,804 4 &ODLPVRQ'RPHVWLF&RUSRUDWHDQG6HFXULWLHV)LUPV 19,607,302,264 5 &ODLPVRQ5HJXODWRU\5HWDLO3RUWIROLR 2WKHU5HWDLO3RUWIROLR 8,235,643,612 6 &ODLPVVHFXUHGE\UHVLGHQWLDOSURSHUWLHV 1,950,180,429 7 &ODLPVVHFXUHGE\&RPPHUFLDOUHDOHVWDWH 463,885,177 8 3DVWGXHFODLPV 59,572,062 9 +LJK5LVNFODLPV 7,533,958,848 10 2WKHU$VVHWV 1,236,648,794 11 2ȧ%DODQFH6KHHW,WHPV 4,240,087,601 Total 45,079,836,617

75 Annual Report 2015/16

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5,6.:(,*+7('(;32685(6 AMOUNT (RS.) 5LVN:HLJKWHG([SRVXUHIRU&UHGLW5LVN 45,079,836,617 5LVN:HLJKWHG([SRVXUHIRU2SHUDWLRQDO5LVN 1,700,303,885 5LVN:HLJKWHG([SRVXUHIRU0DUNHW5LVN 824,530,436 $GG5:(HTXLYDOHQWWRUHFLSURFDORIFDSLWDOFKDUJHRIRIJURVVLQFRPH 304,742,910 $GGRI5:(IRU2YHUDOOULVNPDQDJHPHQWSROLFLHVDQGSURFHGXUHVDUHQRWVDWLVIDFWRU\ 952,093,419 7RWDO5LVN:HLJKWHG([SRVXUHV 48,861,507,266 7RWDO&RUH&DSLWDOWR7RWDO5LVN:HLJKWHG([SRVXUHV 10.69% 7RWDO&DSLWDOWR7RWDO5LVN:HLJKWHG([SRVXUHV 12.36%

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PARTICULARS GROSS AMOUNT LOAN LOSS PROVISION NET NPA 5HVWUXFWXUHG --- 6XE6WDQGDUG 5,402,034 1,350,508 4,051,525 'RXEWIXO 19,499 9,749 9,749 /RVV 2,217,135 2,217,135 - Total 7,638,667 3,577,393 4,061,275

x NPA Ratios:

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PARTICULARS CURRENT YEAR PREVIOUS YEAR CHANGE (%) 1RQ3HUIRUPLQJ$VVHWV 9ROXPHVLQ5V 7,638,667 20,813,964 1RQ3HUIRUPLQJ$VVHWV 0.02 0.07

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PARTICULARS AMOUNT (RS.) /RDQVZULWWHQRȧGXULQJWKH\HDU - ,QWHUHVW6XVSHQVHZULWWHQRȧGXULQJWKH\HDU - Total -

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PARTICULARS CURRENT YEAR (RS) PREVIOUS YEAR (RS) CHANGE (%) /RDQ/RVV3URYLVLRQ 443,785,747 324,070,725 37 ,QWHUHVW6XVSHQVH 87,592,527 62,167,185 41

76 Annual Report 2015/16

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PARTICULARS AMOUNT (RS) Pass 123,239,264 :DWFK/LVW 8,772,721 5HVWUXFWXUHG - 6XE6WDQGDUG 1,350,508 'RXEWIXO 9,749 /RVV 1,166,153 Total 134,538,396

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PARTICULARS AMOUNT (RS) +HOGIRU7UDGLQJ 95,398,304 +HOGWR0DWXULW\ 10,516,741,774 $YDLODEOHIRUVDOH 122,652,600 7RWDO,QYHVWPHQW 10,734,792,678

x Eligible Credit Risk Mitigants (CRM) as on 15th July, 2016 (31st Ashadh 2073)

PARTICULARS AMOUNT (RS.) Deposits with Bank 287,525,102 *ROG 446,639,675 Total 734,164,777

G) RISK MANAGEMENT FUNCTIONS & BASEL DISCLOSURE

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RESTRUCTURING OF ORGANIZATION

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APPOINTMENT OF CRO

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RISK MANAGEMENT COMMITTEE (RMC)

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OPERATIONAL RISK

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77 Annual Report 2015/16

3ROLFLHV*XLGHOLQHVH[SOLFLWO\VXSSRUWVWKHLGHQWLȨFDWLRQDVVHVVPHQWFRQWURODQGUHSRUWLQJRINH\ULVNV • (PSKDVL]HVRQGXDOFRQWUROV • (ȧHFWLYHPRQLWRULQJDQGLQWHUQDOUHSRUWLQJ • &RQWLQJHQF\DQGEXVLQHVVFRQWLQXLW\SODQV • +LJKVWDQGDUGVRIHWKLFVDQGLQWHJULW\ • Commitment to good corporate governance and • 6HJUHJDWLRQRIGXWLHVDQGFOHDUOLQHVRIPDQDJHPHQWUHVSRQVLELOLW\DFFRXQWDELOLW\DQGUHSRUWLQJ

MARKET RISK

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COMPLIANCE

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STRESS TESTING

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INTERNAL CAPITAL ADEQUACY ASSESSMENT PROCESS (ICAAP)

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MAKER-CHECKER POLICY

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INFORMATION TECHNOLOGY

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INTERNAL AUDIT

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78 Annual Report 2015/16 SCHEDULE 34 21,775 428,852 NUMBER OF AS COLLATERAL AS COLLATERAL REMARKS SHARES PLEDGED 2,691,766 46,083 5,541,051 50,941 2,556,298 21,198 4,946,434 23,041 74,841,790 238,082 78,765,090 78,765,090 60,591 204,201 44,187,330 59,964,187 204,000 200,000,000 580,658 GHUV%\3OHGJLQJ 10%%DQN/LPLWHG *OREDO,0(%DQN/LPLWHG 10%%DQN/LPLWHG *OREDO,0(%DQN/LPLWHG 3UDEKX%DQN/LPLWHG 3UDEKX%DQN/LPLWHG -DQDWD%DQN/LPLWHG 1,&$6,$%DQN/LPLWHG NAME OF LENDING BANKS / FINANCIAL INSTITUTIONS AMOUNT LOAN 6LGGKDUWKD%DQN/LPLWHG /D[PL%DQN/LPLWHG 1DELO%DQN/LPLWHG 0.08 PAID UP CAPITAL PAID PERCENTAGE TO TOTAL PERCENTAGE TO TOTAL $VRQ-XO\ $VKDGK 27,650 0.09 83,615 0.27 25,438 55,299 0.18 SHARES 1,912,679 6.25 1,074,410 3.51 4,534,632 14.82 552,259,036 1,879,422 SHARE IN THE NAME OF PROMOTERS DETAILS LOAN TOTAL NUMBER OF Their Promoter Shares As Collateral In Other Financial Institutions Their Promoter Shares As Collateral 6WDWHPHQWV2I/RDQV7DNHQ%\3URPRWHUV3URPRWHU*URXS6KDUHKRO -\RWL6KUHVWKD %LVZRQDWK3RXGHO -DPXQD%KDQGDUL $QDPLND6KUHVWKD -DL*DQHVK,QYHVWPHQW&RPSDQ\3YW/WG -DL*DQHVK,QYHVWPHQW&RPSDQ\3YW/WG 1LUDM*RELQGD6KUHVWKD -DL*DQHVK,QYHVWPHQW&RPSDQ\3YW/WG 7 Birendra Prasad Mahato 1,045,183 3.42 3 1 5 8 Upendra Mahato 26,130 0.09 2 6 Dinesh Mani Shrestha 9 284,228 0.93 4 11 10 S. N. NAME OF PROMOTERS/PROMOTER GROUP SHAREHOLDERS Total Total

79 Annual Report 2015/16

&RPSDULVRQRI8QDXGLWHGDQG$XGLWHG)LQDQFLDO6WDWHPHQWV SCHEDULE 35 $VRI)LVFDO

AS PER UNUDITED AS PER AUDITED VARIANCE FINANCIAL FINANCIAL REASONS FOR S.N. PARTICULARS STATEMENTS STATEMENTS IN AMOUNT IN % VARIANCE

1 Total Capital and Liabilities (1.1 to 1.7) 56,311,045 55,964,558 (346,487) (0.62)

1.1 Paid Up Capital 4,022,032 4,710,597 688,565 -

'XHWR&KDQJHVLQ 1.2 5HVHUYHDQG6XUSOXV 1,415,956 641,655 3URȨW

1.3 'HEHQWXUHDQG%RQG 370,000 370,000 - -

1.4 Borrowings 3,281,940 3,281,940 - -

1.5 Deposits (a+b) 46,423,306 46,423,306 0 0.00

D'RPHVWLF&XUUHQF\ 44,279,514 44,279,514

E)RUHLJQ&XUUHQF\ 2,143,793 2,143,793 0 0.00

'XHWR&KDQJHVLQ 1.6 ,QFRPH7D[/LDELOLW\ 9,414 - - 3URȨW

5HJURXSLQJVRPH 1.7 2WKHU/LDELOLWLHV 788,398 537,061 $FFRXQWV

2 Total Assets (2.1 to 2.7) 56,311,045 55,964,558 (346,487) (0.62)

5HJURXSLQJVRPH 2.1 &DVK %DQN%DODQFH 3,578,060 3,412,586 $FFRXQWV

2.2 0RQH\DW&DOODQG6KRUW1RWLFH - - -

$GMXVWPHQWLQ0DUNHW 2.3 Investments 10,825,931 10,734,793 YDOXHRI,QYHVWPHQWV

2.4 /RDQVDQG$GYDQFHV 40,441,857 40,455,087 13,229 0.03 Reversal of provisions

D5HDO(VWDWH/RDQ 3,985,379 3,985,379 - -

5HVLGHQWLDO5HDO(VWDWH/RDQ ([FHSW3HUVRQDO +RPH/RDQXSWR5V0LOOLRQ 531,304 531,304 - -

%XVLQHVV&RPSOH[ 5HVLGHQWLDO$SDUWPHQW &RQVWUXFWLRQ/RDQ 440,916 440,916 - -

,QFRPH*HQHUDWLQJ&RPPHUFLDO&RPSOH[/RDQ 63,709 63,709 -

2WKHU5HDO(VWDWH/RDQ ,QFOXGLQJ/DQG 3XUFKDVHDQG3ORWWLQJ 2,949,449 2,949,449 -

E3HUVRQDO+RPH/RDQRI5V0LOOLRQRU/HVV 2,916,910 2,916,910 -

F0DUJLQ7\SH/RDQ 463,985 463,985 - -

G7HUP/RDQ 6,572,777 6,572,777 - -

H2YHUGUDIW/RDQ75/RDQ:&/RDQ 12,484,950 12,484,950 -

f. Others 14,017,857 14,017,857 -

2.5 )L[HG$VVHWV 646,548 646,548

2.6 1RQ%DQNLQJ$VVHWV - - - -

5HJURXSLQJVRPH 2.7 2WKHU$VVHWV 818,649 715,544 $FFRXQWV

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80 Annual Report 2015/16

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3 3URȩWDQG/RVV$FFRXQW

$GMXVWPHQWRI%RQG 3.1 Interest Income 3,273,268 3,262,998 3UHPLXP

$GMXVWPHQWRI%RQG 3.2 Interest Expense 1,550,960 1,540,696 3UHPLXP

A. Net Interest Income (3.1-3.2) 1,722,309 1,722,302 6 0.00

3.3 )HHV&RPPLVVLRQDQG'LVFRXQW 88,543 88,543 - -

3.4 Other Operating Income 234,851 235,621 770 0.33 $GMXVWPHQWRI,QFRPH

3.5 )RUHLJQ([FKDQJH*DLQ/RVV 1HW 153,694 153,623 $GMXVWPHQWRI,QFRPH

B. Total Operating Income (A+ 3.3+3.4+3.5) 2,199,396 2,200,089 693 0.03

3.6 6WDȧ([SHQVHV 258,811 258,811 - -

Booking additional 3.7 Other Operating Expenses 327,746 328,202 456 0.14 expenses

&2SHUDWLQJ3URȩW%HIRUH3URYLVLRQ % -3.6-3.7) 1,612,839 1,613,076 (237) (0.01)

3.8 3URYLVLRQIRU3RVVLEOH/RVVHV 141,732 134,538 Reversal of provisions

'2SHUDWLQJ3URȩW & 1,471,107 1,478,538 (7,431) (0.51)

$GMXVWPHQWLQ0DUNHW 3.9 1RQ2SHUDWLQJ,QFRPH([SHQVHV 1HW 154,295 63,162 YDOXHRI,QYHVWPHQWV

:ULWH%DFNRI 3.10 :ULWH%DFNRI3URYLVLRQ)RU3RVVLEOH/RVV 9,964 15,999 6,035 61 Provisions

(3URȩWIURP5HJXODU$FWLYLWLHV (D.+3.9+3.10) 1,635,366 1,557,699 77,667 4.75

3.11 ([WUDRUGLQDU\,QFRPH([SHQVHV 1HW - - - -

)3URȩWEHIRUH%RQXVDQG7D[HV ( 1,635,366 1,557,699 77,667 4.75

3.12 3URYLVLRQIRU6WDȧ%RQXV 148,670 141,609 'XHWRFKDQJHVLQ 3.13 Provision For Tax 441,146 420,036 3URȨW *1HW3URȩW /RVV ) 1,045,550 996,054 (49,496) (4.73)

81 Annual Report 2015/16

Unaudited Financial Results (Quarterly) SCHEDULE A $VDWWK4XDUWHURIWKH)LVFDO

AS AT

16TH JULY 2015 S.N. PARTICULARS 15TH JULY 2016 12TH APRIL 2016 (AUDITED)

Group Sanima Sanima Sanima

1 Total Capital and Liabilities (1.1 to 1.7) 56,237,204 56,311,045 49,955,541 40,301,197

1.1 Paid Up Capital 4,022,032 4,022,032 3,060,288 3,060,288

1.2 5HVHUYHDQG6XUSOXV 1,419,930 1,415,956 1,040,821 370,406

1.3 'HEHQWXUHDQG%RQG 370,000 370,000 370,000 -

1.4 Borrowings 3,281,940 3,281,940 1,447,010 1,687,185

1.5 Deposits (a+b) 46,344,181 46,423,306 43,441,963 34,045,316

D'RPHVWLF&XUUHQF\ 44,200,388 44,279,514 41,599,597 31,784,223

E)RUHLJQ&XUUHQF\ 2,143,793 2,143,793 1,842,366 2,261,094

1.6 ,QFRPH7D[/LDELOLW\ 9,414 9,414 - -

1.7 2WKHU/LDELOLWLHV 789,708 788,398 595,459 1,138,002

2 Total Assets (2.1 to 2.7) 56,237,204 56,311,045 49,955,541 40,301,197

2.1 &DVK %DQN%DODQFH 3,578,060 3,578,060 3,023,135 1,771,031

2.2 0RQH\DW&DOODQG6KRUW1RWLFH - - - -

2.3 Investments 10,743,074 10,825,931 9,126,101 7,744,240

2.4 /RDQVDQG$GYDQFHV 1HW 40,441,857 40,441,857 36,469,545 28,264,051

D5HDO(VWDWH/RDQ 3,985,379 3,985,379 3,081,651 1,958,358

5HVLGHQWLDO5HDO(VWDWH/RDQ ([FHSW3HUVRQDO+RPH/RDQXS WR5VODFV 531,304 531,304 477,312 388,746

%XVLQHVV&RPSOH[ 5HVLGHQWLDO$SDUWPHQW&RQVWUXFWLRQ /RDQ 440,916 440,916 439,267 561,605

,QFRPH*HQHUDWLQJ&RPPHUFLDO&RPSOH[/RDQ 63,709 63,709 64,828 35,346

2WKHU5HDO(VWDWH/RDQ ,QFOXGLQJ/DQG3XUFKDVHDQG 3ORWWLQJ 2,949,449 2,949,449 2,100,244 972,660

E3HUVRQDO+RPH/RDQRI5V/DFVRU/HVV 2,916,910 2,916,910 2,686,528 2,196,588

F0DUJLQ7\SH/RDQ 463,985 463,985 457,688 381,614

G7HUP/RDQ 6,572,777 6,572,777 5,513,634 4,445,878

H2YHUGUDIW/RDQ75/RDQ:&/RDQ 12,484,950 12,484,950 12,746,632 10,099,362

f. Others 14,017,857 14,017,857 11,983,411 9,182,251

2.5 )L[HG$VVHWV 655,355 646,548 609,091 614,772

2.6 1RQ%DQNLQJ$VVHWV - - - -

2.7 2WKHU$VVHWV 818,857 818,649 727,668 1,907,104

Upto 4th Quarter Upto 3rd Quarter 3 3URȩWDQG/RVV$FFRXQW Upto 4th Quarter This Year Corresponding This Year 3UHYLRXV

3.1 Interest Income 3,273,293 3,273,268 2,330,920 2,548,884

3.2 Interest Expense 1,550,408 1,550,960 1,122,299 1,409,494

A. Net Interest Income (3.1-3.2) 1,722,885 1,722,309 1,208,621 1,139,390

3.3 )HHV&RPPLVVLRQDQG'LVFRXQW 88,543 88,543 59,204 53,468

3.4 Other Operating Income 242,140 234,851 157,843 131,295

&RQWLQXHG

82 Annual Report 2015/16

&RQWLQXHG

Unaudited Financial Results (Quarterly) SCHEDULE A $VDWWK4XDUWHURIWKH)LVFDO

3.5 )RUHLJQ([FKDQJH*DLQ/RVV 1HW 153,694 153,694 117,088 178,747

B. Total Operating Income (A+ 3.3+3.4+3.5) 2,207,262 2,199,396 1,542,756 1,502,900

3.6 6WDȧ([SHQVHV 259,435 258,811 184,604 182,321

3.7 Other Operating Expenses 329,405 327,746 231,667 275,446

&2SHUDWLQJ3URȩW%HIRUH3URYLVLRQ % 1,618,422 1,612,839 1,126,485 1,045,134

3.8 3URYLVLRQIRU3RVVLEOH/RVVHV 141,732 141,732 98,664 119,441

'2SHUDWLQJ3URȩW & 1,476,689 1,471,107 1,027,820 925,693

3.9 1RQ2SHUDWLQJ,QFRPH([SHQVHV 1HW 154,295 154,295 8,733 7,344

3.10 :ULWH%DFNRI3URYLVLRQ)RU3RVVLEOH/RVV 9,964 9,964 16,957 41,861

(3URȩWIURP5HJXODU$FWLYLWLHV ' 1,640,948 1,635,366 1,053,510 974,899

3.11 ([WUDRUGLQDU\,QFRPH([SHQVHV 1HW - - -

)3URȩWEHIRUH%RQXVDQG7D[HV ( 1,640,948 1,635,366 1,053,510 974,290

3.12 3URYLVLRQIRU6WDȧ%RQXV 148,670 148,670 95,774 88,572

3.13 Provision For Tax 442,603 441,146 287,321 261,576

*1HW3URȩW /RVV ) 1,049,675 1,045,550 670,416 624,141

As at 4Ratios 15th July 2016 12th April 2016 16th July 2015

4.1 &DSLWDO)XQGWR5:$ 12.65 12.42 11.12 11.08

4.2 1RQ3HUIRUPLQJ/RDQ 13/ WR7RWDO/RDQ 0.02 0.02 0.12 0.07

4.3 7RWDO/RDQ/RVV3URYLVLRQWR7RWDO13/ 5,982.92 5,982.92 912.70 1,556.99

4.4 &RVWRI)XQGV 3.83 3.83 3.91 5.02

4.5 &UHGLW7R'HSRVLW5DWLR &DOFXODWHGDVSHU15%'LUHFWLYHV 76.07 76.07 77.66 76.03

4.6 %DVH5DWH 6.07 6.07 5.58 7.50

4.7 ,QWHUHVW6SUHDG DVSHU15%'LUHFWLYHV 4.40 4.40 4.94 3.91

5 $GGLWLRQDO,QIRUPDWLRQ

5.1 $YHUDJH

5.2 (DUQLQJ3HU6KDUH 5V 34.17 34.17 29.51 24.47

5.3 1HWZRUWK3HU6KDUH 5V 146.27 146.27 134.01 134.52

5.4 1HW/LTXLG$VVHWV7RWDO'HSRVLW 24.24 24.24 24.82 22.32

5.5 Price Earning Ratio 21.95 21.95 27.32 22.68

5.6 7RWDO$VVHWVSHU6KDUH 5V 1,840.06 1,840.06 1,632.38 1,580.29

5.7 5HWXUQRQ(TXLW\ 23.36 23.36 22.02 18.19

5.8 5HWXUQRQ7RWDO$VVHWV 1.86 1.86 1.81 1.55

)LJXUHVDUHVXEMHFWWRFKDQJHIURPVXSHUYLVRU\DXWKRULW\DQGH[WHUQDODXGLWRU3UHYLRXVSHULRGȨJXUHVKDYHEHHQUHJURXSHGUHDUUDQJHGZKHUHQHFHVVDU\ CDOOVLQ$GYDQFH5VPLOOLRQZKLFKKDVEHHQLQFOXGHGLQWKH3DLG8S&DSLWDODWWKHHQGRIWKLVTXDUWHULVH[FOXGHGIRUWKHSXUSRVHRI(36FDOFXODWLRQDQG1HWZRUWK3HU6KDUH *URXSUHSUHVHQWV6DQLPD%DQN/WGDQGLWVVXEVLGLDU\6DQLPD&DSLWDO/WG $OOLQWHUFRPSDQ\WUDQVDFWLRQVDQGRXWVWDQGLQJEDODQFHVDPRQJJURXSFRPSDQLHVKDYHEHHQHOLPLQDWHGLQWKHDERYHVWDWHPHQWUHODWHGWRJURXS The Bank held Rs.PLOOLRQLQ&DOO &XUUHQWGHSRVLWVRILWVVXEVLGLDU\DWWKHTXDUWHUHQG7KH%DQNKDVSDLGLQWHUHVW5VPLOOLRQLQWKHUHSRUWHGSHULRG The Bank has entered into SHUYLFH/HYHO$JUHHPHQWZLWKLWVVXEVLGLDU\WRSURYLGHRSHUDWLRQDODQGWHFKQLFDODVVLVWDQFHIRUDQDQQXDOIHHRI5VPLOOLRQ

83 Annual Report 2015/16

CEO handing over sponsorship certificate to National Under-19 cricket player Mr.Sandip Lamichhane Corporate Social Responsibility

Financial orientation program organized by Suryabinayak branch

MOU signing ceremony to establish ‘Press Council-Sanima Bank Rastriya Patrarika Puraskar’

Chhuchepati branch organized Zero Waste campaign in partnership with Shechen Eco group

84 Annual Report 2015/16

85 Annual Report 2015/16

MOU signing ceremony between Sanima Bank and Nepal Certifying Company for use of digital signature & certificate

MOU signing ceremony between Sanima Bank and UK AID to strengthen DSL Loans

86 %UDQFK/LVW

INSIDE VALLEY OUTSIDE VALLEY Hariwan Branch +DULZDQȂ6DUODKL 7HO +HDG2ȫFH Banepa Branch 6DQLPD%DQN/LPLWHG 6XU\D%KDZDQ%DQHSD.DYUHSDODQFKRN Hetauda Branch $ODNDSXUL1D[DO.DWKPDQGX*32%R[ 7HO 3DULMDW3DWK+HWDXGD0DNDZDQSXU 20394 7HO 7HO Belbari Branch )D[ 0DLQ5RDG%HOEDUL0RUDQJ Inaruwa Branch 6:,)7610$13.$ 7HO 0DLQURDG,QDUXZD6XQVDUL (PDLOVDQLPD#VDQLPDEDQNFRP 7HO Bhairahawa (Siddharthanagar) Branch Chuchchepati Branch %KDLUDKDZD6LGGKDUWKDQDJDU5XSDQGHKL Itahari Branch &KXFKFKHSDWL:DUG1R.DWKPDQGX 7HO ,WDKDUL6XQVDUL 7HO 7HO Bhandara Branch Ekantakuna Branch Main Road, Bhandara-1, Chitwan Janakpur Branch (NDQWDNXQD:DUG1R/DOLWSXU 7HO -DQDNSXU'KDQXVKD 7HO 7HO Bidur Branch Gongabu Branch %LGXU1XZDNRW Kalaiya Branch *RQJDEX:DUG1R.DWKPDQGX 7HO .DODL\D%DUD 7HO 7HO Biratnagar Branch Kalanki Branch +DQXPDQGDV5RDG%LUDWQDJDU0RUDQJ Khandbari Branch .DODQNL:DUG1R.DWKPDQGX 7HO %KDQXFKRZN.KDQGEDUL6DQNKXZDVDEKD 7HO 7HO Birendranagar Branch Kumaripati Branch 0DQJDOJDGKL&KRZN%LUHQGUDQDJDU6XUNKHW Lahan Branch .XPDULSDWL:DUG1R/DOLWSXU 7HO 0DWL\DUZD/DKDQ6LUDKD 7HO 7HO Birgunj Branch Nayabazar Branch /LQN5RDG%LUJXQM3DUVD Lalbandi Branch 6RUKDNKXWWH1D\DED]DU:DUG1R.DWKPDQGX 7HO /DOEDQGL6DUODKL 7HO 7HO Birtamod Branch New Baneshwor Branch %KDGUDSXU5RDG%LUWDPRG-KDSD Mahendranagar Branch 1HZ%DQHVKZRU:DUG1R.DWKPDQGX 7HO 0DKHQGUDQDJDU*DOOL1R.DQFKDQSXU 7HO 7HO Butwal Branch New Road Branch $PDUSDWK%XWZDO5XSDQGHKL Manma Branch .KLFKDSRNKDUL:DUG1R.DWKPDQGX 7HO 0DQPD9'&ZDUGQR.DOLNRW 7HO 7HO Damak Branch Satdobato Branch 0DLQURDG'DPDN-KDSD Myanglung Branch 6DWGREDWR:DUG1R/DOLWSXU 7HO %LFK%D]DU0\DQJOXQJ7HUKDWKXP 7HO 7HO Damauli Branch Suryabinayak Branch %\DV'DPDXOL7DQDKXQ Narayangarh Branch 6XU\DELQD\DN:DUG1R%KDNWDSXU 7HO 3XOFKRZN%KDUDWSXU&KLWZDQ 7HO 7HO Dhadingbesi Branch Teku Branch %LFK%D]DU1LONDQWKD'KDGLQJEHVL'KDGLQJ Naubise Branch 7HNX:DUG1R.DWKPDQGX 7HO 6LP%D]DU1DXELVH'KDGLQJ 7HO 7HO Dhangadhi Branch 'KDQJDGKL.DLODOL Nepalgunj Branch 7HO 6XUNKHW5RDG1HSDOJXQM%DQNH 7HO Dharan Branch 'KDUDQ6XQVDUL Pokhara Branch 7HO 1HZURDG3RNKDUD.DVNL 7HO Ghorahi Branch *KRUDKL'DQJ Timure Branch 7HO 7LPXUH5DVXZD 7HO Sanima Bank Ltd. Alkapuri, Naxal, Kathmandu Post Box: 20394 Phone: 977-1-4428977, 4428979, 4428980 Fax: 977-1-4428969 E-mail: [email protected] www.sanimabank.com