Focus on Sustainable Growth

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Focus on Sustainable Growth ANNUAL REPORT 2018-19 1 ANNUAL REPORT 2018/19 FOCUS ON SUSTAINABLE GROWTH www.machbank.com 2 MACHHAPUCHCHHRE BANK LIMITED ANNUAL REPORT 2018-19 3 Machhapuchchhre Bank only diference you create Limited is committed is “how you deliver”. MBL to become one of the does not only focus for most preferred bank in what product we ofer but Nepal. In today’s fnancial also how we deliver them market when most of the utilizing diferent means products and services of Customer Service ofered by fnancial Excellence. institution are same, the FOCUS ON SUSTAINABLE GROWTH 4 MACHHAPUCHCHHRE BANK LIMITED CONTENTS 06 Bank’s Overview 10 Board of Director 12 Profle of Director 15 Chairman’s Statement 19 CEO’s Message 22 Management Team 25 Financial Highlights 27 Country’s Economic Conditions 28 Bank’s Performance 34 Human Resources 38 Corporate Governance 47 Director’s Report 62 Risk Management 78 Corporate Social Responsibility 82 Technologies 86 Products and Services 91 Remittance 92 Financial Statement 203 Branch Network 6 MACHHAPUCHCHHRE BANK LIMITED BANK’S OVERVIEW The Bank facilitates its customer needs Now with a paid up capital of by delivering the best of services in over 8.46 billion rupees, 159 combination with the latest state of the art technologies and prudent international Branch Ofces, 148 Branchless practices. The Bank is the pioneer in Banking Units, 5 Extension introducing the latest technology in the Counters and 196 ATMs spread banking industry in the country. all across the country, it is one of the full fedged national level commercial banks operating in Nepal. It takes pride in having its own buildings for its It is the frst bank to introduce centralized Head and Corporate Ofce in banking software, GLOBUS BANKING SYSTEM of Temenos NV, Switzerland. The Lazimpat, and Branch ofces in bank provides modern banking facilities Naya Bazar, Pokhara, Jomsom, such as Any Branch Banking, Internet Baglung and Damauli. Banking, Mobile Banking, Safe Deposit Locker facilities, Utility Bill payment (Telephone & Mobile), ATM (VISA Debit Cards ) to its valued customers. Besides these, the Bank is providing 365 Days Banking and Evening Counter services to the customers through many of its ofces. The Bank has been promoted by highly renowned Non-Residential Nepalese, prominent business man and industrialists with a vision and dedication to provide the best fnancial products and services in the most efcient and professional manner. ANNUAL REPORT 2018-19 7 36% 1400+ 5 PROFIT GROWTH NO. OF EMPLOYEES EXTENSION COUNTERS 159 196 148 BRANCHES ACROSS ATM NETWORK BRANCHLESS THE COUNTRY BANKING UNITS Vision Mission To become the bank of the To be one of the most preferred banks in Nepal, easily frst choice of the people recognized as the bank which satisfes and cares for its customers through quality service, innovative products, professionalism and wide branch network, ofering full array of fnancial services using modern technology and with good corporate governance practices. Values With the objective INTEGRITY ACCESSIBILITY QUALITY SERVICE of supporting the Highest level of integrity/ Easy accessibility Through unmatched transition from rule absolute honesty in all through traditional as professionalism and based to attitude the business conduct and well as modern means of excellent customer care. based behavior, the dealings with customers, communication. Bank is functioning staf, regulators, and other STEWARDSHIP with the following stakeholders. VALUE CREATION OF RESOURCES fve core values: For shareholders, With the feeling customers, employees and of ownership and the nation. accountability. 8 MACHHAPUCHCHHRE BANK LIMITED ANNUAL REPORT 2018-19 9 BANK STRATEGIES for the Forthcoming Year The fscal year 2018-19 summed up transactions in our ATMs and soon with an aim to ofer more personalized to be a satisfactory year for the Bank plans to launch Master Card as well and customized services and benefts with a year-on-year proft growth by as UPI Card based products in the uniquely tailored for our priority clients. 36%. However, in our continued march upcoming months. This will allow our towards the achievement of our vision customers to use our cards in and Further, the Bank plans to implement of becoming the “Bank of the frst outside Nepal in the Master Card an organization-wide restructuring and choice of the people”, We don’t plan network, which is one of the top three reengineering of business processes to settle without achievement so far. largest card networks in the world. in the upcoming year by automating Hence, we have planned strategies Likewise, UPI is also another large processes and optimizing resources. and actions for the forthcoming fscal network with card acceptance in 177 The aim is to garner operational year 2019-20, to enable us to ofer countries and issuance in 58 countries efciency, reduce redundancy and ultimate and unmatched quality and regions. loopholes and provide a seamless services to our valued and esteemed customer experience across all our customers. In addition to this, the Bank also channels. plans to introduce a few pioneering MBL has been currently providing technology-based products through Finally, continuing the services through its large and key tweaks in our existing line of legacy in the previous extensive network of 159 branches, digital banking products; And we shall 196 ATMs, 5 extensive counters continue to add new and improved years, the Bank shall and 148 Branchless Banking Units. features in our mobile and internet continue to play an active However, for a more accessible banking products, allowing simpler role as a responsible service network, we plan to open more interactions with our users. corporate citizen by than a dozen new branches and ATMs at several strategically viable locations Furthermore, the Bank also plans to developing CSR programs in the country in the upcoming year. massively expand its digital footprint in the upcoming fscal year In line with our network expansion all over Nepal by expanding our Point too. For this, we shall be strategy, we opened more than 80 of Sale (POS) network and Quick actively conducting and branches in the last three years, which Response (QR) merchant network, launching numerous CSR were targetted mainly at the expansion thereby playing our part towards the of our reach outside Kathmandu creation of a cashless economy. initiatives and activities valley. Hence, this year we shall be throughout the country to opening new branches primarily to Another key strategy for FY 2019- help the weaker and less cater to untapped regions inside the 20 is to continue to make signifcant privileged sections of the Kathmandu Valley. headway in the area of Customer Service Excellence. The Bank has community. One of our key strategies for the been continuously strengthening its upcoming year as per our fve year “Customer Service Excellency Unit” strategic business plan is to develop and also plans to launch a full-fedged our technology-based product line customer centric “Call Centre”, which and develop it as a key thrust area. will provide a one-step solution for To enable this, the Bank has already all customer queries and grievances. enabled Master Card and UPI-Unifed Moreover, the Bank has also recently Payment Interface based card established its “Priority Banking Unit” 10 MACHHAPUCHCHHRE BANK LIMITED BOARDS OF DIRECTORS SITTING FROM RIGHT TO LEFT Dr. Birendra Prasad Mahato, Chairman Mr. Roshan KC, Director STANDING FROM RIGHT TO LEFT Mr. Hari Bhakta Sigdel, Director Mr. Gopi Krishna Neupane, Director Mr. Jaya Mukunda Khanal, Director Mr. Omesh Lal Shrestha, Director Mr. Bishow Prakash Gautam, Director ANNUAL REPORT 2018-19 11 12 MACHHAPUCHCHHRE BANK LIMITED PROFILE OF DIRECTORS Dr. Birendra Prasad Mahato Mr. Roshan KC Mr. Gopi Krishna Neupane Chairman Director Director Dr. Birendra Prasad Mr. Roshan KC served Mr. Gopi Krishna Neupane Mahato, Chairman, as the Chairman of is associated with Machhapuchchhre Machhapuchchhre Bank Machhapuchchhre Bank Bank Limited, holds the Limited from April 27, 2017 as a director since January prestigious academic honor till January 4, 2019. Mr. KC 2011. He was also involved PhD in Economics from holds long term experience in Audit Committee Belarus State Economics in the feld of manufacturing and Risk Management University. Other than and construction. He is Committee of the Bank. Machhapuchchhre Bank, also associated Sikles Mr. Neupane holds Master he is associated with Ram Hydropower Pvt. Ltd., Task Degree in Management Janaki Investment and Hydropower Pct. Ltd., from Tribhuwan University petroleum Suppliers Pvt. Bhagwati Hydropower and also a LLB Degree Ltd. and Sintez Investment Development Company Pvt. from Nepal Law Campus. Company Pvt. Ltd. as a Ltd., Gandaki Hydropower He has a long term Board member. Dr. Mahato Development Company Pvt. professional exposure in the has abundant experience Ltd. and KC Construction feld of Business, Banking, in the feld of economics Pvt. Ltd. Mr. KC holds a Law, Audit, Taxation etc. and fnance, he has served Master Degree in Business He is associated with as Economic and Financial Administration and also B.E Audit frm-G.K. Neupane Consular to Amkodor in Civil Engineering. and Associate, Metro law heavy equipment Factory frm, Hillside College of in Belarus and Delto trade Engineering and National Multinational Company Business Initiatives. He in Cyprus. Dr. Mahato is was formerly associated the director of Fulkumari with Nada Automobiles Mahato Memorial trust and Association of Private and Fulkumari Memorial Health Institute. Hospital. He is also the former Hon’ble member of the Constituent Assembly of Nepal. ANNUAL REPORT 2018-19 13 Mr. Jaya Mukunda Khanal Mr. Omesh Lal Shrestha Mr. Bishow Prakash Gautam Mr. Hari Bhakta Sigdel Independent Director Public Director Director Public Director Mr. Jaya Mukunda Khanal Mr. Omesh Lal Shrestha Mr. Bishwo Prakash Gautam Mr. Haribhakta Sigdel holds Master Degree in holds a Master degree holds a bachelor degree in holds a Master Degree Business Administration in information system Management from CSJM in Public Administration from Mohanlal Sukhadia from New York University university, India, and is a from Tribhuvan University.
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