Amount in NPR
2,000,000,000
15,107,473
56,151,301
62,668,702
66,528,737
2,200,456,213
Amount in NPR
142,794,503
887,372
143,681,875
Amount in NPR
2,200,456,213
143,681,875
2,344,138,088
Percentage of Total
RWE
14.34%
15.27%
Amount in NPR
14,305,421,699
319,027,949
68,091,747
14,692,541,395
2. RISK EXPOSURE
Risk weighted exposures for Credit Risk, Market Risk and Operational Risk:
Particulars
Risk weighted exposures for Credit Risk
Risk weighted exposures for Operational Risk
Risk weighted exposures for Market Risk
Total
Capital Adequacy Ratio – Total Capital Fund
There is no Subordinated Term Debts as of Year Ended Ashad End, 2069.
Deductions from capital:
There is no item to be deducted from capital.
Total qualifying capital;
Particulars
Core Capital
Supplementary Capital
Total Qualifying Capital (Total Capital Fund)
Capital Adequacy Ratio;
Particulars
Capital Adequacy Ratio – Core Capital
Detail of Subordinated Term Debts:
Paid Up Capital
Statutory General Reserves
Retained Earnings
Un-audited current year cumulative profit
Other Free Reserve
Core Capital
Tier 2 capital and a breakdown of its components:
Particulars
General Loan Loss Provision
Exchange Equalization Reserves
Supplementary Capital
Particulars
CENTURY COMMERCIAL BANK LIMITEDDisclosure as per BASEL II (Capital Adequacy Framework)
(For Third Quater ending on Chaitra 2070, Fiscal Year 2070/71)
1. CAPITAL STRUCTURE AND CAPITAL ADEQUACY
Tier 1 capital and a breakdown of its components:
Risk Weighted Exposure calculation table;
Risk Weighted Exposure for Credit Risk (Rs. in million)
A. Balance Sheet Exposures Book ValueSpecific
Provision
Eligible
CEMNet Value Risk Weight
Risk Weighted
Exposurea b c d=a-b-c e f=d*e
Cash Balance 443.75 - - 443.75 0% - Balance With Nepal Rastra Bank 1,783.04 - - 1,783.04 0% - Gold 90.06 - - 90.06 0% - Investment in Nepalese Government Securities 863.93 - - 863.93 0% - All Claims on Government of Nepal - - - - 0% - Investment in Nepal Rastra Bank securities - - - - 0% - All claims on Nepal Rastra Bank - - - - 0% - Claims on Foreign Government and Central Bank (ECA 0-1) - - - - 0% - Claims on Foreign Government and Central Bank (ECA -2) - - - - 20% - Claims on Foreign Government and Central Bank (ECA -3) - - - - 50% - Claims on Foreign Government and Central Bank (ECA-4-6) - - - - 100% - Claims on Foreign Government and Central Bank (ECA -7) - - - - 150% - Claims On BIS, IMF, ECB, EC and MDB's recognized by the framework - - - - 0% - Claims on Other Multilateral Development Banks - - - - 100% - Claims on Public Sector Entity (ECA 0-1) - - - - 20% - Claims on Public Sector Entity (ECA 2) - - - - 50% - Claims on Public Sector Entity (ECA 3-6) - - - - 100% - Claims on Public Sector Entity (ECA 7) 100.00 - - 100.00 150% 150.00 Claims on domestic banks that meet capital adequacy requirements 866.14 - - 866.14 20% 173.23 Claims on domestic banks that do not meet capital adequacy requirements 57.43 - - 57.43 100% 57.43 Claims on foreign bank (ECA Rating 0-1) 8.20 - - 8.20 20% 1.64 Claims on foreign bank (ECA Rating 2) 220.70 - - 220.70 50% 110.35 Claims on foreign bank (ECA Rating 3-6) - - - - 100% - Claims on foreign bank (ECA Rating 7) - - - - 150% - Claims on foreign bank incorporated in SAARC region operating with a buffer of 1% above their
respective regulatory capital requirement
70.47 - - 70.47 20% 14.09
Claims on Domestic Corporates 8,220.20 - 2.08 8,218.13 100% 8,218.13 Claims on Foreign Corporates (ECA 0-1) - - - - 20% - Claims on Foreign Corporates (ECA 2) - - - - 50% - Claims on Foreign Corporates (ECA 3-6) - - - - 100% - Claims on Foreign Corporates (ECA 7) - - - - 150% - Regulatory Retail Portfolio (Not Overdue) 2,543.03 - 5.00 2,538.03 75% 1,903.52 Claims fulfilling all criterion of regularity retail except granularity - - - - 100% - Claims secured by residential properties 1,177.80 - - 1,177.80 60% 706.68 Claims not fully secured by residential properties - - - - 150% - Claims secured by residential properties (Overdue) - - - - 100% - Claims secured by Commercial real estate 113.64 - - 113.64 100% 113.64 Past due claims (except for claims secured by residential properties) 125.03 150.59 - - 150% - High Risk claims 1,779.04 56.23 1,444.10 278.70 150% 418.06 Investments in equity and other capital instruments of institutions listed in stock exchange 2.90 - - 2.90 100% 2.90
Investments in equity and other capital instruments of institutions not listed in the stock
exchange
- - - - 150% -
Staff loan secured by residential property 84.68 - - 84.68 60% 50.81 Interest Receivable/claim on government securities 0.01 - - 0.01 0% - Cash in transit and other cash items in the process of collection 8.97 - - 8.97 20% 1.79 Other Assets (as per attachment) 1,243.98 121.32 - 1,122.66 100% 1,122.66
TOTAL (A) 19,803.00 328.14 1,451.18 18,049.23 13,044.92
B. Off Balance Sheet Exposures Book Value
Specific
Provision
Eligible
CEMNet Value Risk Weight
Risk Weighted
Exposure Revocable Commitments - - - - 0% - Bills Under Collection 4.58 - - 4.58 0% - Forward Exchange Contract Liabilities 439.39 - - 439.39 10% 43.94 LC Commitments With Original Maturity Upto 6 months domestic counterparty 1,191.05 - 44.38 1,146.68 20% 229.34 Foreign counterparty (ECA Rating 0-1) - - - - 20% - Foreign counterparty (ECA Rating 2) - - - - 50% - Foreign counterparty (ECA Rating 3-6) - - - - 100% - Foreign counterparty (ECA Rating 7) - - - - 150% - LC Commitments With Original Maturity Over 6 months domestic counterparty 27.83 - 0.84 26.99 50% 13.50 Foreign counterparty (ECA Rating 0-1) - - - - 20% - Foreign counterparty (ECA Rating 2) - - - - 50% - Foreign counterparty (ECA Rating 3-6) - - - - 100% - Foreign counterparty (ECA Rating 7) - - - - 150% - Bid Bond, Performance Bond and Counter guarantee domestic counterparty 688.16 - 25.14 663.02 50% 331.51 Foreign counterparty (ECA Rating 0-1) - - - - 20% - Foreign counterparty (ECA Rating 2) - - - - 50% - Foreign counterparty (ECA Rating 3-6) - - - - 100% - Foreign counterparty (ECA Rating 7) - - - - 150% - Underwriting commitments - - - - 50% - Lending of Bank's Securities or Posting of Securities as collateral - - - - 100% - Repurchase Agreements, Assets sale with recourse - - - - 100% - Advance Payment Guarantee 373.84 - 8.47 365.37 100% 365.37 Financial Guarantee - - - - 100% - Acceptances and Endorsements - - - - 100% - Unpaid portion of Partly paid shares and Securities - - - - 100% - Irrevocable Credit commitments (short term) 1,384.23 - - 1,384.23 20% 276.85 Irrevocable Credit commitments (long term) - - - - 50% -
Claims on foreign bank incorporated in SAARC region operating with a buffer of 1% above their
respective regulatory capital requirement - - - -
20% - Other Contingent Liabilities - - - - 100% - Unpaid Guarantee Claims - - - - 200% - TOTAL (B) 4,109.08 - 78.82 4,030.26 1,260.50
Total RWE for credit Risk Before Adjustment (A) +(B) 23,912.08 328.14 1,530.00 22,079.49 14,305.42 Adjustments under Pillar II
SRP 6.4a(3) - Add 10% of the loans & facilities in excess of Single Obligor Limits to RWE - SRP 6.4a(4) - Add 1% of the contract (sale) value in case of the sale of credit with recourse to
RWE -
Total RWE for Credit Risk after Bank's adjustments under Pillar II 23,912.08 328.14 1,530.00 22,079.49 14,305.42
Risk Weighted Exposure for Operational Risk (Rs. in million)
2067/068 2068/069 2069/070
Net Interest Income 42.39 115.96 308.36
Commission and Discount Income 0.54 7.58 22.85
Other Operating Income 9.99 26.50 61.53
Exchange Fluctuation Income 0.14 3.50 26.51
Addition/Deduction in Interest Suspense during the period 1.31 (0.89) 11.79
Gross income (a) 54.37 152.65 431.04
Alfa (b) 15% 15% 15%
Fixed Percentage of Gross Income [c=(a×b)] 8.16 22.90 64.66
Capital Requirement for operational risk (d) (average of c) 31.90
Risk Weight (reciprocal of capital requirement of 10%) in times (e) 10.00
Equivalent Risk Weight Exposure [f=(d×e)] 319.03
SRP 6.4a (8) Adjustments under Pillar II (If Gross Income for the last three years is negative)
Total Credit and Investment (net of Specific Provision) of releted month -
Capital Requirement for Operational Risk (5% of net credit and investment) -
Risk Weight (reciprocal of capital requirement of 10%) in times 10.00
Equivalent Risk Weight Exposure (g) -
Equivalent Risk Weight Exposure [h=f+g] 319.03
Risk Weighted Exposure for Market Risk (Rs. in million)
Currency Open Position
(FCY) Exchange Rate
Open
Position
(NPR)
Relevant
Open Position
INR 45.25 1.60 72.41 72.41
USD 0.51 96.00 49.27 49.27
GBP 0.03 160.33 4.37 4.37
EUR (0.07) 132.99 (9.22) 9.22
THB 0.00 2.91 0.00 0.00
CHF 0.00 109.24 0.02 0.02
AUD 0.00 89.88 0.07 0.07
CAD 0.00 87.20 0.13 0.13
SGD 0.00 76.95 0.00 0.00
JPY 0.05 0.94 0.05 0.05
HKD - - - -
DKK - - - -
SEK - - - -
SAR 0.02 25.50 0.53 0.53
QAR 0.00 26.24 0.01 0.01
AED 0.00 26.00 0.04 0.04
MYR 0.00 29.46 0.05 0.05
KRW - - - -
CNY - - - -
(a) Total Open Position 117.74 136.18
(b) Fixed Percentage 5%
(c) Capital Charge for Market Risk (=a×b) 6.81
(d) Risk Weight (reciprocal of capital requirement of 10%) in times 10
(e) Equivalent Risk Weight Exposure (=c×d) 68.09
Particulars Fiscal Year
S.N. Claims Categories Risk Weighted Amount
1 Claims on govt. and central Bank -
2 Claims on other official entities 150,000,000
3 Claims on Banks 356,744,335
4 Claims on corporate and securities firm 8,218,125,319
5 Claims on regulatory retail portfolio 1,903,520,410
6 Claim secured by residential properties 706,677,381
7 Claims secured by commercial real state 113,637,538
8 Past due Claims -
9 High risk claims 418,056,224
10 Other Assets 1,178,163,368
11 Off Balance sheet Items 1,260,497,125
Total 14,305,421,699
Total Risk Weighted Exposure calculation table;
Amount in NPR
14,305,421,699
319,027,949
68,091,747
440,776,242
215,500,000
15,348,817,637
2,344,138,088
15.27%
Nil
* Gross 29,166,746
* Net 21,875,059
* Gross 1,000,000
* Net 500,000
* Gross 65,518,128
* Net 9,285,309
0.67%
0.22%
Last Quarter This Quarter Increase/ (Decrease)
64,302,147 29,166,746 (35,135,401)
17,430,975 1,000,000 (16,430,975)
30,256,791 65,518,128 35,261,337
Nil
Net NPA to Net Advances
Movement of Non Performing Assets
NPA Categories
Sub-Standard
Doubtful
Bad
Write off of Loans and Interest Suspense
Movements in Loan Loss Provisions and Interest Suspense:
Gross NPA to Gross Advances
Add : 3% of Total RWE due insufficient risk management system (as prescribed by NRB)
Add : 5% of Gross Income for Operational Risk (as prescribed by NRB)
Total Risk Weighted Exposure
Total Capital Fund
Total Capital to Total Risk Weighted Exposures
Amount of Non Performing Assets (NPAs) [both Gross and Net]:
Restructure Loan/Reschedule Loan
Substandard Loan
Doubtful Loan
Bad Loan
Non Performing Assets (NPAs) ratios
Risk weighted exposures for Market Risk
Risk Weighted Exposures under each of 11 categories of Credit Risk:
Particulars
Risk weighted exposures for Credit Risk
Risk weighted exposures for Operational Risk
Last Quarter This Quarter Increase/ (Decrease)
168,315,513 206,819,009 38,503,496
30,945,442 28,755,417 (2,190,025)
Net Amount (NPR)
-
1,497,926,812
2,901,720
b) Treasury Back office.
Treasury front office is entrusted with the functions of market watch, research (both fundamental and technical) and analyse the
market position of Bank. Front office takes decisions as regards to investments and trading as per approved Policy/Guidelines
and within the perimeters of NRB regulations.
Treasury back office is entrusted with the function of settlement and delivery of all the deals which are executed by front office
dealers as per the approved policies/regulations. The net open position report is also discussed at the Assets Liabilities
Management Committee (ALCO) each week to ensure the bank's better position.
Besides general loan loss provision and no specific loan loss provision is created.
Periodical internal audit function has been conducting from the outsourced Chartered Accountants firm to timely detect all type
of lapses and deviations from standard policy of banks. The Internal Audit Team directly report to Audit Committee consisting of
non-executive Directors. The quaterly reports of Internal Audit for the periods is discussed by Audit Committee and instructs to
Bank's Management/BOD to resolve the comments raised by Auditors strictly.
3. RISK MANAGEMENT STRATEGIES AND FUNCTION
Bank management is responsible for understanding the nature and level of risk taken by the bank and relating the risk to the
capital adequacy level. The Risk Management Committee, consisting non executive directors & Chief Executive Offcier, reviews
the Credit Risk, analyzes the trend, assesses the exposure impact on capital and provides a view to the Credit Sub-Committee and
Board of Directors (BOD). The bank's BOD had developed the Credit Policy Guidelines, together with Risk Management
Guidelines, to strengthen of Bank's exposure in credit. All Retail and Small Medium Enterprises credits are provided under the
Bank's seperate 'Product Paper' for each type of such credit. An independent Credit Risk Department analyse the the all kind of
credit proposal from the view point of risk and recommend independently to the approval authority in regard to proposed funded
or non-funded credit exposure.
In respect of operational risk 'Standard Operation Manual' has been implemented together with Risk Management Guidelines. A
seperate 'Operational Risk Department' has been introduced to analyse, review and control regarding the operational lapses
timely and make them strenthen on the mean time. All the section & sub-section of operation side have been operating under the
specilized manual passed by Bank's Management and BOD as the case may be. Besides, The core banking system has been tested
periodically against the recovery and detection of fraud in case of casualty, and problem register is maintanin to solve the lapses
in the system. The bank adopted centralized operation system all over the branches of bank. The transaction and system of Bank's
branches has been reviewing from the Head Office directly. Finance & Strategic Planning checks the capital charge on operational
risk regularly.
With regard to market risk, In order to effectively manage the market risk the bank has set up the two tiered treasury department
structure viz:
a) Treasury Front Office
Available For Sale
Details of additional Loan Loss Provisions:
Segregation of Investment Portfolio into held for trading, Held to maturity and available for sale Category:
Investment Portfolio
Held For Trading
Held To Maturity
The Gross NPA Ratio of Bank decreased by 0.24% and reached to same 0.67% than previous quarter, for which, provision has
been made as per the NRB Directives. The Loan Loss Provision to Total NPA loan is 216.15% Similarly, all interest suspense
include interest accrued but not due and/or collected at quarter end period on performing and non-performing credit exposures,
which has been and being settled in due course of business.
Description
Loan Loss Provision
Interest Suspense