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Kumari Bank Annual Report 2013/14
Board of directors’ reportfor fourteenth annual General MeetinG
Respected Shareholders.On behalf of the Board of Directors, we would like to welcome all the shareholders, invited representatives’, media representatives and assisting staffs to the fourteenth Annual General Meeting of Kumari Bank Ltd. We are delighted to present you this bank’s financial status, its achievement and future prospects in this fourteenth Annual General Meeting. We have reached 14th year of service collecting all good and bad experiences and learning lessons from such experiences. From its inception, this bank has been achieving continuous progress through modern banking technology and practices. We take your suggestions as our course of action so that the bank can be more successful and sustained. We take your permission to present you with the achievements attained in the fiscal year 2070/71.
1. A holistic view of the transactions in the past years
Table 1: Financial look at the bank’s past 5 years’ performance Amount in Rs. million
Fiscal year 066/67 067/68 068/69 069/70 070/71
ParticularsPaid-up Capital* 1,306.01 1,603.80 1,603.80 1,828.33 2,431.68
Deposit 17,432.25 16,986.28 21,985.20 25,318.57 27,578.38
Loans, Borrowings & Advances 14,966.08 14,926.23 18,101.34 20,119.79 22,808.50
Fixed Asset (Net) 285.64 306.28 277.27 255.86 235.78
Interest Income 1,871.07 2,251.79 2,441.58 2,464.31 2,410.78
Interest Expense 1,188.92 1,566.55 1,622.49 1,486.28 1,575.31
Net Interest Income 682.15 685.24 819.09 978.03 835.47
Other Income 164.35 190.06 203.36 237.05 330.83
Operating Expense 345.36 380.93 406.32 434.27 461.82
Operating Profit before loan loss provision 501.14 494.38 616.13 780.81 704.48
Operating profit 488.06 380.60 429.09 466.19 468.16
Net Profit/ (Loss) 316.54 251.24 275.50 291.45 341.65
Dividend Per Share 12.01 8.44 7.00 14.74 34.74
*Paid-up Capital of FY 2070/71 includes Bonus Share.
Looking at the performance of the past 5 years, it is evident that the bank has had a significant increment in this financial business. In the past years, the bank has had a good deposit collection and had increased the area of loan and to cope up with increased financial transaction, bank had increased the capital as well. The bank has been able to increase its profit along with its balance sheet size.
A comparison between the fiscal year 2069/70 and 2070/71 shows that bank achieved growth in deposit and loan by 8.93% and 13.36% respectively. Due to minimization of spread rate of Interest on Loans and Deposits has reduced Net Profit by 14.58%. Other Operating Income increased by 40% in FY 2070/71 whereas operating expenses growth limited to 6.34% only. Likewise, Operating Profit of bank increased by 0.42% and Net Profit increased by 17.23%. With the experiences gained from the past, the bank shall strive to perform better in the days to come.
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2. Reviewing national/ international economy: International Monetary Fund has estimated that the world economic growth in the year 2015 is to be
at around 3.9%. Similarly, it is projected to increase United States’ economy by 2.8% and European economy by 1.2% in 2014. The economy of emerging and developing countries are expected to grow by 4.9%. At the same time, Indian and Chinese economies are expected to grow respectively at 5.4& and 7.5%. Developed countries including United States, European countries and Japan are affected by recession from a long period is expected to improve in 2014/15. Due to significant increment rate in recession is still expected to affect European economy. Some amount of risk of recession is still expected to impact the European economy. World Economy has moved towards improvement from recession but with persistent risks and challenges.
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Kumari Bank Annual Report 2013/14
Demand side is still weak in the world economy. In this perspective, there is less pressure in global inflation. According to International Monetary Fund’s projection in the year 2014 will be 1.5% in developed countries. Similarly, inflation rate in emerging and developing countries will be at around 5.5% in 2014. At the same time, according to International Monetary Fund’s projection, inflation rate of China and India will be 3% and 8% respectively.
In fiscal year 2070/71, due to favorable climate, there was growth in agricultural products along with security and labor; which led improvement in non-agricultural sector, Gross Domestic Product (GDP) rate as compared to the last fiscal year.
In review period, GDP is in the rise as compared to the last fiscal year. According to Central Beaureu of Statistics, the actual base rate of GDP is at 5.2% and production is at 5.5% which was 3.5% and 3.9% respectively. In the review period, growth percentage of agricultural and non-agricultural sector is expected to be 4.7% and 5.3% respectively; which was 1.1% and 4.6% in last fiscal year. In the review period, industrial sector and service sector under the non-agricultural sector grew by 2.7%and 6.1% respectively; which was 2.5% and 5.2% respectively. On the basis of Consumer Price Index (CPI) for 11 months, the average inflation rate for fiscal year 2070/71 is 9.1%; which was 9.9% in previous year. The price hike in edible products like fruit and vegetable, meat and fish, egg and milk products; weak supply, energy crisis, weakening exchange rate and high price of petroleum products and Indian inflation rate causing overall pressure to our inflation. Per Capita expenses increment was up to 14.9% where as production remained the same that has also affected country’s inflation rate.
Total export has increased by 16.9% and total import increased by 27%. Import basis and increment rate is higher as compared to export; as a result the export import ratio of 11 months for the fiscal year 2070/71 limited to 12.7%; which was 13.7% previous year.
Liquidity condition has eased and short term/ temporary interest rates are quite low in bank and financial institutions from the very beginning of the fiscal year 2070/71, in Asadh 2070, the weighted average of 91-days Treasury bill rate decreased to 0.02%, which was 1.19% in previous year. Commercial bank’s weighted average inter-banking rate decreased to 0.16% which was 0.86% last year. The weighted average of deposit is 4.22% and that of loan is 10.81%; which caused interest rate spread of 6.59%. The ratio of Loan/ Capital and Deposit of commercial banks has reached 73.5% in Baisakh 2071. The inactive loan of commercial banks reached 3.04% by Chaitra 2070. Considering total internal loan of 11 months, it increased to 7.1% as compared to 10.9% increment in previous year. Similarly, the deposit of financial institution has increased by 12.5% than that of 9.8% in previous year. Financial Institution’s gross loan for agriculture and energy has increased by 6.16% and 2.13% respectively.
After holding second constitutional election, excitement in investors eased liquidity scenario and decreasing interest rate led to increase in NEPSE Index by 99.9% to 1,036.1 in Asadh 2071. There is significant increment in trading amount also.
According to the data of Asadh End 2070, published by Nepal Rastra Bank, there are 30 A category, 84 B category, 53 C category and 37 D category, altogether there are 204 bank & financial institutions in operation. (Source: Nepal Rastra Bank Website)
3. Review of the Bank’s operations in FY 2070/71: Analysis of the financial statement of review period clearly depicts the growth in banking transaction,
asset and profit. Such increment led in increment of balance sheet size by 10%, which is Rs. 31.02 billion in fiscal year 2070/71.
A. Capital management: By the end of 2070/71, paid up capital of the bank has reached to Rs. 2.43 billion (including proposed bonus share). Also the capital adequacy ratio has to be minimum 10%, of which by the end of review period, the total capital adequacy is 11.81%.
B. Deposit: Compared to the last fiscal year, deposit increased by 8.93% and the total deposit reached Rs. 27.57 billion.
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Table 2: Comparative State of Deposits: Amount in Rs. million
Deposit FY 070/71 % of total deposit FY 069/70 % of total depositCurrent 1,391 5.04 1,175 4.64
Savings 7,234 26.23 6,823 26.95
Call 6,812 24.70 5,968 23.57
Fixed 12,142 44.03 11,353 44.84
Total 27,579 100.00 25,319 100.00
C. Loans, borrowings and advances: In fiscal year 2069/70, the bank’s total loan was Rs. 20.11 billion, while at the end of review year, it increased by 13.36% reaching Rs. 22.80 billion. The bank has distinguished its lending into personal loans, education loans, small business loans, organizational loans and development projects loan. During the review period, bank’s inactive loan was 4.03 %, but the gross inactive loan ratio was only 1.04%. The bank suffered from the low movement in real estate, just like other banks. Because of this, the inactive loan has increased. We would like to inform you that we shall regulated these loans in the days to come.
In FY 2069/70, the loans of real estate amounted to Rs. 2.18 billion, which the bank brought down by 7% to Rs. 2.04 billion. Nepal Rastra Bank directed real estate loan should not exceed 25% whereas the bank has reduced it to 8.95% only at the end of Ashadh 2071. All the commercial banks in Nepal have been able to bring down the percentage only by 5%. (Source: Unpublished Financial Data). In this context, the bank’s management is working vigorously to minimize the risk of real estate loans.
D. Investment: In accordance with the bank’s objective of getting returns from the overall resources by maintaining balanced liquidity, the bank has given continuity to its policy of investing in Nepal Government and Nepal Rastra Bank’s risk free securities (Treasury bill, development bond, etc). The bank has been carefully investing in local and international market and various organizations’ share and bonds. The bank has invested Rs. 2.36 billion in NG’s treasuring bills making the total investment of the bank to be Rs. 3.16 billion by the end of FY 2070/71.
E. Profit: During the review period, interest rates of loan and deposit have decreased in the bank along with that of financial institutions; which resulted decrease in net interest income by 14.58%. In fiscal year 2070/71, the bank successfully achieved other operating income of 40% whereas operating expense limited to 6.34% only. Similarly, the banks’ operating income increased by 0.42% resulting increment in net profit by 17.23% in the same year.
F. Contribution to Government Revenue: The bank has already paid Rs. 148.2 million as corporate tax to the government during this year’s review period in comparison to the entire FY 2069/70 when Rs. 123 million was paid in tax.
G. Products and Services: In the review period, the bank has introduced advantageous products and services for its customers. The agreement between JME and the bank was held to bring online remit service. As per the agreement, the fund transferred from Japan routed through JME could be provided amongst customers via all branches of Kumari bank and almost 1500 agents of Kumari Remit. Similarly, there has been agreement between Kumari bank and Sanima bank to provide remittance service through 27 branches of Sanima bank also. The bank itself has been providing bill payment facility to NTC ADSL service users. This service facilitates the customers to pay for NTC ADSL service from any branch of Kumari bank, via Kumari Mobile Banking or Internet Banking as well. Also, the customers can make bill payments for NTC Prepaid Recharge Card, Worldlink Recharge Card, NTC postpaid bill, NTC landline bill, Ncell postpaid bill and others.
The bank has been introducing newest and the most modern products and services since its inception. Technologically sound and modern services have helped the bank reach a respectable position in the financial market. The bank is even more resilient to bring newer services and added features for easier access of the products to people. Our products and service areas encompass education loan,
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Kumari Bank Annual Report 2013/14
exports-imports business, hybrid loan, remittance service, and various types of deposit service and others as well. Products that are introduced to cope up with the market competition like Visa Electron Debit Card, Visa Prepaid card, Internet Banking, eSewa, SMS Banking, Kumari Mobile Banking and others have been very popular. Visa Electron, Dollar Debit cards can be accessed via VISA network in Nepal, India and any other part of the world. The bank has been continuously working towards adding remittance agency in order to provide better access to sending and receiving funds from inside and outside the country via Kumari Remittance Software.
H. Branch and Network Expansion: The bank extended 6 new branches this fiscal year. Currently, the bank has 25 branches outside valley and 9 branches inside valley, altogether 34 branches, 2 extension counters and 40 ATMs. Moreover, the bank is planning to introduce 2 new branches inside Kathmandu valley.
I. Corporate Governance: Banks and financial institutions are public organizations not only operated with shareholders’ funds but also through institutional and public deposit. This means that good corporate governance and moral character should be followed compulsorily.
J. Risk Management: A separate risk management sub-committee has been established to identify, monitor and protect the bank from potential risks associated with different activities of the bank. Policies and regulations have also been formed and implemented to manage the numerous risks associated with banking activities as well as other potential risks. The bank has taken the policy to make the internal control system more effective and efficient by properly managing the bank’s loans, operations, market and other risks.
The bank has executive management that formulates required policies, regulations, and documentation related to loan management, customer recognition, stress test and daily transactions activities.
a. Loan Risk Management: To manage loan risks, the bank as taken up a policy to determine the loan risk segments and invest in the least risky segment. And, the bank has given priority to concentrated risk minimization.
b. Operating Risk Management: All activities related to the bank’s operations are based on given policies and guidelines and clearly stated work ethics and implementation. Because of this, we are confident that operating risks are being managed well.
c. Liquidity Risk Management: Consideration the scenario of maximum liquidity and liquidity crunch on time, the bank determines various financial source and investment area in order to maintain balanced liquidity. The bank has followed the instructions of NRB regarding liquidity.
d. Market Risk Management: The bank has made policies and devised working methods to monitor the foreign exchange situation to minimize risks associated with fluctuations in foreign currency exchange rates. Similarly, arrangements have also been made for formulating the necessary policies and regulation by regular monitoring market interest rates.
K. Corporate Social Responsibility: The bank is aware of its social responsibilities along with this professional intent as well. The bank has been providing scholarship to children via HOPAD Child and Women Promotion Society (NGO) as part of CSR. The bank has provided 3 days free health camp service to flood victims in Sindhupalchowk area through Indrawatee Community Service Centre. Similarly, bank provided financial support to flood victims through Nepalgunj branch. The bank provided educational materials to Dhaulagiri Deaf School, Baglung for deaf students. The bank also held Banking Literacy Campaign in Balaju Engineering College focusing awareness in banking and advantages of saving. It is our responsibility to retain our culture. So, the bank also supports the organizer of Kumari Jatra by providing financial supports. The bank also conducts blood donation program, school and colleges’ development programs and supports various clubs in frequent basis in order to participate social activities.
L. Committees and sub-committees appointed by Board of Directors: According to popular law and the policies made under bank’s authority, the following committees and sub-committees are in place:
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a. Audit committee: In accordance with Section 164 of the Company Act, an audit committee was in place comprising of Directors Naresh Dugar and bank’s internal audit chief member under the convenorship of Non-executive Director Prof. Rajan Bahadur Paudel. The bank’s internal audit division reports directly to this committee.
b. Human resource sub-committee: In order to guide management in selection of capable employees, recruitment, appointments, skill development and related services/ facilities, and other such matters, a human resource sub-committee comprising of director Santosh Kumar Lama, Director Rashindra Bahadur Malla and head of human resource department under the convenorship of Director Dr. Shobha Kant Dhakal.
c. Risk management sub-committee: In order to correctly identify and eradicate the risks of the bank, a committee comprising Director Prof. Dr. Rajan Bahadur Paudel, Director Puna Ram Bhandari and head from the respective department under the convenorship of Director Uttam Prasad Bhatarai is placed in the sub-committee for formulation of policies, regulations for the same.
Such committees and sub-committees appointed by the board of directors have been conducting their activities within the premises set by the Board, Company Act 2063 and in accordance to the Nepal Rastra Bank’s directives. This committees and sub-committees’ work, duties and authority and the conveners and member of the stated committees and sub-committees have not been provided with any additional reimbursements and facilities except for meeting allowances.
d. Other management level committees: Besides the above mentioned committees and sub-committees appointed by the Board of Directors, the following have also been conducting their activities under convenorship of the CEO in order to implement the bank’s activities more effectively: management committee, asset and liability management committee, labor relations, pricing committee, HR committee, discipline and performance review committee, and bad loans recovery committee.
M. Human Resource: Executives/ staffs play the key role for the overall development of any bank. The bank human resource policy appoints able and professional staffs while recruiting and to increase the efficiency, professional ability, managerial techniques and productivity of the staffs, the bank provides national and international level training as well. The bank is currently focused to increase the efficiency of the manpower and bring in new techniques, so that in the days to come, the ratio between risk and result is balanced. The bank continually amends the Executive Service Terms, 2064 so that the administration of the bank is always effective. Also, the bank’s executive organizational structure is reviewed and new structure is put in its place so that the operation becomes more effective even so often. At the end of the review period, 362 staffs are working in the bank. During the review period, our staffs were involved in various porting and social activities as well.
Current year’s achievements and programs: These are the financial status of the current year till the end of Bhadra month.
Table3:Currentyear’sfinancialglimpse: Amount in Rs. Million
Titles 2071 Bhadra month’s end
2070 Bhadra month’s end Change (Rs.) Change %
Paid-up Capital 2,431.68 1,828.33 603.35 33.00
Deposit 28,987.23 25,642.17 3,345.06 13.05
Loans, Borrowings and Advances 23,481.95 20,114.32 3,367.63 16.74
Investment (Net) 3,508.39 4,463.72 (955.33) (21.40)
Interest Income* 386.26 426.73 (40.47) 9.48
Interest Expense 242.24 290.27 (48.03) (16.55)
Net Interest Income 144.02 136.46 7.56 5.54
Other Operating Income 49.68 50.59 (0.91) (1.80)
Operating Expense 77.08 69.05 8.03 11.63
Operating Profit/ (Loss) before the loan loss provision 116.62 118.00 (1.38) (1.17)
*On the basis of Accruals against Loans.
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Kumari Bank Annual Report 2013/14
Programs for Current Year:
In the current fiscal year, bank has targeted to increase its loan and investment respectively to Rs. 27.71 billion and Rs. 4.57 billion. Likewise, the deposit amount is targeted to keep at Rs. 33.37 billion. In the current fiscal year, bank has set target of earning Rs. 1.46 billion operating income, Rs. 847.8 million operating profit and Rs. 508.3 million net profits. Meanwhile, the operating expense is expected to be 615.5 million.
In the current fiscal year, bank has opened 6 new branches outside the valley and planning to operate 2 new branches inside the valley. In the current fiscal year, bank has target of constructing its own building in Naxal.
To make the bank more efficient, the bank has planned to increase the potential of its assets, bring changes to deposit structure, increase staffs’ productivity and also introduce quality services for the benefit of people. The bank has also planned to fulfill the financial requirements of customers by developing newer and modern services, to bring in financially deprived population into the circle of banking, disburse loans to small industries and thus controlling the risk factor and above all, contribute to the economic development of the nation. The bank plans to extend its banking activities to the semi-urban and rural areas via Kumari Mobile Banking services and Kumari Branch Less Banking Services. The bank looks forward to newer technological advances and to study the prospects of merging or being merged to a bank or financial institution via Nepal Rastra Bank’s approval and with shareholders’ suggestion, discussion and proposition to tackle the challenges in the banking sector, and other such programs.
4. Bank’s industrial and business relations: The bank has been maintaining cordial relationships with all concerned industrial and professional bodies and is committed to continue doing so in the future as well, in the process, making use of the same in the bank’s favor.
5. Changes in Board of Directors and the reasons: In the review period, the representatives of board members Mr. Noor Pratap J.B. Rana, Mr. Uttam Prasad Bhattarai and Mr. Naresh Dugar were re-elected and Mr. Santosh Kumar Lama was elected from 13th Annual General Meeting. Similarly, Mr. Puna Ram Bhandari was elected from public group of directors. We welcome all the elected directors in new working period. In addition, we thank Mr. Amir Pratap J.B. Rana and Mr. Rishi Agrawal representing promoter group for rendering service to bank during their working period.
6. Major issues affecting business: Decreasing spread in interest rate of Loan and deposit, fluctuation in market’s liquidity, decreasing interest rates in Government bonds (Treasury bills), continuous recession in real estate business, energy crisis, increasing competition in financial sector etc are main factors effecting business. Such decreasing spread in interest rate of loan and deposit, decreasing interest rate in government bonds and increasing operating expenses etc. are expected to have adverse effect on overall profit of the bank.
7. Board of Directors’ responses to the auditor’s report: Except for normal comments concerning the bank’s regular business, no especially negative comments have been observed in the audit report. Instructions have also been given to the management to implement the suggestions and advice of the audit report. Because the financial details of FY 2070/71 were accepted by Nepal Rastra bank on 2071/06/14, the received comments and instructions have been included in the annual report. Bank has already given direction to its management team for implementation of received comments and instructions.
8. Dividend Declaration: Kumari Bank announces 33% bonus share from its Paid-Up Capital i.e. NPR 603.3 million and 1.74% cash dividend on Tax on Bonus Share as proposed by the Board of Directors i.e. NPR 31.7 million which makes total amount of NPR 635.1 million as total dividend.
9. Forfeited shares: in the reported year, no shares have been forfeited.
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10. Progress of the bank and its subsidiary companies: The progress of the bank has been presented under various headings in this report. The bank does not have any subsidiary companies.
11. Major businesses conducted by the bank and its subsidiary companies in FY 2070/71 and any important changes in business activities: The bank does not have any subsidiary companies and there are no major changes other than mentioned in this Annual Report.
12. Important information provided by valued shareholder: None.
13. Details of share holding by the company’s directors and office bearers in the previous FY andinformation provided by them about their involvement in the trading of company shares, if any: No information as such.
14. Information about any agreements concerning the bank that service the self interest of any director or people close to them: None.
15. Details about re-purchase of shares: None.
16. Details about Internal Control System: There is a separate department to maintain the bank’s internal control systems. This department is always active to minimize risks associated with the Bank’s loans, operations and market risks. Monitoring of the effectiveness of the internal control systems is done on a regular basis by the Audit Department while conducting its regular audit.
17. Details of the Bank’s total operating costs: The Bank’s operating costs in FY 2070/71 were as follows:
Staff expenses: NPR 221,701,158
Other operating costs: NPR 240,120,657
Detailed description of the bank’s total operating costs has been stated in Annexure 4.23 and 4.24 of the Annual Report.
18. Information about audit committee: According to the Company Act, Section 164, the audit committee is comprised of Directors Naresh Dugar and bank’s internal audit head, Niraj Rai, as member under the convenorship of Non-Executive Director Prof. Dr. Rajan Bahadur Poudel. This committee has had 10 sittings in FY 2070/71. Member of this committee have been provided with meeting allowance at par with other Board Members. This committee’s activities are conducted in accordance with Nepal Rastra Bank‘s directives and Company Act regulations. No serious remarks on the bank’s operations have been observed in the internal audit report. The audit committee has been conducting regular monitoring of the internal control systems and regularly providing suggestions concerning implementation to the management besides providing information on the same of the board of directors. The bank’s internal audit department reports directly to the audit committee.
19. Information about any cash balance to be paid to the Bank by Director, Managing Director, Chief ExecutiveOfficer,Bank’sPromotersortheircloserelativesorfirmassociatedwiththem,companyororganization: None.
20. Details about salaries, allowances and facilities provided to directors, managing director, CEO and other executives:
a. Directors: The bank’s directors are paid meeting allowances for taking part in meetings of committees and sub-committees as set up according to applicable rules at the rate of Rs. 10,000 to the chairperson and Rs. 8,000 to the members. Also, Rs. 2,000 per month is being provided for media and daily newspapers. The bank has not provided the directors with any other facilities than the above. In FY 2070/71, Rs. 1,936,000 (in words, Rs. 1.936 million) has been paid as meeting and media allowances to the directors.
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Kumari Bank Annual Report 2013/14
b. Annual Salary, Allowances and services for CEO and other executives/ managers for the F/Y 2070/71:
Amount in NPR.
S.No. Salary and services CEO Managers1 Salary 5,492,475.80 27,995,402.04
2 Allowances 98,927.42 8,388,436.39
3 Provident Fund 549,247.58 2,790,108.99
4 Vehicle maintenance 4,838.71 736,341.52
5 Medical Treatment (annual + accumulated ) 113,972.60 2,021,376.70
6 Dashain Allowance 495,000.00 2,998,077.00
7 Leave (annual + accumulated) 1,067,783.76 4,712,428.10
8 Insurance 158,376.00 2,132,778.88
9 Gratuity 15,205.70 5,460,684.86
10 Others 80,645.16 120,733.45
Total 8,076,472.73 57,356,367.93
Note: Under the medical and leave expense of CEO, the remaining expenses of medical and leave of Acting CEO is also included.
Other than above mentioned salary and allowances, other managers are also provided with following services:
1. Vehicle along with driver to the CEO; vehicle loan, driver, fuel, and repair and maintenance to DCEO ;and according to the bank’s policy on transportation, vehicle loan, fuel and repair allowance to other management office bearers.
2. Home and real estate loans/ personal loans to all permanent office bearers as per the bank’s staff service regulations.
3. Journals, telephone and mobile facilities as per the bank’s human resource policy.
21. Dividend yet to be taken by shareholders: Out of 12% cash dividend distributed in FY 2066/67 and 7% cash dividend distributed in FY 2068/69; the shareholders are yet to collect the remaining amount of Rs. 9,985,798 (in words: Rs. 9.98 million) from the distributed cash dividend till Ashadh end 2071.
22. Details of asset sales and purchases as per Section 141 of the Company Act, 2063: None.
23. Details of business with associated companies as per Section 175 of the Company Act, 2063: None.
24. Any other information necessary to be revealed in the Directors Report as per the Company Act, 2063, and applicable laws: None.
25. Other information: None.
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Vote of Thanks:
We would like to extend our heartfelt gratitude to respected shareholders, customers, executives from Nepal Rastra Bank, Office of Company Registrar, Nepal Securities Board, Nepal Stock Exchange Ltd., general public and all other concerned who have continuously provided their support, encouragement and guidance. We would also like to thank our statutory auditors Mr. GP Rajbahak and Company for conducting the audit on time and providing the bank with realistic professional advice. In addition, we wish to thank the bank’s management and staff members for considering the bank’s progress to be their own by providing dedicated services. Finally, by incorporating as its main principle the fact that bank and its customers are two sides of the same coin, and that it is due to our customers’ affection and trust that the bank has succeeded in reaching its present position. We offer our heartfelt gratitude to them with the promise to be still more committed to increase our strong relationship with our customers in the future.
Thank You,
On behalf of the Board of Directors
Noor Pratap J.B. Rana Prof. Dr. Rajan Bahadur Paudel
(Chairman) (Director)
Date: 26th Ashwin 2071
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Management Team
From left StandingMr. Bikash Khanal- Head Corporate CreditMr. Binod N. Shrestha- Head Central LogisticsMr. Tika Ram Chapagain- Chief Regional Officer (Eastern)Mr. Rajesh Shrestha- Branch Manager, Newroad
Bishwa Mani Regmi, Head- Retail
Pankaj SJB Rana, Head- Card
Yemi Karki, Head- Credit Risk Management
Rena Rijal, Head- Institutional Banking & Remittance
Sipa Regmi, Head- Marketing & Corporate Communication
Nirmal K. Khatiwada, Head- Finance & Treasury
Ishor Gurung, Head - SME
Niraj Rai, Head - Internal Audit
Dinesh Nidhi Tiwari, Head - Recovery
Vishal Rauniyar, Head - Credit Administration & Compliance
Namita Shakya, Head - Branch Operations
Milan K. Maskey, Head - Foreign Trade
From Left SeatedMr. Suresh K. Karna- Chief Marketing OfficerMr. Narendra P. Chhatkuli- Head Legal and ComplianceMr. Rajib Giri- Acting CEOMr. Ajit P. Bhattarai- Head OperationsMr. Geha N. Dhungana- Chief Operations Officer
��������������������������
��������������������������
Supporting Indrajatra Festival “Parijat Mushroom Farming at Sangla-9, Kathmandu”, funded by Kumari Bank Ltd.
Kumari Bank Ltd., Okhaldhunga branch provided financial support to Mr. Tej Bahadur Karki “World Wheel Chair Traveler”
Financial support to landslide victims in Banke
Kumari Bank Ltd.,Baglung provided educational materials to Dhaulagiri Deaf School, Baglung
Kumari Bank Ltd. set up drinking water facility to the devotees visiting Budhanilkantha Temple on the occasion
of Haribodhani Ekadashi
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Kumari Bank Annual Report 2013/14
KuMari BanK liMited Balance sheet
as at ashad end 2071 (16 July 2014)
Schedules 4.1 to 4.17 form an integral part of the Balance Sheet.
Uday K UpadhyayaChief Executive Officer
Santosh Kumar LamaDirector
As per our report of even date
Noor Pratap JB RanaChairman
Geha Nath DhunganaChief Operation Officer
Uttam P. BhattaraiDirector
Nirmal Kumar KhatiwadaHead-Finance and Treasury
Dr. Shobha Kant DhakalDirector
Prof. Dr. Rajan B. PaudelDirector
Date: 16 September 2014Place: Durbar Marg
Rashindra Bahadur MallaDirector
CA. Rajnish DahalPartnerDev AssociatesChartered Accountants
Puna Ram BhandariDirector
Naresh DugadDirector
Contingent Liabilities Schedule 4.17
Directors' Declaration Schedule 4.29
Statement of Capital Fund Schedule 4.30 (A)
Statement of Risk Weighted Assets Schedule 4.30 (B)
Principal Indicators Schedule 4.31
Significant Accounting Policies Schedule 4.32
Notes to Accounts Schedule 4.33
Capital and Liabilities Schedule Current Year (Rs.) Previous Year (Rs.) 1. Share Capital 4.1 2,431,681,560 1,828,332,000
2. Reserves and Funds 4.2 534,924,396 828,374,231
3. Debentures & Bonds 4.3 - -
4. Borrowing Outstanding 4.4 201,951,900 -
5. Deposit Liabilities 4.5 27,578,376,145 25,318,568,802
6. Bills Payable 4.6 22,428,891 21,348,138
7. Proposed Dividend Payable 31,755,240 11,817,474
8. Income Tax Liabilities -
9. Other Liabilities 4.7 219,483,913 214,129,111
Total Capital and Liabilities 31,020,602,045 28,222,569,756
Assets Schedule Current Year (Rs.) Previous Year (Rs.) 1. Cash Balance 4.8 777,836,820 638,769,784
2. Balance with Nepal Rastra Bank 4.9 3,829,349,524 2,537,960,922
3. Balance with Banks/Financial Institution 4.10 288,499,107 230,152,674
4. Money at Call and Short Notice 4.11 507,478,409 753,410,000
5. Investment 4.12 3,164,625,890 4,135,142,087
6. Loans, Advances and Bills Purchase 4.13 21,898,115,132 19,369,317,883
7. Fixed Assets 4.14 235,775,955 255,864,841
8. Non Banking Assets 4.15 - -
9. Other Assets 4.16 318,921,208 301,951,565
Total Assets 31,020,602,045 28,222,569,756
Kumari Bank Annual Report 2013/14
30
KuMari BanK liMitedprofit and loss account
froM 1st shrawan 2070 to 32 asadh 2071 (froM 16 July 2013 to 16 July 2014)
Particulars Schedule Current Year (Rs.) Previous Year (Rs.) 1. Interest Income 4.18 2,410,784,399 2,464,306,976
2. Interest Expenses 4.19 1,575,311,889 1,486,281,639
Net Interest Income 835,472,510 978,025,337 3. Commission and Discount 4.20 188,725,481 138,199,665
4. Other Operating Income 4.21 56,944,610 41,861,784
5. Exchange Fluctuation Income 4.22 85,155,477 56,993,498
Total Operating Income 1,166,298,078 1,215,080,284 6. Staff Expenses 4.23 221,701,158 203,805,242
7. Other Operating Expenses 4.24 240,120,657 230,469,644
8. Exchange Fluctuation Loss 4.22 -
Operating Profit before Provision for Possible Losses 704,476,263 780,805,397 9. Provision for Possible Losses 4.25 236,311,721 314,618,980
Operating Profit 468,164,542 466,186,417 10. Non Operating Income /(Expense) 4.26 2,540,345 (11,134,197)
11. Loan Loss Provision Written Back 4.27 76,151,082 5,258,602
Profit from Regular Activities 546,855,969 460,310,821 12. Profit/Loss from Extra-ordinary Activities 4.28 - -
Net profit after Considering All Activities 546,855,969 460,310,821 13. Provision for Staff Bonus 49,714,179 41,846,438
14. Provision for Income Tax 155,486,824 127,016,018
* Current Year's 148,173,334 126,075,028
* Upto Previous year 5,298,717 -
* Deferred Tax 2,014,772 940,989
Net Profit/Loss 341,654,966 291,448,365
Schedule 4.18 to 4.28 a form an integral part of Profit and Loss Account
Uday K UpadhyayaChief Executive Officer
Santosh Kumar LamaDirector
As per our report of even date
Noor Pratap JB RanaChairman
Geha Nath DhunganaChief Operation Officer
Uttam P. BhattaraiDirector
Nirmal Kumar KhatiwadaHead-Finance and Treasury
Dr. Shobha Kant DhakalDirector
Prof. Dr. Rajan B. PaudelDirector
Date: 16 September 2014Place: Durbar Marg
Rashindra Bahadur MallaDirector
CA. Rajnish DahalPartnerDev AssociatesChartered Accountants
Puna Ram BhandariDirector
Naresh DugadDirector
31
Kumari Bank Annual Report 2013/14
KuMari BanK liMitedprofit and loss appropriation accountfroM 1st shrawan 2070 to 32 asadh 2071
(froM 16 July 2013 to 16 July 2014)
Uday K UpadhyayaChief Executive Officer
Santosh Kumar LamaDirector
As per our report of even date
Noor Pratap JB RanaChairman
Geha Nath DhunganaChief Operation Officer
Uttam P. BhattaraiDirector
Nirmal Kumar KhatiwadaHead-Finance and Treasury
Dr. Shobha Kant DhakalDirector
Prof. Dr. Rajan B. PaudelDirector
Date: 16 September 2014Place: Durbar Marg
Rashindra Bahadur MallaDirector
CA. Rajnish DahalPartnerDev AssociatesChartered Accountants
Puna Ram BhandariDirector
Naresh DugadDirector
Particulars Schedule Current Year (Rs.) Previous Year (Rs.)Income1. Accumulated Profit up to Last Year 4,700,386 14,196,807
2. This Year's Profit 341,654,966 291,448,365
3. Exchange Fluctuation Fund -
4. Bond Redemption Reserve 400,000,000
5. Share Premium 4,438,289
6. General Reserve to Capital Adjustment Fund 400,000,000
Total 746,355,352 710,083,461 Expenses1. Accumulated Loss up to Last Year -
2. Current Year's Loss -
3. General Reserve Fund 68,330,993 458,289,673
4. Contingent Reserve -
5. Institution Development Fund -
6. Dividend Equalization Fund -
7. Staff Related Reserves -
8. Proposed Cash Dividend 31,755,240 11,817,474
9. Proposed bonus share from Capital Adjustment Fund & Current Year's Profit
603,349,560 224,532,000
10. Special Reserve Fund -
11. Exchange Fluctuation Fund 5,879,623 2,714,918
12. Bond Redemption Reserve Fund -
13. Previous Year's Tax Adjustment -
14. Deferred Tax Fund (230,329) (940,989)
15. Investment Adjustment Reserve 11,000,000 8,970,000
Total 720,085,087 705,383,075 16. Accumulated Profit/(Loss) 26,270,265 4,700,386
Kumari Bank Annual Report 2013/14
32
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33
Kumari Bank Annual Report 2013/14
KuMari BanK liMitedcash flow stateMent
froM 1st shrawan 2070 to 32 asadh 2071(froM 16 July 2013 to 16 July 2014)
Particulars Current Year (Rs.) Previous Year (Rs.) (A). Cash Flow from Operating Activities 1,266,582,023 79,266,237 1. Cash Received 2,758,129,300 2,643,075,766 1.1 Interest Income 2,416,108,749 2,408,500,581
1.2 Commission and Discount Income 255,013,852 176,527,316
1.3 Income from Foreign Exchange Transaction 85,155,477 56,993,498
1.4 Recovery of Loan Written off
1.5 Other Income 1,851,221 1,054,371
2. Cash Payment (2,131,224,225) (1,989,812,204) 2.1 Interest Expenses (1,584,428,529) (1,486,281,639)
2.2 Staff Expenses (221,701,158) (203,805,242)
2.3 Office Overhead Expenses (192,090,016) (176,725,322)
2.4 Income Tax Paid (133,004,522) (123,000,000)
2.5 Other Expenses
Cash Flow before Changes in Working Capital 639,676,948 (573,997,326)Increase/(Decrease) of Current Assets (1,564,807,175) (3,735,405,440) 1.(Increase)/Decrease in Money at Call and Short Notice 245,931,591 (432,166,859)
2. (Increase)/Decrease in Short Term Investment 945,276,348 (1,208,180,926)
3. (Increase)/Decrease in Loans, Advances and Bills Purchase (2,688,714,114) (2,076,778,289)
4. (Increase)/Decrease in Other Assets (67,301,000) (18,279,366)
Increase/(Decrease) of Current Liabilities 2,204,484,123 3,161,408,114 1. Increase/(Decrease) in Deposits 2,259,807,343 3,333,370,526
2. Increase/(Decrease) in Certificates of Deposits
3. Increase/(Decrease) in Short Term Borrowings (5,403,000)
4. Increase/(Decrease) in Other Liabilities (55,323,220) (166,559,412)
(B) Cash Flow from Investment Activities 20,268,149 4,989,550 1. (Increase)/Decrease in Long-term Investment 25,239,849 13,595,513
2. (Increase)/Decrease in Fixed Assets (27,888,169) (32,339,033)
3. Interest income from Long Term Investment 22,280,932 23,473,830
4. Dividend Income 635,536 259,241
5. Others
(C) Cash Flow from Financing Activities 201,951,900 (400,000,000) 1. Increase/(Decrease) in Long term Borrowings (Bonds,Debentures etc) (400,000,000)
2. Increase/(Decrease) in Share Capital -
3. Increase/(Decrease) in Other Liabilities - -
4. Increase/(Decrease) in Refinance/Facilities received from NRB 201,951,900 -
(D) Income/Loss from Change in Exchange Rate in Cash & Bank Balances - - (E) This Year's Cash Flow from All Activities 1,488,802,071 (315,744,213)(F) Opening Balance of Cash and Bank Balances 3,406,883,380 3,722,627,593 (G) Closing Balance of Cash and Bank Balances 4,895,685,451 3,406,883,380
Kumari Bank Annual Report 2013/14
34
KuMari BanK liMited share capital and ownership
as at ashad end 2071 (16 July 2014)
Schedule 4.1
Particulars Current Year (Rs.) Previous Year (Rs.)1. Share Capital1.1 Authorized Capital 2,000,000,000 2,000,000,000 a) 20,000,000 Ordinary Shares of Rs. 100 each 2,000,000,000 2,000,000,000
b) ………...Non-redeemable Preference Shares of Rs……….. each - -
c) …………Redeemable Preference Shares of Rs……….. each - -
1.2 Issued Capital 1,828,332,000 1,603,800,000 a) 1,82,83,32,000 Ordinary Shares of Rs. 100 each 1,828,332,000 1,603,800,000
b) ………..Non-redeemable Preference Shares of Rs……….. each - -
c) …………Redeemable Preference Shares of Rs……….. each - -
1.3 Paid Up Capital 1,828,332,000 1,603,800,000 a) 1,82,83,32,000 Ordinary Shares of Rs.100 each 1,828,332,000 1,603,800,000
b) ……….Non-redeemable Preference Shares of Rs……….. each -
c) …………Redeemable Preference Shares of Rs……….. each -
1.4 Proposed Bonus Share 603,349,560 22,45,32,000
1.5 Calls in Advance - -
1.6 Total (1.3 + 1.4 + 1.5) 2,431,681,560 1,828,332,000
share ownershipas at ashad end 2071 (16 July 2014)
Particulars Current Year Previous Year A. Local Shareholders % Amount (Rs.) % Amount (Rs.) 1.1 Government of Nepal - -
1.2 "A" Class Licensed Institution - -
1.3 Other Licensed Institutions - -
1.4 Other Institutions (promoter and public both) 4.78 87,352,500 3.02 48,423,800
1.5 General Public (promoter and public both) 95.22 1,740,979,500 96.98 1,555,376,200
1.6 Others - -
B. Foreign ShareholdersTotal 100 1,828,332,000 100 1,603,800,000
35
Kumari Bank Annual Report 2013/14
ANNEXURE 1(A)
list of shareholders holdinG share capital of 0.5% or More as at ashad end 2071 (16 July 2014)
S.N. Name of the ShareholderCurrent Year Last Year
% Share Capital in NPR. % Share Capital in NPR. 1 Noor Pratap J.B. Rana 6.50 118,841,400 6.50 104,247,000 2 Amir Pratap J.B Rana 5.06 92,513,500 5.06 81,152,200 3 Sabitri Gurung 3.07 56,286,700 4.00 64,152,000 4 Bimala Devi Agrawal 2.75 50,363,400 3.78 60,568,500 5 Rishi Agrawal 2.40 43,879,900 2.40 38,491,200 6 Rajendra Prasad Shrestha 1.62 29,551,600 2.10 33,615,000 7 Bidhya Krishna Shrestha 1.34 24,421,300 1.83 29,403,000 8 Govinda Das Shrestha 1.09 20,038,000 1.50 24,057,000 9 Laxman Shrestha 1.22 22,414,600 3.20 51,282,800 10 Manju Taparia 1.01 18,452,400 1.01 16,186,300 11 Mahabir Prasad Goel 1.28 23,354,100 1.32 21,170,100 12 Yagya Pratap Rana 1.32 24,005,800 1.31 21,057,800 13 Santosh Kumar Lama 0.91 16,728,600 1.23 19,674,300 14 CIT Citizen Unit Scheme 0.75 13,712,400 0.75 12,028,500 15 Bhim Krishna Udas 0.79 14,374,600 1.00 16,038,000 16 Phurba Bangdel Lama 1.31 23,983,200 1.00 16,038,000 17 Anil Das Shrestha 0.73 13,320,600 1.00 16,038,000 18 Januki Kumari J.B. Rana 1.00 18,283,200 1.00 16,038,000 19 Birendra Kumar Shah 0.86 15,819,200 0.62 10,000,000 20 Prabhu Investment Pvt. Ltd. 0.74 13,420,400 - - 21 Sanjaya Lama 0.74 13,629,900 0.99 15,930,000 22 Ashok Kumar Baheti 0.94 17,297,300 0.62 10,000,000 23 Anupam Rathi 0.90 16,454,900 0.90 14,434,200 24 Manoj Kumar Goel 0.88 16,089,200 - - 25 Shiva Shanker Agrawal 0.88 16,016,000 0.88 14,049,200 26 Kumud Kumar Dugad 0.85 15,591,600 0.85 13,676,900 27 Santoo Shrestha 0.61 11,161,100 1.00 16,038,000 28 Shree Niwas Sharada 0.75 13,690,900 0.78 12,509,600 29 Jamuna Maheshwori Rathi 0.55 10,072,500 0.55 8,835,500 30 Life Insurance Corporation Nepal Ltd. 0.75 13,679,900 0.75 12,000,000 31 Nirmal Pradhan 0.51 9,350,000 0.84 13,406,900 32 Pradeep Kumar Murarka 0.70 12,798,300 0.70 11,226,600 33 Pashupati Murarka 0.70 12,798,300 0.70 11,226,600 34 Naresh Dugad 0.70 12,798,300 0.70 11,226,600 35 Bikash Dugad 0.70 12,798,300 0.70 11,226,600 36 Atmaram Murarka 0.60 10,988,300 0.60 9,639,000 37 Jagdish Prasad Chaudhary 0.60 10,969,900 0.60 9,622,800 38 Sharmila Aryal 0.60 10,969,900 0.60 9,622,800 39 Dev Kishan Mundada 0.60 10,969,900 0.60 9,622,800 40 Pravalaxmi Rana 0.59 10,726,100 0.59 9,408,900 41 Vidushi Rana 0.58 10,604,300 0.58 9,302,000 42 Rita K.C 0.52 9,594,000 0.52 8,415,700 43 Uttam Prasad Bhattarai 0.50 9,141,600 0.50 8,019,000 44 Rakshya Pahadi 0.50 9,141,600 0.50 8,019,000 45 Surendra Bhandari - - 0.50 8,019,000 46 Ganga Amatya - - 0.50 8,019,000 47 Antoo Shrestha - - 0.68 10,889,500 48 Sandeep Lama - - 0.50 8,019,000
Kumari Bank Annual Report 2013/14
36
Schedule 4.2
KuMari BanK liMitedreserves and funds
as at ashad end 2071 (16 July 2014)
Schedule 4.3
KuMari BanK liMiteddeBenture and Bond
as at ashad end 2071 (16 July 2014)
Particulars Current Year (Rs.) Previous Year (Rs.)
1. ……….% Bond/Debentures of Rs……..…each - -
Issued on …………… and to be matured on ……….
2. ………. - -
Total (1+2) - -
Particulars Current Year Rs. Previous Year Rs.1. General/Statutory Reserve Fund 467,413,482 799,082,488
2. Capital Reserve Fund -
3. Capital Redemption Fund -
4. Capital Adjustment Fund - -
5. Other Reserve & Funds 20,849,607 10,079,936
a. Contingent Reserve
b. Institution Development Fund
c. Dividend Equalization Fund
d. Special Reserve Fund
e. Assets Revaluation Fund
f. Deferred Tax Reserve 849,607 1,079,936
g. Other Free Fund
h. Other Reserve Fund
i. Investment Adjustment Reserve 20,000,000 9,000,000
j. Bond Redemption Reserve
6. Accumulated Profit/Loss 26,270,265 4,700,386
7. Exchange Fluctuation Fund 20,391,043 14,511,420
8. Share Premium
Total 534,924,396 828,374,231
37
Kumari Bank Annual Report 2013/14
Schedule 4.4
KuMari BanK liMitedoutstandinG loan (BorrowinGs)
as at ashad end 2071 (16 July 2014)
Particulars Current Year (Rs.) Previous Year (Rs.)A. Domestic 1. Government of Nepal - -
2. Nepal Rastra Bank 201,951,900 -
3. Repo Obligations - -
4. Inter Bank and Financial Institutions - -
5. Other Organized Institutions - -
6. Others - -
Total (A) 201,951,900 - B. Foreign 1. Banks - -
2. Others - -
Total (B) - - Total (A+B) 201,951,900 -
Kumari Bank Annual Report 2013/14
38
Schedule 4.5
KuMari BanK liMiteddeposit liaBilities
as at ashad end 2071 (16 July 2014)Particulars Current Year (Rs.) Previous Year (Rs.)
1. Non-Interest Bearing Accounts A. Current Deposit 1,237,175,209 1,032,116,414 1. Local Currency 1,202,240,826 1,002,052,097 1.1 Government of Nepal
1.2 "A" Class Licensed Institutions 20,131,262 36,937,000
1.3 Other Licensed Financial Institutions 255,795,690 235,408,000
1.4 Other Organized Institutions 727,511,094 658,679,303
1.5 Individuals 198,802,780 71,027,794
1.6 Others -
2. Foreign Currency 34,934,383 30,064,318 2.1 Government of Nepal
2.2 "A" Class Licensed Institutions 5,061,523
2.3 Other Licensed Financial Institutions 192,000
2.4 Other Organized Institutions 29,867,559 29,867,318
2.5 Individuals 5,301 5,000
2.6 Others
B. Margin Deposits 147,197,848 137,462,504 1. Employees Guarantee
2. Guarantee Margin 60,202,728 60,436,821
3. Margin on Letter of Credit 86,995,120 77,025,683
C. Others 6,436,778 5,607,153 1. Local Currency 6,436,778 5,607,153 1.1 Financial Institutions -
1.2 Other Organized Institutions -
1.3 Individuals 6,436,778 5,607,153
2. Foreign Currency - - 2.1 Financial Institutions -
2.2 Other Organized Institutions -
2.3 Individuals -
Total of Non-Interest Bearing Accounts (1) 1,390,809,835 1,175,186,072
39
Kumari Bank Annual Report 2013/14
KuMari BanK liMiteddeposit liaBilities (continued….)
as at ashad end 2071 (16 July 2014)
Particulars Current Year (Rs.) Previous Year (Rs.)2. Interest Bearing Accounts A. Saving Deposits 7,234,105,180 6,822,654,865 1. Local Currency 7,117,127,540 6,750,023,394 1.1 Organized Institutions 36,192,699 47,497,524
1.2 Individuals 7,080,934,841 6,702,525,870
1.3 Others -
2. Foreign Currency 116,977,640 72,631,471 2.1 Organized Institutions 113,000
2.2 Individuals 116,977,640 72,518,471
2.3 Others -
B. Fixed Deposits 12,141,754,675 11,353,147,320 1. Local Currency 11,445,625,925 10,327,813,570 1.1 Organized Institutions 9,538,004,526 8,866,004,000
1.2 Individuals 1,907,621,400 1,461,809,570
1.3 Others -
2. Foreign Currency 696,128,750 1,025,333,750 2.1 Organized Institutions 693,720,000 1,022,932,750
2.2 Individuals 2,408,750 2,401,000
2.3 Others -
C. Call Deposits 6,811,706,455 5,967,580,545 1. Local Currency 6,585,251,433 5,879,323,329 1.1 "A" Class Licensed Institutions -
1.2 Other Licensed Financial Institutions 2,496,286,718 3,068,482,000
1.3 Other Organized Institutions 4,033,820,827 2,634,932,453
1.4 Individuals 55,143,888 175,908,876
1.5 Others -
2. Foreign Currency 226,455,022 88,257,216 2.1 "A" Class Licensed Institutions -
2.2 Other Licensed Financial Institutions -
2.3 Other Organized Institutions 226,455,022 88,257,216
2.4 Individuals -
2.5 Others -
D. Certificate of Deposit - - 1. Organized Institutions -
2. Individuals -
3. Others -
Total of Interest Bearing Accounts (2) 26,187,566,310 24,143,382,730 Total Deposits (1+2) 27,578,376,145 25,318,568,802
Kumari Bank Annual Report 2013/14
40
Schedule 4.6
KuMari BanK liMitedBills payaBle
as at ashad end 2071 (16 July 2014)
Schedule 4.7
KuMari BanK liMitedother liaBilities
as at ashad end 2071 (16 July 2014)
Particulars Current Year (Rs.) Previous Year (Rs.)1. Pension/Gratuity Fund - -
2. Employees Provident Fund - -
3. Employees Welfare Fund 84,820 61,922
4. Provision for Staff Bonus 49,714,179 41,846,438
5. Interest Payable on Deposits 36,881,320 46,092,295
6. Interest Payable on Borrowings 94,335 -
7. Unearned Discount and Commission 12,871,826 3,528,063
8. Sundry Creditors 37,378,646 32,604,506
9. Branch Reconciliation Account - -
10. Deferred Tax Liability - -
11. Dividend Payable 9,985,798 15,110,813
12. Others 72,472,989 74,885,074
a. Audit Fees 826,030 384,200
b. Others 71,646,959 74,500,874
Total 219,483,913 214,129,111
Particulars Current Year (Rs.) Previous Year (Rs.)1. Local Currency 15,747,781 17,837,785
2. Foreign Currency 6,681,111 3,510,353
Total 22,428,891 21,348,138
41
Kumari Bank Annual Report 2013/14
Schedule 4.8
KuMari BanK liMitedcash Balance
as at ashad end 2071 (16 July 2014)
Schedule 4.10
KuMari BanK liMited Balance with BanKs/financial institution
as at ashad end 2071 (16 July 2014)
Note: Total balance for which the confirmations are received from respective Banks is NPR. 175,720,528.35
Schedule 4.9
KuMari BanK liMited Balance with nepal rastra BanKas at ashad end 2071 (16 July 2014)
Particulars Local Currency
Foreign Currency in equivalent Rs.Current Year
Total (Rs.)Previous Year
(Rs.)INR Convertible FCY Total
1. Nepal Rastra Bank 3,829,349,524 2,537,960,922 a. Current Account 3,812,114,260 17,235,264 17,235,264 3,829,349,524 2,537,960,922
b. Other Account - - -
Particulars Local Currency
Foreign Currency in Rupee equivalent Current Year (Rs.)
Previous Year (Rs.)INR. Convertible FCY Total
1. Local Licensed Institutions 106,322,283 - 3,937,864 3,937,864 110,260,147 63,729,593 a. Current Account 106,322,283 3,937,864 3,937,864 110,260,147 63,729,593
b. Other Account - - -
2. Foreign Banks - 85,099,046 93,139,915 178,238,961 178,238,961 166,423,081 a. Current Account 85,099,046 93,139,915 178,238,961 178,238,961 166,423,081
b. Other Account - - -
Total 106,322,283 85,099,046 97,077,779 182,176,825 288,499,107 230,152,674
Particulars Current Year (Rs.) Previous Year (Rs.)1. Local Currency (Including Coins) 763,020,416 622,182,064
2. Foreign Currency 14,816,404 16,587,720
Total 777,836,820 638,769,784
Kumari Bank Annual Report 2013/14
42
Schedule 4.12
KuMari BanK liMitedinvestMent
as at ashad end 2071 (16 July 2014)
ParticularsPurpose Current Year
(Rs.)Previous Year
(Rs.)Trading Other 1. Treasury Bills of Nepal Government - 2,368,403,910 2,368,403,910 3,266,296,960
2. Saving Certificate of Nepal Government - - -
3. Other Bonds of Nepal Government - 289,282,812 289,282,812 325,522,661
4. Nepal Rastra Bank Bonds - - -
5. Foreign Bonds - - -
6. Local Licensed Institutions - - 49,081,550
7. Foreign Banks - 482,003,668 482,003,668 480,305,416
8. Shares of Organized Institutions - 24,935,500 24,935,500 13,935,500
9. Bonds and Debentures in Organized Institutions - - -
10. Other Investment - - -
Total Investment - 3,164,625,890 3,164,625,890 4,135,142,087 Provision - - - -
Net Investment - 3,164,625,890 3,164,625,890 4,135,142,087
Schedule 4.11
KuMari BanK liMitedMoney at call and short notice
as at ashad end 2071 (16 July 2014)
Particulars Current Year (Rs.) Previous Year (Rs.)1. Local Currency 350,000,000
2. Foreign Currency 507,478,409 403,410,000
TOTAL 507,478,409 753,410,000
43
Kumari Bank Annual Report 2013/14
Schedule 4.12 (A)
KuMari BanK liMited investMent in shares, deBentures and Bonds
as at ashad end 2071 (16 July 2014)
Particulars Par value (Rs.)
Market Value (Rs.)
Provision (Rs.)
Current Year (Rs.)
Previous Year (Rs.)
1. Investment in Shares 24,935,500 - - 24,935,500 13,935,500 1.1 Credit Information Centre Limited 1,235,500 - - 1,235,500 1,235,500
36,599 Ordinary Shares of Rs. 100 each, fully paid
Primary Shares 3530 Kitta of Rs. 100 each
Right Shares 8825 Kitta of Rs. 100 each
Bonus Shares 24,244 Kitta of Rs. 100 each
1.2 Nepal Clearing House Limited 2,500,000 - - 2,500,000 2,500,000
1.3 National Banking Training Institute 1,200,000 - - 1,200,000 1,200,000
1.4 National Micro Finance Bank Limited 20,000,000 - - 20,000,000 9,000,000
2. Investment in Debentures and Bonds - - - - -
Total Investment 24,935,500 - - 24,935,500 13,935,500 3. Provision for Loss3.1 Up to previous year - - - - -
3.2 Change in current year - - - - -
Total Provision - - - - - Net Investment 24,935,500 - - 24,935,500 13,935,500
Kumari Bank Annual Report 2013/14
44
Schedule 4.12.2
KuMari BanK liMitedinvestMent held to Maturity
as at ashad end 2071 (16 July 2014)
Particulars Par Value (A)
Cumulative Loss (B)
Current Year
Loss (C)
This Year Gain / Loss
(A-B-C)
Previous Year
Gain / Loss (Rs.)
Remarks
1. Treasury Bill of Nepal Government 2,368,403,910
- - - 3,266,296,960
2. Saving Bond of Nepal Government - - - - -
3. Other Bond of Nepal Government 289,282,812 - - - 325,522,661
4. NRB Bond - - - - -
5. Foreign Bond - - - - -
6. Shares of Local Licensed Institutions - - - - -
7. Debenture & Bonds of Local Licensed Institutions
- - - - -
8. Shares, Debentures & Bonds of Local Organised Bodies
- - - - -
9. Placement in Foreign Banks 482,003,668 - - - 480,305,416
10. Other Investments - - - - 49,081,550
Total Investment 3,139,690,390 - - - 4,121,206,587
Schedule 4.12.1KuMari BanK liMited
investMent held for tradinGas at ashad end 2071 (16 July 2014)
Particulars Par Value
Last Market
Price (A)
Current Market
Price (B)
This Year Previous Year Remarks Gain /
Loss (B-A) Gain / Loss
(Rs.) 1. Treasury Bill of Nepal Government - - - - -
2. Saving Bond of Nepal Government - - - - -
3. Other Bond of Nepal Government - - - - -
4. NRB Bond - - - - -
5. Foreign Bond - - - - -
6. Shares of Domestic Licensed Institutions - - - - -
7. Debenture & Bonds of Domestic Licensed Institutions
- - - - -
8. Shares, Debentures & Bonds of Domestic Institutions
- - - - -
9. Placement in Foreign Banks - - - - -
10. Interbank Lending - - - - -
11. Other Investments - - - - -
Total Investment - - - - -
45
Kumari Bank Annual Report 2013/14
Schedule 4.12.3
KuMari BanK liMitedinvestMent availaBle for sale
as at ashad end 2071 (16 July 2014)
Particulars Par Value (A)
Closing Market Price
(A)
Prevailing Market Price
(B)
Current Year Adjustment
Reserve (B - A)
Previous Year Gain / Loss
(Rs.)
1. Treasury Bill of Nepal Government - - - -
2. Saving Bond of Nepal Government - - - -
3. Other Bond of Nepal Government - - - -
4. NRB Bond - - - -
5. Foreign Bond - - - -
6. Shares of Domestic Licensed Institutions
- - - -
7. Debenture & Bonds of Domestic Licensed Institutions
- - - -
8. Shares, Debentures & Bonds of Domestic Corporate Bodies
24,935,500 - - 13,935,500
9. Placement in Foreign Banks - - -
10. Other Investments - - - -
Total Investment 24,935,500 - - 13,935,500
Kumari Bank Annual Report 2013/14
46
Sch
edul
e 4.
13
Ku
Ma
ri
Ba
nK
liM
ite
d c
las
sif
ica
tio
n o
f lo
an
s, a
dv
an
ce
s a
nd
Bil
ls p
ur
ch
as
e &
pr
ov
isio
na
s a
t a
sh
ad
en
d 2
071
(16
July
201
4)
Part
icul
ars
Loa
ns &
Adv
ance
s B
ills
Purc
hase
d/D
isco
unte
d
Cur
rent
Yea
r (R
s.)
Prev
ious
Ye
ar
(Rs.
)
Dom
estic
Fore
ign
Tot
al
Dom
estic
F
orei
gn
Tot
al
Prio
rity
Sect
or
Oth
er
Insu
red
Uni
nsur
ed
1. P
erfo
rmin
g Lo
an
- 9
93,1
39,1
07
20,
882,
545,
557
- 2
1,87
5,68
4,66
4 1
,100
,000
1
3,40
3,84
8 1
4,50
3,84
8 2
1,89
0,18
8,51
2 1
9,34
3,14
2,25
5
1.1
Pas
s 9
93,1
39,1
07
20,
882,
545,
557
- 2
1,87
5,68
4,66
4 1
,100
,000
1
3,40
3,84
8 1
4,50
3,84
8 2
1,89
0,18
8,51
2 1
9,34
3,14
2,25
5
2. N
on-P
erfo
rmin
g Lo
an
- 6
64,7
06
917
,649
,797
-
918
,314
,503
-
- -
918
,314
,503
7
76,6
46,6
46
2
.1 R
estru
ctur
ed
68,
732,
063
68,
732,
063
- -
- 6
8,73
2,06
3 -
2
.2 S
ub-S
tand
ard
49,
785,
517
49,
785,
517
- -
- 4
9,78
5,51
7 2
3,46
7,41
4
2
.3 D
oubt
ful
258
,697
,625
2
58,6
97,6
25
- -
- 2
58,6
97,6
25
404
,012
,981
2
.4 L
oss
664
,706
5
40,4
34,5
92
541
,099
,299
-
- -
541
,099
,299
3
49,1
66,2
51
A. T
otal
Loa
n -
993
,803
,814
2
1,80
0,19
5,35
3 -
22,
793,
999,
167
1,1
00,0
00
13,
403,
848
14,
503,
848
22,
808,
503,
015
20,
119,
788,
901
3. L
oan
Loss
Pro
visi
on
3
.1 P
ass
- 9
,931
,391
2
08,8
25,4
56
- 2
18,7
56,8
47
11,
000
134
,038
1
45,0
38
218
,901
,885
1
93,4
31,4
23
3
.2 R
estru
ctur
ed
- -
8,5
91,5
08
- 8
,591
,508
-
- -
8,5
91,5
08
-
3
.3 S
ub-S
tand
ard
- -
12,
446,
379
- 1
2,44
6,37
9 -
- -
12,
446,
379
5,8
66,8
53
3
.4 D
oubt
ful
- -
129
,348
,812
-
129
,348
,812
-
- -
129
,348
,812
2
02,0
06,4
91
3
.5 L
oss
- 6
64,7
06
540
,434
,592
-
541
,099
,299
-
- -
541
,099
,299
3
49,1
66,2
51
B. T
otal
Pro
visi
onin
g -
10,
596,
098
899
,646
,747
-
910
,242
,845
1
1,00
0 1
34,0
38
145
,038
9
10,3
87,8
83
750
,471
,018
4
. Pro
visi
onin
g up
to p
revi
ous
year
4
.1 P
ass
- 7
,736
,485
1
85,3
29,1
77
193
,065
,663
5
8,19
0 3
07,5
70
365
,760
1
93,4
31,4
23
177
,013
,765
4
.2 R
estru
ctur
ed
- -
- -
- -
- -
325
,748
4
.3 S
ub-S
tand
ard
- -
5,8
66,8
53
5,8
66,8
53
- -
- 5
,866
,853
1
0,79
9,70
7
4
.4 D
oubt
ful
- -
202
,006
,491
2
02,0
06,4
91
- -
- 2
02,0
06,4
91
55,
306,
865
4
.5 L
oss
- 6
64,7
06
348
,501
,545
3
49,1
66,2
51
- -
- 3
49,1
66,2
51
243
,541
,957
C. T
otal
pro
visi
on ti
ll la
st y
ear
- 8
,401
,192
7
41,7
04,0
66
- 7
50,1
05,2
58
58,
190
307
,570
3
65,7
60
750
,471
,018
4
86,9
88,0
42
D. W
ritte
n B
ack
from
last
yea
r pro
visi
on
- (7
2,65
7,67
8) -
(72,
657,
678)
(47,
190)
(173
,531
) (2
20,7
21)
(72,
657,
678)
(5,2
58,6
02)
E. A
dditi
onal
Pro
visi
on in
this
yea
r -
2,1
94,9
06
230
,600
,359
-
232
,795
,265
-
- -
232
,574
,543
2
68,7
41,5
77
C
hang
e in
this
yea
r -
2,1
94,9
06
157
,942
,681
-
160
,137
,587
(4
7,19
0) (1
73,5
31)
(220
,721
) 1
59,9
16,8
65
263
,482
,976
Net
Loa
n (A
-B)
983
,207
,716
2
0,90
0,54
8,60
6 -
21,
883,
756,
322
1,0
89,0
00
13,
269,
809
14,
358,
809
21,
898,
115,
132
19,
369,
317,
883
47
Kumari Bank Annual Report 2013/14
Schedule 4.13 (A)KuMari BanK liMited
security for loan advances and Bills purchasedas at ashad end 2071 (16 July 2014)
Particulars Current Year (Rs.) Previous Year (Rs.)A. Secured 1. Against Security of Movable/Immovable Assets 21,943,331,334 19,527,447,782
2. Against Guarantee of Local Licensed Institutions
3. Against Government Guarantee 146,702,311 146,702,428
4. Against Guarantee of Internationally Rated Bank
5. Against Security of Export Documents
6. Against Security of Fixed Deposit Receipts 101,432,866 100,148,677
a. Own FDR 101,432,866 100,148,677
b. FDR of Other Licensed Institutions
7. Against Security of Government Bonds
8. Against Counter Guarantee
9. Against Personal Guarantee
10. Against Other Securities 617,036,504 345,490,013
B. Unsecured - - Total 22,808,503,015 20,119,788,901
Kumari Bank Annual Report 2013/14
48
Leas
ehol
d D
etai
ls C
urre
nt Y
ear (
Rs.
) O
peni
ng V
alue
- G
ross
94,
759,
407
Add
- ad
ditio
n du
ring
the
year
3,6
80,2
27
Less
- w
rite
off/s
ales
dur
ing
the
year
(322
,050
)
Tota
l Cos
t 9
8,11
7,58
4
Acc
umul
ated
dep
reci
atio
n up
to la
st y
ear
76,
016,
301
Dep
reci
atio
n fo
r cur
rent
yea
r 9
,561
,798
Tota
l dep
reci
atio
n on
ass
et w
rite
off/s
ale
(322
,050
)
Tota
l dep
reci
atio
n 8
5,25
6,04
9
Bal
ance
at t
he e
nd o
f the
yea
r 1
2,86
1,53
4
Sch
edul
e 4.
14K
uM
ar
i B
an
K l
iMit
ed
fix
ed
as
se
ts
as
at
as
ha
d e
nd
207
1 (1
6 Ju
ly 2
014)
Part
icul
ars
ASS
ETS
Cur
rent
Yea
r (R
s.)
Pre
viou
s Ye
ar
(Rs.
) B
uild
ing
Veh
icle
s M
achi
nery
O
ffice
Equ
ipm
ent
Oth
ers
1. C
ost P
rice
a.
Pre
viou
s Ye
ar's
Bal
ance
4,8
14,0
41
107
,645
,403
-
286
,942
,772
4
3,63
7,11
6 4
43,0
39,3
32
416
,310
,461
b.
Add
ition
Thi
s Ye
ar -
22,
393,
805
8,0
99,0
00
667
,152
3
1,15
9,95
7 3
6,40
7,87
1
c.
Rev
alua
tion/
Writ
e B
ack
This
Yea
r -
- -
d.
Thi
s Ye
ar S
old
- (1
5,87
8,15
0) (3
,044
,035
) (1
8,92
2,18
5) (9
,679
,000
)
e.
Thi
s Ye
ar W
ritte
Off
- -
- -
- -
-
Tota
l Cos
t (a+
b+c+
d+e)
4,8
14,0
41
114
,161
,058
-
291
,997
,737
4
4,30
4,26
8 4
55,2
77,1
04
443
,039
,332
2.
Dep
reci
atio
n
a. U
p to
pre
viou
s ye
ar 1
,393
,237
4
7,39
9,11
5 -
210
,584
,585
3
2,39
5,66
5 2
91,7
72,6
02
255
,720
,842
b.
For
this
yea
r 1
71,0
40
13,
642,
110
19,
581,
265
5,0
74,4
28
38,
468,
843
40,
951,
213
c.
Dep
reci
atio
n on
Rev
alua
tion/
Writ
e of
f (9
,326
,156
) (2
,697
,602
) (1
2,02
3,75
7) (4
,899
,452
)
d.
Dep
reci
atio
n A
djus
men
t/Add
bac
k -
-
Tota
l Dep
reci
atio
n (a
+b+c
+d)
1,5
64,2
77
51,
715,
069
- 2
27,4
68,2
48
37,
470,
093
318
,217
,688
2
91,7
72,6
02
3. B
ook
Valu
e (W
DV
*) (1
-2)
3,2
49,7
64
62,
445,
989
- 6
4,52
9,48
9 6
,834
,175
1
37,0
59,4
17
151
,266
,730
4. L
and
- -
- -
- 8
5,59
3,63
5 8
5,59
3,63
5
5. C
apita
l Wor
k In
Pro
gres
s (P
endi
ng C
apita
lizat
ion)
- -
- -
- 2
61,3
69
261
,369
6. L
ease
hold
Ass
ets
- -
- -
- 1
2,86
1,53
4 1
8,74
3,10
7
Tota
l (3+
4+5+
6) 2
35,7
75,9
55
255
,864
,841
49
Kumari Bank Annual Report 2013/14
Schedule 4.15 KuMari BanK liMitednon BanKinG assets
as at ashad end 2071 (16 July 2014)
Name & Address of Borrower or Party
Acquired Date
of Non Banking Assets
Total Amount of Non
Banking Assets
Provision for lossNet
Non Banking Assets (Rs.)
Previous Year Gross (Rs.)Percent Amount
(Rs.)
Sarita Vaidya (Rajbhandari), Kathmandu 4-Dec-12 5,216,247 100 5,216,247 - 5,216,247
Chija Adhikari, Chitwan 4-Dec-12 1,878,564.56
Shilu Housing & Developers Pvt. Ltd., Lalitpur 5-Jul-13 52,795,000 100 52,795,000 - 52,795,000.00
Opportunity Manpower Service, Gongabu 27-Jan-14 2,892,225 100 2,892,225 -
Total 60,903,472 60,903,472 - 59,889,811.17
Schedule 4.16
KuMari BanK liMitedother assets
as at ashad end 2071 (16 July 2014)
Particulars Current Year (Rs.)
Previous Year (Rs.)
1. Stock of Stationery 3,142,044 4,131,643
2. Income Receivable on Investment 5,118,022 23,661,055
3. Accrued Interest Receivable on Loan 15,281,297 24,343,546
Accrued Interest Receivable on Loan 295,316,052 273,793,276
Less:Interest Suspense Account (280,034,755) (249,449,730)
4. Commission Receivable - -
5. Sundry Debtors 8,269,618 18,993,445
6. Staff Loan & Advances 183,878,752 161,194,393
7. Pre Payments 16,259,490 10,772,109
8. Cash in Transit - -
9. Other Transit items (including Cheques) - -
10. Drafts payment without notice - -
11. Expenses not written off - -
12. Branch Reconciliation Account 500
13. Deferred Tax Assets 849,607 1,079,936
14. Others 86,121,878 57,775,437
a. Advance Tax (net) 12,013,147 30,963,203
b. Others 74,108,731 26,812,235
Total 318,921,208 301,951,565
Kumari Bank Annual Report 2013/14
50
Schedule 4.17 KuMari BanK liMited
continGent liaBilitiesas at ashad end 2071( 16 July 2014)
Particulars Current Year (Rs.) Previous Year (Rs.)1. Claims Lodged but not accepted by the Institution - -
2. Letter of Credit (Full Amount) 1,563,482,460 1,016,167,572
a. Maturity period up to 6 months 981,827,687 802,846,661
b. Maturity period more than 6 months 581,654,773 213,320,910
3. Rediscounted Bills - -
4. Unmatured Guarantees/Bonds 882,691,809 894,133,682
a. Bid Bonds 34,605,053 31,297,948
b. Performance Bonds 848,086,756 862,835,733
c. Other Guarantee/Bonds
5. Unpaid Shares Investment - 11,000,000
6. Outstanding of Forward Exchange Contract Liabilities 563,686,099 182,603,573
7. Bills under Collection
8. Acceptance & Endorsement 317,542,960 483,918,277
9. Underwriting Commitment
10. Irrevocable Loan Commitment 1,118,154,971 917,104,596
11. Guarantees against Counter Guarantee of Internationally Rated Banks
-
12. Advance Payment Guarantee 358,401,412 162,091,686
13. Financial Guarantee for loan disbursement -
14. Contingent Liabilities on Income Tax
15. Others -
Schedule 4.16 (A)
KuMari BanK liMited other assets (additional stateMent)
as at ashad end 2071 (16 July 2014)
ParticularsCurrent Year (Rs.) Previous Year
(Rs.)Up to 1 Year 1 to 3 Year Above 3 Years Total1. Accrued Interest Receivable on Loan 108,752,450 144,075,549 42,488,053 295,316,052 273,793,276
2. Drafts Payment without notice - - - - -
3. Branch Reconciliation Account 500 - - - -
4. Domestic/Foreign Agency Account - - - - -
51
Kumari Bank Annual Report 2013/14
Schedule 4.18
KuMari BanK liMitedinterest incoMe
froM 1st shrawan 2070 to 32 asadh 2071 (froM 16 July 2013 to 16 July 2014)
Particulars Current Year (Rs.) Previous Year (Rs.)A. On Loans, Advances and Overdraft 2,323,992,056 2,358,815,482 1. Loans & Advances 1,342,659,310 1,266,437,255
2. Overdraft 981,332,747 1,092,378,226
B. On Investment 81,000,936 89,586,192 1. Government Securities 81,000,936 88,661,099
a. Treasury Bills 58,720,004 66,112,362
b. Development Bonds 22,280,932 22,548,737
c. National Saving Certificates -
2. Foreign Debt Papers - -
a. ……… - -
b. ……… - -
3. Nepal Rastra Bank Bonds - -
4. Debenture & Bonds 925,093
5. Interest on Interbank Investment - -
a. Bank/ Financial Institutions - -
b. Other Institutions - -
C. On Agency Balances 438,704 1,291,001 1. Domestic Banks/ Financial Institutions - -
2. Foreign Banks 438,704 1,291,001
D. On Money at Call and Short Notice 5,352,704 14,614,302 1. Domestic Banks/Financial Institutions 1,046,270 10,475,371
2. Foreign Banks 4,306,434 4,138,931
E. On Others - - 1. Certificate of Deposits - -
2. Inter-Bank/ Financial Institution Loan - -
3. Others - -
Total 2,410,784,399 2,464,306,976
Kumari Bank Annual Report 2013/14
52
Schedule 4.19KuMari BanK liMitedinterest expenses
froM 1st shrawan 2070 to 32 asadh 2071 (froM 16 July 2013 to 16 July 2014)
Particulars Current Year (Rs.) Previous Year (Rs.)A. On Deposit Liabilities 1,574,507,984 1,454,586,611 1. Fixed Deposits 943,819,484 791,147,585 1.1 Local Currency 914,271,994 760,736,380
1.2 Foreign Currency 29,547,491 30,411,205
2. Saving Deposits 291,086,737 348,281,688 2.1 Local Currency 288,963,778 347,041,922
2.2 Foreign Currency 2,122,960 1,239,766
3. Call Deposits 339,601,762 315,157,338 3.1 Local Currency 335,238,757 313,383,136
3.2 Foreign Currency 4,363,006 1,774,201
4. Certificate of Deposits - B. On Borrowings 803,905 31,695,028 1. Debentures & Bonds 28,756,164
2. Loan from Nepal Rastra Bank 803,905
3. Inter Bank /Financial Institutions Borrowing 2,938,864
4. Other Organized Institution
5. Other Loans
C. On Others - - 1. - -
2. - -
Total 1,575,311,889 1,486,281,639
53
Kumari Bank Annual Report 2013/14
Schedule 4.21
KuMari BanK liMitedother operatinG incoMe
froM 1st shrawan 2070 to 32 asadh 2071 (froM 16 July 2013 to 16 July 2014)
Particulars Current Year (Rs.) Previous Year (Rs.)1. Safe Deposit Lockers Rental 1,769,948 1,666,094
2. Issue & Renewals of Credit Cards
3. Issue & Renewals of ATM Cards 31,728,102 28,590,665
4. Telex / T. T./ SWIFT 4,445,123 3,803,769
5. Service Charges
6. Renewal Fees
7. Others 19,001,437 7,801,256
Total 56,944,610 41,861,784
Schedule 4.20 KuMari BanK liMited
coMMission and discount incoMefroM 1st shrawan 2070 to 32 asadh 2071
(froM 16 July 2013 to 16 July 2014)Particulars Current Year (Rs.) Previous Year (Rs.)
A. Bills Purchase & Discount 1,158,472 1,302,335 1. Local 1,158,472 1,302,335
2. Foreign
B. Commission 47,647,185 44,271,223 1. Letters of Credit 14,706,216 16,990,751
2. Guarantees 15,164,234 13,179,544
3. Collection Fees 917,111 664,297
4. Remittance Fees 16,859,624 13,436,630
5. Credit Card
6. Share Underwriting/Issue
7. Government Transactions
8. E. Pra. Commission
9. Exchange Fee
C. Others 139,919,824 92,626,107 Total 188,725,481 138,199,665
Kumari Bank Annual Report 2013/14
54
Schedule 4.23KuMari BanK liMited
expenses relatinG to eMployeesfroM 1st shrawan 2070 to 32 asadh 2071
(froM 16 July 2013 to 16 July 2014)Particulars Current Year (Rs.) Previous Year (Rs.)
1. Salary 98,895,813 89,255,129
2. Allowances 63,131,407 58,212,817
a. Normal Allowance 29,950,802 30,050,200
b. Inchargeship Allowance 88,057 96,599
c. Relocation Allowance 364,767 164,705
d. Outstation Allowance 3,939,517 3,647,517
e. Dashain Allowance 10,829,686 9,518,653
f. Vehicle Maintenance Allowance 741,180 664,102
g. Leave Fare Allowance 17,165,505 14,071,041
h. International Deputation Allowance 51,893
3. Contribution to Provident Fund 9,748,444 8,713,612
4. Training Expenses 2,922,712 1,176,211
5. Uniform 2,479,296 467,204
6. Medical 7,650,418 6,700,304
7. Insurance 7,477,821 7,696,701
8. Gratuity Expenses 13,317,642 14,117,726
9. Others 16,077,604 17,465,538 a. Wages 5,978,149 6,442,337
b. Teller Risk Fund 889,454 845,676
c. Other Staff Benefits 3,003,575 3,590,833
d. Overtime 6,206,426 6,586,691
Total 221,701,158 203,805,242
Schedule 4.22 KuMari BanK liMited
exchanGe fluctuation Gain/lossfroM 1st shrawan 2070 to 32 asadh 2071
(froM 16 July 2013 to 16 July 2014)
Particulars Current Year (Rs.) Previous Year (Rs.) a. From Revaluation 23,518,491 10,859,670
b. From Trading (except Exchange Fees) 61,636,986 46,133,828
Total Gain (Loss) 85,155,477 56,993,498
55
Kumari Bank Annual Report 2013/14
Schedule 4.24 KuMari BanK liMitedother operatinG expenses
froM 1st shrawan 2070 to 32 asadh 2071 (froM 16 July 2013 to 16 July 2014)
Particulars Current Year (Rs.) Previous Year (Rs.) 1. House Rent 55,744,270 51,457,964
2. Electricity & Water 18,430,039 18,054,513
3. Repair & Maintenance 1,640,955 2,058,101
a. Building 426,455 616,277
b. Vehicles 1,214,500 1,441,825
c. Others -
4. Insurance 10,667,741 10,246,482
5. Postage, Telex, Telephone & Fax 18,625,371 15,435,737
6. Office Equipment, Furniture and Repair 4,074,115 5,073,846
7. Travelling Allowances & Expenses 1,574,625 1,993,336
8. Stationery & Printing 6,207,993 5,402,866
9. Periodicals & Books 498,919 452,453
10. Advertisements 5,402,097 4,547,803
11. Legal Expenses 920,788 918,308
12. Donations 6,000 23,000
13. Expenses relating to Board of Directors 2,291,800 2,845,533
a. Meeting Fees 2,104,300 2,698,000
b. Other Expenses 187,500 147,533
14. Annual General Meeting Expenses 688,181 683,868
15. Expenses relating to Audit 892,904 841,668
a. Audit Fees 403,410 384,200
b. Other Expenses 489,494 457,468
16. Commission on Fund Transfer - -
17. Depreciation on Fixed Assets 48,030,641 53,744,322
18. Amortization of Pre-operating Expenses - -
19. Share Issue expenses - -
20. Technical Services Reimbursment - -
21. Entertainment Expenses - -
22. Written Off Expenses - -
23. Security Expenses 23,760,319 19,882,978
24. Credit Guarantee Premium
25. Commission & Discount
26. Others 40,663,900 36,806,864
a. Transport 8,858,881 8,578,462
b. Professional Fees 1,570,610 573,470
c. Public Relation Expenses 923,827 1,002,028
d. Correspondent Banking Charges 435,998 1,889,719
e. Fees and Taxes 25,892,677 21,343,288
f. Miscellaneous 591,080 1,141,963
g. Janitorial 2,390,827 2,277,933
Total 240,120,657 230,469,644
Kumari Bank Annual Report 2013/14
56
Schedule 4.25KuMari BanK liMited
provision for possiBle lossesfroM 1st shrawan 2070 to 32 asadh 2071
(froM 16 July 2013 to 16 July 2014)Particulars Current Year (Rs.) Previous Year (Rs.)
1. Increase in Loss Provision on Loans 234,189,383 268,741,577
2. Increase in Provision for Loss on Investment -
3. Provision for loss on Non-Banking Assets 2,122,338 45,877,403
4. Provision for Other Assets -
Total 236,311,721 314,618,980
Schedule 4.26KuMari BanK liMited
non-operatinG incoMe / loss froM 1st shrawan 2070 to 32 asadh 2071
(froM 16 July 2013 to 16 July 2014)
Particulars Current Year (Rs.)
Previous Year (Rs.)
1. Profit/ (Loss) on Sale of Investments -
2. Profit/ (Loss) on Sale of Assets (10,380) 8,206
3. Dividend 635,536 259,241
4. Subsidies received from Nepal Rastra Bank - -
a. Compensation for losses of specified branches - -
b. Interest Compensation - -
c. Exchange Counter - -
5. Others 1,915,189 (11,401,644)
Net Non-Operating Income (Loss) 2,540,345 (11,134,197)
Schedule 4.27 KuMari BanK liMited
write BacK froM provision for possiBle losses(fiscal year 2012/13)
Particulars Current Year (Rs.) Previous Year (Rs.)1. Provision for Loan Loss Written Back 74,272,518 5,258,602
2. Provision against Non Banking Assets Written Back 1,878,565 -
3. Provision for Investment Written Back -
4. Provision for other Assets Written Back -
Total 76,151,082 5,258,602
57
Kumari Bank Annual Report 2013/14
Schedule 4.28(A)
KuMari BanK liMtedstateMent of loan written-off
fiscal year 2070/71 (2013/14)
S.N. Types of Loan
Written off Amount
Type of Security &
Value
Basis of Valuation of Collateral
Loan Approving Authority &
Level
Initiations Made for Recovery Remarks
Total
Schedule 4.28
KuMari BanK liMitedincoMe/ (expenses) froM extra ordinary transactions
froM 1st shrawan 2070 to 32 asadh 2071 (froM 16 July 2013 to 16 July 2014)
Particulars Current Year (Rs.) Previous Year (Rs.)1. Recovery of Written Off Loan - -
2. Voluntary Retirement Expenses - -
3. Irrecoverable Loan Write Off (4.28 (A)) - -
4. Other Expenses/Income - -
5. ……………………………………………… - -
Total - -
Kumari Bank Annual Report 2013/14
58
Name of Promoter/Director/Chief Executive
Outstanding up to Last Year
Recovered in Current Year
Additional Lending in this year
Outstanding as of Ashad End 2071
Principal Interest Principal Interest Principal InterestA. Directors
1. ……………………………...
2. ……….……………………..
3. ………………………………
B. Chief Executive
1. ……………………………..
2. ……………………………..
C. Promoter
D. Employee
E. Shareholders
Total
Amount in Rs.
Schedule 4.29
KuMari BanK liMitedstateMent of loans and advances extended to directors/chief
executive /proMoters/eMployees and shareholders32 ashad 2071 (16 July 2014)
The Statement of amount,included under total amount of Bills Purchased and Discounted, Loans, Advances and Overdraft, provided to the Directors, Chief Executive, Promoters, Employees, Shareholders and the individual members of ' their undivided family' or against the guarantee of such person or to the organisation or, companies in which such individual are 'managing agent' are as follows:
59
Kumari Bank Annual Report 2013/14
Schedule 4.30 (A)
KuMari BanK liMitedtaBle of capital fund
end of ashad 2071 (16 July 2014)
1.1. RISK WEIGHTED EXPOSURES Current Year (Rs.) Previous Year (Rs.) a. Risk Weighted Exposure for Credit Risk 24,136,981 20,934,511
b. Risk Weighted Exposure for Operational Risk 1,633,844 1,412,218
c. Risk Weighted Exposure for Market Risk 170,673 177,557
Adjustments under Pillar II 25,941,498 22,524,285
Add: 3% of the total RWE due to non compliance to Disclosure Requirement
Addition to RWE as per supervisiory review (3%) 778,245 675,729
Add RWE equivalent to reciprocal of capital charge of 2 % of gross income. 256,105 218,728
Add: ...% of Total Deposit due to Insufficient Liquid Assets
Total Risk Weighted Exposure (After Bank's adjustment of Pillar II) 26,975,848 23,418,742
1.2. CAPITAL Current Year (Rs.) Previous Year (Rs.) Core Capital (Tier I) 2,926,215 2,633,195 a. Paid Up Equity Share Capital 1,828,332 1,603,800
b. Irredeemable Non- cumulative Preference Share
c. Share Premium - -
d. Proposed Bonus Equity Share 603,350 224,532
e. Statutory General Reserves 467,413 799,082
f. Retained Earnings/Loss till Previous Year 26,270 4,700
g. Un-audited current period profit/(loss)
h. Bond Redemption Reserve - -
i. Capital Adjustment Reserve -
j. Dividend Equalization Reserves
k. Capital Redemption Reserve
l. Other free Reserve (Deffered Tax Fund) 850 1,080
m. Less: Goodwill
n. Less: Miscellaneous Expenditure not written off
o. Less: Investment in equity in licensed Financial Institutions
p. Less: Investment in equity of institutions with financial interests
q. Less: Investment in equity of institutions in excess of limits
r. Less: Investments arising out of underwriting commitments
s. Less: Reciprocal crossholdings
t. Less: Other Deduction
Adjustments under Pillar II
Less: Shortfall in Provision
Less: Loans & Facilities Extended to Related Parties & Restricted Lending
Kumari Bank Annual Report 2013/14
60
Supplementary Capital (Tier II) 259,293 216,943 a Cumulative and/or Redeemable Preference Share
b Subordinated term debt - -
c. Hybrid Capital Instruments
d. General Loan Loss provision 218,902 193,431
e. Exchange Equalization Reserve 20,391 14,511
f. Investment Adjustment Reserve 20,000 9,000
g. Assets Revaluation Reserve
h. Other Reserve
Total Capital Fund (Tier I and Tier II) 3,185,508 2,850,138
1.3 CAPITAL ADEQUACY RATIOS Current Period Previous Period Tier I Capital to Total Risk Weighted Exposure (After Bank's adjustment of Pillar II)
10.85 11.24
Tier I and Tier II Capital to Total Risk Weighted Exposure (After Bank's adjustment of Pillar II)
11.81 12.17
61
Kumari Bank Annual Report 2013/14
en
d o
f a
sh
ad
207
1 (1
6 Ju
ly 2
014)
cr
ed
it r
isK
ex
po
su
re
s
On
Bal
ance
She
et E
xpos
ures
(A)
Cur
rent
Yea
r P
revi
ous
Year
G
ross
Boo
k Va
lue
(a)
Spe
cific
P
rovi
sion
(b)
Elig
ible
C
RM
(c
)
Net
Val
ue
d=a-
b-c
Ris
k W
eigh
t (
e)
Ris
k W
eigh
ted
Exp
osur
es
(f)=(
d)*(
e)
Net
Val
ue
Ris
k W
eigh
ted
Exp
osur
es
Cas
h B
alan
ce77
7,83
7 7
77,8
37
0% -
584
,140
-
Bal
ance
With
Nep
al R
astra
Ban
k 3,
829,
350
3,8
29,3
50
0% -
2,8
62,9
24
-
Gol
d0%
Inve
stm
ent i
n N
epal
ese
Gov
ernm
ent S
ecur
ities
2,65
7,68
7 2
,657
,687
0%
- 2
,574
,619
-
All
Oth
er C
laim
s on
Gov
ernm
ent o
f Nep
al14
6,70
2 -
146
,702
0%
- 1
46,7
02
-
Inve
stm
ent i
n N
epal
Ras
tra B
ank
Sec
uriti
es -
0% -
-
All
Oth
er C
laim
s on
Nep
al R
astra
Ban
k -
0% -
-
Cla
ims
in F
orei
gn G
over
nmen
t & C
entra
l Ban
k (E
CA
ratin
g 0-
1) -
0% -
-
Cla
ims
in F
orei
gn G
over
nmen
t &
Cen
tral B
ank
(EC
A ra
ting
2) -
20%
- -
Cla
ims
in F
orei
gn G
over
nmen
t &
Cen
tral B
ank
(EC
A ra
ting
3) -
50%
- -
Cla
ims
in F
orei
gn G
over
nmen
t &
Cen
tral B
ank
(EC
A ra
ting
4-6)
- 10
0% -
-
Cla
ims
in F
orei
gn G
over
nmen
t &
Cen
tral B
ank
(EC
A ra
ting
7) -
150%
- -
Cla
ims
On
BIS
, IM
F, E
CB
, EC
and
Cla
ims
On
Mul
tilat
eral
D
evel
opm
ent B
anks
(MD
B's
) Rec
ogni
sed
By
Sta
ndar
d Fr
amew
ork
- 0%
- -
Cla
ims
on O
ther
MD
B's
- 10
0% -
-
Cla
ims
on P
ublic
Sec
tor E
ntity
(EC
A 0
- 1)
- 20
% -
-
Cla
ims
on P
ublic
Sec
tor E
ntity
(EC
A - 2
) -
50%
- -
Cla
ims
on P
ublic
Sec
tor E
ntity
(EC
A 3-
6) -
100%
- -
Cla
ims
on P
ublic
Sec
tor E
ntity
(EC
A - 7
) -
150%
- 1
6,98
5 2
5,47
8
Cla
ims
on D
omes
tic B
anks
that
mee
t Cap
ital A
dequ
acy
requ
irem
ents
334
,033
3
34,0
33
20%
66,
807
335
,320
6
7,06
4
Cla
ims
on D
omes
tic B
anks
that
do
not m
eet C
apita
l Ade
quac
y R
equi
rem
ents
45,
244
45,
244
100%
45,
244
8,4
49
8,4
49
Cla
ims
on F
orei
gn B
ank
(EC
A R
atin
g 0-
1)
562
,242
5
62,2
42
20%
112
,448
5
45,7
30
109
,146
Cla
ims
on F
orei
gn B
ank
(EC
A R
atin
g - 2
) 3
26,6
89
326
,689
50
% 1
63,3
45
- -
Cla
ims
on F
orei
gn B
ank
(EC
A R
atin
g 3-
6) -
100%
- 6
5,31
3 6
5,31
3
Rs
in '0
00
Sch
edul
e 4.
30 (B
)
Kumari Bank Annual Report 2013/14
62
Cla
ims
on F
orei
gn B
ank
(EC
A R
atin
g - 7
) -
150%
- -
-
Cla
ims
on fo
reig
n ba
nk in
corp
orat
ed in
SA
AR
C re
gion
ope
ratin
g w
ith a
buf
fer o
f 1 %
abov
e th
eir r
espe
ctiv
e re
gula
tory
cap
ital
requ
irem
ent
9,7
72
9,7
72
20%
1,9
54
(15,
488)
(3,0
98)
Cla
ims
on D
omes
tic C
orpo
rate
s 1
3,93
9,52
9 -
13,
939,
529
100%
13,
939,
529
10,1
65,4
10
10,
165,
410
Cla
ims
on F
orei
gn C
orpo
rate
s (E
CA
0 - 1
) -
20%
- -
-
Cla
ims
on F
orei
gn C
orpo
rate
s (E
CA
2)
- 50
% -
- -
Cla
ims
on F
orei
gn C
orpo
rate
s (E
CA
3-6)
- 10
0% -
- -
Cla
ims
on F
orei
gn C
orpo
rate
s (E
CA
- 7)
- 15
0% -
- -
Reg
ulat
ory
Ret
ail P
ortfo
lio (N
ot O
verd
ue)
3,29
9,20
9 2
7,60
9 3
,271
,600
75
% 2
,453
,700
2
,446
,311
1
,834
,733
Cla
ims
fulfi
lling
all
cret
erio
n of
regu
lato
ry re
tail
exce
pt g
ranu
larit
y -
100%
- -
-
Cla
ims
secu
red
by re
side
ntia
l pro
perti
es
1,7
02,5
49
1,7
02,5
49
60%
1,0
21,5
30
1,4
38,1
47
862
,888
Cla
ims
not f
ully
sec
ured
by
resi
dent
ial p
rope
rties
- 15
0% -
- -
Cla
ims
secu
red
by re
side
ntia
l pro
perti
es (O
verd
ue)
49,
805
12,
107
37,
698
100%
37,
698
33,
706
33,
706
Cla
ims
secu
red
by C
omm
erci
al re
al e
stat
e1,
122,
258
1,1
22,2
58
100%
1,1
22,2
58
2,0
83,2
49
2,0
83,2
49
Pas
t due
cla
ims
(exc
ept f
or c
laim
s se
cure
d by
resi
dent
ial p
rope
rties
) 1
,276
,302
6
81,5
04
594
,798
15
0% 8
92,1
97
539
,974
8
09,9
62
Hig
h R
isk
clai
ms
1,2
72,1
49
1,2
72,1
49
150%
1,9
08,2
23
707
,478
1
,061
,217
Inve
stm
ent i
n eq
uity
and
oth
er c
apita
l ins
trum
ents
of i
nstit
utio
ns
liste
d in
the
stoc
k ex
chan
ge -
100%
- -
-
Inve
stm
ent i
n eq
uity
and
oth
er c
apita
l ins
trum
ents
of i
nstit
utio
ns
not l
iste
d in
the
stoc
k ex
chan
ge 2
4,93
6 2
4,93
6 15
0% 3
7,40
3 6
,436
9
,653
Sta
ff Lo
an s
ecur
ed b
y re
side
ntia
l pro
perty
110
,606
1
10,6
06
60%
66,
364
85,
177
51,
106
Inte
rest
Rec
eiva
ble/
Cla
im o
n go
vern
men
t sec
uriti
es 4
,788
4
,788
0%
- 3
6,62
4 -
Cas
h in
Tra
nsit
and
othe
r cas
h ite
ms
in th
e pr
oces
s of
col
lect
ion
- 20
% -
- -
Oth
er A
sset
s (a
s pe
r atta
chm
ent)
1,6
91,2
74
1,25
5,33
3 4
35,9
41
100%
435
,941
4
10,8
23
410
,823
Tota
l 3
3,18
2,96
1 1,
948,
944
27,
609
31,
206,
408
22,
304,
640
25,0
78,0
30
17,5
95,0
99
63
Kumari Bank Annual Report 2013/14
Off
Bal
ance
She
et E
xpos
ures
(B)
Cur
rent
Yea
r P
revi
ous
Year
G
ross
Boo
k Va
lue
(a)
Spe
cific
P
rovi
sion
(b)
Elig
ible
C
RM
(c
)
Net
Val
ue
d=a-
b-c
Ris
k W
eigh
t (
e)
Ris
k W
eigh
ted
Exp
osur
es
(f)=(
d)*(
e) N
et V
alue
R
isk
Wei
ghte
d E
xpos
ures
Rev
ocab
le C
omm
itmen
ts0%
- -
Bill
s C
olle
ctio
n0%
- -
Forw
ard
Exc
hang
e C
ontra
ct L
iabi
litie
s56
3,68
6 5
63,6
86
10%
56,
369
310
,022
3
1,00
2
LC C
omm
itmen
ts W
ith O
rigin
al M
atur
ity U
p to
6 m
onth
s
Dom
estic
cou
nter
party
981,
828
40,
023
941
,805
20
% 1
88,3
61
908
,505
1
81,7
01
Fore
ign
coun
terp
arty
EC
A R
atin
g 0-
1
- 20
% -
- -
Fore
ign
coun
terp
arty
EC
A R
atin
g 2
-
50%
- -
-
Fore
ign
coun
terp
arty
EC
A R
atin
g 3-
6 -
100%
- -
-
Fore
ign
coun
terp
arty
EC
A R
atin
g 7
- 15
0% -
- -
L C
Com
mitm
ents
With
Orig
inal
Mat
urity
ove
r 6 m
onth
s
D
omes
tic c
ount
erpa
rty58
1,65
5 9
,148
5
72,5
07
50%
286
,253
6
4,38
4 3
2,19
2
Fore
ign
coun
terp
arty
EC
A R
atin
g 0-
1
- 20
% -
- -
Fore
ign
coun
terp
arty
EC
A R
atin
g 2
-
50%
- -
-
Fore
ign
coun
terp
arty
EC
A R
atin
g 3-
6 -
100%
- -
-
Fore
ign
coun
terp
arty
EC
A R
atin
g 7
- 15
0% -
- -
Bid
Bon
d, P
erfo
rman
ce B
ond
and
Cou
nter
Gua
rant
ee
D
omes
tic C
ount
erpa
rty88
2,69
2 4
1,66
9 8
41,0
23
50%
420
,512
6
18,7
52
309
,376
Fore
ign
coun
terp
arty
EC
A R
atin
g 0-
1
- 20
% -
- -
Fore
ign
coun
terp
arty
EC
A R
atin
g 2
-
50%
- -
-
Fore
ign
coun
terp
arty
EC
A R
atin
g 3-
6 -
100%
- -
-
Fore
ign
coun
terp
arty
EC
A R
atin
g 7
- 15
0% -
- -
Und
erw
ritin
g co
mm
itmen
ts
- 50
% -
- -
Lend
ing
of B
ank'
s S
ecur
ities
or P
ostin
g of
Sec
uriti
es a
s co
llate
ral
- 10
0% -
- -
Rep
urch
ase
Agr
eem
ents
, Ass
ets
sale
with
reco
urse
-
100%
- -
-
Adv
ance
Pay
men
t Gua
rant
ee35
8,40
1 6
,225
3
52,1
76
100%
352
,176
1
25,3
64
125
,364
Fina
ncia
l Gua
rant
ee -
100%
- -
-
Acc
epte
nce
and
End
rose
men
ts31
7,54
3 1
2,50
5 3
05,0
38
100%
305
,038
4
78,3
90
478
,390
Kumari Bank Annual Report 2013/14
64
Unp
aid
porti
on o
f Par
tly p
aid
shar
es a
nd s
ecur
ities
- 10
0% -
13,
500
13,
500
Irrev
ocab
le C
redi
t Com
mitm
ents
(sho
rt te
rm)
1,11
8,15
5 1
,118
,155
20
% 2
23,6
31
1,1
65,3
80
233
,076
Irrev
ocab
le C
redi
t Com
mitm
ents
(lon
g te
rm)
- 50
% -
- -
Oth
er C
ontin
gent
Lia
bilit
ies
- 10
0% -
2,4
94
2,4
94
Unp
aid
Gua
rant
ee C
laim
s20
0% -
-
Tota
l4,
803,
960
- 10
9,56
94,
694,
391
1,83
2,34
03,
686,
791
1,40
7,09
5To
tal R
WE
for C
redi
t Ris
k be
fore
Adj
ustm
ent
(A +
B)
37,9
86,9
211,
948,
944
137,
178
35,
900,
799
- 2
4,13
6,98
1 28
,764
,821
19
,002
,194
A
djus
tmen
t und
er P
illar
IIA
dd:1
0% o
f the
loan
& fa
cilit
ies
in e
xces
s of
Sin
gle
Obl
igor
Lim
its
Add
:1%
of t
he c
ontra
ct (s
ale)
val
ue in
cas
e of
the
sale
of c
redi
t with
re
cour
se
Tota
l RW
E fo
r Cre
dit R
isk
37,9
86,9
211,
948,
944
137,
178
35,9
00,7
9924
,136
,981
28,7
64,8
2119
,002
,194
65
Kumari Bank Annual Report 2013/14
Sch
edul
e 4.
30(C
)
Ku
Ma
ri
Ba
nK
liM
ite
de
liG
iBle
aM
ou
nt
of
cr
ed
it r
isK
Mit
iGa
tio
n (
cr
M)
en
d o
f a
sh
ad
207
1 (1
6 Ju
ly 2
014)
Rs.
In '0
00
Cre
dit e
xpos
ures
Dep
osit
w
ith b
ank
Dep
osits
w
ith o
ther
ba
nks/
FI
Gol
d G
ovt.&
NR
B
Secu
ritie
s
G'te
e of
G
ovt.o
f N
epal
Sec
/G'te
e of
oth
er
Sove
reig
ns
G'te
e of
D
omes
tic
Ban
ks
G'te
es
of M
DB
s
Sec
/G'te
e of
For
eign
B
anks
T
otal
(a)
(b)
( c
) (d
) (e
) (f)
(g
) (h
) (i)
O
n B
alan
ce S
heet
Cre
dit e
xpos
ures
Cla
ims
on F
orei
gn g
over
nmen
t and
Cen
tral B
ank
(EC
A-2
) -
Cla
ims
on F
orei
gn g
over
nmen
t and
Cen
tral B
ank
(E
CA
-3)
-
Cla
ims
on F
orei
gn g
over
nmen
t and
Cen
tral B
ank
(E
CA
-4-6
) -
Cla
ims
on F
orei
gn g
over
nmen
t and
Cen
tral B
ank
(EC
A-7
) -
Cla
im o
n O
ther
Mul
tilat
eral
Dev
elop
men
t Ban
ks -
Cla
ims
on P
ublic
Sec
tor E
ntity
(EC
A-0
-1)
-
Cla
ims
on P
ublic
Sec
tor E
ntity
(EC
A-2
) -
Cla
ims
on P
ublic
Sec
tor E
ntity
(EC
A-3
-6)
-
Cla
ims
on P
ublic
Sec
tor E
ntity
(EC
A -7
) -
Cla
ims
on d
omes
tic b
anks
that
mee
t cap
ital
adeq
uacy
requ
irem
ent
-
Cla
ims
on d
omes
tic b
anks
that
do
not m
eet
capi
tal a
dequ
acy
requ
irem
ent
-
Cla
ims
to a
For
eign
ban
k (E
CA
Rat
ing
0-1)
-
Cla
ims
to a
For
eign
ban
k(E
CA
Rat
ing
2) -
Cla
ims
to a
For
eign
ban
k(E
CA
Rat
ing
3-6)
-
Cla
ims
to a
For
eign
ban
k(E
CA
Rat
ing
7) -
Cla
ims
on fo
reig
n ba
nk in
corp
orat
ed in
SA
AR
C
regi
on o
pera
ting
with
a b
uffe
r of 1
% a
bove
thei
r re
spec
tive
regu
lato
ry c
apita
l req
uire
men
t
-
Cla
ims
on D
omes
tic C
orpo
rate
s -
Kumari Bank Annual Report 2013/14
66
Cla
ims
on F
orei
gn C
orpo
rate
s (E
CA
0-1)
-
Cla
ims
on F
orei
gn C
orpo
rate
s (E
CA
2) -
Cla
ims
on F
orei
gn C
orpo
rate
s (E
CA
3-6)
-
Cla
ims
on F
orei
gn C
orpo
rate
s (E
CA
7) -
Reg
ulat
ory
Ret
ail P
ortfo
lio (N
ot O
verd
ue)
27,
609.
05
27,
609
Cla
ims
fulfi
lling
all
cret
erio
n of
regu
lato
ry re
tail
exce
pt g
ranu
larit
y -
Cla
ims
secu
red
by re
side
ntia
l pro
perti
es
-
Cla
ims
not f
ully
sec
ured
by
resi
dent
ial p
rope
rties
-
Cla
ims
secu
red
by re
side
ntia
l pro
perti
es
(Ove
rdue
) -
Cla
ims
secu
red
by c
omm
erci
al re
al e
stat
e -
Pas
t due
cla
ims(
exce
pt fo
r cla
im s
ecur
ed b
y re
side
ntia
l pro
perti
es)
-
Hig
h R
isk
Cla
ims
-
Inve
stm
ent i
n eq
uity
and
oth
er c
apita
l ins
trum
ents
of
inst
itutio
ns
liste
d in
the
stoc
k ex
chan
ge
-
Inve
stm
ent i
n eq
uity
and
oth
er c
apita
l ins
trum
ents
of
inst
itutio
ns
not l
iste
d in
the
stoc
k ex
chan
ge
-
Oth
er A
sset
s (a
s pe
r atta
chm
ent)
- -
-
TOTA
L 2
7,60
9.05
-
-
-
-
-
-
-
-
2
7,60
9
Off
Bal
ance
She
et E
xpos
ures
Forw
ard
Exc
hang
e C
ontra
ct L
iabi
litie
s
LC C
omm
itmen
ts W
ith O
rigin
al M
atur
ity U
p to
6
mon
ths
dom
estic
cou
nter
party
40,
023
40,
023
Fore
ign
coun
terp
arty
(EC
A R
atin
g 0-
1) -
Fore
ign
coun
terp
arty
(EC
A R
atin
g 2)
-
Fore
ign
coun
terp
arty
(EC
A R
atin
g 3-
6) -
Fore
ign
coun
terp
arty
(EC
A R
atin
g 7)
-
L C
Com
mitm
ents
With
Orig
inal
Mat
urity
Ove
r 6
mon
ths
dom
estic
cou
nter
party
9,1
48
9,1
48
Fore
ign
coun
terp
arty
(EC
A R
atin
g 0-
1) -
Fore
ign
coun
terp
arty
(EC
A R
atin
g 2)
-
67
Kumari Bank Annual Report 2013/14
Fore
ign
coun
terp
arty
(EC
A R
atin
g 3-
6) -
Fore
ign
coun
terp
arty
(EC
A R
atin
g 7)
-
Bid
Bon
d an
d P
erfo
rman
ce B
ond(
Dom
estic
) 4
1,66
9 4
1,66
9
Fore
ign
coun
terp
arty
(EC
A R
atin
g 0-
1) -
Fore
ign
coun
terp
arty
(EC
A R
atin
g 2)
-
Fore
ign
coun
terp
arty
(EC
A R
atin
g 3-
6) -
Fore
ign
coun
terp
arty
(EC
A R
atin
g 7)
-
Und
erw
ritin
g co
mm
itmen
ts
-
Lend
ing
of B
ank'
s S
ecur
ities
or P
ostin
g of
S
ecur
ities
as
colla
tera
l -
Rep
urch
ase
Agr
eem
ents
,Ass
ets
sale
with
re
sour
se -
Adv
ance
Pay
men
t Gua
rant
ee 6
,225
6
,225
Fina
ncia
l Gua
rant
ee -
Acc
epta
nces
and
End
orse
men
ts 1
2,50
5 1
2,50
5
Unp
aid
porti
on o
f par
tly p
aid
shar
es a
nd s
ecur
ities
-
Irrev
ocab
le C
redi
t Com
mitm
ents
- sh
ort
-
Irrev
ocab
le C
redi
t Com
mitm
ents
-lon
g -
Oth
er C
ontin
gent
Lia
bilit
ies
-
Unp
aid
Gua
rant
ee C
laim
s -
TOTA
L 1
09,5
69
-
-
-
-
-
-
-
-
109
,569
G
RA
ND
TO
TAL
137
,178
-
-
-
-
-
-
-
-
1
37,1
78
Kumari Bank Annual Report 2013/14
68
KuMari BanK liMitedrisK weiGht exposure for operational risK
end of ashad 2071 (16 July 2014)
Schedule 4.30 (D)
Rs in '000
Particulars Year 1 (2010/11)
Year 2 (2011/12)
Year 3 (2012/13)
Previous year
Net Interest Income 685,240 819,088 978,025
Commission and Discount income 99,708 110,866 138,200
Other Operating Income 53,636 48,812 41,862
Exchange Fluctuation Income 36,719 44,206 56,993
Additional Interest Suspense during the period (11,038) 99,927 65,445
Total Gross Income (a) 864,264 1,122,899 1,280,525 Alfa (b) 15% 15% 15% 15%Fixed Percentage of Gross Income {C= (axb)} 129,640 168,435 192,079 Capital Requirement for operational risk (d) = ( average of c) 163,384 141,222 Risk Weight (reciprocal of capital requirement of 10 %) in times (e) 10 10 Equivalent Risk Weight Exposure {f=(dxe)} 1,633,844 1,412,218
69
Kumari Bank Annual Report 2013/14
KuMari BanK liMitedrisK weiGht exposure for MarKet risK
end of ashad 2071 (16 July 2014)
Schedule 4.30 (E)
Rs in '000
S.N. Currency Open Position (FCY)
Open Position (NPR)
Relevant Open Position Previous Year
1 INR (49,790) (79,702) 79,702 172,458
2 USD (2,550) (245,678) 245,678 168,937
3 GBP (2) (299) 299 2,418
4 EUR (11) (1,456) 1,456 301
5 THB (3) (10) 10 -
6 CHF (2) (236) 236 1,621
7 AUD (60) (5,379) 5,379 276
8 CAD (4) (364) 364 163
9 SGD (1) (54) 54 3,120
10 JPY (2,891) (2,735) 2,735 102
11 HKD (0) (4) 4 1,642
12 DKK (16) (278) 278 41
13 SEK (4) (51) 51 1,598
14 SAR (88) (2,255) 2,255 902
15 QAR (40) (1,062) 1,062 238
16 AED (23) (605) 605 419
17 MYR (17) (511) 511 9
18 KRW - - - 865
19 CNY (29) (443) 443
20 KWD (1) (221) 221
21 BHD (0) (5) 5 4
Total Open Position (a) 341,347 355,114 Fixed Pecentage (b) 5% 5%Capital Charge for Market Risk [c=(aXb)] 17,067 17,756 Risk Weight (reciprocal of capital requirement of 10%) in times (d) 10 10 Equivalent Risk Weight Exposure {e=(cXd)} 170,673 177,557
Kumari Bank Annual Report 2013/14
70
Sch
edul
e 4.
31
Ku
Ma
ri
Ba
nK
liM
ite
dp
rin
cip
al
ind
ica
tor
s(f
or 7
yea
rs)
Part
icul
ars
Indi
cato
rsF.
Y.
F. Y
.F.
Y.
F. Y
.F.
Y.
F. Y
.F.
Y.
F. Y
.20
06/0
720
07/0
820
08/0
920
09/1
020
10/1
120
11/1
220
12/1
320
13/1
4
1.
Net
Pro
fit/G
ross
Inco
me
%36
.18%
30.8
7%36
.98%
37.3
9%28
.70%
26.9
5%23
.99%
29.2
9%
2. E
arni
ngs
Per
Sha
reR
s. 2
2.70
1
6.35
2
2.04
24
.24
15.6
717
.18
18.1
718
.69
3. M
arke
t Val
ue p
er S
hare
Rs.
830
1
,005
7
00
468
266
242
260
536
4. P
rice
Ear
ning
Rat
ioR
atio
36.
56
61.
47
31.
76
19.3
116
.98
14.0
914
.31
28.6
8
5. S
tock
Div
iden
d on
sha
re c
apita
l%
21.0
5%10
.53%
10.5
8%12
.00%
8.44
%0.
00%
14.0
0%33
.00%
6. C
ash
Div
iden
d on
sha
re C
apita
l%
1.05
%0.
53%
0.55
%12
.00%
0.44
%7.
00%
0.74
%1.
74%
7. I
nter
est I
ncom
e/Lo
ans
& A
dvan
ces
%7.
63%
7.61
%8.
34%
11.5
8%13
.75%
12.2
6%11
.72%
10.1
9%
8. E
mpl
oyee
Exp
ense
s/To
tal O
pera
ting
Exp
ense
s%
41.6
3%37
.68%
40.7
3%41
.49%
44.2
0%47
.82%
46.9
3%48
.01%
9. I
nter
est E
xpen
ses
on T
otal
Dep
osit
and
Bor
row
ings
%3.
69%
3.87
%5.
10%
6.66
%8.
88%
7.38
%5.
87%
5.67
%
10. E
xcha
nge
Fluc
tuat
ion
Gai
n/G
ross
Inco
me
%4.
31%
7.38
%5.
91%
4.48
%4.
20%
4.32
%4.
69%
7.30
%
11. S
taff
Bon
us/ T
otal
Em
ploy
ee E
xpen
ses
%25
.08%
22.3
2%24
.04%
24.2
0%17
.55%
16.8
4%17
.03%
18.3
2%
12. N
et P
rofit
/Loa
ns &
Adv
ance
s%
1.88
%1.
52%
1.77
%2.
12%
1.68
%1.
52%
1.45
%1.
50%
13. N
et P
rofit
/ Tot
al A
sset
s%
1.43
%1.
16%
1.41
%1.
59%
1.23
%1.
10%
1.03
%1.
10%
14. T
otal
Cre
dit/D
epos
it%
85.8
4%90
.20%
94.1
7%79
.45%
87.8
7%82
.33%
79.4
7%82
.70%
15. T
otal
Ope
ratin
g E
xpen
ses/
Tota
l Ass
ets
%1.
50%
1.58
%1.
54%
1.69
%1.
86%
1.62
%1.
54%
1.49
%
16. A
dequ
acy
of C
apita
l Fun
d on
Ris
k W
eigh
tage
A
sset
s
a
. Cor
e C
apita
l%
10.2
6%10
.40%
9.08
%10
.29%
12.3
5%11
.30%
11.2
4%10
.85%
b
. Sup
plem
enta
ry C
apita
l%
0.96
%4.
01%
2.47
%2.
05%
1.41
%0.
90%
0.93
%0.
96%
c
. Tot
al C
apita
l Fun
d%
11.2
2%14
.41%
11.5
6%12
.34%
13.7
6%12
.20%
12.1
7%11
.81%
17. L
iqui
dity
(CR
R)
Rat
io3.
65%
1.91
%7.
13%
8.02
%5.
74%
13.5
2%12
.43%
13.6
2%
18. N
on P
erfo
rmin
g Lo
ans/
Tota
l Loa
ns%
0.73
%1.
32%
0.44
%0.
50%
1.12
%2.
21%
2.89
%4.
03%
19. W
eigh
ted
Aver
age
Inte
rest
Rat
e S
prea
d%
4.67
%4.
30%
4.17
%3.
28%
3.92
%4.
27%
4.62
%3.
71%
20. B
ook
Net
wor
th P
er S
hare
Rs.
137
1
28
137
1
37
138
1
48
166
1
62
21. T
otal
Sha
res
Num
ber
7,5
00,0
00
10,
700,
000
11,
860,
992
13,0
60,1
59
16,0
38,0
00
16,
038,
000
1,8
28,3
32
2,4
31,6
81,5
60
22. T
otal
Em
ploy
ees
Num
ber
212
25
626
036
434
732
737
736
2
71
Kumari Bank Annual Report 2013/14
KuMari BanK liMitedsiGnificant accountinG policies
financial year 16 July 2013 to 16 July 2014 (1 shrawan 2070 to 32 ashad 2071)
1. General Information Kumari Bank Limited (the “Bank”) is a public limited company, incorporated on10 December 1999 and
domiciled in Nepal. The address of its registered office is Durbar Marg, Kathmandu, Nepal. The Bank is listed in Nepal Stock Exchange Limited.
The Bank carries out commercial banking activities in Nepal under license from Nepal Rastra Bank (the central bank of Nepal) as Class “A” licensed institution.
2. Date of Authorization of Financial Statement The Financial Statements for the year ended on 16 July 2014 is approved by Board of Directors (BOD)
of the Bank on 31 Bhadra 2071 (16 September 2014).
3. SummaryofSignificantAccountingPolicies The Significant accounting policies applied in the preparation of the financial statements of the bank
are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
3.1 Statement of Compliance The financial statements have been prepared in accordance with Nepal Accounting Standards
(NAS) issued by the Nepal Accounting Standard Board (NASB) except for exceptions as mentioned below, generally accepted accounting principles, and the provisions of Bank and Financial Institution Act, 2063, directives issued by Nepal Rastra Bank and the Company Act, 2063.
3.2 Basis of Preparation The financial statements have been prepared under the historical cost convention. Use of certain
critical accounting estimates and exercise judgement in the process of applying the Bank’s accounting policies have been done, wherever required, in conformity with NAS and generally accepted accounting principles.
3.3 Interest Income Interest income on loans and advances is recognised on cash basis as per the directive issued by
NRB, which is not in accordance with Nepal Accounting Standards.
Interest for the moratorium period on some term loans as stated in point no 23 of Notes to Accounts has been recognised as income after capitalising it on loans which is in accordance with NRB approval.
Interest income on investments is recognised on accrual basis provided that premium on government bonds has been netted off against interest income from such bonds.
3.4 Commission Income Guarantee commission up to Rs. 100,000 is recognised as commission income on cash basis.
Commission income on guarantee covering more than one fiscal year and commission amount above Npr.100,000 is booked on accrual basis.
Other commission incomes are recognised as income on accrual basis. Recognition of guarantee commission income is not in accordance with NAS – 07 “Revenue”.
Schedule 4.32
Kumari Bank Annual Report 2013/14
72
3.5 Dividend Income Dividend is recognised as income when the bank’s right to receive payment is established. It is
recognised as income at net of withholding tax.
3.6 Foreign Exchange Incomesi. Foreign currency assets and liabilities as at the Balance Sheet date have been translated at the
mid rate (average of buying and selling rate) of exchange rates prevalent as on the Balance Sheet date.
ii. Foreign currency trading gain/loss realised in the foreign currency transactions is accounted for on the date of transaction and based on transaction rate.
iii. Revaluation gain arising due to fluctuation in exchange rate of foreign currencies is accounted for and shown as “Revaluation Gain/Loss”. Amount equivalent to 25% of revaluation gain of the current year is appropriated to Exchange Fluctuation Reserve as per directive issued by Nepal Rastra Bank.
3.7 Interest Expenses Interest expense on deposit liabilities, bonds and borrowings are accounted for on accrual basis.
3.8 Loans and Advances, Overdraft and Bills Purchased Loans and advances, overdrafts and bills purchased include direct finance provided to the
customers as per the Bank’s policy and product papers such as bank overdrafts, personal loans, term loans, hire purchase loans and loans to deprived sectors. All the loans are subject to regular review and are graded according to the level of credit risk and classified as per NRB Directives. Total Loans and advances are stated net of loan loss provisions in the Balance Sheet.
3.9 Staff Loans Staff loan has been provided as per the bank’s policy and shown under the head ‘Other Assets’ as
per NRB Directives.
3.10 Loan Loss Provision Provision is made for possible losses on loans and advances, overdraft and bills purchase at 1% to
100% in accordance with the directives issued by NRB.
3.11 Loans & Advances Write off Unrecoverable loans and advances are written off in accordance with the by-laws of the Bank
approved by Bank’s BOD and NRB.
Amounts recovered against loans written off in earlier years are recognized as income in the year of recovery.
3.12 Investments Investments in Government Securities are valued at cost.
Placements with maturity period up to 7 days and more than 7 days are classified as money at call and investments respectively.
Investment in shares, debenture and bonds are valued at cost or market value, whichever is lower. Necessary reserves for certain investments have been created as per NRB directive.
3.13 Fixed Assets and Depreciationa) Fixed assets are stated at historical cost. Historical cost includes expenditures that are directly
attributable to the acquisition of individual asset item.
73
Kumari Bank Annual Report 2013/14
b) Below mentioned fixed assets are depreciated on Straight Line Method at the rates mentioned below -
Asset RateComputer Software 20%
Leasehold 20%
Battery 33.33%
c) Depreciation on newly acquired fixed assets is charged from the next month of booking. Depreciation of an asset ceases when it is derecognised at the time of its disposal.
d) Depreciation on below mentioned assets is charged on the basis of diminishing value method at the rates mentioned below -
Asset RateBuilding 5%
Office Equipments 25%
Furniture & Fixtures (Wooden & Metal) 25%
Computer 25%
Vehicles 20%
e) Assets costing more than Rs. 10,000 and/or having useful life more than 1 year are booked under fixed assets.
3.14 Amortisation of Software Cost and Leasehold Assetsa) Computer software are capitalised on cost incurred to acquire specific software. Bank amortises
such cost over a period of useful life, estimated as 5 years from the date of acquisition.
b) Leasehold properties are capitalised on cost incurred to set up such assets. Such assets are amortised over the period of 5 years.
3.15 Lease Rental The lease agreements entered into by the Bank for office buildings are operating lease agreements.
The total payments made under operating leases are charged to Rent Expenses in the profit and loss account.
3.16 EmployeeRetirementBenefits The Bank has schemes of retirement benefits namely Provident Fund and Gratuity Fund. Provision
for expenses on account of Provident and Gratuity Funds is made on accrual basis with the amount of liabilities computed by the bank in accordance with its applicable schemes. Contributions to retirement fund are made on a regular basis as per its rules and regulations.
3.17 Income Taxa. Current Income Tax Provision for current income tax is made in accordance with the provisions of the prevailing
Income Tax Act, 2058 and Rules as amended.
b. Deferred Income Tax Deferred income tax is provided on temporary differences arising between the tax bases of
assets and liabilities and their carrying amounts in the financial statements. It is determined using tax rates (and laws) that have been enacted at the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Kumari Bank Annual Report 2013/14
74
3.18 Stationery Stationery purchased for consumption is charged as expense on consumption basis. FIFO method of
stationery valuation has been adopted by the bank.
3.19 Non-banking Assets Non-banking Asset is booked at lower of market price or total dues, on the day before booking and
provision for the asset has been made as per NRB directive.
The details of non-banking assets as on Ashad end 2071 have been stated in point no. 24 of Notes to Accounts.
3.20 Provisions and Contingent Liabilities The Bank creates a provision when there is a present obligation as a result of past events that
probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
3.21 Staff Bonus Provision for staff bonus is made as per the NRB Directive.
75
Kumari Bank Annual Report 2013/14
Schedule 4.33
KuMari BanK liMitednotes to accounts
financial year 16 July 2013 to 16 July 2014 (1 shrawan 2070 to 32 ashad 2071)
1. Provision for staff bonus Provision for staff bonus has been provided at 10% of net profit before providing for income tax
provision. This provision has been made as per NRB directive.
2. Staff Housing Fund Staff Home Loan is provided as per the bank’s policy. A separate housing fund in accordance with
Labour Act, 2048 has not been created.
3. General Reserve As per the requirement of Nepal Rastra Bank, 20% of current year’s profit has been transferred to
General Reserve.
4. Tax Settlement Outstanding / Contingent Liability Tax reassessment by Large Tax Payers’ Office has been completed up to the FY 2066/67. We are in
process of filing a case in Supreme Court against tax assessment order for the FY 2063/64. For tax reassessment of subsequent years, the bank has filed cases against the decision of tax authorities.
5. Gratuity Expenses During the year, the Bank has provided Rs. 13,317,642/- (Previous Year Rs. 14,117,726/-) on account of
gratuity.
6. Dividend and Bonus Board meeting of the bank held on 31st Bhadra 2071 has decided to propose 33% stock dividend
from the profit of current fiscal year and 1.74% cash dividend (tax on bonus share).
Rs. 400,000,000/- that was transferred from Bond Redemption Reserve to General Reserve Fund in the fiscal year 069/70, has been proposed to transfer to Capital Redemption Reserve in fiscal year 070/71 which is further proposed to be distributed as Stock Dividend.
7. Unpaid Dividend Out of total cash dividend proposed in FY 2066/67 & FY 2068/69 which were distributed in FY 2067/68
& FY 2069/70 respectively, cash dividend of Rs. 9,985,798 is still payable because shareholders have not yet collected the dividend.
8. Loan Disbursed, recovered and outstanding during the year. The loan disbursed, recovered and outstanding during the year is given below:
NPR. In Million
Opening Balance Total Disbursed Total Settled Outstanding20,120 23,674 20,985 22,809
Kumari Bank Annual Report 2013/14
76
9. Summary of Changes in deposit during the year Growth in deposits during the year is given below:
NPR. In Million
Particulars This Year (Rs.) Last Year (Rs) Changes in amount1) Current Deposit 1,237 1,038 199a) Local Currency 1,202 1,008 194
b) Foreign Currency 35 30 5
2) Saving Deposit 7,234 6,823 411a) Local Currency 7,117 6,750 367
b) Foreign Currency 117 73 44
3) Fixed Deposit 12,142 11,353 789a) Local Currency 11,446 10,328 1,118
b) Foreign Currency 696 1,025 (329)
4) Call Deposit 6,812 5,967 845a) Local Currency 6,585 5,879 706
b) Foreign Currency 226 88 138
5) Margin Deposit 154 137 17a) Local Currency 154 137 17
b) Foreign Currency - 0 -
Total Deposit 27,578 25,319 2,260
10. Average Interest Rate SpreadParticulars Percentage
The weighted average yield rate on loans and investments 8.87
The weighted average cost rate on deposits and borrowings 5.17
The weighted average interest rate spread 3.70
11. Summary of amortizable expenses yet to be written off No such item.
12. Summary of concentration of exposure No balance sheet and off balance sheet transaction have been highly concentrated to a single
person, firm, organization or to a particular sector. Detail of highest exposure to a single person or organization is as follows:
NPR. In Million
Particulars Total ExposureMaximum concentration to a single customer
Amount %Loans & Advances 22,809 457 2.00
Deposits 27,578 3,046 11.05
Off Balance Sheet Items 3,122 356 11.41
77
Kumari Bank Annual Report 2013/14
13.ClassificationofAssetsandLiabilitiesbasedonMaturity NPR. In Million
S.N. Particulars1-90 91-180 181-270 271-365 More than
Totaldays days days days 1 year
Assets
1 Cash Balance 777.84 - - - - 777.84
2 Balance with Banks & FIs 4,118 - - - - 4,118
3 Investment in Foreign Banks 193 289 - - - 482
4 Call Money 507 - - - - 507
5 Government Securities 653 748 208 913 136 2,658
6 Nepal Rastra Bank Bonds - - - - - -
7 Inter Bank & FI Lending - - - - - -
8 Loans & Advances 9,683 3,102 1,944 1,116 6,963 22,809
9 Interest Receivable 297 1 1 1 0 300
10 Reverse Repo - - - - - -
11 Acceptance Receivable - - - - - -
12 Payments under S.No. 20,21 & 22 789 235 101 - 1,254 2,379
13 Others 149 50 50 50 261 559
Total (A) 17,167 4,425 2,303 2,079 8,615 34,590Liabilities
14 Current Deposits 626 209 209 209 139 1,391
15 Saving Deposits (including call) 3,511 702 702 702 8,428 14,046
16 Fixed Deposits 1,498 3,148 3,395 3,339 763 12,142
17 Debentures/Bonds - - - - - -
18 Borrowings 34 168 - - - 202Call/Short Notice - - - - - -
Inter-bank/Financial Institutions 34 168 - - - 202
Refinance - - - - - -
Others - - - - - -
19 Other Liabilities and Provisions 53 5 5 5 - 69Sundry Creditors - - - - - -
Bills Payable 11 4 4 4 - 22
Interest Payable 37 - - - - 37
Provisions - - - - - -
Others 5 2 2 2 - 10
20 Acceptance Liabilities 254 63 - - - 318
21 Irrevocable Loan Commitment 168 238 238 238 238 1,118
22 Letter of Credit/Guarantee 1,249 556 273 162 565 2,805
23 Repo - - - - - -
24 Payable under s.no.11 - - - - - -
25 Others 118 29 29 29 - 204
Total (B) 7,511 5,117 4,851 4,683 10,132 32,294Net Financial Assets (A-B) 9,656 (692) (2,548) (2,603) (1,518) 2,296
Cumulative Net Financial Assets 9,656 8,965 6,417 3,813 2,296 -
Kumari Bank Annual Report 2013/14
78
14. Borrowings by the bank against the collateral of own assets The bank has no such borrowings.
15. Related PartiesKey Management Personnel
Key Management Personnel of the Bank includes Chief Executive Officer and members of the Board of Directors of the Bank, as follows:
Mr. Noor Pratap JB Rana - Chairman (Promoter)Mr. Santosh Kumar Lama - Director (Promoter)Prof. Dr. Rajan B. Paudel - Director (Professional)Dr. Shobha Kant Dhakal - Director (Public)Mr. Uttam P. Bhattarai - Director (Promoter)Mr. Naresh Dugad - Director (Promoter)Mr. Puna Ram Bhandari - Director (Public) Mr. Rasendra Bahadur Malla - Director (Public)Mr. Uday Krishna Upadhyaya - Chief Executive Officer
Compensation to Key Management Personnel-CEO of the Bank Amount in NPR.
Categories Current YearShort-term employee benefits 9,197,215
Signing bonus -
Post-employment benefits -
Other long-term benefits -
Termination benefits -
Share-based benefits -
Total 9,197,215
Above figure includes final clearance of medical, leave encashment and gratuity of then Acting CEO who became the CEO of the bank from 05 September 2013. In addition to the above, bank bears the expenses relating to mobile bill and fuel for the vehicle.
Transaction with Key Management Personnel (BOD) of the BankThe following provides transactions between the Bank and then Key Management Personnel (Directors) of the Bank during the year – Amount in NPR.
Nature of Transaction Current YearMeeting Allowances 2,104,300
Other expenses 1,87,500
Total 22,91,800
79
Kumari Bank Annual Report 2013/14
16. Paid up Share Capital Paid up share capital of the Bank has changed over the years as follows:
Fiscal Year
Cumulative Paid up Capital Remarks
2057/58 350,000,000
2058/59 350,000,000
2059/60 350,000,000
2060/61 500,000,000 Initial Public Offering of NPR. 150 million
2061/62 625,000,000 Right share issue of NPR. 125 million (25%)
2062/63 750,000,000 Bonus share issue of NPR. 125 million (20%)
2063/64 900,000,000 Bonus share issue of NPR. 150 million (20%)
2064/65 1,070,000,000 Right share issue of NPR. 180 million (20%). Npr. 170 million capitalized on balance sheet date and balance on subsequent year
2065/66 1,186,099,200 In the fiscal year 2064/65, the bank had proposed 10 % bonus share and 15% right share. 10 % bonus share had been capitalized as on balance sheet date pending issuance of right share
2066/67 1,306,015,920 In the FY 2065/66, the bank had issued 10% bonus share including to those who were released from black list during the year. Further, right share of NPR. 1,080,000 issued on FY 2064/65 relating to blacklisted shareholders are included in current year’s capital subsequent to their release from black list
2067/68 1,603,800,000 In the FY 2067/68, the bank capitalized NPR. 178,200,000 (15%) share capital which was approved for issuance in fiscal year 2064-65. Further, the bank auctioned 7841 numbers of shares that include right and bonus shares of subsequent years relating to right share approved in FY 2064-65 but issued only in FY 2067-68.Bonus share at the rate of 8% (NPR. 118,800,000) had been proposed in the FY 2067/68
2068/69 1,603,800,000 -
2069/70 1,828,332,000 14% bonus share of NPR. 224.532 million proposed in the FY 2069/70
2070/71 2,431,681,560 33% bonus share of NPR. 603.349 million proposed in the FY 2070/71
17. Sale of Land and Building Bank has not sold its land or building during the year.
18. Deferred Tax Component of Deferred Tax Assets
Amount in NPR.
Particulars As per financial statement As per Income Tax act Taxable temporary difference
Fixed assets base 149,920,951 15,27,52,973 28,32,022
Total 149,920,951 15,27,52,973 28,32,022 Current Deferred Tax Assets 8,49,607
Opening Deferred Tax Asset 1,079,936
Adjustment (2,30,329)
Deferred tax is calculated considering the existing tax rate of 30%. As prescribed by NRB Directives, total deferred tax assets up to July 16, 2014 amounting Rs. 849,607 have been ear-marked as deferred tax reserve.
Kumari Bank Annual Report 2013/14
80
19. Reconciliation Status NPR. In Million
Particulars Upto 1 Year Above 1 Year to 3 Years More than 3 Years Grand TotalThey Credit 47 10 0 58We Debit 25 0 0 26They Debit 1 0 0 1We Credit 36 1 1 38Total 110 11 1 122
20. Details of Software Application Amount in NPR.
Net Opening Balance Additions during the year Amortization during the year Net Closing Balance11,241,451 667,152 5,074,428 6,834,175
21. Interest Capitalisation Following are the loans, interest on which is capitalised to recognise income in accordance with NRB
approval. These loans are the project loans interest on which were capitalised for moratorium period. Detail of such loans and interest recognised in FY 2070/71 is as follows –
Amount in NPR.
SN Name of the client Type Capitalized Interest NRB approval date1 JOSHI HYDROPOWER DEV. COM. PVT. LT Term Loan 11,705,455 9/27/2069
2 RURU JALBIDHYUT PARIYOJANA CO.P.LTD Term Loan 1,043,563 9/30/2070
3 MARUTI CEMENTS PVT.LTD Term Loan 9,988,266 6/14/2070
4 BIRATNAGAR ASPATAL PVT. LTD Term Loan 7,490,916 10/14/2070
5 MAILUNG KHOLA HYDROPOWER CO. P. LTD Term Loan 2,560,852 7/1/2068
6 SARBOTTAM CEMENT PVT. LTD Term Loan 8,107,326 9/22/2070
7 ELECTROCOM AND RESEARCH CENTER P. L Term Loan 8,116,247 7/1/2068
8 RADHI BIDHYUT COMPANY LTD Term Loan 8,801,240 5/25/2069
9 NEPAL HEALTH CARE CO-OPERATIVE LTD Term Loan 6,865,862 3/25/2070
10 SANIMA MAI HYDROPOWER PVT. LTD Term Loan 11,908,676 1/29/2070
Total 40,896,378
22. Interest income recognised on deferred cash basis Of the total amount of interest due as on Ashad end 2071, interest of Rs. 15,281,297 realised in cash by
15 of Shrawan 2071 has been recognised as interest income on balance sheet date which complies NRB directive regarding recognition of interest income on deferred cash basis.
23. Staff Leave Encashment Bank has not made any provision for accumulated leave encashment. However, any encashment of
leave in excess of minimum accumulation as per bank’s rule has been charged as an expense in the year of encashment. As per the ‘Personnel Policy Guideline’ of the Bank, staffs are entitled to encash accumulated leave on retirement. As per NAS 14, ‘Employee Benefits’ (Voluntary Compliance for now) bank is required to account for such liability on accrual basis.
81
Kumari Bank Annual Report 2013/14
24. Non-banking assets (NBA) Disclosure Bank’s detail of NBA as on Ashad end 2071 is as follows -
Amount in NPR.
Name & Address of Borrower or Party Acquired Date of Non Banking Asset
Total Amount of Non Banking Asset
Sarita Vaidya (Rajbhandari), Kathmandu 4-Dec-12 5,216,247
Shilu Housing & Developers Pvt. Ltd., Lalitpur 5-Jul-13 52,795,000
Opportunity Manpower Service, Gongabu 27-Jan-14 2,892,225
Total 60,903,472
The bank has booked loss provision on NBA as per NRB directive.
25. Capital Work in Progress (WIP) Carrying amount of capital work-in-progress includes cost incurred for the soil testing work for building construction site at Naxal. As of the balance sheet date, the carrying amount of WIP is NPR. 261,369.
26. Lending to National Trading Limited and problematic FIs The bank has no lending against National Trading Limited. The bank has no inter-bank placements and/or other claims against the FIs that are declared problematic by NRB.
27. Mortgaged property under Rokka from NRB The mortgaged property relating to following loans are under Rokka from NRB –
Name of Borrower
Loan Amount (Ashad end 2070) Loan Classification
Loan Loss Provision
RokkaPrincipal Interest Total Letter No. Date
Aayusha Developers Pvt. Ltd.
121,014,176 13,832,464 134,846,640 Good 60,507,088 Bai.Su.Bi./Bi.Ni./ /069/70 2070-03-25
Kohinoor Hill Housing (P). Ltd.
73,719,086 12,211,444 85,930,530 Good 36,859,543 Bai.Su.Bi./Bi.Ni./ /069/70 2070-03-25
28. Rounding off and Comparative Figures Figures are rounded to nearest rupees. Previous year's figure has been regrouped or rearranged
where necessary.
Kumari Bank Annual Report 2013/14
82
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Kumari Bank Annual Report 2013/14
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Kumari Bank Annual Report 2013/14
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85
Kumari Bank Annual Report 2013/14
Schedule 4.35KuMari BanK liMited
fiscal year 2070/71 (2013/14)coMparison of unaudited and audited financial stateMent as of fy 2070/71
Rs. in 000'
S.N. Particulars
As per Unaudited Financial Statement
As per Audited
Financial Statement
VarianceReasons for
Variance Amount %
1 Total Capital and Liabilities (1.1 to 1.7) 31,932,433 31,930,990 (1,443) 0.00% Reasons
mentioned below
1.1 Paid Up Capital 1,828,332 2,431,682 603,350 33.00% Proposed bonus shares
1.2 Reserve and Surplus 1,169,283 534,924 (634,359) -54.25%
Issue of bonus share, tax on bonus share and change in profit
1.3 Debenture and Bond - - - -
1.4 Borrowings 201,952 201,952 - -
1.5 Deposits (a+b) 27,578,376 27,578,376 - -
a. Domestic Currency 26,503,880 26,503,880 - -
b. Foreign Currency 1,074,496 1,074,496 - -
1.6 Income Tax Liability - - -
1.7 Other Liabilities 1,154,490 1,184,056 29,566 2.56%
Adjustment of provision for expenses made at year end and tax on bonus share
2 Total Assets (2.1 to 2.7) 31,932,433 31,930,990 (1,443) 0.00%2.1 Cash & Bank Balance 4,895,685 4,895,685 - -
2.2 Money at Call and Short Notice 507,478 507,478 - -
2.3 Investments 3,164,626 3,164,626 - -
2.4 Loans and Advances (a+b+c+d+e+f) 22,808,503 22,808,503 - -
a. Real Estate Loan 2,040,879 2,040,879 - -
1. Residential Real Estate Loan 234,772 234,772 - -
2. Business Complex & Residential Apartment Construction Loan 617,892 617,892 - -
3. Income Generating Commercial Complex Loan - - -
4. Other Real Estate loan 1,188,215 1,188,215 - -
b. Personal Home Loan of Rs.10 million 1,948,109 1,948,109 - -
c.Margin Type Loan 538,887 538,887 - -
d.Term Loan 4,399,845 4,399,845 - -
e.Overdraft Loan/TR Loan/WC Loan 12,624,206 12,624,206 - -
f. Others 1,256,576 1,256,576 - -
2.5 Fixed Assets 235,769 235,776 7 0.00% Depreciation adjustment.
2.6 Non Banking Assets - - - -
2.7 Other Assets 320,371 318,921 (1,450) -0.45%Adjustment of advance tax and deferred tax
Kumari Bank Annual Report 2013/14
86
3 Profit and Loss Acccount
3.1 Interest Income 2,410,762 2,410,784 23 0.00% Accrued Nostro Income booked
3.2 Interest Expenses 1,575,312 1,575,312 - -
A. Net Interest Income (3.1-3.2) 835,450 835,473 23 0.00%
3.3 Fees, Commission and Discount 188,725 188,725 - -
3.4 Other Operating Income 56,647 56,945 298 0.53% Accrued income booked
3.5 Foreign Exchange Gain/ Loss (Net) 85,155 85,155 - -
B. Total Operating Income (A.+3.3+3.4+3.5) 1,165,977 1,166,298 321 0.03%
3.6 Staff Expenses 221,653 221,701 47.68 0.02% Adjustment of expenses
3.7 Other Operating Expenses 240,594 240,121 (473) -0.20%Adjustment of expense provision and depreciation
C. Operating Profit Before Provision (B.- 3.6-3.7) 703,730 704,476 747 0.11%
3.8 Provision for Possible Losses 234,437 236,312 1,875 0.80% LLP adjustment
D. Operating Profit (C-3.8) 469,293 468,165 (1,128) -0.24%
3.9 Non Operating Income/Expenses (Net) 2,556 2,540 (16) -0.62% Adjustment of expenses
3.10 Write Back of Provision for Possible Loss 72,191 76,151 3,960 5.49% LLP adjustment
E. Profit from Regular Activities (D+3.9+3.10) 544,040 546,856 2,816 0.52%
3.11 Extraordinary Income/Expenses (Net) - - -
F. Profit before Bonus and Taxes ( E. + 3.11) 544,040 546,856 2,816 0.52%
3.12 Provision for Staff Bonus 49,458 49,714 256 0.52% Change in profit
3.13 Provision for Tax 153,673 155,487 1,813 1.18% Change in profit and deferred tax
G. Net Profit/Loss (F.-3.12-3.13) 340,909 341,655 746 0.22%
87
Kumari Bank Annual Report 2013/14
Schedule 4 AKuMari BanK liMited
unaudited financial results (quarterly)as at fourth quarter (16/July/2014) of the fiscal year 2013/2014
Amount in Rs. '000
S.N. Particulars
32.03.2071/ 16.07.2014
This Quarter Ending
30.12.2070/ 13.04.2014
Previous Quarter Ending
31.03.2070/ 15.07.2013
Corresponding Previous Year
Quarter Ending 1 Total Capital and Liabilities (1.1 to 1.7) 31,932,433 31,916,218 28,973,041
1.1 Paid Up Capital 1,828,332 1,828,332 1,828,332
1.2 Reserve and Surplus 1,169,283 828,374 828,374
1.3 Debenture and Bond - - -
1.4 Borrowings 201,952 288,000 -
1.5 Deposits (a+b) 27,578,376 27,424,123 25,318,569
a. Domestic Currency 26,503,880 26,138,510 24,102,282
b. Foreign Currency 1,074,496 1,285,613 1,216,287
1.6 Income Tax Liability - - -
1.7 Other Liabilities 1,154,490 1,341,941 997,766
2 Total Assets (2.1 to 2.7) 31,932,433 31,916,218 28,973,041 2.1 Cash & Bank Balance 4,895,685 3,526,890 3,406,883
2.2 Money at Call and Short Notice 507,478 1,590,182 753,410
2.3 Investments 3,164,626 3,891,224 4,135,142
2.4 Loans and Advances (a+b+c+d+e+f) 22,808,503 22,331,275 20,119,789
a. Real Estate Loan 2,040,879 2,050,679 2,185,842
1. Residential Real Estate Loan 234,772 143,689 127,538
2. Business Complex & Residential Apartment Construction Loan
617,892 616,711 590,274
3. Income Generating Commercial Complex Loan - - -
4. Other Real Estate loan 1,188,215 1,290,279 1,468,030
b. Personal Home Loan of Rs. 1 Crore or Less 1,948,109 1,757,776 1,637,162
c. Margin Type Loan 538,887 298,867 338,866
d. Term Loan 4,399,845 4,120,950 3,251,548
e. Overdraft Loan/TR Loan/WC Loan 12,624,206 12,556,227 11,324,489
f. Others 1,256,576 1,546,775 1,381,882
2.5 Fixed Assets 235,769 237,080 255,865
2.6 Non Banking Assets - - -
2.7 Other Assets 320,371 339,566 301,952
Kumari Bank Annual Report 2013/14
88
3 Profit and Loss Account Upto This
Quarter End
Upto Pervious Quarter End
Corresponding Previous Year Quarter End
3.1 Interest Income 2,410,762 1,779,860 2,464,307
3.2 Interest Expenses 1,575,312 1,192,733 1,486,282
A. Net Interest Income (3.1-3.2) 835,450 587,127 978,025 3.3 Fees, Commission and Discount 188,725 144,687 138,200
3.4 Other Operating Income 56,647 42,099 41,862
3.5 Foreign Exchange Gain/ Loss (Net) 85,155 66,217 56,993
B. Total Operating Income (A.+3.3+3.4+3.5) 1,165,977 840,130 1,215,080 3.6 Staff Expenses 221,653 168,092 203,805
3.7 Other Operating Expenses 240,594 168,838 230,470
C. Operating Profit Before Provision (B.- 3.6-3.7) 703,730 503,200 780,805 3.8 Provision for Possible Losses 234,437 240,754 314,619
D. Operating Profit (C-3.8) 469,293 262,445 466,186 3.9 Non Operating Income/Expenses (Net) 2,556 3,458 (11,134)
3.1 Write Back of Provision for Possible Loss 72,191 36,423 5,259
E. Profit from Regular Activities (D+3.9+3.10) 544,040 302,326 460,311 3.11 Extraordinary Income/Expenses (Net) - - -
F. Profit before Bonus and Taxes ( E. + 3.11) 544,040 302,326 460,311 3.12 Provision for Staff Bonus 49,458 27,484 41,846
3.13 Provision for Tax 153,673 82,453 127,016
G. Net Profit/Loss (F.-3.12-3.13) 340,909 192,389 291,448
4 RatiosAt the End
of This Quarter
At the End of Previous
Quarter
At the End of Corresponding Previous Year
Quarter4.1 Capital Fund To RWA 11.92% 11.73% 12.17%
4.2 Non Performing Loan (NPL) to Total Loan 3.19% 3.69% 2.89%
4.3 Total Loan Loss Provision to Total NPL 125.41% 115.68% 128.94%
4.4 Cost of Funds (annualized - LCY) 6.03% 6.17% 6.61%
4.5 Credit to Deposit Ratio (as per NRB directives) 77.37% 77.10% 75.26%
4.6 Base Rate (FTM) 8.86% 8.50% 10.36%
4.7 Average Interest Rate Spread (as per NRB directives) 3.62% 5.17%
89
Kumari Bank Annual Report 2013/14
S.N. Particular Current Year a Paid Up Equity Share Capital 1,828,332,000
b Irredeemable Non- cumulative preferenece share -
c Share premium -
d Proposed Bonus Equity Share 603,349,560
e Statutory General Reserves 467,413,482
f Retained Earnings 26,270,265
g Un-audited current period profit ( after all provision including tax) -
h Bond Redemption Reserve -
i Capital Adjustment Reserve -
j Dividend Equalization Reserves -
k Other free Reserve 849,607
Total Tier I Capital 2,926,214,913
Capital Structure and Capital Adequacy
Tier I Capital and a breakdown of its components Amount in Rs.
KuMari BanK liMiteddisclosure under Basel ii as at 16 July 2014
(for f/y 2013/14)
Tier 2 Capital and a breakdown of its componentsAmount in Rs
S.N. Particular Current Year a Cumulative and/or Reedemable Preference Share -
b Subordinated term debt -
c Hybrid Capital Instuments -
d General Loan Loss provision 218,901,885
e Exchange Equalisation Reserve 20,391,043
f Investment Adjustment Reserve 20,000,000
g Assets Revaluation Reserve -
h Other Reserve (Deferred Tax Reserve) -
Total of Tier 2 Capital 259,292,928
Deductions from Capital:
The bank does not hold any amount as stipulated in the Capital Adequacy Framework that qualifies for deduction from Capital.
Kumari Bank Annual Report 2013/14
90
S.N. Particular Current Year a Tier I Capital 2,926,214,913
b Tier II Capital 259,292,928
Total Capital Fund 3,185,507,842
S.N. Particular Current Year (%) a Tier 1 Capital to total RWA 10.85
b Total Capital Fund (Tier 1 + Tier 2) to Total RWA 11.81
Total Qualifying CapitalAmount in Rs
Bank's Internal Approach to Access Capital Adequacy
Bank's mangement regularly reviews Bank's Capital Adequacy. Plans and budgets are prepared on the basis of current and projected capital adequacy. Bank's plan and investment decision are based on the level of capital adequacy it feels comfortable.
Risk weighted exposures for Credit Risk, Market Risk and Operational Risk Amount in Rs.
S.N. Particular Current Year 1 Risk Weighted Exposure for Credit Risk 24,136,980,509
2 Risk Weighted Exposure for Operational Risk 1,633,843,987
3 Risk Weighted Exposure for Market Risk 170,673,428
Total 25,941,497,924
Risk weighted exposures under each of 11 categories of Credit Risk Amount in Rs.
S.N. Particular Current Year 1 Claims on government and central bank -
2 Claims on other official entities -
3 Claims on banks 389,798,136
4 Claims on corporate and securities firms 13,939,528,720
5 Claims on regulatory retail portfolio 2,453,699,898
6 Claims secured by residential properties 1,059,227,635
7 Claims secured by commercial real estate 1,122,257,988
8 Past due claims 892,196,915
9 High risk claims 1,908,223,108
10 Other Assets 539,707,842
11 Off balance sheet items 1,832,340,267
Total 24,136,980,509
Capital Adequacy RatiosAmount in Rs
91
Kumari Bank Annual Report 2013/14
Total risk weighted exposure calculation table - Amount in Rs.
S.N. Particular Current Year 1 Risk Weighted Exposure for Credit Risk 24,136,980,509
2 Risk Weighted Exposure for Operational Risk 1,633,843,987
3 Risk Weighted Exposure for Market Risk 170,673,428
Total Risk Weighted Exposure 25,941,497,924
Add: 3% of the total RWE due to non compliance to Disclosure Requirement
Addition to RWE as per supervisiory review (3%) 778,244,938
Add RWE equvalent to reciprocal of capital charge of 2 % of gross income.
256,105,032
Add: ...% of Total Deposit due to Insufficient Liquid Assets
Total Risk Weighted Exposure (After Bank's adjustment of Pillar II) 26,975,847,893
Amount of NPAs (Non Performing Assets) both gross and net Current Year's Amount in Rs.
S.N. Non Performing Assets Gross Amount Net Amount1 Restructured / Rescheduled 68,732,063 60,140,555
2 Substandard 49,785,517 37,339,137
3 Doubtful 258,697,625 129,348,812
4 Loss 541,099,299 -
Total 918,314,503 226,828,505
NPA Ratios
S.N. Particulars Current Year (%)1 Gross NPA to gross advances 4.03%
2 Net NPA to net advances 1.04%
Movement of Non Performing Assets Amount in Rs.
S.N. Non Performing Assets Previous Year Change Current Year1 Restructured / Rescheduled - 68,732,063 68,732,063
2 Substandard 23,467,414 26,318,103 49,785,517
3 Doubtful 404,012,981 (145,315,356) 258,697,625
4 Loss 349,166,251 191,933,047 541,099,299
Total 776,646,646 141,667,857 918,314,503
Write Off of Loan and Interest Suspense Amount in Rs
S.N. Particular Current Year1 Loan Write Off -
2 Interest Suspense Write Off -
Kumari Bank Annual Report 2013/14
92
Movement of Loan Loss Provision and Interest SuspenseAmount in Rs.
S.N. Particular Previous Year Change Current Year1 Loan Loss Provision 750,471,018 159,916,865 910,387,883
2 Interest Suspense 249,449,730 30,585,024 280,034,755
Details of additional loan loss provisionCurrent year's amount in Rs
S.N. Loan Classification Additional provision 1 Good 25,470,463
2 Restructured / Rescheduled 8,591,508
3 Substandard 6,579,526
4 Doubtful (72,657,678)
5 Loss 191,933,047
Total 159,916,865
Segregation of investment portfolio Amount in Rs.
S.N. Investment category Current Year 1 Held for trading -
2 Held to maturity 3,139,690,390
3 Available for sale 24,935,500
Total 3,164,625,890
93
Kumari Bank Annual Report 2013/14
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Kumari Bank Annual Report 2013/14
94
Branches
95
Kumari Bank Annual Report 2013/14
Inside Kathmandu ValleyPutalisadak ATM I, II & IIIKumari Bank Limited
New Road ATMKumari Bank Limited
New Baneshwor ATMRoyal Thai Restaurant premise
Ratna Park ATMNepal Electricity Authority Building
Thamel ATMFire Club Building
Kantipur Mall ATMKumari Bank Limited
Koteshwor ATMKumari Bank Limited
Durbarmarg ATMKumari Bank Limited
Chuchhepati ATMKumari Bank Limited
ATM Locations
Budhanilkantha ATMKumari Bank Limited
Old Baneshwor ATMKumari Bank Limited
Kumaripati ATMKumari Bank Limited
Naxal ATMOpposite Police Head Quarter
Lazimpat ATMBig Mart Building
Jhamsikhel ATM 8 Degrees Fine Dine & Venues
Mangal Bazar ATMYala Guest House Premise, Patan Durbar Square, (Near Honacha)
Balkhu ATMBalkhu Chowk
Kalanki ATMMillennium House, Near Kalanki Chowk
Outside Kathmandu ValleyBhairahawa ATMKumari Bank Limited, Narayan Path
Pokhara ATMChipledhunga
Pokhara ATM IILakeside, Opposite to Lalupate Marga
Jhapa ATMKumari Bank Limited, Birtamode
Biratnagar ATMKumari Bank Limited, Goshwara Road, Morang Byapaar Sangh Building
Itahari ATMKumari Bank Limited, Pathivara Market, Dharan Road
Baglung ATMKumari Bank Limited, Mahendra Path
Narayangadh ATMKumari Bank Limited, Pulchowk
Birgunj ATM IKumari Bank Limited, Adarsha Nagar, Parsa
Birgunj ATM IINational Medical College
Urlabari ATMKumari Bank Limited, Morang
Butwal ATMInfront of Kumari Bank LimitedRam Mandir Line
Nepalgunj ATMSurkhet Road, Dhambhoji
Dhangadi ATMRatopul, Dhangadi, Kailali
Surkhet ATMBirendra Nagar, Surkhet
Damauli ATMKumari Bank Limited, Damauli-2
Sauraha ATMBacchauli-2
Salyan ATMKumari Bank Limited, Khalanga
Tulsipur ATMB.P. Chowk, Tulsipur, Dang
Kawasoti ATMKumari Bank Limited, Sabhapati Chowk
NOTE