Nibl Ar 2009-10 English

SOUND STRONG STABLE
AnnuAl RepoRt 2009/10
our Vision
To be the most preferred provider of financial services in Nepal.
Mission Statement
We aspire to be the leading Nepali bank, delivering world class service through a blend of state-of-the-art technology and visionary management in partnership with competent and committed staff, to achieve sound financial health with sustainable value addition to all our stakeholders. We are committed to fulfilling this mission while ensuring the highest levels of ethical standards, professional integrity, corporate governance and regulatory compliance.
Contents
Financial Highlights Last 8 years at a glance Chairman's Statement Management Review Corporate Governance Risk Management Board of Directors Senior Management Team 2 3 4 8 14 16 20 22 Management Team Domestic Network Global Network Board of Directors Report Corporate Social Responsibility Financial Statements Principal Accounting Policies Notes to Account 25 26 28 31 40 45 76 78
nepal Investment Bank Annual Report 2009/10 1
Financial Highlights
1. 2. 3. 4. No. 1 lender in Nepal with total loans and advances over NPR 40 billion. No. 1 private sector bank in deposits with over NPR 50 billion. Highest net profit of NPR 1.26 billion. Highest paid up capital among the financial institution in Nepal at Rs. 2.41 billion. The highest capital base (including debentures) with NPR .64 billion 5. 5th Largest Taxpayer in Nepal. 6. 25% cash dividend. 7. Customer base of over 370,000. 8. Return on shareholders equity (ROE) of 28% 9. Non-Performing Loans Ratio at 0.62%. 10. Return on shareholders equity (ROE) of 28%
NPR in millions S. No. Particulars 1. 2. 3. 4. 5. 6 7. Total Assets Total Deposit Total Loans and Advances Total Investments Total Operating Profit (before provision for possible loss) Total Net Profit Non-performing Assets (%) 2008-09 53,010 46,698 36,827 7,399 1,477 901 0.58 2009-10 Growth in npR 57,305 50,094 40,948 8,635 2,021 1,265 0.62 4,295 3,396 4,121 1,236 544 364 Growth in % 8.1 7.3 11.2 16.7 36.8 40.6 0.04
Shareholder Information
Management Efficiency Highlights
Particulars Return on Assets (ROA) Return on Shareholder's Equity (ROE) Cost to income ratio* 2005-06 1.64% 24.77% 32.44% 2006-07 1.82% 26.68% 31.20% 2007-08 1.79% 25.93% 30.33% 2008-09 1.70% 23.05% 30.22% 2009-10 2.2% 28% 26.09%
* Cost to income ratio is calculated as operating cost over operating income
Valuation Highlights
Particulars Earning Per Share (EPS in NPR) Book Value per Share (in NPR) Market Price Per Share (in NPR) P/E Ratio Effective Dividend Yield 2005-06 59.35 240 1260 21.23 4.40% 2006-07 62.57 234 1729 27.63 1.74% 2007-08 57.87 223 2450 42.34 1.67% 2008-09 37.42 162 1388 37.09 1.44% 2009-10 52.55 190 705 13.42 3.55%
Leverage Ratio
Particulars Debt to Equity Ratio 2005-06 38.86 2006-07 42.60 2007-08 39.08 2008-09 12.72 2009-10 23.71
nepal Investment Bank Annual Report 2009/10
03
03 04 05 06 07 17,769 27,5 29 36,827 40,318 13,178 10,453 7,399 5,922
1.98%
03 216 247 201 240 234 223 162 190

10 09 08
04 05 06 07
2.47%
04
05
2.69%
06
2.07%
07
2.37%
08 09 10
1.12%
08
total lending Growth (In millions of rupees)
+11.25%
Book Value per Share
+17.28%
+0.04%
09
0.58%
Non- Performing Assets
Last 8 Years at Glance
10
0.62%
03
03 639 729
795
03 04 05 232 350 501 697 06 07
04 05 1,180 1,415 1,878 2,687 06 07
04
940
05
800
06
08
1,260
08 09 10
07
09 10
4,585 3,908
1,729
08
2,450
Shareholder's Fund growth (In millions of rupees)

901
Total Profit Growth (In millions of rupees)
+17.34%
+40.56%
Market price per Share
-49.21%
09
1,388
10
705
1,265
03
04
20.93%
39.56
05
19.67% 24.77% 26.68% 25.93% 23.05% 28%
03
18.29%
04
06 07
51.7
03 04 05 06 07
7,932 11,525 14,255 18,927 24,489
05
39.50
06
08 09 10
59.35
07
62.57
+7.27%
08
57.87
08 09 10
34,452 46,698 50,094
Total Deposit Growth (In millions of rupees)
+21.48%
Return on Equity
earning per Share
+40.43%
09
37.42
Nepal Investment Bank Annual Report 2009/10 3
10
52.55
Chairman's Statement
Nepal Investment Bank Annual Report 2009/10
NIBL achieved the highest industry growth in terms of deposits, assets and capital base this year.
Dear Shareholders, The year 2009/10 has been an eventful year for Nepal Investment Bank Limited in terms of achievements and performance. We have continued our strategy of growth and consolidation while delivering quality services and shareholders returns. In spite of the growing number of banks, weve succeeded in retaining our growth. This year, Nepal Investment Bank Limited emerged as the number one taxpayer among the Nepali Banks contributing Rs. 790 million also making us the fifth largest taxpayers in the country. NIBL achieved the highest industry growth in terms of deposits, assets and capital base. Our Deposit base grew from Rs 46.69 billion to Rs 50.09 billion making us the largest private sector bank in deposits. We also added 83,000 new clients, the highest addition of Customers in Nepal. NIBL also earned the highest net profit among all commercial banks of Rs. 1.26 billion. NIBL also has the highest loan portfolio amounting to Rs 40.95 billion. Similarly, our Tier 1 capital is also the largest of any bank in Nepal at Rs 4.55 billion. Our Assets grew from Rs 53.01 billion to Rs 57.30 billion, the highest volume growth and highest level in Nepal. We have ventured into the Remittance sector with exclusive partnerships with Maybank in Malaysia and Bank Al Bilad in Saudi Arabia. We have a substantial presence in the Middle East making NIBL one of the largest players in the Remittance industry. Bank Albilad has awarded NIBL the Best Remittance Partner Award 2010. The award was given on the basis of NIBLs steady performance level, outstanding support and excellent customer relations. Our capital base is now significantly higher than our nearest competitors and we are in a position to grow our assets at a higher rate than our competitors. NIBL has maintained a consistent rating of Nepal [A] from Indian Credit Rating Agency, ICRA, an affiliate of Moodys Investor Group, reflecting our strong creditworthiness and our position as the first and only bank in Nepal to have a credit rating, which adds extra transparency to our shareholders.
This year alone the bank added 10 more branches with (18) new ATM kiosks alongside. At present, the bank has sum total of 40 branches and (70) ATMs throughout the country. For the FY 2067/68, the main strategy relating to branches will be consolidation and increased profitability. The bank has also introduced three new products: NIBL Special Fixed Deposit with interest rate of 11% and Saving Bonanza with 7.5% and Karmachari Bachat Khata with 6% interest rate. NIBL added a record of 110,954 customers in the past 15 months. The Bank added (300) domestic remittance disbursement agents during this period. NIBL added 14,000 new users to the ebanking platform totaling the highest base of ebanking customers in Nepal at 28,000. New and innovative features were added to the ebanking product such as online airline ticket booking and payments, Online and ATM pre/post paid bill payments for Telecom companies including PSTN landline payments throughout Nepal. NIBL also tied up with Nepal Derivatives Exchange allowing ebanking users to conduct derivative transactions. NIBL also released an electronic payment gateway, enabling secure VISA, MasterCard and PayPal transactions and e-commerce on the internet for the ebanking customers. American Life Insurance Company, ALICO has also tied up with NIBL to offer its life Insurance Products through NIBLs Bancansurance program. NIBL also qualified to join the Global Trade Finance Program offered by the International Finance Corporation IFC, enabling the bank to conduct international finance arrangements with a wider range of correspondent banks greatly benefitting our corporate clients. NIBL has received a trade finance facility of $5million, the largest extended to any Nepali bank which will enhance our support for local enterprises and boost international trade opportunities. NIBL also entered into an arrangement with China Development Bank CDB to promote project relationships in infrastructure finance in terms of project cooperation, financial consultancy, credit grants and currency swaps. This
arrangement will enable NIBL to finance hydropower projects in Nepal and enable the banks corporate clients to access international capital markets. We recognize the important role of human resources to successfully meet our business goals. The Bank is committed to provide quality learning and working environment for our staff and to help them develop their knowledge & skills required in their career. With the increase in the number of branches and customer base, the bank is committed to prompt and reliable customer service. The Banks total workforce has reached 877 compared to 766 in the previous year. Of the total staff strength, 41% are female staffers and 80 staff members have completed more than 10 years of service in the institution. We continue to place great value in quality and service and our development objectives ensure staffs are motivated with high levels of productivity and loyalty. During the year, 533 participants attended 75 training courses/ workshops in various areas such as SME Lending, Risk Management, Anti Money Laundering, Signature verification & counterfeit notes, Customer Service, Operations and NRB guidelines. Six staff members attended workshops in India and abroad. The Bank also supports team-building activities like sports, yoga meditation and participation in the art of living program to promote wellness among staff. We successfully conducted the 2nd NIBL Heritage Marathon, an initiative geared towards the conservation of our cultural heritage. The Heritage Marathon whose intention is to support heritage and architectural preservation of Kathmandu Valley, raised over 70 lakhs rupees. The Bank has donated this fund to help build cremation pyres at Bhas Meshwor, Aryaghat Pashupatinath and for restoration work at the Bhaideval Temple at Patan Durbar Square. The Bank sponsored the Extreme Everest Expedition, a cleanup campaign that cleared out over 1800 kilos of garbage from 8,000 meters above Mount Everest, often referred to as the death zone. The event roused wide international concern,
and was extensively reported by all local media as well as renowned international media like BBC, Reuters and AFP. Apart from cleaning up the death zone, the campaign also successfully rescued the body of two mountaineers - Swiss climber Gianni Goltz, who died last year, and Russian climber Sergey Duganov. The visual documentation of the expedition highlighting the role of NIBLs contribution will also come out the following year. The Bank also gave away five lakhs rupees to support the second Microfinance Summit 2010. The summit focused on converging the role of varied stakeholders from policymakers, regulators, to commercial banks and other microfinance practitioner, to reach to the broader spectrum of rural demography. The summit also worked on providing improved financial services to 3 million people, especially women, by 2010. Nepal Investment Bank Limited focuses on looking ahead to the future with great confidence. We will continue to strive towards our vision of being the preferred provider of financial service in Nepal, exploring new business opportunities and always diversifying into new sectors. I would like to express my gratitude and appreciation to our energetic and hardworking staff and efficient management team. They have provided outstanding performance throughout the years that has led the growth and reputation of our bank. I would like to thank the Nepal Rastra Bank, the Ministry of Finance and all other concerned government agencies for providing us their full support in our endeavors. I also would like to express my gratitude to my colleagues on the Board for their support and valuable contribution.
Sincerely, prithivi B. pand Chief Executive Director
The Bank has also introduced three new products: NIBL Special Fixed Deposit, Saving Bonanza and Karmachari Bachat Khata.
Management Review
Economic recovery continued to strengthen during the first half of 2010, but global financial stability suffered a major setback with the turmoil in sovereign debt markets in the second quarter of 2010. Global activity expanded at an annual rate of about 5 percentabout percent higher than anticipated in the July World Economic Outlook (WEO) Update. The extent of economic recovery differs importantly across regions, with Asia in the lead. The United States and Japan experienced a noticeable slowdown during the second quarter of 2010, while growth accelerated in Europe and stayed strong in emerging and developing economies. Financial conditions have begun to normalize, but institutions and markets are still fragile. In general, volatility in financial, currency, and commodity markets remains elevated. IMF chief economist Olivier Blanchard forecast that the world economy would grow by 3.0-4% this year and by about the same amount next year. At the beginning of October the IMF forecast in its six-monthly assessment that the global economy would grow by 4.8% this year and by 4.2% in 2011. We can expect differences between growth in regions, with economies in advanced countries growing by 1.0-2% and in emerging countries by 6-8% or more. Oil prices are expected to be less volatile in the next 2 years. Demand for oil from countries in the Organisation for Economic Co-operation and Development (OECD) is forecast to decline somewhat, but this will be tempered by a rise in oil demand from non-OECD countries, particularly the Peoples Republic of China (PRC). Given the countervailing oil demand trends and the strengthening of the US dollar, oil prices are seen fluctuating within a narrow band. Unemployment in advanced economies has receded only modestly from peak rates. Estimates are that more than 210 million people across the globe are unemployed, an increase of more than 30 million since 2007. Financial turbulence led to sharp currency movements in the first half of 2010. The euro depreciated by about 15% in real effective terms, although it has partially recovered and is currently trading at a level broadly in line with mediumterm fundamentals, according to IMF staff estimates. The US dollar appreciated in real effective terms as risk aversion rose during MayJune, but it has since returned to levels
seen earlier in the year, on the strong side of medium term fundamentals. The yen weakened briefly in April but has been appreciating since and now stands more than 25% above 2007 levels, prompting the authorities to intervene in exchange markets due to concerns about disruptive yen movements. At current levels, the yen remains broadly in line with medium-term fundamentals. With a few exceptions, emerging Asian currencies, including the Chinese renminbi, appreciated modestly in real effective terms. However, many remain undervalued relative to medium-term fundamentals. On the domestic front, the budget speech of 2009/10 had targeted economic growth of 5.5% according to the preliminary estimate of the Central Bureau of Statistics and the gross domestic product (GDP) is likely to expand at 4.5% in the current fiscal year 2009/10. (table 1) The double digit inflation recorded in the last two consecutive fiscal years has moderated to 8.9% in the first three months of the current Fiscal Year. Expected inflation for the current year is 7 percent. The increase in the price of the agricultural commodities due to slash in the production caused by unfavorable weather condition and poor supply condition, power crisis, increase in salary and wages, and a higher rise in the price of food grains in India are attributed to exert pressure on inflation in Nepal. However, the price level in the later months has shown some improvements. In May/June of 2010, the y-o-y consumer price index grew by 9.6%, which had grown by 12.3% in May/June 2009. The y-o-y price index of food and beverage group increased by 11.3% and that of non-food and service group grew by 7.3 percent. In the same period of the previous year, the prices of these two groups had increased by 19% and 5.1% respectively. The price of food and beverage group is witnessing a declining trend as against an increasing trend in prices of non-food and service group. (table 2) The performance of the external sector of the Nepalese economy, which had remained satisfactory even in the period of global financial crisis originated in 2008, remained weak in 2009/10. In the 11 months of 2009/10, the overall BOP deficit stood at Rs.15.07 billion due the higher current account deficit of Rs.34.59 billion. Such deficits are on account of the slowdown in exports and acceleration in
imports during the period. The BOP registered a surplus of Rs. 39.06 billion in the same period of the previous year. On the other hand, remittance rose by 15.2% to US$ 2.83 billion in the review period as compared to US$ 2.46 billion in the corresponding period of the previous year. The growth rate of private sector remittance decelerated due to the decline in the number of people going abroad for foreign employment in consequence of the global financial crisis for some months, the foreign employment and the inflow of remittance both are improving in recent months on account of increasing demand of labor in world labor market. (table 3) Nepalese currency vis--vis the US dollar appreciated by 4.85% in mid-July 2010 compared to that of mid-July 2009. It had depreciated by 12.24% in the corresponding period of the previous year. The exchange rate of one US dollar stood at Rs.74.44 in mid-July 2010 compared to Rs.78.05 in midJuly 2009. Up to July 2010 the total numbers of Commercial Banks are 27, Development Banks are 79, Finance Companies are 79, Micro Finance Institutions are 18, NRB Licensed Cooperatives (undertaking limited banking transactions) are 16, NRB Licensed NGOs (undertaking micro finance transactions) are 45, and Insurance Companies are 25.
General Manager's Review

The Bank has delivered another year of good performance. Our net profit has jumped from Rs.901 million in FY 2008/09 to Rs.1.26 billion in FY 2209/10 making the Bank the No. 1 profit maker amongst all commercial banks in the country an increment of 40.4% over last year. This jump in net profit can largely be attributed to the hard work of our staff and patronage from our valued customers. Over the past one year, we have increased our assets base from Rs.53 billion to Rs.57 billion, a jump of around 8.1% during the period. Our total lending has also surged from Rs.36.8 billion to Rs.40.9 billion. Our total paid up capital of Rs.2.41 billion is also the highest amongst all commercial banks in the country. (table 4) Because of the growing number of commercial banks and financial institutions, the year ahead is a great challenge for us. Though Nepals domestic economy was largely untouched by the global financial crisis, energy crisis, political uncertainty, and high inflation pose threat to overall business confidence. These uncertainties and crisis have reduced investment opportunities in our country. Amidst this background, the entry of new commercial banks and financial institutions is expected to undermine profit margins in the months ahead. The only option left with us is to grow within an acceptable risk framework. To support increasing business volume, additional capital has been raised from the debt capital markets as well as from retention of profits.
In the review year, the Bank increased the shareholders fund from Rs. 3.91 billion to Rs. 4.58 billion and at the same time maintained the shareholders return on equity at a healthy rate of 28 percent. Similarly, our cost-toincome ratio has also decreased showing that our income is growing at a higher rate than our cost indicating improved efficiency. (table 5)
review period, there were more than 400,000 card holders in our network -VISA Associate and NPN members. We have successfully launched our proprietary Network National Payment Network and 15 financial institutions have already joined the Network. Furthermore, the Bank is in the final stage of launching Master Card related products. This will provide wider coverage in availing ATM and POS related services to our customers.
performance overview: Retail Bank

Our new and innovative deposit products have propelled us to become the largest deposit holder among private sector banks in Nepal. At the end of FY 2008/09, our deposit base stood at Rs. 50.09 billion compared to Rs. 46.7 billion at the end of the previous year. Our customer base has also grown to 355,511 at the end of 2009/10 from 268,345 during previous year, a considerable growth of 32.5 percent. Customer mapping is being done on a regular basis that has helped the Bank to study and identify locations for new branches and installation of new ATMs. Currently, we have 67 ATMs in various locations throughout the country. After opening 10 new branches in the FY 2009/10, our total branch network is at 40.
Remittance
In order to tap into the burgeoning remittance market and strengthen its position in workers remittance inflows, the Bank joined hands with Transfast International, USA and Samsara Financial Services, UK. Disbursement agents were appointed in 300 different locations during the year raising the total number of the Banks remittance disbursement locations to 500. During the year, UAE Exchange started sending transactions through Prithivi Express online system. To further broaden its remittance network, the Bank plans to increase the number of remittance disbursement agents in Nepal to 700 by the end of the current fiscal year. Our Bank plans to depute one more staff member in Saudi Arabia and one more in Malaysia and increase the number of our representatives in Qatar and the UAE.
Card Centre
The Bank has issued over 250,000 cards, and continues to be the leader in card issuance in Nepal. As of the end of the
Corporate Banking
The total loans and advances at the end of 2009/10 stood at Rs. 40.94 billion with a growth of 11.2% during the review
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The treasury department is fully equipped with state of the art technology for day-to-day dealings. Among other things, the Banks treasury department is involved in checking foreign currency position, fund management, forward contract execution and inter-bank placement.
Information Technology
NIBL aims to add value to both clients and to shareholders via a technology based portfolio of products different from those used by the banks competitors. Branch network of the Bank has reached 40, which allows our Bank to cover areas spread over Mechi to Mahakali zones and surrounding districts. For the coming fiscal year, we will be mainly focusing on consolidation, control and to increase profitability of branches. The existing eBanking offers a list of features that may be developed as an individual product or even brands. The Bank has developed a system that alerts the customers of their transaction and daily balances, which could be one of the very important value added services. NIBL has been utilizing a state of the art software technology which enables us to reduce the number of manual work, which in turn is made automated, offering more efficient outcomes. The Bank has achieved highest level of automation in various manual operations and reporting mechanisms. Cost reduction initiative will be undertaken by offering central back office operations for the processes like clearing and remittances to leverage on the system capabilities. The Bank intends to establish a 24 hour call center in order to facilitate the member banks and their customers. And after successful migration, NIBL has aggressively marketed National Payment Network (NPN) members. Nepal Investment Bank will be launching Electronic Payment Gateway (EPG) for online purchases which will be the first of its kind in Nepal. Further, the plan to develop loyalty programs like EMI, Cash Back offers to increase the banks card base. Moreover, during the review year the Bank deployed additional ATMs at nine different locations in Gongabu, Birgunj, Parsa, Palpa, Lalbandhi, Dhumbarai, Bhotaiti, New Baneswor and
year. With our total loan portfolio size, the Bank has become the highest lender in the country. The branch network of the Bank possesses a satisfactory share of the Banks lending and growth. In order to diversity our loan portfolio and tap into emerging and profitable sectors. We have been focusing on cement, hydropower and infrastructure projects.
trade Finance
Nepal Investment Bank Ltd. also qualified to join the Global Trade Finance Program offered by the International Finance Corporation (IFC), enabling the Bank to conduct international finance arrangements with a wider range of correspondent banks greatly benefiting the Banks corporate clients. NIBL has received a trade finance facility of USD 5 million, the largest extended to any Nepali Bank and it will enhance our support for local enterprises and boost international trade opportunities.
Treasury
This year the Banks profit from treasury operations was Rs. 224.057 million compared to last years figure of Rs. 185.33 million, an increase of 20.90%. The T-bill portfolio of the Bank at the end of 2009/10 was Rs. 3911 million compared to last years figure of Rs. 2531 million. The interest earned on this portfolio was Rs. 167.87 million compared to Rs. 140.69 million in the last fiscal year.
Snapshot of the Nepali Economy

2009 / 10 2008 / 09 GDP at Producers Price (Rs Billion) GDP Growth Rate Exchange rate (USD) Gross Foreign Exchange Reserves USD Billion Rate of Inflation % Growth in Money Supply (M2) % 619 3.50% 74.44 3.58 10.5 14.5 586 4.7 78.05 3.59 13.2 27
staffs are motivated with high levels of productivity and loyalty. During the year, 533 participants attended 75 training courses/ workshops on various areas like SME Lending, Risk Management, Anti Money Laundering, Signature verification & counterfeit notes, Customer Service, Operations and NRB guidelines. Six staff members attended workshops abroad. The Bank also supports team-building activities like sports, yoga, meditation focusing on job satisfaction and personal growth. NIBL believes that the staff members are our most valuable asset and their development, motivation, recognition, reward and welfare are very important to the success of this Bank. Therefore, the bank looks into attracting, retaining, and motivating staff who can deliver efficient service to the clients.
Lagankhel, taking the total number of NIBLs ATMs to 67. NIBLs card network is also the largest in the country.
Human Resources
Nepal Investment Bank has recognized the important role of human resources to successfully meet the Banks business goals. The Bank is committed to provide quality learning and working environment for the staff and help them develop their knowledge, skills and attitude required to perform well in their career. The Bank has been able to inculcate a strong performance based culture where staff is rewarded for achievement of annual performance targets. Ultimately, the quality of NIBLs human resources should be the source of competitive advantage for the bank. With the increase in the number of branch representation and customer base, the Bank has to ensure that we continue to provide prompt and reliable customer service. The Banks total workforce has reached 877 compared to 766 in the previous year. Of the total staff strength, 41% are female staffers and 80 staff members have completed more than 10 years of service in the institution. NIBL also continue to place great value in quality and service and the banks development objectives ensure that the
Conclusion
The fiscal year 2009-10 was another successful year for the Bank. Despite the difficult market conditions, continuing political stalemate, increased competition, liquidity problems, the Bank were able to deliver strong overall performance. Nepal Investment Bank Limited consolidated its position as one of the premier banks in Nepal. The market share taken by our Bank in deposits and advances are substantial and the Bank is striving to achieve its aim of being the most preferred provider of financial services in Nepal. The Bank is committed to maintaining its current position and is striving hard to progress even further.
Thank You, Jyoti Prakash Pandey General Manager
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The market share taken by NIBL in deposits and advances are substantial and the Bank is striving to achieve its aim of being the most preferred provider of financial services in Nepal.
Corporate Governance
Board Structure and Members Nepal Investment Bank Ltd (NIBL)s share structure is divided among four groups. A group of companies holding 50% of the capital, Rastriya Banijya Bank and Rastriya Beema Sansthan holding 15 % each and the remaining 20%, held by the general public. During the last fiscal year, Mr. Rajesh Rajkarnikar, nominee Director from Rastriya Beema Sansthan, vacated the office of Director and in his place, Mr. Binod Aryal, Administrator, was nominated as Director on the Board of the Bank by Rastriya Beema Sansthan. Currently, the Banks Board of Directors comprises of Mr. Prithivi Bahadur Pand, Mr. Prajanya Rajbhandari, Mr. Deepak Man Sherchan, Mr. Krishna Prasad Sharma, Mr. Binod Aryal, Mr. Surendra Bahadur Singh, Mr. Janardan Dev Pant and Mr. Damodar Prasad Sharma Pandey. Among these, Mr. Damodar Prasad Sharma Pandey is an independent board member and Mr. Surendra Bahadur Singh represents the public shareholders. Mr. Prithivi B. Pand is the Chairman of the Banks Board. Internal Control Mechanism and various Committees The Bank has an independent Internal Audit and Compliance Department headed by an experienced auditor. The Department performs its functions under the direct supervision and control of the Audit Committee and submits its reports directly to the latter. To supplement the in-house
internal audit department, the Bank has also hired a firm of Chartered Accountants to conduct internal audit functions in the review year. In addition, the Bank has also constituted a Compliance Committee comprising of various departmental heads to further strengthen compliance and internal control systems of the Bank. Besides these committees, the Bank has a number of high level committees, namely Executive Credit Committee, Human Resource Development Committee, Construction Committee and Asset Liability Management Committee, each with a defined scope and terms of reference. These Committees comprise of Board members and senior management officials. The Banks Audit Committee, under the chairmanship of a non-executive director, Mr. Damodar Prasad Sharma Pandey, comprises of Mr. Deepak Man Sherchan and Mr. Binod Aryal as Member Directors along with the Banks Head of Internal Audit, Mr. Binod Upadhyay, as its Member Secretary. The Committee reviews the Banks financial condition, its internal control and risk management systems, statutory and regulatory compliances, audit programmes, etc. After detailed discussion on the findings of the internal audit as well as external audit reports, the Committee initiates necessary corrective action. The Committee periodically apprises the Board of Directors of the issues and the corrective measures initiated. During the year, seven such meetings were held.
Name of the Committees
Members
Audit Committee Human Resource Development Committee (HRDC) Executive Credit Committee (ECC) Construction Committee
Deepak Man Sherchan, Damodar Prasad Sharma Pandey, Binod Aryal, Head Internal Audit (Member Secretary) Prithivi Bdr. Pand (Chairman), Krishna Pd. Sharma, Deepak Man Sherchan, Binod Aryal Prithivi Bdr. Pand (Chairman), Surendra Bdr. Singh, and Prajanya Rajbhandari Deepak Man Sherchan
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The Bank has established an adequate system for monitoring and reporting risk exposures and assessing how the Banks changing risk profile affects the need for capital.
Risk Management
Being a financial institution, risk management is an integral part of Nepal Investment Bank Limited (NIBL). With the continuing increase in the scale as well as complexity of the banking sector and the rapid growth in the volume of financial transactions, risk management has become a core part of business. Moreover, the current financial crisis due to financial institutions' high exposure to risky assets, and the collapse of large financial institutions such as Lehman Brothers, Wachovia and Bear Stearns due to their inability to manage risky assets has further emphasized the need for prudent and effective risk management. The management team and board of NIBL manages the overall risk profile, aiming for a balance between risk and returns. Risk management includes risk identification, measurement and assessment, and its objective is to minimize negative effects that risks can have on the financial result and capital of a bank. Risk management strategies include the transfer of risk, avoidance of risk, reduction of the negative effect of the risk and acceptance of the consequences of a particular risk. The design of our risk management system depends on parameters such as size, capital structure, complexity of functions, technical expertise, and quality of Management Information System (MIS) and is structured to address both banking as well as nonbanking risks to efficiently maximize shareholder value. The risk management system ensures that the Bank takes well-calculated business risks while safeguarding the Banks capital, its financial resources and profitability. The Banks primary business activity is commercial banking whereby substantial risk comprises of credit risk. To a lesser extent, commercial banking activities also expose the Bank to market risk arising from repricing, maturity and currency mismatches of assets and liabilities. These mismatches give rise to interest rate risk, liquidity risk and foreign exchange risk. The Board of Directors of NIBL recognizes that a critical factor in the Banks continued growth, profitability and stability lies in its effective risk management capabilities and risk-return trade-off. In this respect, the Bank ensures its risk management capabilities and promotes pro-active risk management in the Bank.
Operational risk itself is not a new concept, and banks have been addressing it in their internal controls and corporate governance structures. However, applying an explicit regulatory capital charge against operational risk is a relatively new and evolving idea. Basel II requires banks to hold capital against the risk of unexpected loss that could arise from the failure of operational systems. The most important types of operational risk involve breakdowns in internal controls and corporate governance. Such breakdowns can lead to financial losses through error, fraud, or failure to perform in a timely manner or cause the interests of the Bank to be compromised in some other way, for example, by its dealers, lending officers or other staff exceeding their authority or conducting business in an unethical or risky manner. Other aspects of operational risk include major failure of information technology systems or events such as major fires or other disasters. The failure to properly manage operational risk can result in a misstatement of an institutions risk/return profile and expose the institution to significant losses. Gross income, used in the Basic Indicator Approach is only a proxy for the scale of operational risk exposure of a bank and in some cases can underestimate the need for capital. NIBL has developed a framework for managing operational risk and evaluating the adequacy of capital covering the Banks appetite and tolerance for operational risk, as specified through the policies for managing this risk, including the extent and manner in which operational risk is transferred outside the Bank. It also includes policies outlining the Banks approach of identifying, assessing, monitoring controlling and mitigating the risk.
Credit Risk Management

Credit risk is the major risk that banks are exposed to during the normal course of lending and credit underwriting. Within Basel II, there are two approaches for credit risk measurement: the standardized approach and the internal ratings based (IRB) approach. Due to various inherent constraints within the Nepali banking system, the standardized approach in its simplified form, Simplified Standardized Approach (SSA), has been prescribed in the initial phase. Credit risk is the probability that a Banks borrower or counter party will fail to meet its payment obligations in
Operational Risk Management

Operational risk is the risk of loss resulting from inadequate internal processes, people, and systems, or from external events.
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accordance with the terms of approval of the credit. This includes non-repayment of capital and/or interest within the agreed time frame, at the agreed rate of interest and in the agreed currency. The goal of credit risk management is to maximize a bank's risk-adjusted rate of return by maintaining credit risk exposure within acceptable parameters. The effective management of credit risk is a critical component of a comprehensive approach to risk management and is essential to the long-term success of any banking organization. For most banks, loans are the largest and most obvious source of credit risk; however, other sources of credit risk exist throughout the activities of a bank, including in the banking book and the trading book, and both on and off the balance sheet. Banks increasingly face credit risk in various financial instruments other than loans, including acceptances, interbank transactions, trade financing, foreign exchange transactions, and in the extension of commitments and guarantees and the settlement of transactions. NIBL has developed methodologies to assess the credit risk involved in exposures to individual borrowers or counterparties as well as at the portfolio level. The credit review assessment of capital adequacy, at a minimum, covers risk rating systems, portfolio analysis/aggregation, large exposures and risk concentrations. Internal risk ratings are an important tool in monitoring credit risk and supporting the identification and measurement of risk from all credit exposures, and are integrated into our overall analysis of credit risk and capital adequacy. The ratings system provides detailed ratings for all assets, not only for problem assets. Our various branches are the business units of our bank. Each branch forwards business proposals to the head of credit division, Head Office. The credit division critically analyzes the proposal from different perspectives in line with statutory, regulatory and internal guidelines. Thereafter, if the business proposal is found to be credit worthy, it is placed in the credit committee. The Credit Committee is comprised of seasoned bankers who evaluate credit proposals. The committee analyzes in depth financial as well as non financial information regarding the borrower such as business history, market situation, future prospects of the market, managerial capabilities, cash flow and then declines or recommends approval of the designated credit authorities. To ensure proper and adequate risk analysis and timely customer service, our credit policy and procedures guide (CPPG) provides various layers in the credit approval process. The CPPG has conferred specific discretion ranging from the General Managers to the Executive Credit Committee, the penultimate credit authority of the Bank.
Adoption of international standards via our in-house Credit Policy and Procedures Guide. Formation of Credit Quality Control (CQC) unit for monitoring the quality of credit, both at the account level and portfolio level. Regular review of the credit portfolio by the senior management with periodic reporting to the Board of Directors. Separate independent audit and inspection of borrowers by internal auditors in addition to audit and inspection by statutory auditors. Strict adherence to the guidelines of the Central Bank on Loan Classification, Interest Recognition, Asset Classification, Single Obligor Limit, Sectoral Exposure etc. Establishing suitable exposure limits for borrowers and sectors and monitoring the limits on a regular basis. Risk mitigation steps with a special emphasis on collateral. Setting counterparty limits based on their financial strength. Training of lending and legal officers on documentation and professional valuations. Developing skills and expertise of lending officers to scientifically assess project viability and customer integrity. Educating the staff on provisions in the Banks and Financial Institution Act and other relevant statutes and the regulatory guidelines of the Central Bank. Seeking external legal opinion and advice. Identifying Early Warning Signals (EWS) and taking prompt action thereon. Constant posts sanction monitoring with special independent team for verification of current assets.
Market Risk Management

Market risk is defined as the risk of losses in on-balance sheet and off-balance sheet positions arising from adverse movements in market prices. The major constituents of market risks are: a. The risks pertaining to interest rate related instruments. b. Foreign exchange risk (including gold positions) throughout the Bank. c. The risks pertaining to investment in equities and commodities. Market risk is also the uncertainty in the future value of the Banks on-balance sheet and off-balance sheet financial items resulting from interest rates, foreign currency, equity, and commodity risks. The Asset Liability Management Committee (ALCO) serves as the primary oversight and decision making
body that provides strategic directions for the Banks management of market risk. The key elements in the market risk management framework are principles and policies, risk limits and risk measures. The prescribed approach for the computation of capital charge for market risk is very simple and thus may not be directly aligned with the magnitude of risk. Likewise, the approach only incorporates risks arising out of adverse movements in exchange rates while ignoring other forms of risks like interest rate risk and equity risks. NIBL has taken measures to address these various forms of risk and at the same time perform stress tests to evaluate the adequacy of capital using internal models for the measurement of market risk. Important Risk Management measures of the Bank to address Market Risk includes:
of the Bank. The frequency and direction of rate changes, the extent of the foreign currency exposure and the ability of counterparties to honor their obligations to the Bank are significant factors in foreign exchange risk management. This risk is managed by setting pre-determined limits on open foreign positions, the monitoring of the open positions against these limits and the setting and monitoring of our stoploss mechanism. In order to manage the foreign exchange risk and protect the Banks financial position, the Bank follows the following procedures:
Establish and implement sound and prudent foreign exchange risk management policies. Develop and implement appropriate and effective foreign exchange risk management and control procedures.
Liquidity Risk Management

Liquidity is crucial to the ongoing viability of any financial institution. The capital positions can have a telling effect on an institutions ability to obtain liquidity, especially in a crisis. NIBL has adequate systems for measuring, monitoring and controlling liquidity risk. We evaluate the adequacy of capital given their own liquidity profile and the liquidity of the markets in which they operate. We also make use of stress testing to determine their liquidity needs and the adequacy of capital. The objective of liquidity management is to ensure that the bank has sufficient funds to meet its contractual and regulatory financial obligations at all times. Liquidity risk is the probability of loss arising from a situation where (1) there will not be enough cash and/or cash equivalents to meet the needs of depositors and borrowers, (2) sale of illiquid assets will yield less than their fair value, or (3) illiquid assets will not be sold at the desired time due to a lack of buyers. Liquidity risk relates to the ability of the Bank to maintain sufficient liquid assets at a reasonable cost to meet its financial obligations as and when they fall due. Liquidity risk arises from situations in which a party interested in trading an asset cannot do it because nobody in the market wants to trade that asset. Liquidity risk becomes particularly important to parties who are about to hold or currently hold an asset, since it affects their ability to trade. The Banks liquidity policy is to ensure that all contractual commitments can be met by readily available sources of funding. In addition, liquid assets are maintained in relation to cash flows to provide further sources of funding in the event of a crisis. The Bank also has excellent access to financial markets to ensure the availability of funds.
A pro-active Asset Liability Management Committee (ALCO) that meets on a weekly basis. Review of ALCO decisions by top management and Board of Directors. Conduction of gap analysis, timely re-pricing of products and hedging of exposures. Risk management via forward contracts, swaps and currency options. Daily monitoring of Credit to Deposit (CD) ratio. Maintaining the Liquid Assets Ratio with a contingency buffer. Constant monitoring of dealer, broker, counterparty, transaction, product and currency exposure limits. Regular monitoring of competitor behavior and building competitor intelligence. Maintaining strong relationships with correspondent banks. Enhancing fee based income to reduce dependence on fund based income. Non-engagement in large scale transactions on a speculative basis. Separation of front and back offices at the treasury department.
Foreign exchange Risk Management

Foreign exchange rate risk arises from exchange rate movements which affect the profit of the Bank from its foreign exchange open positions. Because of a banks exposure to foreign currency, foreign exchange risk management is a fundamental component in market risk management of the Bank. It involves prudent management of foreign currency positions in order to control, within set parameters, the impact of changes in exchange rates on the financial position
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Monitoring and Reporting

The Bank has established an adequate system for monitoring and reporting risk exposures and assessing how the Banks changing risk profile affects the need for capital. The Banks senior management or board of directors receives on a regular basis reports on the Banks risk profile and capital needs. These reports allow senior management to:
Evaluate the level and trend of material risks and their effect on capital levels; Evaluate the sensitivity and reasonableness of key assumptions used in the capital assessment measurement system; Determine that the Bank holds sufficient capital against the various risks and is in compliance with established capital adequacy goals; and Assess its future capital requirements based on the Banks reported risk profile and make necessary adjustments to the Banks strategic plan accordingly.
Appropriateness of the Banks capital assessment process given the nature, scope and complexity of its activities. Identification of large exposures and risk concentrations. Accuracy and completeness of data inputs into the Banks assessment process. Reasonableness and validity of scenarios used in the assessment process. Stress testing and analysis of assumptions and inputs. SUPERVISORY REVIEW: Nepal Rastra Bank regularly reviews the process by which a bank assesses its capital adequacy, risk positions, resulting capital levels and quality of capital held by NIBL. Supervisors also evaluate the degree to which NIBL has in place a sound internal process to assess capital adequacy. The emphasis of the review is on the quality of the Banks risk management and controls. The periodic review can involve any or a combination of:
NIBL conducts periodic reviews of its risk management process to ensure its integrity, accuracy, and reasonableness. Key areas that are reviewed include:
On-site examinations or inspections. Off-site review. Discussions with bank management. Review of work done by external auditors (provided it is adequately focused on the necessary capital issues). Periodic reporting.
Board of Directors
prithivi B pand Chairman & CED Mr. Pand has over 20 years experience in the field of banking in Nepal with both the public and private sectors. After obtaining a degree in Chartered Accountancy from India in 1978, he worked at various departments of the departments of the Nepal Rastra Bank (Central Bank of Nepal) for till 1990, during which he was seconded to the IMF head-office in Washington for two years. He was appointed in 1990 as the general manager of Rastriya Banijya Bank the largest commercial bank in Nepal. After financial liberalization started in 1991, Mr. Pand established Himalayan Bank, the first private sector commercial bank in Nepal and a joint venture with Habib Bank. He served as a Stakeholder and Executive Director for a period of 10 years propelling it to the top tier of Nepali banks. In 2001 leading a diverse private equity group he took on management responsibilities from the Credit Agricole Group of Nepal Indosuez Bank to manage Nepal Investment Bank which has resulted in the Banks phenomenal growth in capital, assets and profits.
Deepak Man Sherchan Director Mr. Deepak Man Sherchan is an architect by profession. He holds a B Tech Architecture degree from IIT Kharagpur, West Bengal, India, and has also received a diploma in real estate development from Harvard Design School, USA. Mr. Sherchan is the Managing Director and Chief Architect of CBC (P) Ltd.
Prajanya Rajbhandari Director Mr. Prajanya Rajbhandari is an industrialist who holds an engineering degree from Punjab University. He has held directorships at National Structures, Everest Poultry and Enviroplast. Mr. Rajbhandari has actively served in organizations like Nepal Jaycees, ROTARY and FNCCI in various capacities.
Surendra Bahadur Singh Director Public Shareholders Mr. Surendra Bahadur Singh has a Diploma in Hotel Management from the Institute of Tourism & Hotel Management, Klessheim, Salzburg, Austria, and specialized in Hotel Management from the International School of Tourism, Rome, Italy and completed his MBA degree from Tribhuvan University.
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Mr. Krishna prasad Sharma Director Mr. Krishna Prasad Sharma, Deputy General Manager of Rastriya Banijya Bank has extensive experience of working in the banking sector for over 24 years. Mr Sharma holds a Master Degree in Management and Social Science and also a BSc in Agriculture Science. He holds the position of Chairman of NLG Insurance Company and RBB Retirement Fund, and the position of director at National Life Insurance Company.He has also served as a director in the Credit Information Centre, Purbanchal Grameen Bikas Bank, Paschimanchal Grameen Bikas Bank, and Sudur Paschimanchal Grameen Bikas Bank.
Janardan Dev Pant Director Mr. Janardan Dev Pant is Director of Nepal Investment Bank Limited. He is Chairman of Quantum Capital Limited, a management and investment company. He is a Director of Nirdhan. Pant began his Commercial Banking career with Himalayan Bank Limited (HBL) in the Credit Department, and spent 11 years in various managerial positions and one year in Sunrise Bank Ltd. Prior to his career with HBL, Pant held Office Chief position in District Irrigation Office, Rupendehi, Government of Nepal and Technical Officer with Nepal Industrial Development Corporation. He earned a B.S. Civil Engineering degree from Adamson University and an MBA-Finance from Oklahoma City University.
Dr. Binod Aryal Director Mr. Binod Aryal serves as an Administrator, at Rastriya Beema Sansthan. Mr. Aryal who has been associated with Toyota Motors in the capacity of Senior General Manager from 2006 to 2010 has an extensive experience in the automobile industry in Nepal. Mr. Aryal is currently pursuing PhD degree in Public Transport and its impact on pollution from Kathmandu University. He also serves as a board member of Upper Tamakoshi Hydropower and St. Xaviers College.
Damodar Prasad Sharma Pandey Director Mr. Damodar Prasad Sharma Pandey has 23 years of experience in various departments within the Nepal Rastra Bank; serving as an Executive Director in the Department of Mint. Furthermore, he has significant experience working in Bank Supervision, Economic Research, Banking Operations, Finance and in the Credit Information Bureau. Mr. Pandey has a B.A. from the University of Southampton, U.K. and an M.Sc. in mathematical statistics from Lucknow, India. He has also served as the Chairman of Paschimanchal Grameen Bikash Bank, Director at the Deposit Insurance and Credit Guarantee Corporation and a director of the National Productivity and Economic Development Centre.
Senior Management team
Mr. Jyoti P Pandey General Manager After completing his MBA in India, Mr. Pandey joined Nepal Indosuez Bank in 1988 and became Head of the International Banking Department. In 1992, he joined Himalayan Bank and worked as the Head of Marketing, Branch Manager and Head of the Credit Department over a period of 9 years. In 2002, Mr. Pandey joined Nepal Investment Bank as its Deputy General Manager and now handles general bank operations comprising of Human Resources, Administration, Client Relations, Retail, Trade Finance and Corporate Banking.
Rajan Amatya Deputy General Manager
Mr. Bijendra Suwal Assistant General Manager
Mr. Anuj timilsina Assistant General Manager
Ms. Manju Basnet Assistant General Manager
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With the increase in the number of branches and customer base, the bank is committed to prompt and reliable customer service.
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Management team
Head-Corporate Banking Anuj timilsina Head- Trade Finance Deepak K. Shrestha Head Legal Deepak Shrestha Head Operation Rabin Sijapati Head Branch Co-ordination Cell Shreechandra Bhatta Head-Cards & Remittance Bikash thapa Head Finance Sachin Tibrewal Head Cash & Transfer Sanjeev Karki Head- Reconciliation Tul Jung Pandey Head- Human Resources Prabir SJB Rana Head- Treasury Santosh Ghimire Head- Credit Administration Sammit Bhattarai Head Research & Development Shivanth Bahadur pand Head- Internal Audit and Compliance Binod Upadhyaya Head- General Service Usha Pandey Head- Share Rekha pant
Branch Managers
Uttam Bdr. K.C Seepadole Branch Ratna Kumar Limbu Birjung Branch Prakash Subedi Pulchowk Branch Kumar thapa Banepa Branch Niraj Bhatta Jeetpur Branch Nikita Maskey Newroad Branch Bishal thapa Biratnagar Branch Ajay K. Kafle Butwal Branch Gokarna P. Duwadi Bhairahawa Branch Dhiraj Thapa Pokhara Branch Manju Basnett Putalisadak Branch Prakash Dhungana Narayangarh Branch Vivek Kumar Jha Janakpur Branch Krishna Raj Joshi Nepalgunj Branch Ramraj Upadhyay Thamel Branch Bhaskar n. Joshi Kalimati Branch Sanjit pokhrel Birtamod Branch Bandana thapa Battisputali Branch Subin Sijapati Dhangadi Branch Purushottam Chalise Gongabu Branch Sanket Dhungel Surkhet Branch eka Raj Mahat Jumla Branch Shobha Shrestha Boudha Branch Shekhar Singh Hetauda Branch Baburam Kandel Palpa Branch Keshab Prasad Mainali Lukla Branch Sujan Ranjit Naya Baneshwor Branch Radhika Singh Dhumbarahi Branch Mahesh lal Shrestha Bhotahity Branch Dhiraj Singh Tulsipur Branch Lok Ram Bhattarai Tripureshwor Branch Naresh Jung Pandey Damauli Branch Rakesh Mally Krishnanagar Branch Kailash R. Acharya Gaighat Branch Suraj Jung thapa Lazimpat Branch Pragyan Dhungana Parsa Branch Ajar Bajracharya Maharajgunj Branch Sajan Sah Lalbandi Branch Navin Bir Basnyet Lagankhel Branch Mahesh thapa Waling Branch Barun Shrestha Regional Branch Manager Lalitpur
Domestic Network
KATHMANDU HEAD OFFICE: Durbar Marg P.O. Box 3412, Tel: 4228229, 4242530 (DISA) Fax: 977-1-4226349, 4228927,Swift: NIBL NP KT SEEPADOLE BRANCH: Suryabinayak, Bhaktapur Tel: 6615617, 6612832 Fax: 6616617 BIRGUNJ BRANCH: Adarshanagar P.O. Box 101, Tel (051) 523327, 525277 Fax: (051) 525297, 534271 PULCHOWK BRANCH: Pulchowk, Lalitpur Tel: 5010188, 5010042 Fax: 5010142 BANEPA BRANCH: Banepa, Kavre Tel: (011) 664315, 662401 Fax: (011) 662402 JEETPUR BRANCH: Jeetpur, Bara Tel: (053) 520297 Fax: (053) 520877 NEWROAD BRANCH: Newroad, Kathmandu Tel: 4242858, 4230374 Fax: 4227050 BIRATNAGAR BRANCH: Golcha Chowk, Biratnagar Tel: (021) 534523, 534524, 534525 Fax: (021) 534526 BUTWAL BRANCH: Traffic Chowk, Butwal Tel: (071) 549991, 549992, 549993 Fax: (071) 549888 BHAIRAHAWA BRANCH: Maitri Road, Bhairahawa Tel: (071) 526991, 526992 Fax: (071) 526990 POKHARA BRANCH: Chiple Dunga, xPokhara Tel: (061) 538919, 539276 Fax: (061) 538920 PUTALISADAK BRANCH: Putalisadak, Kathmandu Tel: 4445302, 4445303 Fax: 4445304 NARAYANGARH BRANCH: Pulchowk, Narayangarh Tel: (056) 571921, 571922, 571923, 571924 Fax: (056) 571925 JANAKPUR BRANCH: Mills Area, Janakpur Tel: (041) 527331 Fax: (041) 527332 NEPALGUNJ BRANCH: Dhamboji, Nepalgunj Tel: (081) 525978, 525682 Fax: (081) 521664 THAMEL BRANCH: Chaksibari, Thamel Tel: 4218431, 4218434, 4218485, 4218486 Fax: 4218434 KALIMATI BRANCH: Kalimati Chowk, Kalimati Tel: 4672493, 4672494, 4672495, 4672548 Fax: 4272612 BIRTAMOD BRANCH: Traffic Chowk, Birtamod Tel: (023) 543810, 543811 Fax: (023) 543815 BATTISPUTALI BRANCH: Battisputali, Kathmandu Tel: 4471690, 4471790 Fax: 4470202 DHANGADI BRANCH: Chauraha Chowk, Dhangadi Tel: (091) 523620, 523706 Fax: (091) 524090 GONGABU BRANCH: Gongabu Chowk, Kathmandu Tel: 4365318, 4365077 Fax: 4365302 SURKHET BRANCH: Neta Chowk, Surkhet Tel: (083) 524330, 524331 Fax: 524332
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TRIPURESHWOR BRANCH: Tripureshwor, Kathmandu Tel: 4259780, 4259980 Fax: 4260324 DAMAULI BRANCH: Safasadak, Damauli Tel: (065) 562500, 562600 Fax: (065) 562700 KRISHNANAGAR BRANCH: Krishnanagar, Kapilvastu Tel: (076) 520764, 520765, 520766 Fax: (076) 520354 GAIGHAT BRANCH: Gaighat, Udayapur Tel: (035) 420952, 420953 Fax: (035) 420954 LAZIMPAT BRANCH: Lazimpat, Kathmandu Tel:4005058, 4005069, 4005068 Fax:4005065 NAYA BANESHWOR BRANCH: Naya Baneshwor, Kathmandu Tel: 4785529, 4782289, 4782520 Fax: 4785537 DHUMBARAHI BRANCH: Pipalbot Chowk, Kathmandu Tel: 4009006, 4009007 Fax: 4009009 BHOTAHITI BRANCH: Bhotahiti, Kathmandu Tel: 4230797, 4230788 Fax: 4230771 TULSIPUR BRANCH: Tulsipur, Dang Tel: (082) 521613, 521614 Fax: 521615 PARSA BRANCH: Parsa, Chitwan Tel: (056) 583623, 583624 Fax: (056) 583625 MAHARAJGUNJ BRANCH: Maharajgunj, Kathmandu Tel: 4016151, 4016152 Fax: 4016155 LALBANDHI BRANCH: Lalbandhi, Sarlahi Tel: (046) 501583, 501584 Fax:(046) 501585 LAGANKHEL BRANCH: Lagankhel, Lalitpur Tel: 5552980 Fax: 5552990
JUMLA BRANCH: Khalanga Bazaar, Jumla Tel: (087) 520132 Fax: 520304 BOUDHA BRANCH: Boudha, Kathmandu Tel: 4480121, 4480122 Fax: 4480123 HETAUDA BRANCH: Bank Road, Hetauda Tel: (057) 526001, 525946 Fax: (057) 526005 PALPA BRANCH: Tansen, Palpa Tel: (075) 520832, 520833 Fax: (075) 520891 LUKLA BRANCH: Chaurikharka, Lukla Tel: (038) 550120 Fax: (038) 550220
Global Network
Westpac Banking Corporation, Sydney Royal Bank of Canada, Toronto Jp Morgan Chase, London Danske Bank, Copenhagen Jp Morgan Chase, Frankfurt Commerz Bank, Frankfurt A.M. Credit Agricole, Paris SnS Bank, Amsterdam Standard Chartered Bank, Frankfurt Bayerische Hypo-Und Vereins, Hamburg Standard Chartered Bank, London Habib Allied International Bank Plc, London Standard Chartered Bank,Kolkatta HDFC, Mumbai ICICI Bank, Mumbai
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Citibank, New Delhi Standard Chartered Bank, Mumbai Bank of Tokyo, Mitsubishi Standard Chartered Bank, Tokyo Svenska Handelsbanken,Stockholm, Sweden united overseas Bank ltd. Singapore Citibank, New York Bank of China, Beijing Commerzbank, Frankfurt Standard Chartered Bank, New York Mashreque Bank, New York Jp Morgan Chase,New York
In spite of facing tremendous competition in terms of deposit and lending rates, NIBL has still maintained its market share.
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Board of Director's Report
For the Financial Year 2066/67 (FY 2009/2010)

Presentation by the Chairman to the 24th Annual General Meeting
Dear Shareholder,
It is our pleasure to welcome you at this 24th Annual General Meeting of Nepal Investment Bank Ltd (NIBL). On this occasion, I present to you the Banks activities, Balance Sheet and Profit & Loss account for financial year 2009-10.
1. Review of Banks performance for FY 2009-10:

The fiscal year 2009-10 was another successful year for the Bank. Despite the difficult market conditions, continuing political stalemate, increased competition, liquidity problems, our Bank was able to deliver strong overall performance. An overview of the Banks performance during the review year is presented hereunder:
NPR in Million
Based on the preliminary estimate of the Central Bureau of Statistics, the gross domestic product (GDP) has witnessed a growth of 3.5 percent at basic price and 4.6 percent at producer's price in 2009/10. Such growth rates were 3.9 percent and 4.9 percent respectively in 2008/09. The annual inflation is in double-digits though it moderated to 10.5 percent in 2009/10 compared to 13.2 percent in 2008/09. The balance of payments (BOP) posted a loss of Rs. 2.62 billion in 2009/10 as against a surplus of Rs. 44.76 billion last year. The workers' remittances grew meagerly by 10.5 percent to Rs. 231.73 billion compared to its significant growth of 47.0 percent a year ago. The gross foreign exchange reserves dropped by 7.0 percent to Rs. 266.57 billion in mid-July 2010 from a level of Rs. 286.54 billion as at mid-July 2009. Such reserves had grown by 34.8 percent last year. Recent increase in the number of commercial banks in Nepal as well as commercial banks branches coupled with the global financial crisis and difficult market conditions at home is posing diverse problems to our domestic banking sector. With the increase in the number of commercial banks and other financial institutions, the banking sector in Nepal is facing tremendous competition in terms of deposit and lending rates - resulting in lower spread and directly effecting profitability. Hence, managing the interest rates on deposit and loans and advances is a major challenge faced by banking industry. Moreover, the threat going forward is that due to the global financial crisis and economic contraction in major labor destinations of migrant Nepali workers, remittance flow will either subside or there wont be significant increase in remittance flow like before. This will in turn affect the deposit growth in our banking system.
S.No. Particulars 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.
Total Assets Total Deposit Total Loans and Advances Total Investments Total Operating Profit (before provision for possible loss) Total Net Profit 901 1,265 Non-performing Assets (in %) 0.58 0.62 Return on Paid-up Capital (in %)* 49.8 52.6 Return on Shareholders Fund (in %)* 27.3 27.8 Total Customer Base (in Nos.) 268,345 355,511 Market Share in Deposit (in %) 8.3 7.9 Market Share in Lending (in %) 9.3 8.9
FY 2008-09 53,010 46,698 36,827 7,399 1,477
FY Growth in Growth 2009-10 npR in % 57,305 4,295 8.1 50,094 3,396 7.3 40,948 4,121 11.2 8,635 1,236 16.7 2,021 544 36.8 364 - - - 87,166 - - 40.4 0.04 2.8 0.5 32.5 (0.4) (0.4)
* Average
2. Impact, if any, of the national and international situation upon the business of the company
Most of the countries across the world have faced the contagion impacts of global financial crisis. The growth rate of world output is expected to be negative in 2009 for the first time after the Second World War. Governments and central banks of economically problematic countries made efforts to minimize the effects of crisis through the adoption of conventional as well as non-conventional measures. The updated version of World Economic Outlook issued by the International Monetary Fund on July 8, 2009, has mentioned that the severity of recession has ended. World economy is gradually beginning to come out of severity of recession. But the improvement is uneven among the countries and the recovery is reported to be sluggish.
This year alone the Bank added ten more branches of which four are within the Valley and six are outside the Valley. With these additions, the Bank now has a network of 40 branches throughout Nepal.
3. Achievements/New Products & Services/ New Branches during current fiscal year 2067-68
There were no significant events till the date of this report.
7. Board Of Directors reaction to the remarks made, if any, in the Audit Report
There are no adverse remarks in the audit report except comments on routine matters arising in the normal course of business. The Board of Directors has taken note of such comments and recommendations, and has already initiated requisite steps to regularize the same.
4. Industrial and professional relations of the Company

The Bank has established a cordial and professional relationship with all the stakeholders. We believe that this cordial relationship with all the stakeholders developed on the basis of professionalism and transparency will be fruitful, and prove to be a successful medium for future progress of the Bank.
8. The amount recommended for distribution as dividend

The 338th meeting of the Board of Directors of the Bank has proposed 25% cash dividend from the profit of fiscal year 2009-10 on the Banks paid up capital.
5. Changes made in the Board of Directors, and reasons therefore

During the review year, Mr. Binod Aryal, nominee Director from Rastriya Beema Sansthan, vacated the office of Director and in his place, Mr. Binod Aryal, Administrator, was nominated as Director on the Board of the Bank by Rastriya Beema Sansthan. The promoters representing Group A appointed Mr. Janardan D. Pant as Director representing the Group, thereby filling up the vacancy from the Group, which was lying vacant since past few years. On behalf of the shareholders, I would like to convey my sincere thanks to the outgoing Director for his invaluable contribution and support for the development of the Bank, and also welcome the incoming Directors who have joined the Bank.
9. Number of shares forfeited, if any, and particulars thereof

During the year, no shares have been forfeited. The Bank issued 20,288 number of unsubscribed right shares with face value of NPR 100 on which a premium of NPR 11,849,422 was collected.
10. Progress made in the business of the Company and its subsidiary company during the previous financial year
The Bank does not have any subsidiary company. As regards the progress of the Company during the previous financial year, please refer to Section 1 above.
11. Main transactions between the Company and its subsidiary company during the financial year and important changes, if any, therein
The Bank does not have any subsidiary company.
6. Main factors affecting the business

The main factors affecting the Banks business are: The continuing political stalemate is affecting all sectors of the economy and the financial system is no exception. Heightened competition in the banking sector has led to shrinking margins. The ongoing liquidity crisis has led to challenge in asset liability management and has significantly pushed up cost of funds and increased interest rate risk. The double digit inflation has caused sharp increase in overheads. Due to mushrooming financial institutions, staff retention has become a major human resource challenge.
12. Information furnished to the Company by its basic shareholders during the previous financial year
None.
13. Particulars of the ownership of shares taken up by the Directors and office-bearers of the Company during the previous financial year
None.
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14. Particulars of information furnished by any Director/close relative about his personal interest in any agreement signed by the Company during the previous financial year
There is no any such agreement and consequently, no disclosure in this respect has been made.
15. Particulars of buy-back of shares, if any

There was no buy-back of shares during the year under review.
16. Whether or not there is an Internal Control System, and if there is any such system, details thereof
The Bank has an independent Internal Audit and Compliance Department headed by an experienced auditor. The Department performs its functions under the direct supervision and control of the Audit Committee and submits its reports directly to the latter. To supplement the in-house internal audit department, the Bank also outsources audit service from independent audit firms to review specific areas of operation. In addition, the Bank has also constituted a Compliance Committee comprising of various departmental heads to further strengthen compliance and internal control system of the Bank. Besides these Committee, the Bank has a number of high level committees, namely Executive Credit Committee, Human Resource Development Committee, Construction Committee and Asset Liability Management Committee, each with a defined scope and terms of reference. These Committees comprise of Board members and senior Management officials.
comprises of Mr. Deepak Man Sherchan and Mr. Binod Aryal as Member Directors along with the Banks Head of Internal Audit, Mr. Binod Upadhaya, as its Member Secretary. The Committee reviews the Banks financial condition, its internal control and risk management systems, statutory and regulatory compliances, audit programs etc. After detailed discussion on the findings of the internal audit as well as external audit reports, the Committee initiates necessary corrective action. The Committee periodically apprises the Board of Directors of the issues and the corrective measures initiated. During the year, seven such meetings were held. The Chairman of the Committee is paid NPR 10,000 and member Directors are paid NPR 8,000 each, per meeting, by way of Audit Committee meeting fee.
19. Payments due, if any, to the Company from any Director, Executive Chief or basic shareholder of the Company, or their close relatives, or their related entities
No such payments are due to the Company.
20. Amount paid as remuneration, allowances and facilities to the Directors, the Executive Chief and other office bearers
As per Annexure A below.
21. Dividend yet to be collected by shareholders

Dividends declared by the Bank but not claimed by the shareholders till the end of 2009-10 stood at NPR 16,822,327.
17. Particulars of the total management expenses of the previous financial year
Employee Expenses during the Previous FY: Administrative Expenses during the Previous FY: Total: NPR 279.85 million NPR 433.59 million NPR 713.44 million
22. Any other matters a. New Branches, Products and Services During FY 2066-67:
Branch network: This year alone the Bank extended ten more branches, of which four are within the Valley (namely Tripureshwor, Lazimpat, Maharajgunj and Lagankhel) and six are outside the Valley (namely Tulsipur, Damauli, Krishnanagar, Gaighat, Parsa and Lalbandi). With this addition, the Bank now has a network of 40 branches throughout Nepal. new products: The Bank introduced two new products- NIBL Special Fixed Deposit with interest rate of 11% and Saving Bonanza with 7.5%. Both these products received good response from the customers.
18. Names of the members of the Audit Committee, remuneration etc. being received by them and functions discharged/suggestions offered by the Committee
The Banks Audit Committee, under the chairmanship of a non-executive director, Mr. Damodar Prasad Sharma Pandey,
Ebanking: NIBL now has 14,000 new users in the ebanking platform giving the highest base of ebanking customers in Nepal at 28,000. There have been new and innovative added features in the ebanking product such as online airline ticket booking and payments, alongside enabled Online and ATM pre/post paid bill payments for Telecom companies including PSTN landline payments throughout Nepal. NIBL also tied up with Nepal Derivatives Exchange allowing the ebanking users to conduct derivative transactions. NIBL released an electronic payment gateway, enabling secure VISA, MasterCard and PayPal transactions and e-commerce on the internet for ebanking customers. Cards: The Bank successfully migrated to new switching system Electra Card System. Our card base has increased to more than 250,000 cards till the year end. We have successfully launched our proprietary Network National Payment Network and 15 financial institutions have already joined the Network. We have added 18 more ATMs making a total of 70 NIBL owned ATMs. We have 200 plus ATMs and 400,000 plus cards in our network -VISA Associate and NPN members. Remittance: The Bank has started remittance business from USA and UK and also expanded its remittance business team in Saudi market and Malaysia. This has registered strong growth and success in the first year of operation, making NIBL the largest Nepali Bank remitting money back to Nepal. Bank Albilad has awarded NIBL the Best Remittance Partner Award 2010. The award was given on the basis of NIBLs steady performance level, outstanding support and excellent customer relations. The Bank added 300 domestic remittance disbursement agents during this period making the total number of remittance disbursement agents to 500 throughout Nepal. Business Tie-ups: All American Life Insurance Company, ALICO has also tied up with NIBL to offer its life insurance products through NIBLs Bancansurance program. NIBL has entered into an arrangement with China Development Bank (CDB) to promote project relationships in infrastructure finance in terms of project cooperation, financial consultancy, credit grants and currency swaps. This arrangement will not only enable NIBL to finance hydropower projects in Nepal but will also enable the
Banks corporate clients access to international debt markets. other Achievements: NIBL also qualified to join the Global Trade Finance Program offered by the International Finance Corporation (IFC), enabling the Bank to conduct international finance arrangements with a wider range of correspondent banks greatly benefiting our corporate clients. NIBL has received a trade finance facility of USD 5 million, the largest extended to any Nepali Bank and it will enhance our support for local enterprises and boost international trade opportunities.
b. Human Resources:
We recognize the important role of human resources to successfully meet our business goals. The Bank is committed to provide quality learning and working environment for our staff and help them develop their knowledge, skills & attitude required to perform well in their career. The Bank has been able to inculcate a strong performance based culture where staff is rewarded for achievement of annual performance targets. Ultimately, the quality of our human resources should be the source of competitive advantage for us. With the increase in the number of branch representation and customer base, the Bank has to ensure that we continue to provide prompt and reliable customer service. The Banks total workforce has reached 877 compared to 766 in the previous year. Of the total staff strength, 41% are female staffers and 80 staff members have completed more than 10 years of service in the institution. We continue to place great value in quality and service and our development objectives ensure that our staffers are motivated with high levels of productivity and loyalty. During the year, 533 participants attended 75 training courses/ workshops on various areas like SME Lending, Risk Management, Anti Money Laundering, Signature verification & counterfeit notes, Customer Service, Operations and NRB guidelines. Six staff members attended workshops in India and abroad. The Bank also supports team-building activities like sports, yoga, meditation focusing on job satisfaction and personal growth. Our staff members are our most valuable asset and their development, motivation, recognition, reward and welfare
34
NIBL donated the fund raised by NIBL Heritage Marathon 2009 to help build cremation pyres at Bhasmeshwor ghat, Pashupatinath and for restoration work at the Bhaideval Temple,Patan Durbar Square.
are very important to the success of this Bank. Our aim is to attract, retain, and motivate staff who can deliver efficient service to our clients.
for Nature Conservation. Similarly, the Bank also donated one lakh rupees to Nepal Carpet Exporters Association. The Bank gave away three lakh rupees to All Nepal Lawn Tennis Association to aid with their annual lawn tennis match. Our Bank has also been keen on promoting Nepali art and artists. This year alone we gave away one lakh rupees to Siddhartha Art Gallery. Siddhartha Art Gallery strives to promote both contemporary Nepalese art and artists from around the globe.
c. Social and Community Works:

Nepal Investment Bank Limited successfully conducted NIBL Heritage Marathon 2009, an initiative gesture towards the conservation of our cultural heritage. Our second Nepal Investment Bank (NIBL) Heritage Marathon 2009, whose main objective was to help preserve heritage and architecture of Kathmandu Valley, raised over 70 lakh rupess far exceeding our target of fifty lakhs rupees. The Bank donated this fund to help build cremation pyres at Bhasmeshwor Aryaghat Pashupatinath and for restoration work at the Bhaideval Temple at Patan Durbar Square. The Bank also gave away 25 lakh rupees for Extreme Everest Expedition, the cleanup campaign that cleared out 1800 kilos of garbage from above 8,000 meters, often referred to as the death zone. The event roused wide international concern, and was extensively reported by all local media as well as renowned international media like BBC, Reuters and AFP. Apart from cleaning up the death zone, the campaign also successfully rescued the body of two mountaineers - Swiss climber Gianni Goltz, who died last year, and Russian climber Sergey Duganov. The visual documentation of the same is due for premier in December. The Bank also gave away five lakh rupees to support the second Microfinance Summit 2010. The summit focused on converging the role of varied stakeholders from policymakers, regulators, to commercial banks and other microfinance practitioners, to reach the broader spectrum of rural demography. The summit also worked on providing financial services to 3 million people, especially women, by 2010. NIBL sponsored one lakh rupees to Spinal Iinjury Rehabilitation Center for their golf tournament. The Spinal Injury Rehabilitation Centre (SIRC) is a unique charitable facility and the only rehabilitation centre in Nepal that caters exclusively to the needs of the spinally injured. The Bank has also been supporting the environmental causes. Just this year, we gave away 50,000 rupees to National Trust
d. Future Plans NIBL aims to add value to both clients and to shareholders
via a technology based portfolio of products different from those used by our competitors. Branch network of the Bank has reached 40, which allows our Bank to cover areas spread over Mechi to Mahakali zones and surrounding districts. For the coming fiscal year, we will be mainly focusing on consolidation, control and to increase profitability of branches. The existing eBanking offers a list of features that may be developed as an individual product or even brands. We have developed a system that alerts the customers of their transaction and daily balances, which could be one of the very important value added services. Our Bank has been utilizing a state of the art software technology which enables us to reduce the number of manual work, which in turn is made automated, offering more efficient outcomes. The Bank has achieved highest level of automation in various manual operations and reporting mechanisms. Cost reduction initiative will be undertaken by offering central back office operations for the processes like clearing and remittances to leverage on the system capabilities. We intend to establish a 24 hour call center in order to facilitate the member banks and their customers. And after successful migration, we have aggressively marketed National Payment Network (NPN) members. However, an entirely separate cell is required in order to make it an independent entity. We will be launching Electronic Payment Gateway (EPG) for online purchases which will be the first of its kind in Nepal. Further, we plan to develop loyalty programs like EMI and Cash Back offers to increase our card base.
Increase in competition in the banking industry has made Banks look for additional areas for investments to continue to keep up the revenue stream. NIBL is contemplating commencing insurance and micro-finance business, which are expected to help us in improving our revenue streams and shrinking margins. NIBL would complete 25 years of banking operation in Nepal in 2011. We have come a long way from being the first bank to be entirely funded by Nepali investors to being one of the leading commercial banks of Nepal. The 25th Anniversary will be marked by special celebration and schemes, which will be incorporated in the near future. Lastly, the Bank has continued its long term strategy to be the leading bank in the country by pursuing a strategy of growth and delivery of quality services.
and guidance. I would also wish to thank the management and staff of Nepal Investment Bank Ltd for their dedication and hard work. Lastly, we thank all our customers for giving the Bank an opportunity to serve them and without whose support, the development of the Bank and growth in business would not have been possible. Thank you,
prithivi B. pand Chairman Chief Executive Director Prajanya Rajbhandari Director Binod Aryal Director Date: Asoj 5, 2067 (September 21, 2010)
23. Acknowledgments
On behalf of the Board, I wish to thank the external auditors for their timely completion of audit and professional suggestions. I also extend sincere thanks to our shareholders for their continued support and encouragement. We sincerely convey our thanks to the Government of Nepal, Ministry of Finance and Nepal Rastra Bank for their continued support
36
NIBL will complete 25 years of banking operation in Nepal in 2011. We will have journeyed to become one of the leading commercial banks in Nepal.
NIBL aims to add value to both clients and to shareholders via an innovative blend of technology based products different from those used by our competitors.
38
Annexure A
Amount Paid as Remuneration, Allowances and Facilities to the Directors, the Executive Chief and Other Office-bearersa) Directors:
b) Annual Salary, Allowances and other Facilities provided to CED and other Executives /Managers
NPR in Thousand S.N. Particulars CED other Executives/ Managers 24,476 23,400 3,973 2,448 40
a) Directors:
1 2 3 4 5 6 7 8 Prithivi B. Pand Prajanya Rajbhandari Deepak Man Sherchan Janardan D. Pant Krishna Prasad Sharma Binod Aryal Surendra B. Singh Damodar Prasad Sharma Pandey Chairman / Chief Executive Director Director Director Director Director Director Director Professional
1 2 3 4
Basic Salary 7,564 Allowances 7,920 Dashain Allowance 1,290 Provident Fund 756 Total Number 1
Besides Salary and Allowances, following facilities are provided to CED and Other Executives/ Managers: 1 Water/ Electricity & Telephone Bills are reimbursed as per actual to CED & GM. 2. Vehicle with driver and fuel is provided to CED & GM. For other Executives and Managers, vehicle loan/ facilities provided as per Human Resource Policy of the Bank. 3. Bonus - as per Bonus Act. 4. Accident Insurance, Medical Insurance, Life Insurance - as per Service Regulations and Human Resource Policy of the Bank 5. Newspapers & Periodicals are provided to CED & GM
Directors:
1. Meeting Fee- Chairman Rs. 10,000 and Directors Rs. 8,000 per meeting 2. Mobile Phone bill reimbursement on actual basis. 3. Fuel facility 50 ltrs per month.
Corporate Social Responsibility
Ours is the age when Corporate Social Responsibility has become part and parcel of corporate business. However, Nepal Investment Bank Limited does not see this corporate responsibility as a mere obligatory duty but an opportunity to help build the nation and give back to society. Since the early days of its inception, Nepal Investment Bank Limited has been investing heavily on the issues of social causes, whose profit will go to each individual and even nation at large. We have tried to lend our hands on diverse issues from environment conservation, health care, education to natural disaster victims. We have briefly listed some of the major events supported by Nepal Investment Bank Limited.
NIBL sponsored three extra cremation pyres at Bhasmeshwor, Pashupati
nIBl Heritage Marathon 2009

Nepal Investment Bank Limited successfully conducted NIBL Heritage Marathon 2009, an initiative gesture towards the conservation of our cultural heritage. Our second Nepal Investment Bank (NIBL) Heritage Marathon 2009, whose main objective was to help preserve heritage and architecture of Kathmandu Valley, raised over 70 lakh rupess far exceeding our target of fifty lakhs rupees. The bank donated this fund to help build cremation pyres at Bhasmeshwor, Pashupatinath and for restoration work at the Bhaideval Temple at Patan Durbar Square.
Reconstruction of Pavement
Five added Dhunge Dhara
NIBL Heritage Marathon 2009`
Bhaideval Temple at Patan Durbar Square (Before and After)
40
Nepal Investment Bank Limited does not see this corporate responsibility as a mere obligatory duty but an opportunity to give back to society.
Restoration project at Sundari Chowk
Restored Sundari Chowk courtyard
Extreme Everest Expedition

The bank also gave away 25 lakh rupees for Extreme Everest Expedition, the cleanup campaign that cleared out 1800 kilos of garbage from above 8,000 meters, often referred to as the death zone. The event roused wide international concern, and was extensively reported by all local media as well as renowned international media like BBC, Reuters and AFP. Apart from cleaning up the death zone, the campaign also successfully rescued the body of two mountaineers - Swiss climber Gianni Goltz, who died last year, and Russian climber Sergey Duganov. The visual documentation of the same is due for premier at December.
Rescuing the body of two mountaineers
Micro Finance Summit 2010

Bank also gave away five lakh rupees to support the second Microfinance Summit 2010. The summit focused on converging the role of varied stakeholders from policymakers, regulators, to commercial banks and other microfinance practitioner, to reach to the broader spectrum of rural demography. The summit also worked on providing financial services to 3 million people, especially women, by 2010.
Spinal Injury Rehabilitation Center

Cleanup campaign at Mt. Everest
NIBL sponsored one lakh rupees to Spinal injury Rehabilitation Center for their golf tournament. The Spinal Injury Rehabilitation
The bank sponsored 25 lakh rupees for Extreme Everest Expedition, the cleanup campaign that cleared out 1800 kilos of garbage from 8,000 meters above Everest with funds raised from our Marathon.
Nepal Carpet Exporters Association

The bank donated one lakh rupees to Nepal Carpet Exporters Association, which is a non-profit trade organization of exporters of hand-woven and knotted carpets and area rugs. NCEA was established to protect the interests and aspirations of Nepalese carpet exporters through a process of effective policy lobbying and worldwide market promotion of Nepalese carpet. The bank donated 50,000 rupees to National Trust for Nature Conservation. NTNC was established in 1982 by a Legislative Act as an autonomous and not-for-profit organization, mandated to work in the field of nature conservation in Nepal.
Spinal injury Rehabilitation Center
Nepalese Society For Children's Literature

Centre (SIRC) is a unique charitable facility and the only rehabilitation centre in Nepal that caters exclusively to the needs of the spinally injured. At SIRC, the patient undergoes an intensively engaged period of rehabilitation which includes specialized therapy, counseling, vocational training, and medical care. The event was observed by golfers as well as non golfers. Bank has also been supporting the environmental causes. Just this year, we gave away 50,000 rupees to National Trust for Nature Conservation. Similarly, the bank also donated one lakh rupees to Nepal Carpet Exporters Association. NIBL supported Nepalese Society for Childrens Literature by donating one lakh rupees. NESCHIL was established with a view to promote children's literature and reading activities in Nepal bringing together the writers, illustrators, editors of children's books as well as publishers, librarians, teachers, and experts in children's activities.
press Chautari
NIBL sponsored 50,000 rupees to Press Chautari. Press Chautari.com is a dedicated internet based online media site to bring us news, events, interactions, discussions and forums to the Nepalese from abroad and Nepal, it is based in New York, US. Their primary objective is to make this site as a complete media access for all Nepalese people around the globe and promote relationships and explore the potentialities for growth and opportunities.
All nepal lawn tennis Association

The bank gave away three lakh rupees to All Nepal Lawn Tennis Association to aid with their annual lawn tennis match.
Siddhartha Art Gallery

NIBL sponsored one lakh rupees to Siddhartha Art Gallery. Siddhartha Art Gallery strives to promote both contemporary Nepalese art and artists from around the globe. Hosting exhibitions in various mediums including photography, pottery, installation art and printmaking, the gallery appeals to different artistic tastes and interests. Committed towards social responsibility, they focus on socio-cultural and political issues, have initiated community art projects and donate to many causes such as Earthquake Relief Fund, construction of maternity wards for underprivileged mothers and renovations of historic temples.
Donation for Curable Blindness

The bank gave away 77,000 rupees to the center for Lions Eye Cure Center to support their mission to eradicate curable blindness. Lions Eye Care Center was established in response to alarming statistics revealed in a national survey in 1981 which discovered approximately 80,000 people in Nepal who were needlessly blind from Cataract alone. To combat this problem; Lions Eye Care Center has had notable success. Over the period 2000/2003, LECC has conducted 46 surgical eye camps performing sight restoring operations on the total 3099, people in the Rural Regions of Nepal. Since last ten years, it has also expanded its hospital facilities to accommodate inpatients and introduce regular operating facilities.
42
National Senior Citizen Organization, Nepal

As a part of its corporate social responsibility project the bank aided the National Senior Citizen Organization Network Nepal (NSCONN) with 25,000 rupees. The organization is dedicated towards the protection and enhancement of elderly citizens rights in Nepal and is working extensively on including the issue of senior citizens right as an integral part of the tobe-drafted constitution.
nepal Agricultural Research Council

NIBL has been actively involved in agricultural promotion too. This year alone, we gave away 25,000 rupees to Nepal Agricultural Research Council. Nepal Agricultural Research Council (NARC) was established in 1991 as an autonomous organization under "Nepal Agricultural Research Council Act - 1991" to conduct agricultural research in the country to uplift the economic level of the people.
South Asian Institute of Management

The bank donated 50,000 rupees to South Asian Institute of Management (SAIM) to support their Management Development Program. SAIM is an independent, academic institution established in Kathmandu, Nepal in 2005 to provide need-based management education and engage in management development, research and consulting to facilitate the growth and development of managers, entrepreneurs, and business leaders in South Asia which is emerging as the most dynamic Asian regional economic center for global trade, investment and technology innovation.
Nepal Body Building & Fitness Association

Given the context of our society, where sedentary lifestyle is becoming an obligation, the need for physical activities is pivotal. Taking this into consideration, the need to balance these obligations with physical activities is more important than ever. Hhence, NIBL has been actively promoting healthy lifestyle. With the same motive, the bank donated 50,000 rupees to Nepal Body Building & Fitness Association
GAEKWAD Golf Tournament

Nepal Investment Bank contributed one lakh rupees to GAEKWAD Golf Tournament 2009. The two-day event was organized by GAEKWAD Baroda Golf Club (GBGC). GBGC is situated in the Lukshmi Villas Palace grounds at Vadodara, the industrial and cultural capital of Gujarat. Owned and operated by Gaekwad Services Ltd, it is affiliated with the CCI Club of India, Mumbai. Apart from the golf tournament, the event also helps promote tourism.
TO THE SHAREHOLDERS OF NEPAL INVESTMENT BANK LIMITED 1. We have audited the accompanying Balance Sheet of Nepal Investment Bank Limited as on Ashadh 32, 2067 (July 16, 2010) and the related Profit and Loss Account and Cash Flow Statement for the year then ended. These financial statements are the responsibility of the banks management. Our responsibility is to express an opinion on these financial statements based on our audit. 2. We conducted our audit in accordance with the generally accepted auditing standards in Nepal and the directives issued by the Nepal Rastra Bank. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. On examination of the financial statements as aforesaid, we report that: a) We have obtained all information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our examination. b) In our opinion, proper books of account as required by law have been kept by the Bank, in so far as appears from our examination of those books of account and the financial statements dealt with by this report are in agreement with the books of accounts. c) In our opinion, the statements received from the respective branches are adequate for the audit purpose. d) In our opinion and to the best of our information and according to the explanations given to us and from our examination of the books of accounts of the Bank, we have not come across the cases where the Board of Directors or any member thereof or any employee of the Bank has acted deliberately contrary to the provisions of the law relating to accounts or caused loss or damage to the Bank or committed any misappropriation or violated any directive of Nepal Rastra Bank or acted in a manner to jeopardize the interest and security of the Bank and its depositors. e) In our opinion, adequate capital fund and provisions for losses have been made and the business of the Bank has been conducted within its authority. 4. In our opinion and to the best of our information and according to the explanations given to us, the said financial statements referred to above, read together with the notes attached thereon give a true and fair view: a) In the case of the Balance Sheet, of the state of affairs of the Bank as on Ashadh 32, 2067 (July 16, 2010) and b) In the case of the Profit and Loss Account and the Cash Flow Statement, the profit of the Bank and its cash flow for the year ended on that date.
Sundar Man Shrestha, FCA Chartered Accountant For Sundar & Co.
Date: September 17, 2010
Balance Sheet
As at Ashad end 2067 (July 16, 2010)
Capital & Liabilities 1. 2. 3. 4. 5. 6. 7. 8. 9. Share Capital Reserve & Fund Debentures and Bonds Borrowings Deposits Liabilities Bills Payable Proposed Dividend Income Tax Liabilities Other Liabilities Schedule 1 2 3 4 5 6 Current Year Rs. 2,409,097,700 2,176,295,392 1,050,000,000 37,314,826 50,094,725,497 38,143,836 602,274,425 37,195,255 860,366,551 57,305,413,482 Previous Year Rs. 2,407,068,900 1,500,770,808 1,050,000,000 38,800,000 46,698,100,065 82,338,018 481,413,780 38,296,736 714,014,819 53,010,803,126
Total Liabilities
Assets 1. 2. 3. 4. 5. 6. 7. 8. 9. Cash Balance Balance with NRB Balance with Banks/ Financial Institution Money at Call and Short Notice Investments Loan, Advances & Bills Purchased Fixed Assets Non-Banking Assets Other Assets
Schedule 8 9 10 11 12 13 14 15 16
Current Year Rs. 1,525,441,872 3,237,217,030 2,053,230,931 8,635,530,125 40,318,308,062 1,136,247,319 399,438,143 57,305,413,482 Schedule 17 Schedule 29 Schedule 30 (A1) Schedule 30 (B) (C) (D) (E) Schedule 31 Schedule 32 Schedule 33 Schedule 34 Schedule 35 Schedule 36
Previous Year Rs. 1,833,462,494 4,411,133,083 1,673,408,313 7,399,811,700 36,241,206,558 1,060,752,482 375,000 390,653,496 53,010,803,126
Total Assets Contingent Liabilities Directors Declaration Statement of Capital Fund Statement of Risk Weighted Assets Principal Indicators Principal Accounting Policies Notes to Accounts Details of Loan Against Promoters Shares Comparision Between Audited & Unaudited results Fourth Quarterly Unaudited Results
Schedules 1 to 17 form integral parts of the Balance Sheet.
Prithivi Bahadur Pande Chairman & Chief Executive Director Krishna Prasad Sharma Director Jyoti P. Pandey General Manager
Prajanya Rajbhandari Director Surendra Bahadur Singh Director Sachin Tibrewal Head- Finance
Deepak Man Sherchan Director Damodar Prasad Sharma Pandey Director
Janardan Dev Pant Director Binod Aryal Director

As per our report of even date
Auditor Sundar Man Shrestha, FCA For, Sundar & Company Chartered Accountants
46
Profit & Loss Account

for the period July 16, 2009 to July 16, 2010 (Shrawan 1 2066 to Ashad 32 2067)
Particulars 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Interest Income Interest Expenses Net Interest Income Commission and Discount Other Operating Income Exchange Profit Total Operating Income Staff Expenses Other Operating Expenses Exchange Loss Operating Profit Before Provision for Possible Loss Provision for Possible Losses Operating Profit Non-operating Income/ Loss Loss Provision Written Back Profit from Regular Operations Profit/ Loss from extra-ordinary activities Net Profit after considering all activities Provision for Staff Bonus Income Tax Provision - Current Year - Upto Previous Year - Deferred Tax Income / (Expense) Schedule 18 19 20 21 22 23 24 22 25 26 27 28 Current Year Rs. 4,653,521,338 (2,553,847,497) 2,099,673,841 242,886,274 168,312,660 224,056,830 2,734,929,605 (279,851,360) (433,596,280) 2,021,481,965 (93,056,584) 1,928,425,381 10,606,049 50,000,462 1,989,031,892 1,989,031,892 (180,821,081) (532,898,521) (9,362,702) 1,265,949,588 Previous Year Rs. 3,267,941,142 (1,686,973,130) 1,580,968,012 183,041,778 113,974,099 185,327,111 2,063,311,000 (225,721,490) (360,533,174) 1,477,056,336 (166,201,383) 1,310,854,953 2,953,012 114,653,009 1,428,460,974 1,428,460,974 (129,860,089) (389,580,266) 7,477,673 (15,879,221) 900,619,072
Net Profit (Loss)

Schedules 18 to 28 form integral part of this Profit & Loss Account.

Profit & Loss Appropriation Account

for the period July 16, 2009 to July 16, 2010 (Shrawan 1 2066 to Ashad 32 2067)
Particulars Income 1. Accumulated Profit up to last year 2. This years profit 3. Exchange Fluctuation Reserve 4. Transfer from Capital Adjustment Fund Total Expenses 1. Accumulated loss up to last year 2. This years Loss 3. General Reserve Fund 4. Contingent Reserve 5. Institutional Development Fund 6. Dividend Equilization Fund 7. Employees Related Funds 8. Proposed Dividend 9. Proposed Issue of Bonus Shares 10. Special Reserve Fund 11. Exchange Fluctuation Reserve 12. Capital Adjustment Fund 13. Debenture Redemption Fund 14. Investment Adjustment Reserve Total Accumulated Profit (Loss) Current Year Rs. Previous Year Rs.
156,558,171 1,265,949,588 1,422,507,759 (253,189,918) (602,274,425) (3,127,914) (150,002,429) (300,000) (1,008,894,686) 413,613,074
67,478,694 900,619,072 968,097,766 (180,123,815) (481,413,780) (150,002,000) (811,539,595) 156,558,171

48
Cash Flow Statement

for the period July 16, 2009 to July 16, 2010
Previous Year Rs. Particulars (a) Cash Flow from Operating Activities 1. Cash Receipts 1.1 Interest Income 1.2 Commission and Discount Income 1.3 Exchange Gain 1.4 Recovery of Loan Written Off 1.5 Other Income 2. Cash Payments 2.1 Interest Expenses 2.2 Staff Expenses 2.3 Office Overhead Expenses 2.4 Income Tax Paid 2.5 Other Expenses Cash Flow Before Changes in Working Capital Increase/(Decrease) of Current Assets 1. (Increase)/Decrease in Money at Call and Short Notice 2. (Increase)/Decrease in Short-term Investment 3. (Increase)/Decrease in Loan and Bills Purchase 4. (Increase)/Decrease in Other Assets Increase/(Decrease) of Current Liabilities 1. Increase/(Decrease) in Deposits 2. Increase/(Decrease) in Certificate of deposits 3. Increase/(Decrease) in Short-Term Borrowings 4. Increase/(Decrease) in Other Liabilities (b) Cash Flow from Investing Activities 1. (Increase)/Decrease in Long-term Investment 2. (Increase)/Decrease in Fixed Assets (including Software)/ NBA 3. Interest from Long-term Investment 4. Dividend Income (c) Cash Flow from Financial Activities 1. Increase/(Decrease) in Long-term Borrowings ( Bond, Debentures etc.) 2. Increase/(Decrease) in Share Capital/share premium 3. Increase/(Decrease) in Other Liabilities 4. Increase/(Decrease) in Refinance/facilities received from NRB (d) Income/Loss from change in exchange rate in cash and bank balances (e) Current Years Cash Flow from All Activities (f) Opening Balance of Cash and Bank Balances (g) Closing Balance of Cash and Bank Balances Current Year Rs.
3,803,634,711 3,267,941,142 262,791,664 185,327,111 87,574,794 (2,589,446,318) (1,686,973,130) (225,721,490) (301,385,498) (375,366,201) 1,214,188,393 (9,885,946,540) (519,363,075) (9,297,852,674) (68,730,791) 12,273,134,884 12,246,373,874 38,800,000 (12,038,990) (240,162,782) (4,325,000) (237,443,757) 1,605,975 801,848,367 801,848,367 4,163,062,322 3,754,941,568 7,918,003,890
5,288,777,102 4,653,521,338 242,886,274 224,056,830 168,312,660 (3,676,688,443) (2,553,847,497) (279,851,360) (299,626,882) (543,362,704) 1,612,088,659 (5,072,285,698) (943,343,425) (4,120,157,626) (8,784,647) 2,835,062,947 3,396,625,432 (1,485,175) (560,077,311) (490,858,185) (292,375,000) (202,812,635) 4,329,450 13,878,222 13,878,222 (1,102,114,057) 7,918,003,890 6,815,889,833

50 Accumulated Profit/(Loss) General Capital Reserve Reserve Share Premium Exchange Other Fluctuation Reserves Fund 27,839,640 27,839,640 3,127,914 30,967,553 31,500 630,363,714 150,002,429 300,000 31,500 31,500 480,361,285 480,361,285 - 17,820,561 - 9,362,702 - 27,183,263 Debenture Investment Redemption Adjustment Fund Reserve Deferred Tax Total 156,558,171 (9,362,702) 147,195,469 253,189,918 11,849,422 11,849,422 835,980,211 835,980,211 3,925,660,268 3,925,660,268 300,000 27,183,263 1,275,312,290 (602,274,425) 13,878,222 4,612,576,356 413,613,074 1,089,170,129
F.Y. 2066/67 (FY 2009/10) F.Y. 2066/67 (FY 2009/10)
Statement of Changes in Equity
Particulars
Share Capital
Opening Balance (as at 16 July 2009) Deferred Tax Restated Balance Surplus on Revaluation of properties Deficit on Revaluation of Investment Currency translation differences Net Gains & Losses not recognised in the income statement Net profit for the period Transfer to General Reserve Declaration of Dividend (proposed) Issue of Share Capital Deficit on revaluation of currencies Surplus on Revaluation of Investment Transfer to Exchange Fluctuation Fund Capital Adjustment Fund Debenture Redemption Fund Investment Adjustment Reserve
2,407,068,900 2,407,068,900 -
- 1,275,312,290 - (253,189,918) - (602,274,425) 2,028,800 (3,127,914) - (150,002,429) (300,000)
Closing Balance ( as at 16 July 2010)
2,409,097,700
SHARE CAPITAL & OWNERSHIP

( As at July 16, 2010)
Previous Year Rs. Particulars 1. Share Capital 1.1 Authorized Capital A) 40,000,000 Ordinary Shares of Rs. 100 each 1.2 Issued Capital A) 24,090,977 Ordinary Shares of Rs. 100 each (of which 13,562,684 Right Share & 9,928,293 bonus shares) 1.3 Paid Up Capital A) 24,090,977 Ordinary Shares of Rs. 100 each (of which 13,562,684 Right Share & 9,928,293 bonus shares) 1.4 Proposed Bonus Shares 1.5 Calls in Advance Total
Schedule 1
Current Year Rs.
4,000,000,000 2,409,097,700
4,000,000,000 2,409,097,700
2,407,068,900 2,407,068,900
2,409,097,700 2,409,097,700
SHARE OWNERSHIP
( As at July 16, 2010)
Share Capital 1,927,278,300 % 80% Particulars A. Promoters 1.1 Nepal Government 1.2 Foreign Institutions 1.3 A Class Liscensed Institutions 1.4 Insurance Company 1.5 Organized Institutions 1.6 Individuals 1.7 Others B. General Public Total % 80% Share Capital 1,927,278,300
361,364,600 361,364,600 1,204,549,100 479,790,600 2,407,068,900
15% 15% 50% 0% 0% 20% 100%
15% 15% 50% 0% 0% 20% 100%
361,364,600 361,364,600 1,204,549,100 481,819,400 2,409,097,700
Details of Shareholders holding 0.5 percent or above shares are mentioned below:
Organized Institution (Group A) Maha Laxmi Investment P. Ltd. Chhaya Investment P.Ltd K.U.P. Investment P. Ltd. Sophia Investment P. Ltd Annapurna Investment P. Ltd Kamala Investment P. Ltd. Noble Investment P.Ltd Prestine Investment P. Ltd. Surya Infosys P. Ltd. Star Holding P. Ltd. P. Shanghai Investment P. Ltd Apollo Investment P. Ltd Lotus Investments P. Ltd Pancha Kanya Investment Co P. Ltd R. Shangai Investment P. Ltd. Singhe Carpets P. Ltd. Shrestha Brothers Investment P. Ltd. Mercantile Investments P. Ltd. Shakya Investments P. Ltd S. Shakya Investment P. Ltd S.R. Investment P. Ltd. A Class Liscensed Institution (Group B) - Rastriya Banijya Bank Insurance Company (Group C) - Rastriya Beema Sansthan
% 8.83 8.2 7.81 7.42 1.56 1.56 1.56 1.56 1.56 1.17 0.78 0.78 0.78 0.78 0.78 0.78 0.78 0.63 0.63 0.55 0.55
Amount (Rs. in '000) 212,678 197,622 188,209 178,800 37,643 37,643 37,643 37,643 37,643 28,231 18,821 18,821 18,821 18,821 18,821 18,821 18,821 15,058 15,058 13,175 13,175
15
361,365
15
361,365
RESERVE FUNDS
( As at July 16, 2010)
Previous Year Rs. 835,980,212 480,392,785 31,500 480,361,285 156,558,171 27,839,640 1,500,770,808 Particulars 1. 2. 3. 4. 5. 6. General Reserve Fund Capital Reserve Fund Capital Redemption Reserve Capital Adjustment Fund Share Premium Other Reserve Fund a. Contingent Reserve b. Institution Development Fund c. Dividend Equalization Fund d. Special Reserve Fund e. Assets Revaluation Reserve f. Deferred Tax Reserve g. Debenture Redemption Fund h. Other Reserves i. Investment Adjustment Reserve 7. Accumulated Profit/ Loss 8. Exchange Fluctuation Reserve Total
Schedule 2
Current Year Rs. 1,089,170,129 11,849,422 630,695,214 31,500 630,363,714 300,000 413,613,074 30,967,553 2,176,295,392
DEBENTURES AND BONDS

( As at July 16, 2010)
Previous Year Rs. 300,000,000 Particulars 7.5 % Debentures of Rs. 1000 each issued on 24.11.2003 (2060.08.08) and maturing on 24.11.2010 (2067.08.07) Outstanding Balance of Redemption Reserve Rs. 300,000,000 6 % Debentures of Rs. 1000 each issued on 26.06.2006 (2063.03.12) and maturing on 25.06.2013(2070.03.11) Outstanding Balance of Redemption Reserve Rs.145,837,143 6.25 % Debentures of Rs. 1000 each issued on 26.06.2007 (2064.03.12) and maturing on 25.06.2014(2071.03.11) Outstanding Balance of Redemption Reserve Rs. 110,121,857 8 % Debentures of Rs. 1000 each issued on 09.07.2008 (2065.03.25) and maturing on 08.07.2015 (2072.03.24) Outstanding Balance of Redemption Reserve Rs. 74,404714 Total
Schedule 3
Current Year Rs. 300,000,000
250,000,000
250,000,000
250,000,000
250,000,000
250,000,000
250,000,000
1,050,000,000
1,050,000,000
52
BORROWINGS
( As at July 16, 2010)
Previous Year Rs. 38,800,000 38,800,000 38,800,000 Particulars A. Local 1. Nepal Government 2. Nepal Rastra Bank 3. Repo Obligation 4. Inter Bank and Financial Institutions 5. Other Financial Institutions 6. Others Total B. Foreign 1. Banks 2. Others Total Total (A+B)
Schedule 4
Current Year Rs.
37,314,826
37,314,826
38,800,000
37,314,826
DEPOSITS
( As at July 16, 2010)
Previous Year Rs. Particulars 1. Non-Interest bearing accounts A. Current Deposits 1. Local Currency 1.1 Nepal Government 1.2 Ka Class Licensed Institutions 1.3 Other Licensed Institutions 1.4 Other Organized Institutions 1.5 Individuals 1.6 Others 2. Foreign Currency 2.1 Nepal Government 2.2 Ka Class Licensed Institutions 2.3 Other Licensed Institutions 2.4 Other Organized Institutions 2.5 Individuals 2.6 Others B. Margin Deposits 1. Employess Guarantee 2. Guarantee Margin 3. Letters of Credit Margin C. Others 1. Local Currency 1.1 Financial Institutions 1.2 Other Organized Institutions 1.3 Individuals 2. Foreign Currency 2.1 Financial Institutions 2.2 Other Organized Institutions 2.3 Individuals Total Non-Interest Bearing Accounts
Schedule 5
Current Year Rs.
3,756,570,350 2,952,365,333 391,996,113 82,099,111 245,424,330 1,894,533,204 223,010,104 115,302,471 804,205,017 79,212,781 663,861,746 54,971,786 6,158,704 727,990,479 237,599,202 490,391,277 4,484,560,829
4,025,820,180 3,317,685,897 236,953,142 125,652,293 146,794,222 2,483,012,383 215,223,151 110,050,707 708,134,284 55,981,005 416,159,761 140,910,431 69,572,350 25,510,737 779,474,631 266,480,083 512,994,548 4,805,294,811
DEPOSITS Continue
( As at July 16, 2010)
Previous Year Rs. Particulars 2. 17,066,252,467 15,949,380,505 738,863,616 14,729,221,590 481,295,299 1,116,871,962 81,677,754 1,026,322,913 8,871,295 11,633,380,218 8,144,902,245 6,229,532,225 1,747,561,040 167,808,980 3,488,477,973 3,486,197,755 2,280,218 13,513,906,551 13,016,982,339 836,913,734 3,409,196,988 7,516,567,599 1,080,216,606 174,087,412 496,924,212 486,030,368 10,061 10,883,783 42,213,539,236 46,698,100,065 Interest bearing accounts A. Savings Deposits 1.
Schedule 5
Current Year Rs.
14,324,255,897 13,692,072,691 50,720,466 13,627,035,432 14,316,793 632,183,206 171,749,990 395,953,229 64,479,987 16,825,148,284 14,247,276,492 9,928,496,879 4,227,854,037 90,925,576 2,577,871,792 2,551,787,442 26,084,350 14,140,026,504 13,402,464,249 674,224,593 2,832,671,909 6,627,164,807 2,510,073,754 758,329,186 737,562,255 698,070,476 6,810,004 32,681,775 45,289,430,685 50,094,725,497
Local Currency 1.1 Organized Institutions 1.2 Individuals 1.3 Others 2. Foreign Currency 2.1 Organized Institutions 2.2 Individuals 2.3 Others B. Fixed Deposits 1. Local Currency 1.1 Organized Institutions 1.2 Individuals 1.3 Others 2. Foreign Currency 2.1 Organized Institutions 2.2 Individuals 2.3 Others C. Call Deposit 1. Local Currency 1.1 Ka Class Licensed Institutions 1.2 Other Licensed Institutions 1.3 Other Organized Institutions 1.4 Individual 1.5 Others 2. Foreign Currency 2.1 Ka Class Licensed Institutions 2.2 Other Licensed Institutions 2.3 Other Organized Institutions 2.4 Individual 2.5 Others D. Certificate of Deposit 2.1 Organized Institutions 2.2 Individuals 2.3 Others Total Interest Bearing Accounts Total Deposit
54
BILLS PAYABLE
( As at July 16, 2010)
Previous Year Rs. 47,250,276 35,087,742 82,338,018 Particulars 1. Local Currency 2. Foreign Currency Total
Schedule 6
Current Year Rs. 37,586,297 557,539 38,143,836
OTHER LIABILITIES
( As at July 16, 2010)
Previous Year Rs. 12,352,678 129,860,089 47,521,866 38,126,172 85,130,289 129,467,451 17,820,561 4,039,727 249,695,986 37,529,465 300,000 211,866,521 714,014,819 Particulars 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 12.1 12.2 12.3 Total Pension/ Gratuity Fund Employees Provident Fund Employees Welfare Fund Provision for Staff Bonus Interest Payable on Deposits Interest Payable on Borrowings Unearned Discount & Commission Sundry Creditors Branch Adjustment Account Deferred Tax Liabilities Dividend Payable Others Matured Time Deposit Statutory Auditors Fee Others
Schedule 7
Current Year Rs. 12,271,971 180,821,081 88,410,081 38,015,890 112,883,429 150,315,282 27,183,263 16,822,327 233,643,227 59,478,370 300,000 173,864,857 860,366,551
CASH BALANCE
( As at July 16, 2010)
Previous Year Rs. 1,763,936,871 69,525,623 1,833,462,494 Particulars 1. Local Currency (including coin) 2. Foreign Currency Total
Schedule 8
Current Year Rs. 1,487,577,926 37,863,946 1,525,441,872
BALANCE WITH NEPAL RASTRA BANK

( As at July 16, 2010)
Previous Year Rs. Particulars Local Currency 4,411,133,083 4,411,133,083 1. Nepal Rastra Bank a. Current Account b. Other Account 3,125,323,770 3,125,323,770 Indian Rs. Foreign Currency in Rs. Conv. F.C. 111,893,260 111,893,260 Total
Schedule 9
Current Year Rs. Grand Total 3,237,217,030 3,237,217,030 -
111,893,260 111,893,260
BALANCE WITH BANKS/FINANCIAL INSTITUTIONS

( As at July 16, 2010)
Previous Year Rs. Particulars Local Currency 201,811,480 201,811,480 1,471,596,833 1,471,596,833 1,673,408,313 1. Local Licensed Institutions a. Current Account b. Other Account 2. Foreign Banks a. Current Account b.other Account Total 73,370,529 73,370,529 73,370,529 Indian Rs. Foreign Currency in Rs. Conv. F.C. 1,188,369 1,188,369 Total 1,188,369 1,188,369 1,978,672,033 1,978,672,033 1,979,860,402
Schedule 10
Current Year Rs. Grand Total 74,558,898 74,558,898 1,978,672,033 1,978,672,033 2,053,230,931
768,121,695 1,210,550,338 768,121,695 1,210,550,338 768,121,695 1,211,738,707
Note : Total Balance as per the confirmations received from respective Banks (including Nepal Rastra Bank ) Rs. 4,810,027,992.45
MONEY AT CALL AND SHORT NOTICE

( As at July 16, 2010)
Previous Year Rs. Particulars 1. Local Currency 2. Foreign Currency Total
Schedule 11
Current Year Rs. -
INVESTMENTS
( As at July 16, 2010)
Previous Year Rs. Particulars Trading 2,531,300,000 4,807,541,200 64,270,500 7,403,111,700 3,300,000 7,399,811,700 1. Nepal Government Treasury Bills 2. Nepal Government Savings Bond 3. Nepal Government Other Securities 4. Nepal Rastra Bank Bonds 5. Foreign Bonds 6. Local Licensed Institutions 7. Foreign Banks 8. Corporate Shares 9. Corporate Bonds and Debentures 10. Other Investment Total Investment Provision Net Investment Purpose Others 3,911,850,000 290,000,000 370,000,000 4,000,334,625 66,645,500 8,638,830,125 3,300,000 8,635,530,125
Schedule 12
Current Year Rs.
3,911,850,000 290,000,000 370,000,000 4,000,334,625 66,645,500 8,638,830,125 3,300,000 8,635,530,125
56
INVESTMENT IN SHARES DEBENTURES AND BONDS

( As at July 16, 2010)
Previous Year Rs. Particulars Cost Price 1. Investment in Shares 1.1 Sudur Paschimanchal Grameen Bikas Bank 30,000 Ordinary Shares of Rs.100 paid up 1.2 Paschimanchal Grameen Bikas Bank 16,500 Ordinary Shares of Rs.100 paid up, of which 1500 are bonus shares 1.3 Purbanchal Grameen Bikas Bank 30,000 Ordinary Shares of Rs.100 paid up 1.4 Rural Micro Finance Development Centre Ltd. 338,100 Ordinary Shares of Rs.100 paid up 1.5 Swabalamban Bikas Bank 84,150 Ordinary Shares of Rs.100 paid up, of which 18,150 are bonus shares 1.6 Credit Information Centre Ltd. 14,120 Ordinary Shares of Rs.100 paid up, of which 1,765 are bonus shares 1.7 Taragaon Regency Hotel Ltd. Ordinary 150,000 Shares of Rs.100 paid up 1.8 Nepal Clearing House Ltd. Ordinary 25,000 Shares of Rs.100 paid up 2. Investments in Debentures and Bonds Total Investment 3. Provision for Loss 3.1 Up to Previous year 3.2 Adjustments this year Total Provision Net Investment
Schedule 12 (A)
Current Year Rs. Market Price Provision Rs.
3,000,000 1,500,000 3,000,000 33,810,000 6,600,000 1,235,500 15,000,000 125,000 64,270,500 5,400,000 (2,100,000) 3,300,000 60,970,500
3,000,000 1,500,000 3,000,000 33,810,000 6,600,000 1,235,500 15,000,000 2,500,000 66,645,500 3,300,000 3,300,000 63,345,500
3,000,000 1,500,000 28,950,000 33,810,000 48,891,150 1,235,500 11,700,000 2,500,000 131,586,650
3,300,000 3,300,000
Notes: 1. In case of investment in shares which are not listed, the market value has been taken as book value of shares. 2. Following Company has not declared and distributed dividend for the last three years: - Sudur Paschimanchal Grameen Bikas Bank Ltd. - Taragaon Regency Hotel Ltd. - Nepal Clearing House Ltd.
INVESTMENTS (Held for Trading)

( As at July 16, 2010)
S.No. Particulars Cost Price Rs. Previous Market Price Rs. Current Market Price Rs. Current Year Profit/ (Loss) Rs.
Schedule 12.1
Previous Year Profit/ (Loss) Rs. Remarks
1 2 3 4 5 6 7 8 9 10 11
Nepal Government Treasury Bills Nepal Government Savings Bond Nepal Government Other Securities Nepal Rastra Bank Bonds Foreign Bonds Local Licensed Institutions Shares Local Licensed Institutions Debentures & Bond Local Organized Instituions Shares, Debentures & Bonds Foreign Bank Placements Inter Bank Lending Other Investment Total Investments
INVESTMENTS (Held to Maturity)

( As at July 16, 2010)
S.No. Particulars Cost Price Rs. Amount Impaired till Previous Year Rs. Amount Impaired till date Rs. Current Profit/ (Loss) Rs.
Schedule 12.2
Previous Remarks Year Profit/ (Loss) Rs.
1 2 3 4 5 6 7 8 9 10
Nepal Government Treasury Bills Nepal Government Savings Bond Nepal Government Other Securities Nepal Rastra Bank Bonds Foreign Bonds Local Licensed Institutions Shares Local Licensed Institutions Debentures & Bond Local Organized Instituions Shares, Debentures & Bonds Foreign Bank Placements Other Investment Total Investments
3,911,850,000 290,000,000 4,000,334,625 370,000,000 8,572,184,625 -
INVESTMENTS (Available for Sale)

( As at July 16, 2010)
S.No. Particulars Cost Price Rs. Previous Market Price Rs. Current Market Price Rs. Current Year Adjustment In Investment Reserve Rs.
Schedule 12.3
Previous Remarks Year Profit/ (Loss) Rs.
1 2 3 4 5 6 7 8 9 10
Nepal Government Treasury Bills Nepal Government Savings Bond Nepal Government Other Securities Nepal Rastra Bank Bonds Foreign Bonds Local Licensed Institutions Shares Local Licensed Institutions Debentures & Bond Local Organized Instituions Shares, Debentures & Bonds Foreign Bank Placements Other Investment Total Investments
66,645,500
103,261,650
131,586,650
300,000
66,645,500
103,261,650
105,636,650
300,000
58
CLASSIFICATION OF LOANS, ADVANCES AND BILLS PURCHASE AND PROVISIONING Schedule 13

Bills Purchased/ Discounted Domestic Other 204,609,705 204,609,705 204,609,705 Foreign Priority Total Insured Un-insured Other Foreign Total Current Year Rs. Advances Domestic Priority Insured Un-insured 12,840,030 2,800,395 15,640,425 405,925,290 2,537,425 13,927,601 5,497,475 184,528,702 612,416,493 28,956 28,956 418,794,276 2,537,425 13,927,601 5,497,475 187,329,097 628,085,874 1,660,842 1,660,842 385,255 385,255 1,284,003,013 1,284,003,013 2,800,395 2,800,395 1,286,803,408 39,202,897,257 39,182,597,857 20,299,400 251,234,058 55,710,406 10,994,950 184,528,702 39,454,131,314 2,895,606 2,895,606 2,895,606 40,489,795,876 40,469,496,477 20,299,400 254,034,452 55,710,406 10,994,950 187,329,097 40,743,830,329 - 166,084,189 - 166,084,189 - 166,084,189 38,525,516 38,525,516 38,525,516
( As at July 16, 2010)
Previous year Rs.
Particulars
36,613,250,015 36,576,257,637 36,992,378 213,907,394 10,765,503 11,485,860 191,656,030 36,827,157,409
40,694,405,581 40,674,106,181 20,299,400 254,034,452 55,710,406 10,994,950 187,329,096 40,948,440,033 2,046,097 2,046,097 420,840,374 2,537,425 13,927,601 5,497,475 187,329,096 630,131,971
381,198,976 4,661,540 2,691,376 5,742,930 191,656,030 585,950,852
274,449,428 5,357,559 15,434,311 10,401,937 227,009,243 532,652,478
10,689,143 2,820,576 13,509,719
363,892,842 4,661,540 2,691,376 5,742,930 188,835,454 565,824,142
1,610,174 1,610,174
376,192,159 4,661,540 2,691,376 5,742,930 191,656,030 580,944,035
3,453,357 3,453,357
1,553,460 1,553,460
5,006,817 5,006,817
381,198,976 4,661,540 2,691,376 5,742,930 191,656,030 585,950,852 48,875,462
112,553,009 1,271,162,983 2,130,706 46,592,352 (1,581,218) 38,841,714,821 2,866,650
165,851,383
47,141,840 40,115,744,454 -
(1,792,515) - 164,423,347 (1,168,205) 38,140,261 (2,960,720) 202,563,608
93,056,584 44,181,122 40,318,308,062
53,298,374
1. Performing Loan 1.1 Pass Loan 1.2 Restructured 2 Non Performing Loan 2.1 Substandard 2.2 Doubtful 2.3 Loss (A)Total Loan 3. Loan Loss Provision 3.1 Pass 3.2 Restructured 3.3 Substandard 3.4 Doubtful 3.5 Loss (B) Total Loan Provision 4. Provisioning up to Previous Year 4.1 Pass 4.2 Restructured 4.3 Substandard 4.4 Doubtful 4.5 Loss (C). Total Previous Year Provision (D). Written Back Provision (E) This Years Addition Provision Changes in this Year
36,241,206,558
Net Loan (A-B)
SECURITIES AGAINST LOAN, ADVANCES AND BILLS PURCHASED

( As at July 16, 2010)
Previous Year Rs. 36,827,157,409 33,045,926,034 149,838,588 Particulars (A) Secured 1. Collateral of Movable/Immovable Assets 2. Local Licensed Institutions Guarantee 3. Government Guarantee 4. Internationally rated Foreign Banks Guarantee 5. Export Documents 6. Fixed Deposit Receipts (a) Own FDR (b) FDR of other Licensed Institutions 7. Government Bonds 8. Counter Guarantee 9. Personal Guarantee 10. Other Securities (B) Unsecured Total
Schedule 13 A
Current Year Rs. 40,948,440,033 36,897,102,378 183,801,677 183,801,677 2,945,928 21,034,929 3,843,555,121 40,948,440,033
13,150,315 8,641,047 3,609,601,425 36,827,157,409
FIXED ASSETS
( As at July 16, 2010)
Previous Year 800,713,468 192,159,908 (13,359,067) 979,514,309 244,111,039 96,584,264 (8,444,146) 332,251,157 647,263,152 413,489,330 1,060,752,482 PARTICULARS 1. At Cost A. Previous Years Balance B. Addition during the Year (+) C. Revaluation / Written back during the Year (+) D. This Year Sold (-) E. This Year Written off (-) TOTAL GROSS VALUE ( A+B+C-D-E ) 2. DEPRECIATION A. Previous Years Balance B. Depreciation during the Year (+) C. Total Depreciation on Sold / Written Off Assets (-) D. Depreciation on Revaluation/ Written back TOTAL DEPRECIATION ( A+B-C-D) 3. REMAINING BOOK VALUE ( 1-2 ) 4. Land 5. Capital Construction 6. LEASEHOLD ASSETS Total book value( 3+4+5+6) Building Assets Vehicles Machinery Office Equipment
Schedule 14
Others Current Year Total 979,514,309 197,718,946
186,400,063 3,675,000 190,075,063 14,889,553 3,728,001 18,617,554 171,457,508
154,680,036 45,275,764 (17,070,833) 182,884,966 48,810,248 24,031,988 (11,395,677) 61,446,559 121,438,407
169,732,595 468,701,615 54,450,795 94,317,386 -
(188,018) (17,258,851) 224,183,391 562,830,984 1,159,974,404 52,208,560 216,342,796 17,318,130 71,470,828 (188,014) 332,251,157 116,548,948 (11,583,690) -
69,526,690 287,625,611 154,656,700 275,205,373
171,457,508
121,438,407
437,216,415 722,757,989 413,489,330 154,656,700 275,205,374 1,136,247,319
60
Non-Banking Assets
( As at July 16, 2010)
Total Amount Previous Year Rs. Loss Provision Net Name and Address of Borrower or Party Date of acquisition of Non Banking Assets Total Amount of Non-Banking Assets
Schedule 15
Loss Provision In percentage In amount Net Non Banking Assets Rs.
1,500,000 1,125,000 375,000

1,500,000 1,125,000 375,000
Binayak Feed Industries, Bhaktapur

Grand Total
18/01/2007
OTHER ASSETS
( As at July 16, 2010)
Previous Year Rs. 1,740,297 107,854,451 15,091,342 81,289,286 13,615,079 65,858,520 105,204,521 4,994,365 63,218,516 36,991,640 390,653,496 153,600,871 (153,600,871) 17,165,694 (2,074,352) Particulars 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 13.1 13.2 13.3 13.4 Total Stock of Stationery Income Receivable on investments Accrued Interest on Loan Less: Interest Suspense amount Receivable Commission Sundry Debtors Less : Provision Staff Loan and Advances Prepayments Cash in Transit Other Transit items (including cheques) Drafts Paid without Notice Expenses Not Written off Less: Amortization Branch Adjustment account Others Receivable from Nepal Rastra Bank Premium deposit against Staff Housing Loan Others Deferred Tax Assets
Schedule 16
Current Year Rs. 937,093 59,386,690 184,871,197 (184,871,197) 18,263,661 (2,074,352) 16,189,309 100,602,317 42,959,127 54,820,330 124,543,277 5,117,279 76,295,332 43,130,666 399,438,143
104,631,146 (38,772,626)
111,013,405 (56,193,075)
OTHER ASSETS (Additional Statement)

( As at July 16, 2010)
Previous Year Rs. Particulars Up to 1 Year 153,600,871 1. Accrued Interest on Loan 2. Drafts Paid without Notice 3. Branch Adjustment A/c 49,350,342 1 to 3 Years 4,870,186
Schedule 16 (A)
Above 3 Years 130,650,669 Current Year Rs. Total 184,871,197
CONTINGENT LIABILITIES
( As at July 16, 2010)
Previous Year Rs. 6,136,742,629 4,924,898,407 1,211,844,222 2,409,149,575 583,820,503 1,602,430,478 222,898,594 59,504,763 405,480,033 799,418,295 3,567,971,517 1,537,290,444 1,342,961,931 9,209,500 16,267,728,687 1. 2. Particulars Claims on Institution but not accepted by the Institution Letters of credit (full amount) (a) Less than 6 months maturity (b) More than 6 months maturity Rediscounted Bills Unmatured Guarantees/ Bonds (a) Bid Bonds (b) Performance Bonds (c) Other Guarantee/ Bonds Unpaid Shares in Investment Forward Exchange Contract Liabilities Bills under Collection Acceptance and Endorsements Underwriting Commitments Irrevocable Loan Commitments Guarantee issued against counter guarantee of Internationally Rated Banks Advance Payment Guarantee Financial Guarantee Contingent Liabilities on Income Tax Others (Loan under Repurchase Agreement)
Schedule 17
Current Year Rs. 5,240,220,961 3,578,893,287 1,661,327,674 2,731,695,865 516,603,148 1,780,298,423 434,794,294 69,449,078 256,907,093 1,062,466,778 3,574,696,141 1,320,552,365 1,636,215,202 15,892,203,483
3. 4.
5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Total
INTEREST INCOME
for the period July 16, 2009 to July 16,2010
Previous Year Rs. 2,906,054,774 1,569,180,560 1,336,874,214 140,697,625 140,697,625 140,697,625 6,826,224 6,826,224 175,142,952 3,053,093 172,089,859 39,219,567 14,536,307 24,683,260 3,267,941,142 Particulars A. On Loan, Advances and Overdrafts 1. Loan and Advances 2. Overdraft B. On Investment 1. Nepal Government Securities a. Treasury Bills b. Development Bonds c. National Savings Certificates 2. Foreign Securities 3. Nepal Rastra Bank Bonds 4. Debenture and Bonds a.Banks & Financial Institutions b.Other Organization 5. Interest on Inter Bank Lending C. On Agency Balances 1. Local Banks & Financial Institutions 2. Foreign Banks D. On Money At Call and Short Notice 1. Local Banks & Financial Institutions 2. Foreign Banks* E. On Others 1. Certificate of Deposits 2. Inter-Bank/ Financial Institutions Loan 3. Others Total
Schedule 18
Current Year Rs. 4,303,311,186 2,110,212,027 2,193,099,159 169,619,945 169,619,945 167,872,786 1,747,159 429,399 429,399 120,237,282 731,370 119,505,912 59,923,526 36,930,920 22,992,606 4,653,521,338
*Interest received on investment (placements) made in foreign banks is shown under this heading
62
INTEREST EXPENSES
Previous Year Rs. 1,596,672,381 436,489,351 340,950,079 95,539,272 380,818,232 376,776,488 4,041,744 779,364,798 769,645,427 9,719,371 90,300,749 73,230,918 17,069,831 1,686,973,130 Particulars A. On Deposit Liabilities 1. Fixed Deposits 1.1 Local Currency 1.2 Foreign Currency 2. Savings Deposits 1.1 Local Currency 1.2 Foreign Currency 3. Call Deposit 1.1 Local Currency 1.2 Foreign Currency 4. Certificate of Deposits B. On Borrowings 1. Debenture and Bonds 2. Loan from Nepal Rastra Bank 3. Inter Bank/ Financial Institutions Borrowing 4. Other Corporate Body 5. Other Loans C. On Others Total
Schedule 19
Current Year Rs. 2,402,466,678 1,248,185,647 1,147,123,783 101,061,864 450,806,780 446,820,533 3,986,247 703,474,251 697,576,759 5,897,492 151,380,819 73,313,452 78,067,367 2,553,847,497
Commission And Discount

Previous Year Rs. 878,308 878,308 158,730,075 45,478,281 49,833,164 171,204 18,328,924 44,521,757 189,279 207,466 23,433,395 183,041,778 Particulars A. Bills Purchase and Discount 1. Local 2. Foreign B. Commission 1. Letters of Credit 2. Guarantees 3. Collection Fee 4. Remittance Fee 5. Credit Cards/ Debit Cards 6. Share Underwriting/ Issues 7. Government Transactions 8. Agency Commission 9. Exchange Fee C. Others Total
Schedule 20
Current Year Rs. 712,091 712,091 208,832,991 61,527,062 53,463,224 134,907 24,763,972 65,954,790 2,796,619 192,417 33,341,192 242,886,274
OTHER OPERATING INCOME

Previous Year Rs. 9,999,769 1,217,089 23,970,845 26,381,479 25,314,555 1,084,750 26,005,612 113,974,099 1. 2. 3. 4. 5. 6. 8. Total Particulars Rental on Safe Deposit Lockers Issue and Renewals of Credit Cards Issue and Renewals of ATM Cards/ Debit Cards Telex/ T.T. Service Charges Renewal Fees Others
Schedule 21
Current Year Rs. 11,741,468 1,583,668 33,063,143 28,208,250 56,721,219 7,119,800 29,875,112 168,312,660
EXCHANGE GAIN /LOSS

Previous Year Rs. (7,351,506) 192,678,617 185,327,111 Particulars (A) Revaluation Gain/ (Loss) (B) Trading Gain (except Exchange Fee) Total Income/ (Loss)
Schedule 22
Current Year Rs. 12,511,650 211,545,180 224,056,830
EXPENSES RELATING TO EMPLOYEES

Previous Year Rs. 110,096,807 62,408,691 8,622,679 4,162,374 520,561 251,051 10,512,211 13,457,093 15,690,023 1,058,257 697,359 7,481,159 6,453,247 225,721,490 1. 2. 3. 4. 5. 6. 7. 8. 9. Particulars Salary Allowances Contribution to Provident Fund Training Expenses Uniform Medical Insurance Pension and Gratuity Provision Others a. Training Course Remuneration b. Leave Compensation c. Staff Lunch d. Other incentives
Schedule 23
Current Year Rs. 131,072,050 95,741,426 9,861,850 3,162,162 697,222 112,001 12,046,802 15,126,638 12,031,209 0 418,614 7,591,270 4,021,325 279,851,360
Total
64
OTHER OPERATING EXPENSES

Previous Year Rs. 50,310,973 14,104,240 3,407,473 1,074,632 2,063,854 268,987 9,147,598 18,305,256 10,983,266 17,612,631 26,271,390 461,122 29,758,886 1,148,000 1,375,333 1,246,879 1,143,000 103,879 596,013 300,000 300,000 96,584,388 15,913,870 4,364,712 6,291,452 20,720,008 31,629,686 9,122,962 15,636,275 1,000 1,900,156 427,000 2,356,036 2,186,257 360,533,174 1. 2. 3. Particulars House Rent Electricity and Water Repair and Maintenance (a) Building (b) Vehicles (c) Others Insurance Postage, Telex, Telephone, Fax Office Equipment, Furniture and Repair Travelling Allowances and Expenses Stationery and Printing Periodicals and Books Advertisements & Business Promotion Legal Expenses Donations Expenses Relating to Board of Directors (a) Meeting Fees (b) Other Expenses Annual General Meeting Expenses Expenses Relating to Audit (a) Audit Fees (b) Other Expenses Commission on Remittances Depreciation on Fixed Assets Amortization of Expenses( Software) Share/Debenture expenses Technical Services Fee Entertainment Written Off Expenses Security Expenses Credit Guarantee Premium Commission and Discount Others (a) Fees for Services Others (b) Fuel for Vehicle/Generator (c) Losses shortages written off (d) Vehicle Renewal and other taxes (e) Membership Fee (f) Office Cleaning & Maintenance (g) Misc. Expenses
Schedule 24
Current Year Rs. 62,354,547 16,651,723 5,101,955 2,427,040 2,325,936 348,979 10,203,763 19,356,837 12,010,718 15,056,440 26,118,590 460,623 31,080,130 1,455,600 147,909 1,845,992 1,730,200 115,792 1,023,927 300,000 300,000 116,548,948 17,420,450 758,699 6,626,782 26,826,641 62,246,008 17,105,980 19,462,209 19,642,883 464,900 2,566,076 3,003,960 433,596,280
4. 5. 6. 7. 8. 9. 10. 11. 12. 13.
14. 15.
16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26.
Total
PROVISION FOR POSSIBLE LOSS

Previous Year Rs. 165,851,383 350,000 166,201,383 1. 2. 3. 4. Total Particulars Increase in Loan Loss Provision Increase in Provision for Loss on Investment Provision for Non Banking Assets Provision for Other Assets
Schedule 25
Current Year Rs. 93,056,584 93,056,584
NON-OPERATING INCOME/LOSS
Previous Year Rs. 1,347,037 1,605,975 1,605,975 1. 2. 3. Particulars Profit (Loss) on Sale of Investment Profit (Loss) on Sale of Assets Dividend (net) a. Commercial Banks b. Grameen Banks c. Financial Institutions d. Other Organized Institutions (1) Subsidiary Companies (2) Others Subsidies Received from Nepal Rastra Bank a. Reimbursement of losses of specified branches b. Interest Subsidy c. Exchange Counter Others
Schedule 26
Current Year Rs. 6,276,599 4,329,450 4,329,450
4.
5. 2,953,012
Total Non-Operating Income /(Loss)
10,606,049
LOSS PROVISION WRITTEN BACK

Previous Year Rs. 112,553,009 2,100,000 114,653,009 1. 2. 3. 4. Total Particulars Loan Loss Provision Written Back Provision against Non Banking Assets Written Back Investment Provision Written Back Provision Against Other Assets Written Back
Schedule 27
Current Year Rs. 48,875,462 1,125,000 50,000,462
PROFIT/ LOSS FROM EXTRA ORDINARY ACTIVITIES

Previous Year Rs. 1. 2. 3. 4. Total Particulars Recovery of write off Loan Voluntary Retirement Scheme Expenses Loan Write-Offs (28 (A)) Other Expenses/ Income
Schedule 28
Current Year Rs. -
66
STATEMENT OF LOAN WRITTEN-OFF

S.N. Types of Loan Written off Amount Type of Security Basis of valuation of collateral Loan Approved by Name/ Designation
Schedule 28(A)
Initiations madee for recovery Remarks
1 2 3 4 5
Working Capital Loan Project Loan Fixed Capital Loan Personal Loan Other Loan Total
Statement of Loans and Advances Extended to Directors/ Chief Executive/ Promoter/ Employees and Shareholders Holding More Than 1 Percent Shares. Schedule 29
for the period July 16, 2009 to July 16,2010 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 holding more than 1 percent shares and to the individual members of their undivided family OR against the guarantee of such persons OR to the organizations or companies in which such individuals are managing agent, are as follows:
Name of Promoter/Director/ Chief Executive (A) Directors (B) Chief Executive (C) Promoters (D) Employees (E) Shareholders holding more than 1% Total
Last Years Balance Principal Interest -
This Year Recovery Principal Interest -
This year Addition -
Balance as of Ashad end Principal Interest -
FORM NO.1 CAPITAL ADEQUACY TABLE

1.1 RISK WEIGHTED EXPOSURES a b c Risk Weighted Exposure for Credit Risk Risk Weighted Exposure for Operational Risk Risk Weighted Exposure for Market Risk Adjustment under Pillar II Add: 1% of the total RWE as per NRB Directives Add:5% of the total deposit due to insufficient liquid assets(6.4 a 6) Total Risk Weighted Exposures(After Banks adjustment of Pillar II) 1.2 CAPITAL Core Capital (Tier 1) Paid up Equity Share Capital Irredeemable Non-cumulative preference shares Share Premium Proposed Bonus Equity Shares Statutory General Reserves Retained Earnings till last year Audited current year cumulative profit Capital Redemption Reserve Capital Adjustment Reserve Dividend Equalization Reserves Other Free Reserve Less.Goodwill Less.Fictitious assets Less. Investment in equity in licensed Financial Institutions Less. Investment in equity of institutions with financial interests Less. Investment in equity of institutions in excess of limits Less. Investments arising out of underwriting commitments Less. Reciprocal crossholdings Less. Other Deductions Adjustments under Pillar II Less: Shortfall in Provision(6.4 a 1) Less: Loans and Facilities extended to Related Parties and Restricted lending(6.4 a 2) Supplementary Capital (Tier 2) Cumulative and/or Redeemable Preference Share Subordinated Term Debt Less : 20% discount value to 5YTM Bond/ Debenture Hybrid Capital Instruments General loan loss provision Exchange Equalization Reserve Investment Adjustment Reserve Assets Revaluation Reserve Other Reserves Total Capital Fund (Tier I and Tier II) 1.3 CAPITAL ADEQUACY RATIOS Core Capital to Total Risk Weighted Exposures (Tier I) Total Capital Fund to Total Risk Weighted Exposures (Tier I & Tier II) Current Period 50,041,481 2,517,313 464,836 530,236 53,553,866 Current Period 4,554,094 2,409,098 11,849 1,089,170 156,558 257,055 630,364 1,096,951 1,050,000 (390,000) 405,652 30,968 300 32 5,651,045 Current Period 8.50% 10.55%
Schedule 30
Previous Period 42,975,192 1,941,891 395,182 45,312,265 Previous Period 3,879,969 2,407,069 835,980 67,479 89,079 480,361 1,215,385 1,050,000 (230,000) 367,514 27,840 32 5,095,353 Previous Period 8.56% 11.24%
a b c d e f g h i j k l m n o p q r s
a b c d e f g h
68
FORM NO.2 RISK WEIGHTED EXPOSURE FOR CREDIT RISK

A. Balance Sheet Exposures Book Specific Eligible Value Provision CRM a b c
-
Schedule 30 (B)
Rs. in '000
Net Value d=a-b-c

1,525,442 3,237,217 4,201,850 390,401 54,158 2,489,001 818,646 2,671,360 25,469,493 3,021,010 1,189,846 5,762,865 47,280 3,996,751 13,200 50,146 1,535,685
Risk Risk Weighted Previous Period Weight Exposures Risk Weighted e f=d*e Exposures
0% 0% 0% 0% 0% 0% 0% 20% 50% 100% 150% 0% 100% 20% 50% 100% 150% 20% 100% 20% 50% 100% 150% 20% 100% 20% 50% 100% 150% 75% 100% 60% 150% 100% 100% 150% 150% 100% 150% 100% 78,080 54,158 497,800 409,323 534,272 25,469,493 2,265,758 713,908 5,762,865 70,920 5,995,127 13,200 75,218 1,535,685 9,108 156,272 490,482 194,000 687,746 28,835,429 4,819,572 20,726 18,300 64,006 1,412,003
Cash Balance 1,525,442 Balance With Nepal Rastra Bank 3,237,217 Investment in Nepalese Government Securities 4,201,850 All Claims on Government of Nepal Investment in Nepal Rastra Bank securities All Claims on Nepal Rastra Bank Claims on Foreign Government and Central Bank (ECA rating 0-1) Claims on Foreign Government and Central Bank (ECA-2) Claims on Foreign Government and Central Bank (ECA -3) Claims on Foreign Government and Central Bank (ECA-4-6) Claims on Foreign Government and Central Bank (ECA -7) Claims On BIS, IMF, ECB, EC and on Multilateral Development Banks (MDBs) recognized by the framework Claims On Other Multilateral Development Banks Claims on Public Sector Entity (ECA 0-1) Claims on Public Sector Entity (ECA 2) Claims on Public Sector Entity (ECA 3-6) Claims on Public Sector Entity (ECA 7) Claims on domestic Banks that meet capital adequacy requirements 390,401 Claims on domestic Banks that do not meet capital adequacy requirements 54,158 Claims on foreign bank (ECA Rating 0-1) 2,489,001 Claims on foreign bank (ECA Rating 2) 818,646 Claims on foreign bank (ECA Rating 3-6) Claims on foreign bank (ECA Rating 7) Claims on foreign bank incorporated in SAARC region operating with a 2,671,360 buffer of 1% above their respective regulatory capital requirement Claims on Domestic Corporates 26,136,111 Claims on Foreign Corporates (ECA 0-1) Claims on Foreign Corporates (ECA 2) Claims on Foreign Corporates (ECA 3-6) Claims on Foreign Corporates (ECA 7) Regulatory Retail Portfolio (Not Overdue) 3,608,832 Claims fulfilling all criterion of regulatory retail except granularity Claims secured by residental properties 1,189,846 Claims not fully secured by residental properties Claims secured by residental properties (Overdue) 423 Claims secured by Commercial Real Estate 5,762,865 Past due claims (except for claim secured by residental properties) 253,612 High Risk Claims 3,996,751 Investment in equity and other capital instruments of institutions 16,500 listed in the Stock exchange Investment in equity and other capital instruments of institutions 50,146 not listed in the Stock exchange Other Assets (as per attachment) 2,159,847
16,436 1,290 423 206,332 3,300 624,162
650,182 586,532 -
Total
58,563,007
851,942 1,236,714 56,474,352
43,475,808
36,707,642
FORM NO.2 RISK WEIGHTED EXPOSURE FOR CREDIT RISK CONTINUE.....

B. Off Balance Sheet Exposures Book Specific Eligible Value Provision CRM a b c 23,429 359,298 25,413 21,982 80,472 2,401 131,847 28,386 106,247 Net Value d=a-b-c 69,449 79,403 2,701,302 390,049 124,174 1,368,085 64,213 -
Schedule 30 (B)
Rs. in '000
Risk Risk Weighted Previous Period Weight Exposures Risk Weighted e f=d*e Exposures 0% 0% 10% 20% 20% 50% 100% 150% 50% 20% 50% 100% 150% 50% 20% 50% 100% 150% 50% 100% 100% 100% 100% 100% 100% 20% 50% 100% 200% 6,945 15,881 540,260 390,049 62,087 273,617 64,213 1,299,924 30,017 566,776 36,914 1,607,829 956,220 714,939 6,565,673 50,041,481 50,041,481 42,975,192
Revocable Commitments Bills Under Collection Forward Exchange Contract Liabilities 69,449 LC Commitments With Original Maturity Up to 6 months domestic counterparty 102,831 foreign counterparty (ECA Rating 0-1) 3,060,600 foreign counterparty (ECA Rating 2) foreign counterparty (ECA Rating 3-6) 415,462 foreign counterparty (ECA Rating 7) L C Commitments With Original Maturity Over 6 months domestic counterparty 146,157 foreign counterparty (ECA Rating 0-1) 1,448,557 foreign counterparty (ECA Rating 2) foreign counterparty (ECA Rating 3-6) 66,614 foreign counterparty (ECA Rating 7) Bid Bond, Performance Bond and Counter guarantee domestic counterparty 2,731,696 foreign counterparty (ECA Rating 0-1) 150,086 foreign counterparty (ECA Rating 2) 1,133,552 foreign counterparty (ECA Rating 3-6) 36,914 foreign counterparty (ECA Rating 7) Underwriting commitments Lending of Banks Securities or Posting of Securities as collateral Repurchase Agreements, Assets sale with recourse Advance Payment Guarantee 1,636,215 Financial Guarantee Acceptances and Endorsements 1,062,467 Unpaid portion of Partly paid shares and Securities Irrevocable Credit Commitments (short term) 3,574,696 Irrevocable Credit Commitments (long term) Other Contingent Liabilities Unpaid Guarantee Claims Total 15,635,296 Total RWE for Credit Risk Before Adjustment (A)+(B) 74,198,304 Adjustments under Pillar II Add: 10% of the loan and facilities in excess of Single Obligor Limits(6.4 a 3) Add: 1% of the Contract(sale) value in case of the sale of Credit with recourse(6.4 a 4)
Total RWE for Credit Risk (After Banks Adjustment of Pillar II) 74,198,304
2,599,849 150,086 1,133,552 36,914 1,607,829 956,220 3,574,696 - 779,475 14,855,822 851,942 2,016,188 71,330,174 851,942
5,950 41,791 762,310 445,480 102,953 184,956 49,678 1,204,575 44,822 655,870 1,440 1,325,444 719,476 713,594 9,210 6,267,550 42,975,192
2,016,188
71,330,174
70
FORM NO.3 ELIGIBLE CREDIT RISK MITIGANTS

Credit Exposures Deposits Deposits Gold Govt. & NRB with with other Securities Bank banks/FI (a) (b) (c) (d) Gtee Sec/Gtee Gtee of of Govt. of Other domestic of Nepal Sovereigns (e) (f) (g)
Schedule 30 (c)
Gtee of Sec/Gtee of MDBs Foreign banks (h) (i) Rs. in '000 Total Previous Period Total
Balance Sheet Exposures Cash Balance Balance With Nepal Rastra Bank Gold Investment in Nepalese Government Securities All Claims on Government of Nepal Investment in Nepal Rastra Bank securities All Claims on Nepal Rastra Bank Claims on Foreign Government and Central Bank (ECA rating 0-1) Claims on Foreign Government and Central Bank (ECA-2) Claims on Foreign Government and Central Bank (ECA-3) Claims on Foreign Government and Central Bank (ECA-4-6) Claims on Foreign Government and Central Bank (ECA-7) Claims on Other Multilateral Development Banks Claims on Public Sector Entity (ECA 0-1) Claims on Public Sector Entity (ECA 2) Claims on Public Sector Entity (ECA 3-6) Claims on Public Sector Entity (ECA 7) Claims on domestic banks that meet capital adequacy requirements Claims on domestic banks that do not meet capital adequacy requirements Claims on foreign bank (ECA Rating 0-1) Claims on foreign bank (ECA Rating 2) Claims on foreign bank (ECA Rating 3-6) Claims on foreign bank (ECA Rating 7) claims on foreign bank incorporated in SAARC region operating with a buffer of 1% above their respective regulatory capital requirement Claims on Domestic Corporates Claims on Foreign Corporates (ECA 0-1) Claims on Foreign Corporates (ECA 2) Claims on Foreign Corporates (ECA 3-6) Claims on Foreign Corporates (ECA 7) Regulatory Retail Portfolio (Not Overdue) Claims fulfilling all criterion of regulatory retail except granularity Claims secured by residential properties Claims not fully secured by residential properties Claims secured by residential properties (Overdue) Claims secured by Commercial real estate Past due claims (except for claim secured by residental properties) High Risk claims Investments in equity and other capital insturments of institutions listed in the stock exchange Investments in equity and other capital insturments of institutions not listed in the stock exchange
95,701
- 184,642
1,568
368,272
88,101
- 497,053
1,378
- 650,182 398,839 586,532 934,540 -
Other Assets (as per attachment)
FORM NO.3 ELIGIBLE CREDIT RISK MITIGANTS CONTINUE.....

Credit Exposures Deposits with Bank (a) Deposits with other banks/FI (b) Gold Govt. & NRB Securities (c)
Schedule 30 (c)
Rs. in '000 Total Previous Period Total
Gtee Sec/Gtee Gtee of Gtee of Sec/Gtee of of Govt. of Other domestic MDBs Foreign of Nepal Sovereigns banks (d) (e) (f) (g) (h) (i)
Off Balance Sheet Exposures

Forware Exchange Contract Liabilities LC Commitments With Original Maturity Up to 6 months domestic counterparty foreign counterparty (ECA Rating 0-1) foreign counterparty (ECA Rating 2) foreign counterparty (ECA Rating 3-6) foreign counterparty (ECA Rating 7) LC Commitments With Original Maturity Over 6 months domestic counterparty foreign counterparty (ECA Rating 0-1) foreign counterparty (ECA Rating 2) foreign counterparty (ECA Rating 3-6) foreign counterparty (ECA Rating 7) Bid Bond, Performance Bond and Counter guarantee domestic counterparty foreign counterparty (ECA Rating 0-1) foreign counterparty (ECA Rating 2) foreign counterparty (ECA Rating 3-6) foreign counterparty (ECA Rating 7) Underwriting commitments Lending of Banks Securities or Posting of Securities as Collateral Repurchase Agreements, Assets sale with recourse Advance Payment Guarantee Financial Guarantee Acceptances and Endorsements Unpaid portion of Partly paid shares and Securities Irrevocable Credit commitments
23,429 359,298 25,413 -
23,429 359,298 25,413 21,982 80,472 2,401 131,847
11,663 423,023 24,226 1,447 28,920 1,111 140,140
21,982 80,472 2,401 131,847
28,386 106,247 28,386 106,247 -
17,518 79,942 -
Other Contingent Liabilities
The total amount of Eligible CRM shall be adjusted for the supervisory haircuts and floors. In this regard banks should disclose the total value of eligible collateral in the respective column of type of CRM and while summing up the total value necessary adjustments have to be made.
72
RISK WEIGHT EXPOSURE FOR OPERATIONAL RISK

Particulars Net Interest Income Commission and Discount Income Other Operating Income Exchange Fluctuation Income Additional Interest Suspense during the period Gross Income (a) Alfa (b) Fixed Percentage of Gross Income (c) =(a)*(b) Capital Requirement for operational risk (d) (average of c) Risk Weight (reciprocal of capital requirement of 10%) in times (e) Equivalent Risk Weight Exposure (f)=(d)*(e) 2006/07 899,457 163,899 47,319 135,355 12,499 1,258,530 15% 188,779 251,731 10 2,517,313 Current Period 2007/08 1,202,117 215,292 66,377 165,839 16,237 1,665,862 15% 249,879 2008/09 1,580,968 183,042 113,974 185,327 46,923 2,110,234 15% 316,535
Schedule 30 (D)
Rs. in '000
Previous Period
194,189 10 1,941,891
Market Risk
S.No. Currency Open Position (FCY) 50 68,843 22,983 18,483 9,580 52,903 80,661 39,459 430 501,426,717 15,755,461 1,240 600 1,882 42,070 49,380 1,213,672 Current Period Open Position (NPR) 974 4,465,865 1,634,320 1,311,721 103,081 674,513 7,725,687 4,516,115 4,094 802,282,748 13,371,660 27,454 11,778 36,868 424,068 2,661,591 90,418,598 Relevant Open Position (NPR) 974 4,465,865 1,634,320 1,311,721 103,081 674,513 7,725,687 4,516,115 4,094 802,282,748 13,371,660 27,454 11,778 36,868 424,068 2,661,591 90,418,598 929,671,134 5.00% 46,483,557 10 464,835,567 464,836
Schedule 30 (E)
Previous Period Relevant Open Position (NPR) 146,088 1,919,913 997,415 5,291,016 238,132 1,181,369 15,679,888 3,108,396 44,178 452,368,134 8,998,316 21 48,429 108,785 870,899 2,623,904 237,436 296,501,681 790,363,999 5.00% 39,518,200 10 395,181,999 395,182
Rs. in '000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
AED AUD CAD CHF CNY DKK EUR GBP HKD INR JPY MYR QAR SAR SEK SGD THB USD Total Open Position (a) Fixed Percentage (b) Capital Charge for Market Risk [c=(axb)] Reciprocal of Capital Requirement (d) Equivalent Risk Weight Exposure [e=(cxd)] Equivalent Risk Weight Exposure in 000
74
5 YEARS PRINCIPAL INDICATORS

Particulars
Schedule 31
Rs. in '000
Indicators F/Y 2005/2006 F/Y 2006/2007 F/Y 2007/2008 F/Y 2008/2009 F/Y 009/2010 (F/Y 062/63) (F/Y 063/64) (F/Y 064/65) (F/Y 065/66) (F/Y 066/67) Percent Rs. Rs. Ratio Percent Percent Percent Percent Percent Percent Percent Percent Ratio Percent Percent Percent Percent Percent Percent Ratio Percent Rs. in 000 No. No. Rs. 23.99 59.35 1,260 21.23 55.46 20.00 7.32 38.77 2.52 8.60 41.84 2.66 1.61 69.63 1.43 7.97 4.01 11.97 13.61 2.07 3.90 1,415,440 5,905,860 390 240 25.07 62.57 1,729 27.63 30.00 5.00 7.33 37.39 2.71 6.77 49.76 2.82 1.79 72.56 1.38 7.90 4.26 12.17 10.47 2.37 3.99 1,878,124 8,013,526 514 234 25.33 57.87 2,450 42.33 40.83 7.50 6.93 37.41 2.79 6.03 54.50 2.53 1.77 79.91 1.27 7.71 3.57 11.28 10.91 1.12 4.00 2,686,786 12,039,154 622 223 22.97 37.42 1,388 37.10 20.00 20.00 7.89 38.50 3.53 4.79 57.53 2.45 1.68 78.86 1.09 8.56 2.68 11.24 10.32 0.58 3.94 3,907,840 24,070,689 766 162 23.67 52.55 705 13.42 25.00 25.00 10.51 39.23 4.99 4.19 64.61 3.09 2.19 81.74 1.23 8.50 2.05 10.55 7.77 0.62 4.36 4,585,393 24,090,977 877 190
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.
17. 18. 19. 20. 21. 22. 23.
Percent of Net Profit/ Gross Income Earning Per Share Market Value Per Share Price Earning Ratio Dividend (including bonus) on share capital Cash Dividend on Share Capital Interest Income/ Loan & Advances Staff Expenses/ Total operating Expenses Interest Expenses on Total Deposit and Borrowings Exchange Gain/ Total Income Staff Bonus/ Total Staff Expenses Net Profit/Loan and Advances Net Profit/Total Assets Total Credit/Deposit Total Operating Expenses**/ Total Assets Adequacy of Capital Fund on Risk Weighted Assets a. Core Capital b. Supplementary Capital c. Total Capital Fund Liquidity (CRR) Non-performing credit/ Total credit Weighted Average Interest Rate Spread Book Net-worth Total Shares Total Staffs Book Value Per Share
** Total Operating Expenses = Staff Expenses+ Office Operating Expenses
PRINCIPAL ACCOUNTING POLICIES

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
a. The financial statements have been prepared in conformity with generally accepted accounting principles, Nepal Accounting Standards, Company Act 2063, Bank & Financial Institution Act, 2063 and Nepal Rastra Bank Directives. b. The financial statements are prepared on historical cost convention except where otherwise stated. The bank follows accrual system of accounting for the preparation of financial statements except where otherwise stated. All the formats of the financial statements are in accordance with the directives of Nepal Rastra Bank.
SCHEDULE 32
b.
Provision for loan losses have been deducted from the loan and advances as per the directives of Nepal Rastra Bank & accordingly loan & advances net of provision has been presented in the Balance Sheet. While writing off of Bad Debts it will be charged to Profit & Loss account and Provision made for the same will be written back as per NRB directives. Procedure for writing off of bad debts will be according to the provision made under Loans Write Off bylaws of the bank, which has been duly approved by Nepal Rastra Bank. The bank has taken a policy of settlement of the bad loan by waiver of reasonable amount of interest. Case to case basis settlement is made based on the justification of each case.
c.
c.
d.
2. INTEREST AND COMMISSION INCOME

a. Interest on loans and advances are recognized on cash basis as per Nepal Rastra Banks (NRB) directives. (Refer NOTES TO ACCOUNT # 6) Commission and fees are recognized as income on cash basis except commission exceeding NPR 100,000 earned on guarantees covering more than a year is accounted for on accrual basis over the period of the guarantee.
5. DEPRECIATION
Fixed Assets are depreciated over estimated life of assets on straight-line basis from the following month of the purchase date. Maintenance and repairs expenses are charged to profit and loss account as incurred.
b.
6. EXPENSES NOT WRITTEN OFF

Cost of computer software are classified under Expenses Not Written off as disclosed in Schedule 16 and relates to cost of computer software which are being amortized over a period of five years from the date of acquisition.
3. FOREIGN CURRENCY TRANSACTIONS

a. Foreign currency assets and liabilities held at Balance Sheet date have been translated at buying rate of exchange on that date. Profit or loss arising from difference in buying and selling rates on foreign currency transactions are recorded as Trading Gain or Loss. Profit or loss arising from the fluctuation of foreign currencies is recorded as Revaluation Gain or Loss as and when such fluctuation takes place. Out of total Revaluation Gain if any, 25% is transferred to Exchange Fluctuation Fund at the end of the year as per NRB directives.
7. NON CAPITALIZED ITEMS

Capital items of value below Rs.10,000 are expensed off in the year of purchase itself.
b.
8. NON BANKING ASSETS

a. Non Banking Assets acquired till F.Y. 2061/62 are valued at amount equivalent to the outstanding amount of principal and interest due at the time of acquisition. Where the total outstanding amount of principal and interest in the year of acquisition of asset exceeds the market value of such assets, the assets are valued at the market price of assets and the difference amount is charged to profit and loss account in the year of acquisition according to then NRB directives.
c.
4. LOAN LOSS PROVISION & BAD DEBTS WRITTEN OFF

a. Provision for loan losses has been made in accordance with Nepal Rastra Banks directives.
76
b.
From F.Y. 2062/63 Non Banking Assets will be valued at amount equivalent to the outstanding amount of principal due at the time of acquisition and interest receivable of such loan will be set off against interest suspense. Where the total outstanding amount of principal in the year of acquisition of asset exceeds the market value of such assets, the assets are valued at the market price of assets and the difference amount is charged to profit and loss account in the year of acquisition.
10. RETIREMENT BENEFITS

Provision for liability of gratuity is made on accrual basis, by calculating actual liability of gratuity for entire staff, at the end of the financial year. Leave encashment expenses is recognized on cash basis.
11. INCOME TAX

Provision for Income Tax is made on the total income at the rate applicable for that year in accordance with the Income Tax Act. Any excess or shortfall in tax provision is adjusted to the profit and loss account in the year, when tax assessment is completed. Further, deferred tax liability has been calculated in accordance with the provisions of Nepal Accounting Standard.
c. Where the amount realized upon disposal of the acquired assets vary at a future date, the difference will be adjusted to the Profit & Loss Account in the year of disposal.
9. INVESTMENT
a. Investments on securities listed in the Stock Exchange are valued at the lower of cost or market price. Investments on securities, which are not listed in the Stock Exchange, are valued at cost and provisions are made as per NRB directives.
12. CONTINGENT LIABILITY

Any liability of contingent nature, if material, is disclosed in separate schedule, forming the part of Balance Sheet.
b.
NOTES TO ACCOUNTS
SCHEDULE 32
1. STAFF PROVIDENT FUND & GRATUITY PROVISION

Staff Provident Fund has been transferred to NIBL Retirement Fund as provided by Income Tax Act 2058. Gratuity provision provided in balance sheet refers to the gratuity liability as at 15.07.2004. Gratuity payable onwards has been transferred to NIBL Retirement Fund account as provided by Income Tax Act 2058.
4. CHANGES IN DEPOSIT LIABILITIES

The total deposit of the bank has increased by NPR 3,396.66 million to NPR 50,094.70 million, from the previous years balance of NPR 46,698 million as following:
Rs. in million
Particulars
FY 2008/2009 (2065/66) 3,756.57 727.99 17,066.25 11,633.38 13,513.90 46,698.10
FY 2009/2010 (2066/67) 4,025.82 779.47 14,324.26 16,825.15 14,140.03 50,094.73
Increase/ (Decrease) Percentage 7.16 7.07 -16.07 44.63 4.63 7.27
2. INCOME-TAX LIABILITY
Income tax provision amounting to NPR 532,898,521 made for the F.Y. 2066-067 (FY 2009/2010) is subject to tax audit. Deferred tax liability of NPR 27,183,263 for deductible temporary differences up to F.Y. 2066/67, has been shown under other liabilities in the Balance Sheet. The figure has been arrived at by applying the prevailing income tax rate to the Net Temporary Difference figure of NPR. 90,610,877 which has been arrived at as follows:
Deferred tax asset: Provision for other assets: Gratuity Fund Provision for Non-banking assets: Total Deferred Asset: NPR 2,074,352 12,352,678 (11,25,000) 13,302,030
Current Deposits Margin Deposits Saving Deposits Fixed Deposits Call Deposits Total Deposits
5. LOANS DISBURSED, RECOVERY AND WRITTEN OFF

During the year, total loan amounting to NPR 112,332.46 million has been disbursed and NPR 108,211.17 million has been recovered.
6. INTEREST INCOME
a) Interest income from loans and advances is shown on cash basis, except on consortium project financing, which has been capitalized during the construction period. b) Total interest receivable from loan and advances as at 16.07.2010 amounting to NPR 184.87 million has been transferred to Interest Suspense Account as per Nepal Rastra Banks directives.
Deferred tax liability: Asset base as per income tax provisions: Asset base as per Company Accounts: Total Deferred Liability: Net Deferred Liability due to net timing difference: (673,665,412) 777,578,319 103,912,907 90,610,877
3. EXCHANGE FLUCTUATION RESERVE

During the year, there is a gain on revaluation of foreign exchange amounting to NPR 12,511,650.00 Hence, an amount of NPR.3,127,913.50 equivalent to 25% of such gain has been transferred to exchange fluctuation reserve as required by NRB Directives.
78
7. TABLE OF LIQUIDITY DETAILS (NPR in 000)

Assets Cash Balance Balance with Banks Investment made with Foreign Banks Investment in Govt. Bonds Investment in NRB Bonds Investment Inter Bank Lending Loans & Advances Total Assets Liabilities Borrowings Current Deposits Saving Deposits Fixed and Call Deposits Debentures Total Liabilities Net Financial Assets Cumulative Net Financial Assets 1-90 Days 1,525,442 5,290,448 2,160,185 370,000 15,108,110 24,454,185 37,315 1,441,588 4,297,277 17,094,671 22,870,851 1,583,333 1,583,333 91-180 Days 894,000 1,385,900 7,326,073 9,605,973 480,529 1,432,425 5,188,628 300,000 7,401,583 2,204,391 3,787,724 181-270 Days 238,400 626,250 5,530,164 6,394,814 780,794 2,148,638 2,591,811 5,461,224 933,569 4,721,293 271-365 Days 335,250 1,899,700 3,521,951 5,756,901 480,529 1,432,426 4,406,542 6,319,497 (562,597) 4,158,697 Above one Year 372,500 290,000 66,646 9,462,143 10,191,288 1,681,852 5,013,489 1,683,522 750,000 9,128,865 1,062,423 5,221,119 Total Amount 1,525,442 5,290,448 4,000,335 3,911,850 290,000 66,646 370,000 40,948,440 56,403,161 37,315 4,805,295 14,324,256 30,965,175 1,050,000 51,182,040 5,221,119 -
8. NON BANKING ASSETS

Non banking assets amounting to NPR 1,500,000 was sold during the year at NPR 1,850,000. The resulting gain thereon and the provision of NPR.1,125,000 made therefore have been transferred to Profit and Loss account during the year.
9. EXPENSES NOT WRITTEN OFF

Cost of computer software classified under Expenses Not Written off disclosed in Schedule 16 relates to cost of computer software which are being amortized over a period of five years from the date of acquisition. During the year, NPR 17,420,450 has been amortized by charging to Profit and Loss account.
NPR 74.40 million is for NPR 250 million Debenture (2072).All debentures have been issued having maturity period of 7 years from the date of issue. This year NPR 42.86 million, NPR 35.72 million, NPR 35.72 million, and NPR 35.72 million respectively has been transferred from Profit and Loss appropriation account to Debenture Redemption Fund for respective debentures.
13. INVESTMENT IN GOVERNMENT BONDS & TREASURY BILLS

a. During the year, NPR 290 million was invested in Government bonds which has been shown under investments at face value. The amount of NPR.37,31,830 paid as premium on such bonds has been booked as premium paid in advance and is amortized over the period of the bonds. b. Investment in treasury bills at discount has been shown at face value under investment. The amount of discount is booked as unearned interest and is amortized over the period of the treasury bills.
10. PROVISION FOR LOAN LOSS & LOSS PROVISION WRITTEN BACK
During the year NPR 93,056,585 has been charged to Profit and Loss account for loan loss provision as required by Nepal Rastra Bank directives. Provision amounting NPR 48,875,462 has been written back during the year.
14. STAFF BONUS

Expense on staff bonus is recognized at ten percent of net profit before income tax and after bonus provision.
11. PROVISION FOR OTHER ASSETS

None.
15. VEHICLE RENEWAL & OTHER TAXES

Vehicle renewal & other taxes of NPR 19,642,883 shown in Schedule 24 include NPR 16,865,926 paid towards land & building tax., which has been paid pursuant to the provisions of Local Self Governance Act.
12. DEBENTURE ISSUE

Total Debenture outstanding of NPR 1050 million includes debenture of NPR 300 million issued on 24.11.2003, NPR 250 million issued on 26.06.2006, NPR 250 million issued on 26.06.2007 and NPR 250 million issued on 09.07.2008. Out of total NPR 640.40 million in Debenture Redemption Fund, NPR 300.00 million is for NPR 300 million Debenture (2067), NPR 145.84 million is for NPR 250 million Debenture (2070), NPR 110.12 million is for NPR 250 million Debenture (2071) and
16. COMPARATIVE FIGURES FOR 2008/2009

Previous years figures have been regrouped or rearranged wherever required to make them comparable with the current years figures.
17. ROUNDING OFF

Figures have been rounded off to the nearest rupee.
DETAILS OF PROMOTERS SHARES PLEDGED BY PROMOTER SHAREHOLDERS OF THE BANK

S.No. Promoters Name Promoters Share Owenership Total No. of Percentage Shares of Total Paid up Captal 282,307 376,425 376,425 376,425 188,211 188,211 376,425 150,577 1.17 1.56 1.56 1.56 0.78 0.78 1.56 0.63 Loan Detail Name of the Banks & Financial Institutions Citizens Bank International Limited Global Bank Limied Sanima Bikash Bank Ltd. Nepal Bangaladesh Bank Ltd. Himalayan Bank Limited Himalayan Bank Limited Sanima Bikash Bank Ltd. Bank of Kathmandu Limited. Loan Amount
Schedule 34
Remarks Total Numbers of Pledge Shares 282,307 344,976 158,408 92,280 62,607 62,607 284,145 150,577
1 2 3 4 5 6 7 8
Star Holdings P. LTD. Annapurna Investment P. Ltd Prestine Investment P. Ltd. Kamala Investment P. Ltd. Panchakanaya Investment P. Ltd. Shrestha Brothers Investment P. Ltd. Surya Infosys P .Ltd. Mercantile Investment P. Ltd.
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COMPARISION OF UNAUDITED & AUDITED FINANCIAL STATEMENT AS OF ASHAD END FY 2066/67

S/N Particulars
Schedule 35
Variance In Amount In % 602,274 (602,274) 0% 0% 22% 0% 0% 0% 0% 0% 0% -39% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Reasons for Variance
Rs. in '000
As at Ashad end 2067
As per Unaudited F/S 57,935,545 2,409,098 2,778,570 1,050,000 37,315 50,094,725 45,249,631 4,845,094 37,195 1,528,642 57,935,545 6,815,890 8,635,530 40,948,440 1,136,247 399,438 4,653,521 (2,553,847) 2,099,674 242,886 168,313 224,057 2,734,930 (279,851) (433,596) 2,021,482 (93,057) 1,928,425 10,606 50,000 1,989,032 1,989,032 (180,821) (542,261) 1,265,950
As per Audited F/S 57,935,545 2,409,098 2,176,295 1,050,000 37,315 50,094,725 45,249,631 4,845,094 37,195 2,130,917 57,935,545 6,815,890 8,635,530 40,948,440 1,136,247 399,438 4,653,521 (2,553,847) 2,099,674 242,886 168,313 224,057 2,734,930 (279,851) (433,596) 2,021,482 (93,057) 1,928,425 10,606 50,000 1,989,032 1,989,032 (180,821) (542,261) 1,265,950
1 1.1 1.2 1.3 1.4 1.5
1.6 1.7 2 2.1 2.2 2.3 2.4 2.5 2.6 2.7 3 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13
Total Capital and Liabilities (1.1 to 1.7) Paid Up Capital Reserve and Surplus Debenture and Bond Borrowings Deposit (a+b) a. Domestic Currency b. Foreign Currency Income Tax Liability Other Liabilities Total Assets (2.1 to 2.7) Cash and Bank Balance Money at Call and Short Notice Investments Loans and Advances (Gross) Fixed Assets Non Banking Assets (Net) Other Assets Profit & Loss Account Interest Income Interest Expense A. Net Interest Income (3.1-3.2) Fees, Commission and Discount Other Operating Income Foreign Exchange Gain/Loss (Net) B. Total Operating Income (A.+3.3+3.4+3.5) Staff Expenses Other Operating Expenses C. Operating Profit Before Provision (B.-3.6-3.7) Provision for Possible Losses D. Operating Profit (C.-3.8) Non Operating Income/Expenses (Net) Write Back of Provision for Possible Loss E. Profit from Regular Activities (D+3.9+3.10) Extra-ordinary Income/Expenses (Net) F. Profit before Bonus and Taxes (E.+3.11) Provision for Staff Bonus Provision for Tax G. Net Profit/Loss (F.-3.12-3.13
Appropriation of Dividend
Appropriation of Dividend
Notes:
UNAUDITED FINANCIAL RESULTS (QUARTELY)

as at Fourth Quarter (16/07/2010) of the Fiscal Year 2009/2010
S/N Particulars This Quarter Ending Previous Quarter Ending 57,584,489 2,409,098 2,381,881 1,050,000 2,235,512 47,667,851 42,727,436 4,940,415 48,778 1,791,369 57,584,489 6,804,796 7,899,698 41,368,692 9,518,477 1,503,184 565,620 4,410,222 21,400,481 3,970,708 1,101,512 409,791 Up to Previous Quarter
Schedule 36
Corresponding Quarter Previous Year (Audited)
Rs. in '000
1 1.1 1.2 1.3 1.4 1.5
1.6 1.7 2 2.1 2.2 2.3 2.4
2.5 2.6 2.7 3
Total Capital and Liabilities (1.1 to 1.7) Paid Up Capital Reserve and Surplus Debenture and Bond Borrowings Deposit (a+b) a. Domestic Currency b. Foreign Currency Income Tax Liability Other Liabilities Total Assets (2.1 to 2.7) Cash and Bank Balance Money at Call and Short Notice Investments Loans and Advances (Gross) a. Real Estate Loan b. Home / Housing Loan c. Margin Type Loan d. Term Loan e. Overdraft Loan/ TR Loan / WC Loan f. Others Fixed Assets (Net) Non Banking Assets (Net) Other Assets Profit & Loss Account
57,935,545 2,409,098 2,778,570 1,050,000 37,315 50,094,725 45,249,631 4,845,094 37,195 1,528,642 57,935,545 6,815,890 8,635,530 40,948,440 9,407,342 1,469,473 526,465 4,934,933 20,640,294 3,969,932 1,136,247 399,438 Up to This Quarter
53,596,754 2,407,069 1,500,771 1,050,000 38,800 46,698,100 40,791,738 5,906,362 38,297 1,863,717 53,596,754 7,918,004 7,399,812 36,827,157 5,756,691 1,222,480 701,919 4,439,268 20,787,666 3,919,133 1,060,752 375 390,653 Up to Corresponding Quarter Previous Year (Audited) 3,267,941 (1,686,973) 1,580,968 183,042 113,974 185,327 2,063,311 (225,721) (360,533) 1,477,056 (166,201) 1,310,855 2,953 114,653 1,428,461 1,428,461 (129,860) (397,982) 900,619
3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13
Interest Income Interest Expense A. Net Interest Income (3.1-3.2) Fees, Commission and Discount Other Operating Income Foreign Exchange Gain/Loss (Net) B. Total Operating Income (A.+3.3+3.4+3.5) Staff Expenses Other Operating Expenses C. Operating Profit Before Provision (B.-3.6-3.7) Provision for Possible Losses D. Operating Profit (C.-3.8) Non Operating Income/Expenses (Net) Write Back of Provision for Possible Loss E. Profit from Regular Activities (D+3.9+3.10) Extra-ordinary Income/Expenses (Net) F. Profit before Bonus and Taxes (E.+3.11) Provision for Staff Bonus Provision for Tax G. Net Profit/Loss (F.-3.12-3.13
4,653,521 (2,553,847) 2,099,674 242,886 168,313 224,057 2,734,930 (279,851) (433,596) 2,021,482 (93,057) 1,928,425 10,606 50,000 1,989,032 1,989,032 (180,821) (542,261) 1,265,950
3,229,057 (1,777,252) 1,451,805 189,210 124,338 164,899 1,930,253 (208,946) (307,963) 1,413,344 (77,343) 1,336,001 5,757 24,223 1,365,981 1,365,981 (124,180) (372,540) 869,261
82
UNAUDITED FINANCIAL RESULTS (QUARTELY)

as at Fourth Quarter (16/07/2010) of the Fiscal Year 2009/2010
4 Ratios At the End of This Quarter At the End of This Quarter
Schedule 36
At the End of Corresponding Quarter Previoys Year (Audited) 11.24% 0.58% 274% 4.9% 82% 8.9% 4.0% 28% 1.7%
4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9

Note:
Capital Fund to RWA Non Performing Loan (NPL) to Total Loan Total Loan Loss Provision to Total NPL Cost of Funds (LCY) CD Ratio (As per NRB Directives) Average Yield Net Interest Spread Return on Equity Return on Assets (annualized)
11.81% 0.62% 248% 7.0% 81% 11.2% 4.2% 28% 2.2%
10.89% 0.48% 318% 5.9% 87% 9.7% 3.8% 27% 2.0%
1) Previous quarters' figures have been regrouped and rearranged whereever necessary. 2) The above figures are subject to change as per the directions, if any, of Nepal Rastra Bank and/or Statutory Auditor.
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84
Strategic Objectives

To develop a customer oriented service culture with special emphasis on customer care and convenience. To increase our market share by following a disciplined growth strategy. To leverage our technology platform and pen scalable systems to achieve cost-effective operations, efficient Management Information Systems, improved delivery capability and high service standards. To develop innovative products and services that attract our targeted customers and market segments. To continue to develop products and services that reduce our cost of funds. To maintain a high quality assets portfolio to achieve strong and sustainable returns and to continuously build shareholders value. To explore new avenues for growth and profitability.
Core Values and ethical principles

Our core values tell us, our customers and the communities we serve, who we really are; what we are about; and the principles by which we pledge to conduct business. In essence, we believe that success can only be achieved by being true to our core values and principles.
Customer Focus: At NIBL, our prime focus is to perfect our customer service. Customers are our first priority and driving force. We wish to gain customer confidence and be their trusted partner. Quality: We believe a quality service experience is paramount to our customers and we are strongly committed to fulfilling this ideal. Honesty and Integrity: We ensure the highest level of integrity to our customers by creating an ongoing relationship of trust and confidence. We treat our customers with honesty, fairness and respect. Belief in our people: We recognize that employees are our most valuable asset and our competitive strength. We respect the worth and dignity of individual employees who devote their careers for the progress of the Bank. teamwork: We are a firm believer in teamwork and feel that loyal and motivated teams can produce extraordinary results. We are driven by a performance culture where recognition and rewards are based on individual merit and demonstrated track record. Good Corporate Governance: Effective Corporate Governance procedures are essential towards achieving and maintaining public trust and confidence in any company, more so in a bank. At NIBL, we are committed to following practices which result in good corporate governance. Corporate Social Responsibility: As a responsible corporate citizen, we consider it important to act in a responsible manner towards the environment and society. Our commitment has always been to behave ethically and contribute towards the improvement of the quality of life of our people, the community and society at large, of which we are an integral part.
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About Nepal Investment Bank ltd.

Nepal Investment Bank Ltd. (NIBL), previously Nepal Indosuez Bank Ltd., was established in 1986 as a joint venture between Nepali and French partners. The French partner (holding 50%) of the capital) was Credit Agricole Indosuez, a subsidiary of one of the largest banking groups in the world. When Credit Agricole Indosuez decided to divest, a group of companies comprising of bankers, professionals, industrialists and businessmen acquired 50% of the holdings of Credit Agricole Indosuez in Nepal Indosuez Bank in April 2002. The name of the Bank was changed to Nepal Investment Bank Ltd. upon approval of the Banks Annual General Meeting, Nepal Rastra Bank and Company Registrars Office. The shareholding structure comprises of:
A group of companies holding 50% of the Capital. Rastriya Banijya Bank holding 15% of the Capital. Rastriya Beema Sansthan holding 15% of the Capital. The general public holding 20% of the Capital.
We believe that NIBL, being managed by a team of experienced bankers and professionals with a proven track record, can match your particular needs. We are sure that your choice of bank will be guided, among other things, by its reliability and professionalism. Over the past 8 years, we have grown to become one of the biggest commercial banks in Nepal. Our overall growth record in deposits, lending, net profit and capital base is second to none.
Highest growth rate among banks in Nepal. Experienced management & sound corporate governance. No. 1 lender in Nepal with total loans and advances of NPR
40.32 billion.
No. 1 Private sector bank in Deposits with NPR 50.1billion. Highest Net Profit of NPR 1.26 billion. Highest paid up capital among the financial institution in
Nepal at Rs. 2.41 billion. The highest capital base (including debentures) with NPR 5.64 billion 5th Largest Taxpayer in Nepal. Customer base of over 370,000. Maintained a consistent rating from Indian Credit Rating Agency, ICRA, an affiliate of Moodys Investor Group, receiving a rating of Nepal [A].
www.nibl.com.np

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SOUND STRONG STABLE

AnnuAl RepoRt 2009/10

nepal Investment Bank Annual Report 2009/10 1

* Cost to income ratio is calculated as operating cost over operating income

nepal Investment Bank Annual Report 2009/10

03 216 247 201 240 234 223 162 190

total lending Growth (In millions of rupees)

Book Value per Share

Non- Performing Assets

Last 8 Years at Glance

Shareholder's Fund growth (In millions of rupees)

Total Profit Growth (In millions of rupees)

Market price per Share

7,932 11,525 14,255 18,927 24,489

34,452 46,698 50,094

Total Deposit Growth (In millions of rupees)

earning per Share

Nepal Investment Bank Annual Report 2009/10 3

Nepal Investment Bank Annual Report 2009/10

Nepal Investment Bank Annual Report 2009/10 5

Sincerely, prithivi B. pand Chief Executive Director

nepal Investment Bank Annual Report 2009/10

nepal Investment Bank Annual Report 2009/10 7

Nepal Investment Bank Annual Report 2009/10

General Manager's Review

nepal Investment Bank Annual Report 2009/10 9

performance overview: Retail Bank

nepal Investment Bank Annual Report 2009/10

nepal Investment Bank Annual Report 2009/10 11

Snapshot of the Nepali Economy

Thank You, Jyoti Prakash Pandey General Manager

nepal Investment Bank Annual Report 2009/10

Nepal Investment Bank Annual Report 2009/10 13

Name of the Committees

Nepal Investment Bank Annual Report 2009/10

Nepal Investment Bank Annual Report 2009/10 15

Credit Risk Management

Operational Risk Management

nepal Investment Bank Annual Report 2009/10

Market Risk Management

nepal Investment Bank Annual Report 2009/10 17

Liquidity Risk Management

Foreign exchange Risk Management

Nepal Investment Bank Annual Report 2009/10

Monitoring and Reporting

nepal Investment Bank Annual Report 2009/10 19

nepal Investment Bank Annual Report 2009/10

nepal Investment Bank Annual Report 2009/10 21

Senior Management team

Rajan Amatya Deputy General Manager

Mr. Bijendra Suwal Assistant General Manager

Mr. Anuj timilsina Assistant General Manager

Ms. Manju Basnet Assistant General Manager

nepal Investment Bank Annual Report 2009/10

Nepal Investment Bank Annual Report 2009/10 23

Nepal Investment Bank Annual Report 2009/10

nepal Investment Bank Annual Report 2009/10

nepal Investment Bank Annual Report 2009/10 27

Nepal Investment Bank Annual Report 2009/10

nepal Investment Bank Annual Report 2009/10 29

Nepal Investment Bank Annual Report 2009/10

Board of Director's Report

For the Financial Year 2066/67 (FY 2009/2010)