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22
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Annual Report
2014-2015 (2071-2072)

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GLIMPSE OF 21ST ANNUAL GENERAL MEETING OF SHAREHOLDERS HELD ON 28TH JANUARY 2015 AT KATHMANDU
THE BOARD
OF DIRECTORS

Mr. Siddhartha Sengupta Mr. Sujit Kumar Varma Mr. Giridhara Kini
Director Director Director
Representing State Bank of India Representing State Bank of India Representing State Bank of India

Mr. Niranjan Kumar Tibrewala Mr. Sanjay Kumar Sureka Mr.Keshav Raj Acharya
Director Director Director
Representing Public Shareholders Representing Public Shareholders Professional Expert Director

Mr. Anukool Bhatnagar

Managing Director (CEO)
Representing State Bank of India

Statutory Auditor
P.L Shrestha & Co., Chartered Accountants Mr. Ramesh Ghimire
 TABLE OF CONTENTS
Financial Highlights 3

Technology and Other Products 5

Report of the Board of Directors 7

Organiza on Structure 26

Human Resources and Industrial Rela ons 29

Business Promo on and Social Responsibility Ini a ves 30

Products and Services 33

Corporate Governance 42

Risk Management 50

Five years financial highlights 52

Auditors Report 53

Financial Statments 54

Approval from NRB 117

22 Annual Report
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2 Nepal SBI Bank Limited
2014-2015
FINANCIAL HIGHLIGHTS

Total Opera ng Income (Rs. in Billion) 2.81 Opera ng Profit Before

1.75
2.39 Provisioning (Rs. in Billion)
2.20 1.44
1.30

1.42 1.50
0.72 0.75

2067-68 2068-69 2069-70 2070-71 2071-72 2067-68 2068-69 2069-70 2070-71 2071-72

Net Profit (Rs. in Billion) 1.07 Shareholders Fund (Rs. in Billion) 5.65
0.92 4.54
0.77 3.80
3.20
2.87
0.46 0.48

2067-68 2068-69 2069-70 2070-71 2071-72 2067-68 2068-69 2069-70 2070-71 2071-72

Deposit (Rs. in Billion) 59.13 Loans & Advances (Net) (Rs. in Billion) 39.98
53.34 54.49 35.28
51.63
42.42 28.79
26.14
21.37

2067-68 2068-69 2069-70 2070-71 2071-72 2067-68 2068-69 2069-70 2070-71 2071-72

22 Annual Report
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Nepal SBI Bank Limited 3
2014-2015
FINANCIAL HIGHLIGHTS

Return on Average Assets (%) Return on Equity (%)

1.70 20.31 21.51

16.19 22.85
1.19
1.01 1.50
15.02

0.82

2067-68 2068-69 2069-70 2070-71 2071-72 2067-68 2068-69 2069-70 2070-71 2071-72

Credit to Deposit Ra o as per Capital Adequacy Ra o (%)

NRB Direc ves (%) 14.03%
78.54% 12.39
11.52
75.18 13.28
11.21
75.23
68.43
73.09

2067-68 2068-69 2069-70 2070-71 2071-72 2067-68 2068-69 2069-70 2070-71 2071-72

Gross NPA (%) & Net NPA (%) Earning Per Share (Rs.)
34.84
1.10 32.75
Gross NPA (%) Net NPA (%)
24.85 34.83
0.54
0.46 0.37
0.26 0.19 22.93
0.32
0.01 0.04 0

2067-68 2068-69 2069-70 2070-71 2071-72 2067-68 2068-69 2069-70 2070-71 2071-72

Gross NPA Amount (Rs. In Million) Dividend (Including Bonus) Per Share (%)
28.42
2393.00
20.00
17.50
22.07%
108.70 17.50
143.90 74.90

91.20

2067-68 2068-69 2069-70 2070-71 2071-72 2067-68 2068-69 2069-70 2070-71 2071-72

22 Annual Report
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4 Nepal SBI Bank Limited
2014-2015
TECHNOLOGY AND OTHER PRODUCTS

No. of ATM Cards (In Thousands) 482.09 Deposit Customer Accounts 568.86
Card Penetra on (In %) 418.27 (In Thousands) 515.75
458.98
351.56
384.77
272.88

72.41 77.72 82.13 84.75

2068-69 2069-70 2070-71 2071-72 2068-69 2069-70 2070-71 2071-72

No. of Internet Banking Accounts 33.88 No. of Mobile Banking Accounts 95.95
(In Thousands) (In Thousands)
26.35 75.29
20.29
52.23
15.36

2.50

2068-69 2069-70 2070-71 2071-72 2068-69 2069-70 2070-71 2071-72

22 Annual Report
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Nepal SBI Bank Limited 5
2014-2015
ABOUT NEPAL SBI BANK LIMITED
Nepal SBI Bank Ltd.(NSBL), established in July
1993, is a subsidiary of State Bank of India (SBI)
having 55 percent of ownership. The local partner
viz. Employee Provident Fund holds 15% equity
and General Public holds 30%. In terms of the
Technical Services Agreement between SBI and
the NSBL, the former provides management
support to the bank through its expatriate ocers
including Managing Director who is also the CEO
of the Bank. Central Management Commi ee
(CENMAC), consis ng of the Managing Director &
CEO, Chief Opera ng Ocer & Deputy CEO, Chief
Financial Ocer, Chief Risk Ocer and Chief Credit
Ocer, exercises overall control func ons with the
help of 3 Regional Oces, and oversee the overall
opera ons of the Bank.
With the comple on of glorious 22 years NSBL
has emerged as one of the leading banks of Nepal,
with 682 skilled and dedicated employees working
in 56 branches, 7 extension counters, 3 Regional
Oces and Corporate Oce. With presence in 31
districts in Nepal, the Bank is providing value added
services to its customers through its wide network
of 78 ATMs, internet banking, Mobile/SMS banking,
IRCTC Ticket Online Booking facility, etc. NSBL is
one of the fastest growing Commercial Banks of
Nepal with more than 5.6 lakhs sa sfied deposit
customers and over 4.8 lakhs Debit cardholders.
The Bank enjoys leading posi on in the country
in terms of penetra on of technology products,
viz. Mobile Banking, Internet Banking and Card
Services. The Bank is moving ahead in the Nepalese
Banking Industry with significant growth in Net
Profit with very nominal NPA. As of 16th July 2015,
the Bank has total deposits of Rs. 51.63 billion and
total advances (net) of Rs. 39.98 billion, besides
investment por olio of Rs. 9.32 billion.
6 Nepal SBI Bank Limited
VISION & MISSION
To be a state of the art, customer centric,
values driven and professionally managed
bank; committed to high standards of
good corporate governance practices;
perpetual enhancement of the wealth of all
stakeholders and the society.
Over the years, we have grown larger and
stronger - in terms of business, geography and
resources. This has been achieved by relying
on the fundamentals of customer service
of top order. Our achievements have come
through quality, consistency and transparency
of capital base, sound liquidity, a robust risk
management framework coupled with the
prac ce of good corporate governance and
above all, the reless focus on customer
sa sfac on.
The Banks mission is to provide one stop
solu on to all the banking needs for the
customer through a highly mo vated
professional and ecient human resource
pool. Promo ng sustainable business growth
by providing High quality customer service,
customer care and ensuring ecient use of
Informa on Technology in a cost ecient
manner. Mee ng the expecta ons of all
stakeholders through transparent, true and
fair disclosures and responsive management,
prac ces/principles. Strive to fulfill corporate
social responsibility in Nepal with emphasis to
growth in business.
22 Annual Report
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2014-2015
REPORT OF
THE BOARD OF DIRECTORS
The Board of Directors of Nepal SBI Bank have
pleasure in presen ng this Annual Report together
with the audited Balance Sheet and Profit &
Loss account for the year ended 31st Ashad 2072
(16.07.2015).
REVIEW OF THE FY 2071 72
Nepal SBI Bank has completed 22 years of
serving the na on, since the commencement
of opera ons in July 1993. Over the period, the
bank has established its presence in 31 districts
of Nepal. Nepal SBI Bank strives to achieve the
highest standards in customer service by providing
various a rac ve and convenient products.
During the review period, the country
experienced two powerful earthquakes, which
hit Nepal on April 25, 2015 and May 12, 2015.
The na on lost over 8,800 lives, with the
damages and losses es mated at US$7 billion,
or nearly one third of Nepals GDP. Nepal SBI
took the lead in the country in resuming banking
opera ons on the very next day, i.e. 26th April
2015 morning, which received accolades and
apprecia on from Nepal Rastra Bank, local and
Interna onal media. Besides, NSBL raised and
collected dona on funds of Rs. 71 million and
contributed to the Government of Nepal for the
relief and rehabilita on of the quake vic ms. The
funds raised by the Bank represent the highest
amount of dona on ever raised and contributed
by Nepali Banks. The contribu on was handed
over to the Honorable Prime Minster of Nepal,
Shri Sushil Koirala, amidst a program organized
in the Prime Ministers oce cum residence,
Baluwatar, Kathmandu on 2nd August 2015.
22 Annual Report
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2014-2015
Nepal SBI Bank remains commi ed for the
uninterrupted, highest standards of services
to its customers and the na on even in trying
circumstances.
The bank has achieved sa sfactory growth in
profits during FY 2071-72 (2014-15). The review
period also witnessed all round growth in various
segments of business.
ECONOMIC ENVIRONMENT
WORLD ECONOMY: Outlook
In 2015 the economic growth of developed/
advanced market is projected to pick up gradually,
whereas emerging and developing countries
economy is projected to gain slower growth to
some extent. As per the World Economic Outlook
published in July 2015 by Interna onal Monetary
Fund (IMF), the global economy is projected to grow
by 3.3 percent in 2015 which is a bit lower than that
in 2014 (3.4 percent). Factors like lower fuel prices,
easy financial condi ons, a strengthening housing
market, improving confidence and labor market
condi ons, and more neutral fiscal policy in euro
area are contributors for gradual accelera on in
economic ac vity of advanced countries. Growth
of the advanced economies like United States
and Euro Area was 2.4 percent and 0.8 percent in
2014, whereas Japan witnessed a nega ve growth
of 0.1 percent in 2014. In 2015, IMF projects the
improved growth of 2.5 percent, 1.5 percent and
0.8 percent in US, Euro Area and Japan respec vely.
Emerging and developing economies are witnessing
con nuous slowdown in growth rate due to the
factors like lower commodity prices and ghter
external financial condi ons mainly in La n America
and oil expor ng countries, rebalancing in China,
Nepal SBI Bank Limited 7
structural bo lenecks, and economic distress
related to geopoli cal factors. Emerging market
and developing economies witnessed growth of
4.6 percent in 2014 and is projected to grow at 4.2
percent in 2015. Growth rate of Neighbor countries,
India and China are projected to be 7.5 percent and
6.8 percent respec vely in 2015.
Due to decline in fuel prices and weakening
domes c demand in advanced economies,
Infla on of these countries is likely to decrease
to zero percent in 2015, which was 1.4 percent in
2014. Similarly, infla on of emerging market and
developing economies is expected to increase in
2015 to 5.5 percent than that of 5.1 percent in
2014. However, world economy especially the
advanced economies are not free from the risk.
Lower oil price may s ll boost growth in advanced
economies, but downside risks persist. Though,
recent development in Greece has not resulted in
any significant disorder in euro area, it is likely to
adversely aect the euro area, if proper policies
and ac ons are not taken on me.
ECONOMIC ENVIRONMENT IN NEPAL
Economic environment of Nepal was found less
favorable in Fiscal Year 2071-72 compared to that of
previous fiscal year. Major contribu ng factors for
decline in economic growth rate of Nepal are low
agricultural output due to weak monsoon, vola le
poli cal situa on, uncertainty of promulga on of
Cons tu on of Nepal on me, and devasta ng
earthquake of 12th Baisakh, 2072 and many subsequent
a ershocks. Unprecedented disaster in the beginning
of last quarter of the fiscal year has aected the whole
economy of the country forcing downward trend
of all sectors of Nepal. Agriculture, manufacturing,
mining, tourism (hotel and restaurants), financial,
real-estate, educa on, hydropower, and construc on
are among the worst-hit sectors. As per the Central
Bureau of Sta s cs (CBS) the real GDP growth rate of
the country, at basic price, is projected to slump at 3.0
8 Nepal SBI Bank Limited
percent at the end of fiscal year 2071-72 comparing
to that of 5.1 percent in previous year. Agriculture and
Non-agriculture sectors are expected to grow by 1.87
percent and 3.58 percent respec vely during the fiscal
year. Government of Nepal through a Post Disaster
Needs Assessment (PDNA) report, 2015 es mated
that the total value of loss and damage due to the
earthquake is around Rs. 706 billion. This has further
pushed 2.5 percent to 3.5 percent Nepali into the
poverty line which sum up at least 700,000 addi onal
poor people.
As on mid-July 2015 the annual average consumer
price infla on rate is 7.2 percent, as compared to
an increase of 9.1 percent in the corresponding
period of the previous year. BOP surplus on 2014-
15 recorded an all me high of Rs.144.85 billion,
as against Rs. 127.13 billion in the previous year.
Similarly, the current account registered a surplus
of Rs.108.32 billion in 2014-15 as compared to a
surplus of Rs. 89.72 billion in the same period of
last year, mainly on account of higher remi ance
inflows & grants, low growth of merchandise
import, etc. Na on has adopted various reforms
including curbing the rampant import of precious
yellow metal and other commodi es to improve
the posi on of current account a er the BOP crisis
of fiscal 2009-10. Workers remi ance inflow has
increased by 13.6 percent to Rs. 617.28 billion
during the review period which has contributed to
the trade gap financing.
Merchandise exports decreased by 7.3 percent to
Rs. 85.32 billion in 2014-15, as against a growth of 19.6
percent at Rs.91.99 billion in previous year. Exports to
India decreased by 6.3 percent in fiscal year 2014-15,
as compared to a growth of 16.9 percent in previous
year. Likewise, exports to other countries decreased
by 7.8 percent, as compared to an increase of 23.9
percent in previous year. Merchandise Imports has
shown a slow growth of 8.4 percent to Rs. 774.68
billion in review year, as against an increase of 28.3
22 Annual Report
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2014-2015
percent at Rs. 714.37 billion in FY 2013-14. The fall in
growth of import is a ributed mainly due to decrease
in the price of petroleum products, fall in import of
gold, betelnut, coal, crude soyabean oil, etc. During
the fiscal year, Imports from India soared by 2.9
percent compared to a growth of 30.2 percent in the
previous year. Likewise, imports from other countries
rose by 12.1 percent compared to an increase of 28.2
percent in the previous year. This caused total trade
deficit to surge by mere 10.8 percent to Rs.689.37
billion, as compared to an increase of 29.7 percent in
the previous year. Trade deficit with India increased by
4.2 percent as compared to increase by 32.4 percent
in the previous year. Likewise, trade deficit with other
countries grew by 16.5 percent compared to an
increase of 29.1 percent in the last year.
In USD terms, the gross foreign exchange reserves
increased by 17.4 percent to USD 8.15 billion in mid-
July 2015, compared to an increase by 23.6 percent in
mid-July 2014. On the basis of the trend of imports, the
exis ng level of foreign exchange reserves is sucient
for financing merchandise imports of 13 months and
merchandise and service imports of 11.2 months.
However, during the first quarter (Mid July 2015 to
Mid October 2015) of the ensuing fiscal year, the
poli cal situa on of the country has remained vola le
a er promulga on of the new cons tu on. Economic
ac vity has been very low due to violent protests bands,
dharnas, demonstra ons and curfews in various parts
of the country including bordering areas. Despite this,
your Bank con nues to report reasonable growth.
THE BANKING INDUSTRY
Banking Industry remained in consolida on phase
with an objec ve of making strong financial
ins tu ons and con nued to be on the path of
mergers and acquisi ons. Till mid-July 2015, the total
no. of BFIs licensed by NRB dropped to 193 from 204
in the previous year. The total no. of Commercial
banks stood at 30, no. of Development banks,
22 Annual Report
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2014-2015
Finance companies, and Micro finance development
banks stood at 76, 48 and 39 respec vely. In a view
to widen the access of financial services, number of
branches of BFIs increased to 3838 ll mid-July 2015
as compared to 3430 in the previous year. Branches
of commercial bank increased from 1547 in the
previous year to 1669 as on Mid-July 2015.
Deposit mobiliza on at Banks and Financial
Ins tu ons (BFIs) increased by 20.1 percent (Rs.
282.06 billion) as against 18.4 percent (Rs. 218.68
billion) in the previous year. Deposit mobiliza on
at commercial banks increased by 21.4 percent,
development banks by 15.2 percent, whereas that
of finance companies decreased by 0.6 percent in
fiscal year 2014-15. In previous year, the deposit
mobiliza on of commercial banks, development
banks and finance companies had increased by 17.8
percent, 29.1 percent and 5.7 percent respec vely.
As on mid-July 2015, the loan and advances of
BFIs increased by 17.5 percent (Rs. 229.30 billion)
compared to a growth of 14.4 percent (Rs. 165.48
billion) in the previous year. Loan and advances of
commercial banks rose by 18.8 percent and that of
development banks by 13.5 percent and finance
companies by 0.3 percent. Credit from BFIs to the
private sector increased by 19.8 percent (Rs. 221.61
billion) compared to a rise of 18.7 percent (Rs. 176.14
billion) in the previous year. Credit flows to the private
sector from commercial banks, development banks
and finance companies registered a growth of 22.0
percent, 16.0 percent and 0.4 percent respec vely.
As on mid-July 2015, the weighted average of 91-
days Treasury bill rate increased to 0.1739 percent,
as compared to 0.02 percent of previous year.
Likewise, the weighted average inter-bank rate
among commercial banks increased to 1.01 percent
which was 0.16 percent a year ago, and the weighted
average inter-bank rate among other financial
ins tu ons increased to 3.89 percent from 2.40
Nepal SBI Bank Limited 9
percent a year ago. Due to excess Liquidity in the
system, NRB introduced a new 90 days instrument:
Deposit Collec on and mopped NPR 476.80 billion
to manage excess liquidity.
Weighted average interest rate spread of commercial
banks stood at 4.61 percent in mid-July 2015.
Moreover, the average base rate of commercial banks
reduced to 7.88 percent in mid-July 2015 compared
to 8.36 percent in the previous year. NSBLs Base Rate
was 7.71 percent as of mid-July 2015, be er than
the industry average. Your bank con nues to report
compe ve numbers.
RECENT DEVELOPMENTS IMPACTING
BANKING BUSINESS
EARTHQUAKE AND ITS IMPACT
In the a ermath of destruc on caused to physical
assets by the devasta ng earthquake and major
a ershocks, government of Nepal has temporarily
stopped the construc on of new buildings in
the last quarter. This has aected the value of
exis ng collateral kept against the loans and
advances provided by BFIs and aected extending
loans (especially housing loan) to construct new
buildings.
TRADE DISRUPTIONS SINCE MID OF SEPTEMBER/
AGITATION IN LATE JULY 2015
The economic growth outlook, which was ge ng
weakened on account of strike in the Southern parts of
the country since the first month of the current fiscal
year, further deteriorated owing to border blockage
at major entry points. The blockade on the import
of essen al commodi es such as medicines, food
grains and petroleum products has made public life
miserable. So is the case of developmental projects
which remain stalled on account of shortage of fuel
and necessary raw materials. Merchandise exports
decreased significantly by 25.4 percent to Rs. 16.81
billion in the first three months of 2015/16 compared
10 Nepal SBI Bank Limited
to a drop of 2.3 percent to Rs. 22.53 billion in the
same period of the previous year. The total exports
decreased due to a fall in exports to India, China
and other countries in the 1st quarter of FY 2072-73
on account of current unfavorable circumstances.
Exports to India decreased by 35.9 percent during
the review period compared to a drop of 6.4 percent
in the same period of the previous year. The fall in
exports to India is a ributed mainly of the fall in the
exports of zinc sheet, juice, tex les, and polyester
yarn, among others.
During the period 1st quarter of FY 2072-73,
merchandise imports shrieked by 31.9 percent to
Rs. 130.49 billion. Such imports had gone up by 24.4
percent to Rs. 191.72 billion in the same period of the
previous year. Imports from India fell by 35.4 percent
in the 1st quarter of FY 2072-73 as against an increase
of 22.8 percent in the same period of the previous
year. The import of petroleum product, vehicles and
spare parts, M.S. billet, medicine, among others has
decreased whereas the import of chemical fer lizer,
M.S .wire rod, cold rolled sheet in coil, vegetables has
increased. Imports from China decreased by 13.3
percent in the review period compared to a growth
of 40.1 percent in the same period of the previous
year. Imports from China decreased on account of
the fall in the imports of television, machinery parts,
solar panel, and electrical equipments, among others.
Similarly, imports from other countries decreased
by 32.2 percent in the review period contrary to
an increase of 21.5 percent in the same period of
the previous year. Imports from other countries
decreased mainly due to a fall in the imports of silver,
crude soybean oil, edible oil, among others. In US
dollar terms, the imports from China decreased by
18.9 percent to USD 194.4 million in contrast to an
increase of 43.2 percent in the same period of the
previous year. The imports from other countries
decreased by 36.6 percent to USD 289.6 million in
contrast to an increase of 24 percent in the same
period of the previous year.
22 Annual Report
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2014-2015
MONETARY POLICY 2072 73 AND
REGULATORY DECLARATIONS
INCREMENT OF PAID-UP CAPITAL
Nepal Rastra Bank through its 13th monetary
policy of 2072-73 has increased the minimum
paid-up capital requirement of BFIs. Commercial
banks are now required to increase their
minimum paid-up capital to Rs 8 billion,
national level Development banks to Rs 2.5
billion, Development banks operating in 4 to 10
districts to Rs 1.20 billion, Development banks
operating in 1 to 3 districts to Rs 0.50 billion.
Similarly, national level finance companies and
finance companies operating in 4 to 10 districts
will require Rs 0.80 billion paid-up capital and
those operating in 1 to 3 districts Rs 0.40 billion
paid-up capital. BFIs are required to meet this
provision by Mid- July 2017. In addition, BFIs
will be further encouraged for merger and
acquisitions.
MERGER AND ACQUISITION
As per the merger and acquisition policy, which
was implemented to strengthen the financial
stability, 1 commercial bank, 10 development
banks, 4 finance companies were merged and
converted to 1 commercial bank, 4 development
banks and 1 finance company in 2014/15.
Similarly, during the review period, 1 commercial
bank has acquired 2 finance companies and
1 development bank has acquired another 1
development bank.
The number of Banks and Financial Institutions as on Mid July 2014 and 2015 were as follows.
Bank and Financial Institutions
2014 (Mid-July)
Commercial Banks
Development Banks
Finance Companies
Microfinance Development Banks
Total
22 Annual Report
nd
2014-2015
The number of BFIs op ng for merger has been
increasing a er the introduc on of merger policy
that was aimed at strengthening financial stability.
A er the issuance of the Bank and Financial
Ins tu ons Merger By-law, 2011, 83 BFIs have
merged with each other resul ng in the forma on
of 31 BFIs as of mid-October 2015. In the review
period, 2 finance companies were acquired by a
commercial bank and one development bank was
acquired by another development bank.
Total number of banks and financial ins tu ons
licensed by the NRB dropped to 193 in mid-July
2015 from 204 as of mid-July 2014. The total
number of commercial banks stood at 30 while the
number of development banks, finance companies
and microfinance development banks stood at 76,
48 and 39 respec vely as of mid-July 2015. Despite
the decline in the number of BFIs due to merger and
acquisi on, financial access has widened because
of expansion in number of BFIs branches from
3430 at mid-July 2014 to 3838 at mid-July 2015.
A er implementa on of Merger Policy of NRB 68
Banks and Financial Ins tu ons merged with each
other forming 25 ins tu ons which consists of
28 Development Banks, 26 Finance Companies, 9
Commercial Banks and 5 Microcredit Development
Banks up to Ashad end 2072
PRODUCTIVE SECTOR AND DEPRIVED SECTOR
LENDING
With an objec ve to increase lending to produc ve
sector (Agriculture, energy, tourism, small and
Number of BFIs Branches of BFIs
2015 (Mid-July) 2014 (Mid-July) 2015 (Mid-July)
30 30 1547 1672
84 76 818 808
53 48 239 242
33 39 826 1116
200 193 3430 3838
Nepal SBI Bank Limited 11
co age industries) NRB has instructed commercial
banks to lend 20 percent of total credit to the
produc ve sector by mid-July 2015, out of which 12
percent of total credit to the agriculture and energy
sector. Your bank has extended Rs. 8,134.25 million
to produc ve sector which is 20.10% of its total loan
and advances as of fiscal year end 2071-72. Similarly,
NRB through monetary policy 2072-73 has increased
the deprived sector lending ra o of commercial banks
to 5.0 percent of total credit. The bank has increased
the deprived sector lending to Rs. 179.62 crores.
This cons tuted the deprived sector lending of 4.56
percent of overall advance of the Bank which is be er
than the standard prescribed by Nepal Rastra Bank
(i.e. 4.5%) during the fiscal year 2071-72.
OTHER REGULATORY DECLARATIONS: UNDER
IMPLEMENTATION
` Housing Loan to earthquake victims at
concessional interest rate at 2%.
` CRR same as pervious at 6%. SLR same as
previous at 12%.
` Bank Rate decreased to 7% from 8%.
` Interest rate on Loans and Advance shall not be
more or less by 1% on published rate.
` Continue to 3 months Deposit Collection
instrument to manage excess liquidity.
` Amidst Bandha, violent agitation across the
country, NRB has given concession to the
borrowers, grace period for repayment up to
Mid January 2016. NRB has also relaxed Banks
by postponing the watch-list provision of 2% only
up to Chaitra 2072.
REGULATORY DECLARATIONS: PLANNED /
DETAILS YET TO BE ISSUED
` Policy to establish na onal level Infrastructure
Bank allowing foreign investment with minimum
capital Rs. 20 billion.
` Declara on of Systema cally Important Bank on
the basis of prescribed standards.
` Revisit the Licensing policy to new BFIs.
12 Nepal SBI Bank Limited
` Deposit insurance slab to increase from exis ng
Rs. 2 lacs to Rs. 5 lacs gradually.
` Implementation of Liquidity management
techniques under Basel III.
` Requirement of Credit Ra ng for a prescribed
limit of loan.
` Nepal Financial Repor ng Standards (NFRS)
implementa on.
BUSINESS PERFORMANCE: 2014 15
Your Bank adopted a conscious strategy to shi
from high cost bulk deposits to low cost CASA. In the
process share of SAARC (USD) funds has come down
from Rs 1,120.93 crore as at the end of Ashad 2071
to Rs 231.52 crore as at the end of Ashad 2072. While
local deposits has increased from Rs 4,328.36 crore to
Rs 4,931.30 crore as at the end of Ashad 2072, which
is a growth of 13.93% over the previous year. CASA
share, on total domes c deposits, went up to 54.40%
at the end of Ashad 2072 from 48.86% at the end of
Ashad 2071. Resources were mobilized in line with the
credit expansion and high cost deposits of Rs. 1,318.83
crore having coupon rate 5% p.a. and above were
shed consciously to reduce cost of fund and improve
profitability since the beginning of fiscal year.
In advances, the bank registered a gross growth
of 13.32 percent (excluding provisioning). While
registering the growth in Loan and Advances, quality
of por olio was ensured, which is evident from
improvement in Gross NPAs to 0.19% (decrease from
0.26% at the end of Ashad 2071) and Net NPA 0.00%
(are amongst the best indicators in the country and
be er than the industry average of 3.33 percent)
as at the end of Ashad 2072. The Bank con nues to
maintain its premier posi on in the country, as one of
the most ecient and financially robust Banks.
The number of total deposit accounts registered
reached to a level of 568,856 showing an increase
of 10.30 percent over the previous year. Likewise,
22 Annual Report
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2014-2015
number of borrowal accounts (net) increased by
6.84% reaching a level of 17,171 as at the end of
the fiscal year.
Your Bank posted a higher opera ng profit (before
provision) of Rs. 174.69 crores as compared to
Rs.144.14 crores in previous year and achieved
qualita ve improvement in asset quality.
The Bank maintained a strong capital base and
significantly expanded clientele base of deposits
and advances. Greater oversight and improvement
in risk based supervision techniques and structures
helped your bank achieving higher trust and
confidence of stakeholders. Your bank introduced
focused deposit products viz. NSBL Baal Bachat
Khata, Karnadhaar Bachat Khata and Nari Bachat
Khata targeted at specific group of customers
(childrens upto age of 16 years and women) for
helping them to inculcate the savings habit and
increase the volume of low cost deposit of the
bank. The Bank has introduced new remi ance
product Global Link Services (GLS) u lity for
receiving remi ances on easy, reliable and fastest
way from various branches of SBI Group outside
India and from exchange houses & remi ance
companies having link with SBI Group.
RETAIL BANKING SEGMENT
During the review period, the bank has focused
more on retail banking segment having high
reten on or stability ra o. In the year 2071-72,
retail segment deposits recorded a growth of
Rs.184.39 crores to Rs. 2771.18 crores. 53,244
new savings deposit accounts and 4,548 new
current accounts were opened during the year.
Aggressive marke ng eort from our employees,
be er customer service and deposit/advance
mobiliza on campaigns launched over the years
has resulted this increment.
Retail segment advances stood at Rs. 1313.91
crores in 2071-72 as against Rs.1120.73 crores in
2070-71 which is a YoY increase of 17.23%. We
focused on retail loans like loans to ex servicemen
(Indian Army), educa on loan, housing loan,
mortgage loan, etc. to improve the yield on assets.
Despite uncertain poli cal situa on and sluggish
economy and excess liquidity in the banking
system, we were able to book quality business with
double digit growth rate.
CREDIT MANAGEMENT
The bank has always focused on the quality aspect
of credit while augmen ng its credit por olio.

MEASURING OUR SUCCESS

IMPROVEMENT IN KEY EFFICIENCY PARAMETERS (NPR IN CRORE)
FY ended 16th July 2014 16th July 2015 Growth/Improvement
1 Net Interest Income 174.5 204.75 30.25
2 Operating Profit 135.85 163.03 27.18
3 Net Profit 92.3 106.54 14.24
4 Cost of Funds (%) 3.99 3.17 -0.82
5 Cost to Income Ratio (%) 39.7 37.94 -1.76
6 Net Interest Margin (%) 3.29 3.78 0.49
7 Return on Assets (RoA) (%) 1.50 1.70 0.20
8 Profit per employee 0.15 0.18 0.03
9 Gross NPA Amount 9.12 7.49 -1.63
10 NPA (%) 0.26 0.19 -0.07
11 Base Rate 8.78 7.71 -1.07

22 Annual Report
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Nepal SBI Bank Limited 13
2014-2015
This year the total credit exposure reached Rs.
4047.19 crores showing a growth of 13.32%
over previous year. 1,006 new advance accounts
(net) were booked during the review year. Bank
has robust credit assessment and monitoring
system in place due to which our asset quality
has been con nuously improving. Banks credit
management policy has been appreciated by our
regulator; NRB also.
SME BUSINESS
SMEs are the milestone of innova on and new
job crea on. Realizing the importance of SMEs
to Na onal Prosperity, the Bank has designed a
specific targeted product for the SMEs ; SME
Loan to support these businesses with hassle
free need based assessment and mely loan
dispensa on. As at the end of Ashadh 2072, Bank
extended advance of Rs. 135.86 crores under SME
Business por olio registering year on year growth
of 36.27%.
DEPRIVED SECTOR LENDING
During the review year, your bank has increased
the deprived sector lending to Rs. 179.62 crores.
This cons tuted the deprived sector lending
of 4.56 percent of overall advance of the Bank
which is be er than the standard prescribed by
Nepal Rastra Bank (i.e. 4.5%) during the fiscal year
2071-72. Now, through monetary policy 2072-73,
NRB has increased the deprived sector lending
requirement to 5 percent for commercial banks
from current financial year viz : 2072-73.
NPA MANAGEMENT
Both preven ve management and cura ve
management strategies are being pursued with
regards to NPAs. The bank has installed a strong
credit assessment and risk management mechanism
to filter out the likely NPAs. Regular monitoring of
accounts to sense early warning signs is being done
to reduce the incidence of NPAs. A detailed due
14 Nepal SBI Bank Limited
diligence on KYC profile of clients were an emphasis
on creditability default history etc is done as part of
our credit pre- sanc on process while establishing
credit rela onship. The bank has been able to
lower the Gross NPA to 0.19% and net NPA to 0%.
Similarly, the number of NPA accounts came down
from 68 to 62.
Nepal Rastra Bank (NRB) has made new provision
regarding classifica on of loans as Watch List. Loan
loss provision at the rate 2% is to be maintained for
loan falls under Watch List. We are able to keep low
level of NPA and provision of Watch Listed accounts
on back of close monitoring of SMA accounts
through prompt recovery eorts.
TREASURY AND INVESTMENTS
Market con nued to witness excess liquidity
scenario, forcing players to employ dynamic
strategies to avert the ill eects of low returns.
Share of GBs, TBs, Deposit collec on (Deposit with
NRB) and Reverse Repo to total domes c deposits
was at 13.81% at the end of Ashad 2071(Mid July
14) (Rs. 597.62 crores), which decreased to 7.60%
at the end of Ashad 2072(Mid July 15) (Rs. 374.69
crores).
The liquidity posi on of the bank was comfortable,
however the same was a empted to be kept at
op mum level. Liquid Assets to Total Deposit Ra o
is 27.45%; above the NRB benchmark (20%).
Earnings of Rs. 11.95 crores was achieved on
Foreign Currency business in Fiscal year 2071-72
against Rs. 10.78 crores in Fiscal year 2070-71
registering an increase of 10.85 %
FINANCIAL HIGHLIGHTS
NET INTEREST INCOME
The Bank earned a net interest income of
Rs. 204.75 crores in the FY 2071-72 as against
22 Annual Report
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Rs. 174.50 crores during the previous year. This
shows a growth of 17.33%.
NON INTEREST INCOME
Non-interest income stood at Rs. 76.75 crores in
2071-72 as against Rs. 64.55 crores in 2070-71
registering an increase of 18.90%.
PROFIT
The Opera ng Profit of the Bank for 2071-72 stood
at Rs. 163.03 crores as compared to Rs. 135.85
crores in 2070-71 registering an increment of
20.01%. The Bank posted Net Profit of Rs. 106.54
crores for 2071-72 as compared to Rs. 92.29 crores
in 2070-71 registering a growth of 15.43%.
KEY FINANCIAL INDICATORS
Earnings per share stood at Rs. 34.84 (per share of
face value Rs.100) in 2071-72.
The Book value of the share improved to a
level of Rs. 184.62. This was achieved on higher
equity base, since the Bank has been issuing and
distribu ng Bonus shares to its shareholders for
the past few years.
RoA of your bank also improved from 1.50%
to 1.70% during the review year. Similarly, Net
Interest Margin improved from 3.29% to 3.78%
during the review year.
Your Bank effectively ensured efficient use
of resources and brought about significant
increase in level of advances by over Rs.469.96
crores. The augmented base of assets was
achieved while simultaneously perusing best
global practices to maintain sound capital base
with capital adequacy ratio at 14.03% percent
in mid July 2015. This was well above the Nepal
Rastra Bank benchmark of 10 percent. Likewise,
the Core capital to Total Risk Weighted Assets
22 Annual Report
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2014-2015
(Tier-I) at the end of Ashad 2072 was 11.18%,
which was well above the minimum required
benchmark of 6 percent of NRB.
Your Banks capital base successfully qualifies
all applicable and possible stress test scenario
analyses and withstands all key risk factors across
all por olios and also takes care, appropriately, of
the forward-looking scenario. This also provides
sucient room for further increase in risk assets
necessary for the con nued growth of the Bank.
CORPORATE CITIZENSHIP
CODE OF ETHICS
The Bank has devised and implemented its own
Code of Ethics to be followed me culously by all
the members of its Board of Directors, Management
Team and sta at all levels. The Code of Ethics
implemented by your bank is consistent with the
spirit of Good Governance Act and is fully compliant
with Nepal Rastra Banks guidelines on maintaining
good corporate governance in the bank.
INTERNAL CONTROL, INSPECTION AND AUDIT
The Bank has put in place a well-established
independent audit system and structure to ensure
adequate internal control for safe and sound
opera ons. Internal Auditor reports to the Audit
Commi ee and is also responsible for monitoring
compliance with various NRB direc ves and
guidelines. The Audit Commi ee of the Bank under
chairmanship of a non-execu ve director reviews
the financial posi on of the Bank, adequacy of its
internal control systems and issues appropriate
guidelines based on the feedback received from
the internal audit reports.
The B ank has adopted and successfully implemented
Risk Focused Internal Audit (RFIA), whereby a
provision of 12 dierent types of Audits has been
made in the Audit Manual. Under RFIA, branches
Nepal SBI Bank Limited 15
are categorized into three groups as per risk
percep on and are subject to various degrees of
audit. The periodicity of audit is determined by the
classifica on of the branches according to the extent
of control quan fied by previous RFIA. Self Audit
of opera ng units has also been introduced, under
which audit of a branch is carried out by the branch
itself providing greater insight and controlling tools
for the Regional Managers and the Management
for eec ve supervision of qualita ve parameters
of opera ons.
The IAD has successfully carried out audit of 70
audit units (i.e. Branches & Departments) during
the FY 2014-15 respec vely as per the audit plan
approved by the Audit Commi ee. Observa ons of
the internal auditors have been complied with and
correc ve ac ons were taken wherever necessary.
RISK MANAGEMENT
An independent risk monitoring structure is in place
in the bank for be er control and mi ga on of risk.
Banking business involves a trade-o between risk
and return. A fine balance between risk and return
ensures con nuity and prosperity of the bank.
Your Bank has various risk management commi ees
in place to manage and control all facets of risk
arising out of dierent areas of banking business, viz.
ICAAP Review Commi ee, Market Risk Management
Commi ee, Credit Risk Management Commi ee,
Opera onal Risk Management Commi ee, Assets
and Liabilities Management Committee. These
commi ees iden fy, assess, mi gate, control and
monitor risk strictly in line with the policy frameworks
for such areas of banking business. These risk
management commi ees together with the Audit
Commi ee form the structure through which the
Board oversees the risk management func on.
The func oning of the Banks various Risk
Commi ees has been appreciated by Nepal Rastra
16 Nepal SBI Bank Limited
Bank (NRB) also in the Onsite inspec on report
dated 10.08.2015. The Report finds that the Bank
management is conscious in managing opera onal
risks and has observed that the risks func ons in
the Bank are being carried out eec vely under
the coordina on of Chief Opera ng Ocer. The
inspec on report has also observed that the
decisions in various Risk Commi ees are found to
have been made a er having periodic discussions
on various policy and procedural aspects in a
collec ve and transparent way and the risks are
being managed eec vely. While reviewing the
robustness of the func ons being carried out by the
Banks ICAAP Commi ee, the supervisory body has
observed in the Report that the Bank Management
is running the day to day opera ons of the Bank
by taking into account the qualita ve as well as
quan ta ve aspects of the capital. The Report has
further observed that the computa on of capital
for credit, market and opera on risks is found to
have been done on the basis of NRB Direc ves
and as per the provisions of Capital Adequacy
Framework issued by them for computa on of
capital. The Report has further appreciated the
Bank management for having been commi ed
in strengthening the Banks financial health by
enhancing the quality of capital.
Your Bank has already migrated to Basel-II
norms and the Capital to Risk Weighted Assets
Ra o (CRAR) is also being worked out as per the
guidelines of Basel-II. The Bank also plans to go for
Opera onal Risk Management Solu on so ware
in near future for assessing the Opera onal Risk on
an ongoing basis. To control, obviate and mi gate
the opera onal risk, the Bank has put in place
comprehensive opera onal guidelines and has
also issued various manuals, such as Cash Module
Manual, IT manual, Finacle Job cards, TFCPC
manual, Internet Banking guidelines, Mobile
Banking opera onal guidelines, Credit assessment
and process guidelines for the opera ng units.
22 Annual Report
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The Bank has created Integrated Risk Management
Department headed by Chief Risk Ocer (CRO) to
further strengthen the Risk Management structure,
which includes assessing, iden fying, monitoring
and reducing per nent business risks. Further,
being a subsidiary of State Bank of India, your Bank
is also required to comply with the requirements
of the Group Risk Management Policy of State
Bank of India who are con nuously monitoring our
systems & controls. Your bank received A+ ra ng,
the highest ra ng in the last Management Audit
conducted by SBI, Audit & Inspec on team.
ASSET LIABILITY MANAGEMENT
The Bank is ecient in ensuring asset liability
management and is undertaking mely review of
the ALM posi ons. A comprehensive Asset Liability
Management (ALM) System is in place for eec ve
management of Market Risk covering Liquidity
Risk, Interest Rate Risk and Foreign Exchange Risk.
Liquidity and Interest Rate Risks are measured
through Structural Liquidity Report. Both the risks
on Foreign Assets & Liabili es are being monitored
through Maturity & Posi on (MAP) and Sensi vity
to Interest Rate (SIR) reports. The monitoring of
liquidity on a dynamic basis over a me horizon
spanning 1-90 days and more, is in place.
The Asset Liability Management Policy coupled
with Investment Policy of the Bank specifies various
pruden al limits for management of Liquidity and
Interest Rate Risks. A system of daily monitoring
of inflows and ou lows of deposits is in place for
managing Liquidity on a day-to-day basis. Stress
Tes ng on Liquidity, Interest rate and Foreign
Exchange posi ons has also been undertaken
during the year. The structural liquidity report is
being prepared and reviewed regularly. Scenario
analysis on market risk, as prescribed by Nepal
Rastra Bank is also being ensured.
22 Annual Report
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CORE BANKING SOLUTION (CBS)
The Bank uses Finacle Core Banking Solu on, a
real me 24X7 account processing pla orm which
has a layered Service Oriented Architecture (SOA),
Straight through Processing capabili es and
web enabled technology. On this core pla orm
are integrated various value added services like
SMS/Mobile Banking and Internet Banking in
addi on to ATM cards. Your Banks has recently,
in the month of October 2015 has successfully
completed Up-grada on/Migra on from exis ng
version of Finacle 7.6.1 to Finacle 10.2 which is
superior in terms of security features and speed
of processing data.
CARD PRODUCTS
Your Bank has oered various Visa branded debit
card services to its customers and subsequently
upgraded the security features over the me.
ATM cum Debit Card, Bharat Yatra Card, Vishwa
Yatra Card are the debit card products oered by
the Bank and are VBV (Verified by Visa) enabled,
an extra layer of security that helps to prevent
unauthorized use of the cards while online
shopping. Currently, our Vishwa Yatra Card is chip
based card and the Bank is in process to upgrade
other two cards, ATM cum Debit Card and Bharat
Yatra Card to chip based card. The bank has issued
over 4.82 lacs cards as at the end of Ashad 2072
with the penetra on of over 84.75 percent.
AUTOMATED TELLER MACHINES (ATMS)
The Bank has installed 78 ATMs all over the country to
provide 365 days banking services to its customers.
This year your Bank has installed addi onal 3 ATMs
at Besisahar, Ratnanagar & Phidim and is planning
to install more in coming days. Further the Bank is
in process to add modern features in its ATMs viz.
fund transfer, request for SMS/Mobile banking, etc.
Various interna onal cardholders can also transact
from our ATMs at nominal charge.
Nepal SBI Bank Limited 17
INTERNET BANKING
Through E-Banking service, your Bank has oered
facility of fund transfer, mini/detailed statement of
accounts, u lity bill payments, payment of IRCTC
Indian railway online cket booking etc. In order
to develop awareness and encourage customers
to use E-banking facility for quick and hassle-free
banking experience, the Bank has introduced
E-banking mobiliza on campaign. This resulted
in growth of E-banking users by 28.59 percent to
33,884 as compared to last year.
MOBILE BANKING
Mobile/SMS Banking of the Bank allows its customers
to view account balance, inquiry of exchange rates,
banking hours, check mini statement, transac on
alert, fund transfer, u lity bill payment, book airlines
cket, etc. Bank is planning to add more features and
make mobile banking more convenient, secure and
popular among its customers. Banks Mobile Banking
App is available for free download from Banks
website and Google Play store. Till Ashad 2072,
more than 95 thousands customers are availing
Mobile Banking service with growth of more than
27% percent of last year.
INFORMATION TECHNOLOGY & SYSTEMS
SECURITY
In order to control the threats and risks associated with
IT enabled services, the Bank has a comprehensive
IT and Informa on Systems (IS) Security systems to
address all the concerns including maintenance of
customers confiden ality, security and integrity
of data. Banks data centre where the Banks
CBS database resides (both Primary and Disaster
Recovery Site) has acquired the accredita on for
the interna onal standard for Informa on Security
Management Systems. All the Banking applica ons
have built-in security features like access control,
data encryp on and transmission through secured
channels as per the requirement of the applica on.
The threat of virus is minimized by having a
18 Nepal SBI Bank Limited
centralized an -virus solu on. Adequate Firewalls
and Intrusion Detec on Systems are in place so as
to prevent unauthorized access to the network.
The Disaster Recovery Plan (DRP) for all the
opera ons is in place. The Bank has taken steps
to increase security awareness amongst sta as
well as customers and to ensure compliance of
IT security. A detailed booklet for guidelines on IT
Policy containing IS Security guidelines has been
provided to all the branches and oces.
CUSTOMER SERVICE
Keeping customers in its first priority the Bank
con nues to render be er customer service by
devising simplified processes and innova ve delivery
channels accordingly over the years. Providing value
added services, leveraging core Banking technology
and re-designing key business processes in line
with the requirements of the customers, have
helped in providing customers a sa sfying banking
experience with interna onal standards. Todays
customers evaluate and choose the banks based in
their provision of self-service banking tools. To the
possible extent, customers do not prefer to visit the
bank and wait for an hours in a serpen ne queue
to get their cash deposited, cheque paid, statement
printed, queries addressed, etc. In order to fulfill
these needs, our Bank has installed technology
driven products like AMTs, SMS/Mobile Banking,
Internet Banking and Live support.
SOCIAL RESPONSIBILITY INITIATIVES
As a part of the society and a corporate ci zen,
the Bank fully understands and fulfills its duty
towards the society and Na on. Every year Bank is
contribu ng certain por on of its earnings for the
progress of the community and country through
several ini a ves. The bank has lent a suppor ng
hand in every walk of life of the community in
which it operates with an emphasis on the weak
and the underprivileged. During the year, we
22 Annual Report
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supported directly or in partnership with other
organiza ons, to various individuals, groups or
ins tu ons in wider area of social life including
natural calami es, educa on, sports, culture, etc.
Apart from these, the Bank has contributed to
Prime Ministers Disaster Relief Fund and taken
ini a ve for collec ng more funds from within and
outside the country for relief and rehabilita on of
the earthquake vic ms of the country.
CHANGES IN THE BOARD OF DIRECTORS
Consequent upon pos ng of Shri Mrutyunjay
Mahapatra, as DMD & CIO of State Bank of India,
Shri. Siddhartha Sengupta, Deputy Managing
Director, Interna onal Banking Group, State Bank
of India (SBI), currently in charge of Interna onal
Opera ons of the SBI across 36 countries,
represents SBI on the Board of Nepal SBI Bank
Ltd. Earlier; Shri Mahaparta had replaced Shri
R. Karthikeyan, the Chief General Manager IBG,
consequent upon his re rement from the service
of SBI. Shri Sujit Kumar Varma, Chief General
Manager, Interna onal Banking Group, State Bank
of India (SBI) has been nominated by SBI on the
Board of Nepal SBI Bank Ltd. Similarly, 21st AGM
of the Bank held on 28.01.2015 has elected Shri
Niranjan Kumar Tibrewala and Shri Sanjay Kumar
Sureka as directors in the Board of the Bank
represen ng the General Public Shareholders.
Shri Keshab Raj Acharya has also been appointed
in place of Mr Gokul Ram Thapa by the board
as a professional expert director. Likewise, Shri
Anukool Bhatnagar has recently been appointed
as the Managing Director of the Bank by State
Bank of India. On behalf of the Board of Directors,
we place on record our apprecia on for the
contribu on made by Shri R Karthikeyan, Shri
Mrutyunjay Mahapatra, Shri Gokul Ram Thapa,
Shri Manoj Kumar Agrawal and Shri Alok Kumar
Sharma(former Managing Director) in guiding the
aairs of the Bank during their tenure and welcome
Shri Siddhartha Sengupta, Deputy Managing
22 Annual Report
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2014-2015
Director, Interna onal Banking Group, State Bank
of India and Shri Sujit Kumar Varma, Chief General
Manager, Interna onal Banking Group, State Bank
of India, Shri Niranjan Kumar Tibrewala, Shri Sanjay
Kumar Sureka, Shri Keshav Raj Acharya and Shri
Anukool Bhatnagar as new members on the Board
of the Bank.
STATUTORY AUDITORS
M/S P.L. Shrestha & Co., Chartered Accountants,
conducted the statutory audit of the Bank for the
FY 2071-72 as appointed by the 21st AGM and is
eligible for con nuance. Accordingly, the audit
commi ee of the Banks board has recommended
for con nuance of M/S P.L. Shrestha & Co.,
Chartered Accountants as Statutory Auditors of
the Bank for the year 2072-73.
FURTHER INFORMATION AND DISCLOSURES
All the statutory requirements on disclosure of
informa onincluding under Sec on 109(4) of the
Companies Act, 2063 and Rule 22(1) of Securi es
Registra on and Issuance Regula on 2065 have
been embodied as annexure to this report. Similarly,
informa on regarding the Banks Corporate Social
Responsibility ini a ves, Corporate Governance
and Risk Management and useful informa on
for Shareholders can be found in their respec ve
sec ons. Financial Statements including Balance
Sheet, Profit and Loss Account and Cash Flow
Statement followed by the schedules prepared
as prescribed by Nepal Rastra Bank and notes to
accounts thereto can be found subsequently.
PATH AHEAD
Your Bank has a ained present posi on in banking
industry gradually but steadily in the past 22 years.
Bank has expanded its service to 31 districts of
the country with 63 banking outlets and 78 ATMs.
Bank is planning to expand its reach by opening
6 new branches, installing ATMs and introducing
branch-less banking in various poten al loca ons
Nepal SBI Bank Limited 19
making its reach to 32 districts of Nepal. Similarly,
our objec ve will be expanding the customer base
at the same me by maintaining strong customer
rela onship. Digi zed banking service and
innova ve tools will be adopted in order enhance
the eciency and to provide interna onal standard
customer service.
OUR STRATEGIES FOR THE CURRENT YEAR
The Bank has introduced addi onal remi ance
product, Global Link Services (GLS) u lity for
remi ance business. Emphasis will be given
to bring more and more remi ances from gulf
na ons, India, Europe, US, Australia, Malaysia,
etc by enabling linkages and arrangements with
various domes c and interna onal remi ance
companies and agencies. Your Bank has one of
the richest baskets full of alterna ve delivery
channels: Automated Teller Machines, SMS/
Mobile Banking, and Internet Banking. The Bank
has introduced various addi onal facili es like
IRCTC Ticket Online Booking U lity, Telephone,
Post-Paid Mobile, ADSL bill payment through
Mobile Banking, Internet Banking and the
Branches. Your Bank proposes to approach the
new businesses with more tech savvy product
ranges and integrated solu ons like fund transfer
and remi ance service through ATM machine,
online payment through Debit cards, installa on
of Point of Sale machines at dierent business
centers to ensure hassle free, high quality
customer service at low cost.
Emphasis on stable and long term low-cost deposits,
expansion of retail advances to improve eciency
parameters and the market share, maintaining asset
quality of high standard, developing innova ve/
compe ve products and improving delivery
channels, restructuring business processes in the
techno-driven environment, further strengthening
the sophis cated risk management systems,
ensuring high quality of customer service and
adop ng best Corporate Governance prac ces,
would con nue to remain guiding factors and
strategy for your Bank.
PROGRESS REPORT FOR THE CURRENT YEAR
(First Quarter ending as on 17.10.2015)
In the a ermath of major earthquake in April 2015
followed by con nued Trade Disrup ons, Dharanas,
Bandhas, Agita on and violent protests along the
bordering areas, the ac vity level has been very
low in the economy. Despite the above challenges
we have registered a sa sfactory growth in the key
performance parameters during the quarter.

(NPR IN CRORE)
S.N. Particulars This Quarter Previous Quarter Corresponding Growth (%)
Ending as on Ending 31.03.2072 Previous Year Quarter on
30.06.2072 (16.07.2015) Quarter Ending Quarter
(17.10.2015) Audited as on 31.06.2071
Unaudited (17.10.2014)
Unaudited
1 Total Deposits 5395.35 5162.82 5,506.66 (2.02)
2 Out of above: Domestic Currency Deposit 4751.91 4493.29 4,199.75 13.15
3 Loans and Advances (Net) 3985.4 3997.91 3,721.11 7.10
4 Net Interest Income 56.7 204.74 46.86 21.00
5 Operating Profit Before Provision 46.59 174.69 42.12 10.61
6 Operating Profit 44.26 163.03 38.83 13.98
7 Net Profit 30.2 106.54 25.62 17.88

22 Annual Report
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20 Nepal SBI Bank Limited
2014-2015
Contd... (NPR IN CRORE)
S.N. Particulars This Quarter Previous Quarter Corresponding Growth (%)
Ending as on Ending 31.03.2072 Previous Year Quarter on
30.06.2072 (16.07.2015) Quarter Ending Quarter
(17.10.2015) Audited as on 31.06.2071
Unaudited (17.10.2014)
Unaudited
8 Capital Fund to Risk Weighted Assets (RWA) 14.33% 14.03% 13.18% 8.73
9 Non Performing Loan (NPL) to Total Loan 0.18% 0.19% 0.23% (21.74)
Total Loan Loss Provision to Total NPL 651.00% 657.59% 517.27% 25.85
10 Total Loan Loss Provision to Total NPL 651.00% 657.59% 517.27% 25.85
11 Cost of Fund (Annualized) 2.87% 3.17% 3.42% (16.08)
12 Credit to Deposit Ratio (Calculated as per NRB Directives) 74.82% 78.54% 78.17% (4.29)
13 Base Rate 6.47% 7.71% 8.17% (20.81)
14 Return on Assets (Annualized) 1.93% 1.70% 1.63% 18.40

VALUE CREATION AND ALLOCATION

The following appropria ons from profits are proposed for the year ended Ashad End, 2072 :

PROFIT AND LOSS APPROPRIATION ACCOUNT

For the period from 1 Shrawan 2071 to 31 Ashad 2072 (17 July 2014 to 16 July 2015)

Particulars This Year Rs. Previous Year Rs.

INCOME
1. Accumulated Profit up to Previous Year 5,815,251 5,055,793
2. This Year's Profit 1,065,436,141 922,984,007
3. Transferred from General Reserve (Debenture Redemption Reserve) 200,000,000 -
4. Investment Adjustment Reserve - 515,360
5. Capital Adjustment Reserve up to Previous Year 85,000,000 35,000,000
Total 1,356,251,392 963,555,160
EXPENSES
1. Accumulated Loss up to Previous Year - -
2. This Year's Loss - -
3. General Reserve 213,087,229 184,596,802
4. Contingent Reserve fund - -
5. Institution Development Reserve - -
6. Dividend Equalization Reserve - -
7. Staff Related Reserve - -
8. Proposed Cash Dividend @ 1.42% 43,456,635 186,142,754
9. Proposed issue of Bonus Shares @ 27% 825,676,065 398,877,300
10. Special Reserve fund - -
11. Exchange Fluctuation Fund 636,333 1,178,556
12. Capital Redemption Reserve - -
13. Capital Adjustment Reserve 135,000,000 85,000,000

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Nepal SBI Bank Limited 21
2014-2015
Contd...

Particulars This Year Rs. Previous Year Rs.

14. Investment Adjustment Reserve 377,900 -
15. 12.5% NSBL Debenture 2078 Redemption Reserve 40,000,000 40,000,000
16. 8% NSBL Debenture 2079 Redemption Reserve 40,000,000 40,000,000
17. 7.9% NSBL Debenture 2080 Redemption Reserve 20,000,000 4,821,918
18. Deferred Tax Reserve 34,856,162 17,122,579
Total 1,353,090,324 957,739,909
20. Accumulated Profit/(Loss) 3,161,068 5,815,251

ACKNOWLEDGEMENT
The Board of Directors is grateful to the valued
customers, esteemed shareholders and the public at
large for their patronage and confidence reposed in
the Bank and places on record its apprecia on. The
Board of Directors also expresses its sincere thanks to
the Government of Nepal, Nepal Rastra Bank, Oce
of the Company Registrar (OCR), Securi es Board of
Nepal (SEBON) and other regulatory bodies for their
valuable support and guidance throughout the year.
The Board of Directors also places on record
its apprecia on of the commitment, sense of
involvement and dedica on exhibited by employees
of the Bank in the overall development and prosperity
of the Bank.
For and on behalf of the Board of Directors
Ms. Hasana Sharma
Chairperson
Kathmandu

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22 Nepal SBI Bank Limited
2014-2015
ADDITIONAL DISCLOSURES
ANNEXURE TO THE REPORT OF THE BOARD OF DIRECTORS
ADDITIONAL INFORMATION REQUIRED TO BE FURNISHED AS PER SECTION 109 4 OF THE
COMPANIES ACT, 2063

(i) No shares have been forfeited by the Bank during the fiscal year 2071/72.

(ii) Main transac ons carried out by the Bank during the financial year 2071/72, and any important
change in the business of the Bank during the period:

Bank carried out transac ons as per objec ves/func ons detailed in the Memorandum of Associa on
and Ar cles of Associa on of the Bank. The highlights of the business have been detailed in the
Directors Report. There was no significant change in the nature of the business performed by the
Bank during the year.

(iii) No informa on has been received by the Bank from its basic shareholders as per the provisions of
the Companies Act, 2063.

(iv) No shares were taken up by the Directors and key oce-bearers of the Bank during the year nor
were they found to have engaged in the share transac ons of the Banks shares in contraven on
of the prevailing laws.

(v) No informa on was received from any Director or any of his/her close rela ves about his/her
personal interest in any agreement connected with the Bank signed during the financial year
2071/72.

(vi) The Bank has not so far purchased any of its own shares.

(vii) Par culars of the Total Management expenses of the financial year
S. N. Particulars Amount (in Rupees)
11 Staff Expenses 552,231,467.00
2 Other Operating Expenses 515,793,282.00

(viii) The Bank has an Audit Commi ee comprising of the following members

S.N. Name of the Members Position Held

i. Mr. Sanjay Kumar Sureka, Public Director Chairperson
ii. Mr. Keshab Raj Acharya, Professional Expert Director Member
iii. Mr. Lekha Nath Pokhrel (Internal Auditor) Member Secretary

` NUMBER OF AUDIT COMMITTEE MEETINGS HELD DURING 2071/72:

19 (NINETEEN) MEETINGS

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Nepal SBI Bank Limited 23
2014-2015
` MEETING ALLOWANCES PAID TO THE MEMBERS
Directors other than those represen ng SBI: Rs.328,000.00
Director represen ng SBI: Nil
` ROLE PLAYED BY THE AUDIT COMMITTEE
Review of quarterly performance of the Bank and report to Board.
Supervision of ac vi es of the Banks Internal Audit Department.
Review of the Banks internal controls in dierent areas of Banks opera ons.
Finaliza on of Internal Audit Program.
Reviewing the implementa on of recommenda ons made by the Statutory Auditors and NRB
Inspec on Team.
Recommending the appointment of Statutory Auditors to the AGM.
Ensuring that the Financial Statements to be submi ed to the Board of Directors are true and
correct.
Reviewing the status of Nostro Accounts.
Payment due to the Bank from any Director, Managing Director, Execu ve Chief or the basic shareholder
of the Bank or any of their close rela ves, or from any firm, company or corporate body in which he is
involved:
None of the exis ng Directors owe any dues to the Bank.
NRB had directed the Bank to recover certain expenditure incurred on one of the former directors, Mr.
M. K. Agrawal who completed his tenure on 10.01.2015. No ce to Mr. Agrawal to deposit the amount as
advised by NRB has been sent vide our le ers dated 17.6.2015 and 28.07.2015. However, Mr. Agrawal
has filed a writ pe on before Appellate Court Patan seeking annulment of the Banks le er demanding
refund of the expenses incurred by the Bank on him in course of a ending the Board mee ng of NSBL.
Note: The Appellate Court Patan has since declared final verdict on the floor of the Court favoring Mr.
Agrawal in response to the Writ pe on and declare the claim of intended recovery awaited as not
maintainable. Wri en judgement is awaited.
(ix) The under noted amounts were paid as remunera ons, allowances and facili es to the Directors,
the Managing Director and other oce bearers.
1. Allowances/facili es to the Members of the Board:
A total of Rs. 1,052,500.00 was paid to the Board members as Board Mee ng fee during
2071/72 {@ Rs. 12,500.00 per mee ng for the Chairman and @ Rs. 10,000.00 per mee ng
for other Directors}which includes Rs.492,000.00 paid to Directors for a ending the mee ng
of Risk Management Commi ee of the Board and the Audit Commi ee of the Board.
2. Managing Director & Other Oce Bearers:
a) No remunera on was paid to the Managing Director & other India Based Ocers during
the year (Management team seconded by SBI) except the payment of Rs. 5,896,954.00
towards the rent of their residen al quarters and payment of permissible allowances
and expenses. Their salary and allowances are paid by SBI under Technical Services
Agreement.
b) Other Oce Bearers: A total of Rs.552,231,467.00 was paid to other oce bearers of
the bank as their remunera on, allowances and facili es.

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24 Nepal SBI Bank Limited
2014-2015
(x) Dividends yet to be collected by the shareholders:
Dividends pertaining to the following financial years are yet to be collected by the shareholders
as on 31st Ashadh 2072:
Financial Year Amount (Rs.)

2052/53 263,000.00
2053/54 248,200.00
2054/55 283,400.00
2055/56 & 2056/57 431,750.00
2059/60 575,069.20
2062/63 536,275.00
2063/64 882,217.50
2066/67 1,431,252.95
2067/68 1,745,275.40
2068/69 2,425,342.11
2069/70 5,684,820.85
2070/71 12,908,208.46
Grand Total 27,414,811.47

(xi) No property was purchased or sold by the Bank during the year as s pulated under Sec on 141
of the Companies Act, 2063.

(xii) No transac on was held between the Bank and its associate companies during the year as
s pulated under Sec on 175 of the Companies Act, 2063.

(xiii) Other required informa on:

a) Amount of penalty paid by the Directors, oce bearers and shareholder as per sec on 81 of the
Companies Act, 2063: None of the directors, oce bearers and shareholders of the Bank paid
any penalty to the oce of the Company Registrar. However, an amount of Rs.15,000.00 was paid
to the Oce of the Company Registrar against delay in holding the 21st AGM and submission of
requisite returns/reports rela ng thereof.

b) Informa on in regard to close rela ve of the Directors or oce Bearers working at the oce
(oce of the company Registrar), securi es Board of Nepal or any other regulators in an ocer
or above level as required under sec on 45 of the Company Direc ves:
S.N. Name of the Directors/Office bearers Details of relative
Name Relation Regulatory Organ Position held
A Directors Nil
B Office Bearers
1 Mr. Manoj Gautam Mr. Bhim Prasad Gautam Uncle Nepal Rastra Bank Ast. Director
2 Mr. Rabin Ghimire Mr. Rajan Dahal Maternal Uncle Nepal Rastra Bank Ast. Director
3 Mr. Shyam K. Dahal Dy. Director
4 Ms. Smriti Gautam Ms. Sita Ghimire Maternal Aunt Nepal Rastra Bank Director

Place: Kathmandu Ms. Hasana Sharma

Chairperson
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2014-2015
 ORGANIZATIONAL STRUCTURE

Board of Directors

Company Secretary

Managing Director (CEO) Risk Management

Audit Committee Committee

Internal Audit Credit Committee Chief Risk Officer

Integrated Risk
Management
Department

Chief Operating Officer Regional Office

(Deputy CEO) Chief Financial Officer Chief Credit Officer (East)

Information Credit Department

Communication Forex and Treasury Regional Office
Retail and SME
& Technology Advances (West)

Management Credit Department Regional Office

Information System Reconciliation Corporate Advances
(Central)

MDs/IBOs New Business Group:

Human Resources Secretariat Business Development
& Marketing

Credit Department Accounts

Credit Administration

Procurement,
Premises Renovation,
Documentation and
Office Administration

Law and Shares

ECC

Central MICR
Operations
Department Central Cash

Cards & E-Banking Remittance

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26 Nepal SBI Bank Limited
2014-2015
 MANAGEMENT TEAM

Mr. Anukool Bhatnagar

Managing Director (CEO)

Mr. V.K. Tyagi Mr. Priya Ranjan

Chief Opera ng Ocer (Dy CEO) Chief Financial Ocer

Mr. Chhapi Raj Pant Mr. Dev Raj Adhikari

Chief Credit Ocer
Chief Risk Ocer

Mr. Sudeep Khanal Mr. Umesh Bahadur Karki Mr. Jeeban Babu Subedi
Regional Manager (Central) Regional Manager (East) Regional Manager (West)
Kathmandu Biratnagar Nepalgunj
 HEAD OF DEPARTMENTS / UNITS

Mr. Sushil Kumar Mr. Ramesh Ghimire Mr. Binod Dhungel Mr. Suraj Manadhar Mr. Kamal Ram
Sharma Law and Shares & Credit Department Credit Department Bha arai
Company Secretary Corporate Credit SME and Retail Reconcilia on
New Business Group:
Business Development
& Marke ng

Mrs. Soma Roy Gupta Ms. Damayanthi Joshi Mr. Lekha Nath Pokharel Mr. Kishor Rijal Mr. Monish Kumar
Central Opera ons Human Resources Internal Audit Credit Department Shrestha
Department Credit Administra on Cards & E-Banking

Mr. Bigyan Adhikari Mr. Santosh Kumar Ms. Aparna Sharma Mr. Vikas Budhathoki Mr. Saurav Subedi
Management Bhandari Procurement, Informa on Forex and Treasury
Informa on System Accounts Premises Renova on, Communica on
(MIS) Documenta on and Oce & Technology
Administra on

Chief Managers

Mr. Arjun Nepal Mr. Bishnu Dev Yadav

Commercial Branch (Kathmandu) Durbar Marg Branch (Kathmandu)

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28 Nepal SBI Bank Limited
2014-2015
HUMAN RESOURCES &
INDUSTRIAL RELATIONS Composition of male and female employees at different level
179
We believe that our Human Resources are the root Male
of the success and eec veness of our Organiza on. 145
Female
Our people are the key factor that dieren ates us
from other banks in Nepal. Our employees come
from diverse backgrounds in educa on, language
92
and culture. Ranging from Science and Technology
to the Liberal Arts, from Maithili as the mother 65 60
tongue to Doteli, and being as rich as the Nepali 50
culture itself; we have a workforce that stands as
one to lead the banking industry. Till end of the
fiscal year we have a skilled and dedicated team of 3 2

596 employees. Out of which a number of female

Managerial Ocer Level Assistant Level Support Level
employees in the Bank is 130 which comprises Level
21.81 percent of the total workforce. Bank always believe in equity in diversity. Bank has
zero tolerance towards harassment, par ality or
Composi on of male and female employees biasness at the workplace. As a result, no complaints
ranging from assistant to managerial cadre as on regarding the harassment & par ality have been
16.07.2015 is presented below. filed ll date.

S.No. Staff Category Male Female Total Bank understands that training and development
1 Mangerial Level 50 3 53 has direct rela on with the produc vity and
2 Officer Level 179 65 244
mo va on of the employees. In order to develop
3 Assistant Level 145 60 205
and empower the employees, Bank has provided
4 Support Level 92 2 94
various trainings internally (in-house) and externally.
Total 466 130 596
During the year 2071-72, Bank has conducted 30
training programs in which 118 employees were
Composition of male and female employees trained.

Training and Development Program conducted during the year

21.81% 2071-72
Trainings Number Number of Staff
Participated
In-house/Internal 3 79
Outsourcing/External 27 39
Total 30 118
Male

Female Because of our focus on employee development,

78.19%
growth and their well-being, our rela ons with the
union remained harmonious during the year.

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Nepal SBI Bank Limited 29
2014-2015
BUSINESS PROMOTION AND
SOCIAL RESPONSIBILITY INITIATIVES
Photo: Scholarship to 15 meritorious students of Shree Nandi Madhyamik Vidhyalaya, Naxal for scoring highest marks in SLC Exam 2070.
Being a socially responsible organization, Bank
has always contributed toward the well being of
society. Bank always does the business behaving
ethically and legally and contributed to the
economic development while improving the
quality of life of its employees and their families
as well as of the local community and society at
large.
With an aim to make a real dierence in the
society and community, Bank invests in various
CSR ini a ves in the areas like Environment,
Educa on, Workplace, Sports & Culture and
Natural Calami es.
Bank always tries to limit its impact on the
environment through limi ng the consump on
30 Nepal SBI Bank Limited
of energy, limi ng emission of carbon footprint,
reuse and recycle, etc. Workplace safety, sound
customer service environment and customer
sa sfac on have always been the major focuses of
the Bank. Similarly, Bank has contributed in various
sports and cultural related program through
sponsorships.
We believe that educa on is crucial to the
development and prosperity of every country.
By suppor ng educa on in Nepal, we seek to
contribute to cul va ng talent for Nepals future.
This year also we focused on educa on of children
and conducted CSR ac vi es rela ng to it. We
believe our con nuous CSR ac vi es rela ng to
educa on of children will help in raising the status
of our country further.
22 Annual Report
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Photo: Handover of Scholarship Cheque and Letter of Appreciation to
the meritorious students of Shree Nandi Madhyamik Vidhyalaya, Naxal.
Photo :Financial literacy program cum Launching of NSBL Bal bachat
and karnadhar Bachat Khata ( specially designed for childrens of school
level ) at Kendriya Vidhyalaya . Mr Bishnu dev Yadav Chief manager
providing Leaflet of Bal bachat tostudent opening bal bachat khata .

We always shared our hands for the relief and

rehabilita on of the people who where the vic ms
of the unprecedented natural calami es. Banks
ini a on for collec on of dona on for the relief and
rehabilita on of the Earthquake vic ms resulted in
collec on of huge amount of fund and this has been
appreciated by the Prime Minister of Nepal.

Photo: Handover of Cheque to the Prime Minister of Nepal H.E., Shri Sushil Koirala for relief and rehabilitation of earthquake victims.

22 Annual Report
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Nepal SBI Bank Limited 31
2014-2015
Handover of one set computer printer and related accessories to be used for informa on and support related ac vi es for BHU PUU ( Ex Indian Army ) to
Sub Treasury Ocer, Pension Paying oce , BGSN, Thamel.

Glimpse of Special Exchange Counter operated at Tribhuvan Interna onal Airport by Nepal SBI Bank during devasta ng earthquake on April 25, 2015 and
May 12, 2015 to facilitate people visi ng abroad.

22 Annual Report
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32 Nepal SBI Bank Limited
2014-2015
PRODUCT AND SERVICES
With the presence in 31 districts of the country retail deposits. CASA mobilization campaign was
through a wide network of 56 branches, 7 launched to increase the proportion of low cost
extension counters, 3 regional offices, 78 ATMs, current account & saving account deposits in the
and inclusion of alternative delivery channels overall deposit portfolio of the Bank. Campaign
like mobile banking, internet banking, cards, was also launched for promoting and generating
etc. we aim to provide banking service to the awareness towards our technology products like
maximum populace and cater all the banking SMS/mobile banking and internet banking etc.
solutions of our customers. Bank always focuses Bank has 63% of low cost deposits (including
on introducing innovative products and services, savings, call and current deposits) and 37% of
redesigning existing products & services as per high cost term deposits of its overall deposit
the specific requirement of its customers and portfolio.
providing an international standard customer Composition of Deposit: Rs. in Billion
service.
S.No. Deposit Mix F/Y 2070-71 F/Y 2071-72
1 Current Deposits 4.54 5.34
DEPOSIT MOBILIZATION ACTIVITIES
2 Saving Deposits 16.61 21.48
Your Bank shows significant move away from
3 Fixed Deposits 28.57 19.14
high cost bulk deposits by consistent focus on
4 Call Deposits 4.77 5.67
CASA (Current Account & Saving Account) and
Total 54.49 51.63

Chief Operating Officer Mr Vijay Kumar Tyagi addressing the felicitation program of top performers of various campaign launched by the bank.

22 Annual Report
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Nepal SBI Bank Limited 33
2014-2015
 Call Current
Targeted at minors, this scheme can be opened
Deposits Deposits in the name of minor but operated by their
9% 8%
parents or guardians. Product oers the benefits
Fixed Saving
of concession on issuance of Visa Debit Card, free
Deposits Deposits annual charge of internet banking, free mobile
37% 31% banking service, etc.

Deposit Mix F/Y 2070-71

Call Current
Deposits Deposits
11% 10%

Fixed Saving
Deposits Deposits
37% 42%

Deposit Mix F/Y 2071-72

DEPOSIT PRODUCTS
Your Bank values the expecta ons and needs of
its customers and has adequate product line up to
cater to their specific requirements. The savings
bank account is normally the first on-board facility
availed by a customer and the referral point for
all future services from the Bank. Several variants
of savings bank account are available to meet the Karnadhaar Bachat Khata
specific needs of individual customers, prominent This scheme is targeted at children above age
amongst them are: of 10 years but below 16 years, who can read &
write and can sign uniformly. The account can
NSBL Baal Bachat Khata be opened in the name of minor in the presence
A scheme designed to inculcate savings habits & guidance of his or her parents or guardians
among the children below the age of 16 years. and can be operated by the minor with certain

22 Annual Report
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34 Nepal SBI Bank Limited
2014-2015
restric ons. Product oers the benefits of
concession on issuance of Visa Debit Card, free
annual charge of internet banking, free mobile
banking service, etc.
NSBL Nari Bachat Khata
Nepalese female above 16 years of age can open
this account with minimum balance of Rs. 500/-
and can earn a rac ve interest returns in their
savings. Under this scheme customers can get
facili es like; free cheque book, concession on
locker rental charge, concession on issuance of
Visa Debit Card, free annual charge of internet
banking, etc.
NSBL Combo Savings Scheme
This is a merge variant of two products of the Bank;
Savings Bank Public and NSBL Mobile Banking
Service. In this scheme account can be opened at
zero balance and customer has to avail the Mobile
Banking service mandatorily.
Saral Bachat Khata
The product with low minimum balance
requirement of Rs. 501/- is a most popular deposit
scheme having customer base of more than 3.10
lacs. This scheme is targeted towards mid to low
income group of people.
IndreniBachatKhata
Under this scheme, customer gets the benefits of
higher interest rate for maintaining higher balance
in the account. The scheme oers free internet
banking, any branch banking, concession on
remi ance facili es etc.
Vishesh Bachat
VisheshBachat Scheme is oered with a rac ve
interest rate and high minimum balance
requirement targeted at High Networth Individuals.
The scheme oers bundle of addi onal benefits like
22 Annual Report
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2014-2015
free internet banking, Visa debit card, any branch
banking, concession on remi ance facili es and
locker rental charge etc.
Varistha Nagarik Bachat
Individuals of 50 years and above are eligible
to open account in this scheme. Customers are
provided with added benefits like any branch
banking service, Visa debit card, discount on locker
rental charge and at the same me higher rate
of interest. Customers who open Fixed Deposit
under VaristhaNagarik Scheme are paid interest at
monthly interval.
KarmachariBachatKhata
This product is aimed at salaried employees from
government and non-government organiza ons
including security personnel. Under the scheme,
salaried employees can open savings account with
us and enjoy concessional benefits on various
services.
Savings Scheme for Nepal Army
This account is designed for serving personnel of
Nepal Army. It has features like; free issuance of
Visa Debit Card, free annual charge of internet
banking, free stop payment of cheques, no fees
on cheque destroy, free good for payment etc.
Savings Scheme for Nepal Police and Armed
Police Force
This account is designed for serving personnel of
Nepal Police or Armed Police Force. It has features
like; Free issuance of Visa Debit Card, free annual
charge of internet banking, free stop payment of
cheques, free good for payment, free registra on
of Standing Instruc ons etc.
Students Savings Account
This scheme has been introduced with an objec ve
to inculcate saving habits in the students. Under
Nepal SBI Bank Limited 35
this scheme any student can open savings account
with zero minimum balance.
Shareholders Account
Shareholders of our Bank are eligible to open account
under this scheme. The account does not have
minimum balance requirement. Dividends paid by
the Bank can be credited to the account directly.
Apart from the savings schemes, the Bank oers
Business Current Account and Personal Current
Account. Term deposits facili es like Recurring
Deposit and Fixed Deposit oer compe ve interest
rate. Provident fund account facility for permanent
sta of organiza ons is also available wherein the
interest rate is higher compared to savings account.
Call deposit account facility is available with a rac ve
interest rates and unlimited withdrawal facility.
LOANS AND ADVANCES
To cater to the credit requirements of our large
and diversified clientele base, we have wide range
of loan products. Working capital loan, term
loan, personal loan, mortgage loan, trade finance
solu ons etc. are available to fulfill the varied
needs of the customers. Some of our key loan
products are:
Corporate and Business Loans
The Bank oers loans to large corporate and
ins tu onal customers including public sector
en es to meet funding requirements ranging
from service related to strategic expansions,
project finance etc.
SME Convenient Loan
Small & medium Enterprises (SME) is vital to
the economic growth of the country. The sector
not only generates employment but also stands
auxiliary to big industrial/corporate projects.
SME Convenient loan is a customized loan
product designed to meet the financing needs
36 Nepal SBI Bank Limited
of manufacturing, trading, business enterprise
and self employed professionals in Small and
Medium Enterprise (SME) sector.
Mortgage and Mortgage Plus
These products oer personal credit on easy terms
to individuals on the basis of their income level
and value of mortgaged property. Simplified loan
processes and quick turn-around me ensures
smooth delivery to the customer.
Other Retail Loans
Other retail loans largely comprise of auto finance,
home loan, educa on loan, credit for consumer
durables, loan for re red Nepalese pensioners of
Indian Armed Forces etc.
Besides these, the Bank also provides Trust Receipt
loans, Pre-shipment and Post-shipment credit and
non-fund based facili es like Le er of Credit and
Bank Guarantees.
REMITTANCE
The Bank oers easy, convenient and safe
interna onal and domes c money transfer
facili es. We have wide reach in the country
through our extensive branch network and more
than 3500 instant payout loca on of Prabhu Money
Transfer (our remi ance partner), which ensure
delivery of remi ance proceeds to beneficiary in
quick me and hassle-free manner. Some of our
remi ance products are:
SBI Nepal Express Remit
Remi ance through Electronic Fund Transfer (EFT)
mechanism provides money transfer facility at
minimal cost to Nepali migrant popula on residing
and working in India. Remi ance can be originated
through more than 17,500 branches of State
Bank of India located in various parts of India. We
receive more than 450 remi ances on an average
per working day.
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Photo : Hydropower unit (Sanima Mai Hydropower Project) financed by Nepal SBI Bank under consortium arrangement

Photo : Manufacturing Unit of herbal products (Nepal Gramodhyog Pvt. Ltd) financed by Nepal SBI Bank under consortium arrangement

Photo : Hydropower unit (Sanima Mai Hydropower Project) financed by Nepal SBI Bank under consortium arrangement

22 Annual Report
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Nepal SBI Bank Limited 37
2014-2015
Indo-Nepal Remit
The product was introduced by Reserve Bank of India
in consulta on with Nepal Rastra Bank on Electronic
Fund Transfer (EFT) pla orm for smooth and speedy
remi ance from India to Nepal. Remi ance can
be originated through more than 117,000 NEFT
enabled branches of various Banks in India.
SBI Express Remit Gulf-Nepal (GLS)
A new remi ance scheme has been introduced for
providing easy, convenient and safe interna onal
money transfer service from Exchange Houses
in gulf countries to our customers account on
Straight Through Process (STP) enabled model.
38 Nepal SBI Bank Limited
RTGS
Real Time Gross Se lement is a product from
which customers can send Remi ance to India at
a real me in more than 75,000 branches of 106
banks in India.
Domes c Remi ance Service
Bank started domes c remi ance service in
partnership with Prabhu Money Transfer. This
product allows customers to send and receive
money to and from any part within the country.
CARD PRODUCTS
Nepal SBI Debit Card
This is ATM cum Debit card which can be used
for cash withdrawal as well as for merchandise
payments at more than 6,00,000 merchant outlets
in Nepal and India. NSBL Debit Card users can have
access to 78 ATMs of NSBL and other VISA enabled
ATMs all over the country and in India at nominal
charge.
Bharat Yatra Card
Popularly known as BYC, this is a Nepalese Rupees
denominated pre-paid card suited for Nepalese
popula on visi ng India for medical treatment,
pilgrimage, educa on, tours etc. The card can be
used for cash withdrawal at all Sate Bank ATMs and
VISA enabled ATMs in India. BYC was launched in
November 2008 and is able to a ract substan al
number of customers.
VishwaYatra Card
VishwaYatra Card, a CHIP based EMV compliant
card, is a USD denominated interna onal prepaid
card which the customers can use for cash
withdrawal in all the ATM terminals under VISA
network in any part of the world (except Nepal
and India) and also for merchandise payments.
It provides safety, security and convenience to
overseas travelers.
22 Annual Report
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2014-2015

ALTERNATIVE DELIVERY CHANNELS
Mobile Wallet
NSBL is the first leading Bank in the country to have
received NRBs approval for Mobile Wallet service.
It is premium mobile banking service that can be
operated through mobile phone. The service will
be instrumental not only in bringing previously
unbanked popula on into the formal banking
channel but also to add convenience to serving
exis ng customers. Nepal SBI Bank is among a
few commercial banks in Nepal which have come
out with a complete range of services to Mobile
Banking and Mobile Wallet System.
22 Annual Report
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2014-2015
Mobile Sakha
Mobile Sakha is mobile based banking service
delivery channel which allows customers access to
various banking services like fund transfer, balance
enquiry, u lity bill payments, statement request,
alert services, NTs GSM and CDMA Recharge PIN
purchase, Broadlink & DishHome Recharge PIN
purchase, etc. Presently the service is available to
both NT (Nepal Telecom) and Ncell users.
Internet Banking
Internet Banking is available through www.
nepalsbi.com.np/content/e-banking.cfm for both
retail and corporate customer of the Bank. This
online banking channel provides access to banking
services 24x7 from anywhere. E-statement, Fund
transfer, u lity bill payments, Indian railway cket
Nepal SBI Bank Limited 39
booking etc. are available on the internet banking
pla orm.
IRCTC Ticket Online Booking U lity
This product was launched in February 2014 with
a view to facilitate hassle-free booking of ckets of
Indian Railways. NSBL is the first and the only Bank
outside India to oer this facility. With this u lity,
NSBL Internet Banking users can book ckets
through IRCTCs Online Passenger Reserva on
System and can make payment through Nepal SBI
Internet Banking.
Automated Teller Machine
Nepal SBI Bank has one of the largest network of
ATM terminals. Presently, the bank has 78 ATM
terminals around the country. Our ATMs can also
be used by holders of various Interna onal Cards.
Glimpse of mee ng of Mr. Siddhartha Sengupta, Dy.MD & GE (IB), State Bank of India with Governor Dr. Chiranjibi Nepal, Nepal Rastra Bank.
40 Nepal SBI Bank Limited
AUXILIARY SERVICES
Safe Deposit Locker Services
Customers can deposit their valuable items in
their safe deposit lockers. Presently, this service is
available at 41 branches of Nepal SBI Bank Ltd.
U lity Bill Payment
Customersboth accountholders and non-
accountholdersof the bank can pay their
telephone bills, ADSL bills at the banks branches free
of charge. This facility is also available at our Mobile
Banking Service and Internet Banking service.
Fees and Premia Collec on
Customers of the bank can pay their insurance
premia, school and college fees at the banks
branches, of the organiza ons having agreement
with us, free of charge.
22 Annual Report
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Inaugura on of Durbarmarg Main Branch (New Premises) jointly by Mr. Siddhartha Sengupta, Dy.MD & GE (IB), State Bank of India, Mr. Sujit Kumar Verma,
CGM (IB), State Bank of India and Ms. Hasana Sharma, Chairperson, Nepal SBI Bank Limited.

22 Annual Report
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Nepal SBI Bank Limited 41
2014-2015
CORPORATE GOVERNANCE
Nepal SBI Bank is commi ed to the best prac ces
in the area of Corporate Governance in le er and
in spirit. Compliance with all applicable legisla on,
regula ons, standards and codes is an essen al
characteris c of organiza onal culture at Nepal
SBI Bank. The board of directors (BODs) is the
apex decision making body and has ul mate
responsibility for governance.
DIRECTORS STATEMENT OF
RESPONSIBILITIES
The Directors have pleasure in presen ng the Annual
Reports and Accounts for the fiscal year 2071-72,
which includes business performance review, risk
management and internal governance report,
stakeholders rela on reports etc. Contents of this
Annual Report, financial Statements, Significant
Accoun ng Policies used and the Notes to Accounts
of the Bank and the additional disclosures in the
Annual Report designated as audited, comply with
requirements of the Nepal Accoun ng Standards
and all other statutory and regulatory requirements.
These Financial Statements and Notes thereto
presented give a true and fair view of the banks
financial posi on as at 31 Ashad, 2072.
Risk management func on is an ongoing process
to iden fy, monitor and control the risks that are
faced by the Bank. The Directors review this process
through the deliberations of Risk Management
Commi ee. Specific steps have been taken by the
Bank in managing both banking and non-banking
risks as detailed in the sec on on Risk Management.
The Board of Directors has taken steps to oversee the
implementa on of an eec ve and comprehensive
system of internal controls covering financial
opera ons and compliance required to carry on the
42 Nepal SBI Bank Limited
business of banking in an orderly manner, safeguard
its assets and secure as far as possible the accuracy
and reliability of the records.
The Banks External Auditor, M/S P.L. Shrestha &
Co., Chartered Accountants, who were appointed
in accordance with a resolu on passed at the 21st
Annual General Meeting have expressed their
opinion on presentation of financial statements
and governance of corporate ma ers. As far as the
directors are aware, the Auditors do not have any
other rela onship with the Bank. The Auditors do not
have any interest in contracts with the Bank.
Bank carried out transactions as per objectives
and functions detailed in the Memorandum of
Associa on and Ar cles of Associa on of the Bank
and there were no significant changes in the nature
of principal ac vi es of the Bank during the financial
year under review. There has not been any material
event that occurred subsequent to the date of the
Balance Sheet that required adjustments to the
financial statements.
The Directors, to the best of their knowledge and
belief are sa sfied that all statutory payments to
the Government, other regulatory ins tu ons and
related to the employees have been made in me.
The Board of Directors has reviewed the Banks
Business plans and is satisfied that the Bank has
adequate resources to continue its operations in
the foreseeable future. Accordingly, the Financial
Statements of the bank are prepared based on going
concern concept.
a) The board and management
The Board is collec vely responsible for the success
of the bank. The directors are responsible for bringing
22 Annual Report
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2014-2015
independent judgment and scru ny to decisions taken
by the Board. The Board determines the strategic
objec ves and policies of the Bank to deliver long-
term value, providing overall strategic direc on within
an appropriate framework of rewards, incen ves and
controls.
The Board delegates the responsibility for the day-to-
day management of the bank to the Managing Director
and he is responsible for ensuring that the business
operates eec vely. The Chief Execu ve is the head
of the Central Management Commi ee. The Bank has
adequate Risk Management Structures and Systems,
best suited to its various complexi es of its business
ver cals and opera ons. The Management receives
con nuous support from number of management
commi ees, including the Market Risk Management
Commi ee, the Credit Risk Management Commi ee,
the Operational Risk Management Committee,
NPA Management Commi ee, Asset and Liability
Management Commi ee and Credit Commi ee. The
Board keeps regular oversight over the delibera ons
and minutes of the various commi ees.
b) The Audit Commi ee
The bank has an audit committee under the
chairmanship of a director who is not involved
in the day to day operations of the bank and
consisting of at least three members. Among the
three members one is non executive director, one
is professional director & head of internal audit
22 Annual Report
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2014-2015
department as a member secretary. Committee
has reviewed the accounts and financial
statements, internal financial control system &
risk management system, supervise & review the
internal auditing activity of the bank & perform
such other terms as prescribed by the BOD in
respect of the accounts, financial management
and audit of the bank. Audit committee gives
suggestion to the BOD in the aforesaid areas in
order to implement/maintain effective & efficient
internal control system, risk management & sound
financial management system.
During this fiscal year 19 no. of audit committee
meetings were held.
c) Risk Management Commi ee
The Risk Management Committee (RMC) of the
Board consists of 4 members, which is coordinated
by one of the non-executive directors. The RMC, as
a sub committee of the Board, regularly monitors
appropriateness and adequacy of the existing
risk identification and management system put
in place in the Bank and makes recommendation
for devising appropriate system and procedures.
The Committee constantly reviews various
risks associated with the business activities,
including risks bearing capabilities and strategies
required to manage and mitigate the risks and
makes recommendation to the Board as to the
appropriateness and adequacy thereof.
Nepal SBI Bank Limited 43
 OUR NETWORK

BRANCHES / EXTENSION COUNTERS

INSIDE KATHMANDU VALLEY OUTSIDE KATHMANDU VALLEY

1 Bhainsepati, Lalitpur 22 Abu Khaireni, Tanahu 43 Janakpur, Dhanusha

2 Bhaktapur 23 Baglung 44 Lahan, Siraha
3 Boudha 24 Bardibas, Mahottari 45 Mahendranagar, Kanchanpur
4 Commercial Branch, Lainchaur 25 Bargachhi, Morang 46 Manipal Ext. Counter, Pokhara
5 Dallu 26 Beshisahar, Lamjung 47 Myaglung, Terahthum
6 Durbar Marg Main Branch 27 Bhairahawa, Rupandehi 48 Narayangarh, Chitwan
7 EOI Ext. Counter, Lazimpat, Ktm. 28 Biratnagar, Morang 49 Nepalgunj, Banke
8 Gaushala 29 Birgunj, Parsa 50 Palpa, Tansen
9 Gongabu 30 Birtamod, Jhapa 51 Parasi, Nawalparasi
10 Gwarko, Lalitpur 31 Butwal, Rupandehi 52 Pension Paying Office,Dharan
11 IVSC, Lazimpat, Ktm. 32 CGI Ext. Counter, Birgunj 53 Pension Paying Office,Pokhara
12 Kalanki 33 Chandranigahpur, Rautahat 54 Phidim, Panchthar
13 Kuleshwor 34 Damak, Jhapa 55 Pokhara, New Road
14 Maharajgunj 35 Damauli, Tanahu 56 Rampur, Parsa
15 New Baneshwor 36 Dang, Ghorahi 57 Ratnanagar, Chitwan
16 New Road 37 Dhangadi, Kailali 58 Sandhikharka, Arghakhanchi
17 Pashupatinath Ext. Counter, Pashupati 38 Dharan, Sunsari 59 Shishuwa, Pokhara
18 Patan 39 Gulmi, Tamghas 60 Srijana Chowk, Pokhara
19 Sinamangal 40 Hetauda, Makwanpur 61 Surkhet, Birendranagar
20 Teku 41 Ilam 62 Tikapur, Kailali
21 Thamel 42 Itahari, Sunsari 63 Waling, Syangja
Corporate Oce Regional Oce (East) Regional Oce (West) Regional Oce (Central)
Kathmandu Biratnagar Nepalgunj Kathmandu

ATM LOCATIONS

INSIDE KATHMANDU VALLEY (27) OUTSIDE KATHMANDU VALLEY (51)

1. Army Camp, Chhauni 28. Abukhaireni 54. Lahan
2. ATM Lounge Thamel 29. Baglung - I 55. Mahendranagar
3. Babarmahal 30. Baglung- II 56. Manipal Hospital, Pokhara
4. BGSN Thamel 31. Bargachhi, Biratnagar 57. Myanglung
5. Bhainsepati 32. Besisahar 58. Narayangarh - I
6. Bhaktapur 33. Bhairahawa 59. Narayangarh-II
7. Bhatbhateni, Maharajgunj 34. Biratnagar 60. Narayangarh-III, Lions Chowk
8. Bhatbhateni, Tangal 35. Biratnagar,Mahendra Chowk 61. Nepalgunj
9. Boudha 36. Birgunj - I 62. Palpa
10. Corporate Office, Hattisar 37. Birgunj-II 63. Parasi
11. Dallu 38. Birtamod 64. Phidim
12. Durbar Marg - I 39. BPKIHS Dharan 65. Pokhara - I
13. Durbar Marg - II 40. Butwal - I 66. Pokhara - II
14. Embassy of India 41. Butwal - II 67. Pokhara, Lake Side
15. Gaushala 42. Butwal - III 68. PPO Dharan
16. Gongabu 43. Dabur Nepal, Rampur 69. PPO Pokhara - I
17. Gwarko 44. Damak 70. PPO Pokhara - I
18. Jain Bhawan, Kamalpokhari 45. Damauli 71. Ratnanagar
19. Jawalakhel 46 Dang 72. Sandhikharka
20. Kalanki 47. Dhangadi 73. Shrijanachowk
21. Kuleshwor 48. Dharan 74. Sishuwa
22. Maharajgunj 49. Gulmi 75. Sunauli
23. New Baneshwor 50. Hetauda 76. Surkhet
24. New Road - I 51. Ilam 77. Tikapur
25. New Road - II 52. Itahari 78. Waling
26. Sinamangal 53. Janakpur
27. Teku
DISCLOSURE RELATED TO SUB RULE 1 OF RULE 22 OF SECURITIES REGISTRATION AND
ISSUANCE REGULATION, 2065
1. Report of Board of Directors: Enclosed
2. Report of the Auditors: Enclosed
3. Audited Financial Details: Enclosed
4. Details rela ng to Legal Ac on
a. Law Suits filed by/against the Bank:
(i) 5 lawsuits have been filed by/against the Bank in respect to Credit/NPA and general ma ers.
Four re red ocials of the Bank filed a writ pe on before Appellate Court Patan seeking an order of
Mandamus in the Banks name for the payment to the re rement benefits and salary arrears as per the
salary scale approved/revised by the Banks Board a er their re rement and cessa on of service. The
Appellate Court Patan vide its verdict dated 15.10.2014 has adjudged the payment of Rs. 1,896,091.52 as
maintainable. The bank has registered an Appeal before the Supreme Court on 2072.03.24 (09.07.2015)
against the decision of the Appellate Court Patan.
One of the employees, who have been terminated from the Banks service on account of disciplinary
ac on, filed a writ pe on before Supreme Court seeking Cer orari cum Mandamus order in Banks
name to reinstate him in the Banks service. Summon to the case was delivered to the Bank on 18.02.2015.
The Bank has since registered its wri en reply/rejoinder. The case is subjudiced at the Court.
(ii) No lawsuit has been filed by the Bank with DRT/ District Courts against dierent borrowers/
guarantors for recovery of dues during the period.
B. Law Suits filed by/against the promoters/directors involving charge of regulatory
viola ons or criminal oences: No informa on received by the Bank.
C. Case filed against any promoters/directors for financial fraud: No informa on received by the Bank.
5. Analysis of share transac on and progress of Organized Ins tu on:
a. Management view on share transac ons of the Bank on Nepal Stock Exchange:
As the Nepal Stock Exchange is opera ng under the supervision of Securi es Board of Nepal,
management has no comment on the same.
b. Maximum, minimum and closing share price of organized ins tu on including total transacted
number of shares and transacted days during the Year 2071-72 (as per the table):
Quarter Maximum Minimum Closing Total Transacted Total Number of
(Months) Share Price Share Price Share Price Number of Shares Trading Days

First Quarter (Ashwin End 2071) 1338 936 992 189745 54

Second Quarter (Poush End 2071) 1069 879 950 212863 58
Third Quarter (Chaitra End 2071) 1009 890 901 105562 55
Fourth Quarter (Ashadh End 2072) 946 740 887 133243 45

6. Problems and Challenges

a. Problems and Challenges Faced:
i. Internal: N/A
ii. External:
Excessive liquidity in the Market leading to price compe on and spread.
Aspects aec ng the credit-o-take, par cularly in manufacturing sector such as power
shortage, etc.
b. Strategy followed by the management in solving such problems and challenges:
Improvement in asset and liability management.
Targe ng good quality loan customers.

22 Annual Report
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46 Nepal SBI Bank Limited
2014-2015
 Regular In-House training to enhance work performance.
Good industrial rela ons.
7. Corporate Governance
i. The Bank has been complying with the direc ons, guidelines issued by NRB regarding Corporate
Governance.
ii. Regular Central Management Commi ee Mee ngs, Opera on Risk Management Commi ee,
Market Risk Management Commi ee, NPA Management Commi ee, Credit Risk Management
Commi ee, NBA Management Commi ee and Risk Management Commi ee to review progress in
various areas of opera ons.
iii. Banks Internal Audit Department has been strengthened.
iv. Board of Directors and its Commi ees (Audit Commi ee of the Board and RMCB) mee ng are held
on regular basis.
v. ALCO and Risk Management Commi ees (Opera on, Credit and Market) mee ngs are held
regularly.
vi. Code of ethics implemented for Board of Directors and employees.
8. Special Events or Circumstances Related to Sub-Rule (5) of Rule 22:
Date of occurrence Special Event Description of Special Events Reporting Date
of Special Event
23rd November, 2014 Declaration of Dividend 370th Meeting of Bank's Board declared to issue 15% and 7% 24th November, 2014
cash dividend subject to approval from 21st AGM of the Bank.
10th January 2015 Completion of tenure of two Directors Mr. Niranjan Kumar Tibrewala and Mr. Manoj Kumar Agrawal 11th January 2015
representing General Public completed the tenure of 4 years as a director U/S 90(1) of the
Shareholders Companies Act 2063
28th January 2015 Election of two directors representing 21st AGM of the Bank held on 28th January 2015 elected Mr. 5th February 2015
General Public Shareholders Niranjan Kumar Tibrewala and Mr. Sanjay Kumar Sureka as the
directors representing General Public Shareholders
29th March 2015 Change in Director representing SBI Mr. Mrutyunjay Mahapatra assumed charge as Director in place 2nd April 2015
of Mr. R. Karthikeyan
4th June, 2015 Amendment in MoA, AoA Amendment made by 21st AGM on MOA & AOA of the Bank duly 15th June, 2015
recorded with the Office of the Company Registrar.
9th June, 2015 Change in Director representing SBI Mr. Siddhartha Sengupta assumed charge as Director in place of 10th June 2015
Mr. Mrutyunjay Mahapatra.
6th July, 2015 Change in Professional Expert Mr. Keshav Raj Acharya appointed as Professional Expert 8th July 2015
Director Director in place of Mr. Gokul Ram Thapa.
7th July, 2015 Change in Chief Financial Officer Mr. Priya Ranjan assumed charge as the Chief Financial Officer 8th July 2015
in place of Anil Kumar Singh.

9. Declara on of Chairman/Chief Execu ve on truthfulness, correctness:

I, as on date, personally take responsibility on the truthfulness of the informa on and descrip on
presented in this report. Further, I declare that as far as I know and understand, the descrip ons in
this report are true, fair and complete and have not concealed any necessary par culars, no ces and
informa on to the investors to take informed decision.

Anukool Bhatnagar
Managing Director

22 Annual Report
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Nepal SBI Bank Limited 47
2014-2015
THREE COLUMNS FORMAT TIN MAHALE OF THE AMENDMENTS IN THE MEMORANDUM &
ARTICLES OF ASSOCIATION OF NEPAL SBI BANK LTD.
Memorandum of Association
(Proposed to the 22nd Annual General Mee ng)
Clause/ Existing Provision Clause/
Sub-clause Sub-
clause
2.1 The registered (Corporate) office of the Bank will be situated in 2.1
Bagmati Zone, Kathmandu District, Kathmandu Metropolitan City,
Ward No. 1, Nepal
5.1 The authorized capital of the Bank shall be Rs. 7,000,000,000/- 5.1
(a) (Rupees Seven Billion), which shall be divided into 70,000,000 (a)
(Seventy Million) ordinary shares of Rs. 100/- (Rupees one
hundred) each.
5.1 The Issued Capital of the Bank shall be Rs. 3,063,395,600.00 5.1
(b) (Three Billion Sixty Three Million Three Hundred Ninety Five (b)
Thousand and Six Hundred), which shall be divided into 30,633,956
(Thirty Million Six Hundred Thirty Three Thousand Nine Hundred
Fifty Six) ordinary shares of Rs. 100 (Rupees One Hundred) each.
5.1 The Paid-up Capital of the Bank shall be Rs. 3,063,395,600.00 5.1
(c) (Three Billion Sixty Three Million Three Hundred Ninety Five (c)
Thousand and Six Hundred)
Articles of Association
2 The registered office of the Bank will be situated in Bagmati Zone, 2
Kathmandu District, Kathmandu Metropolitan City, Ward No. 1,
Nepal
8.3 A Director nominated or elected under these Articles of Association 8.3
shall hold office for such term not exceeding four years. A Director
who retires on the expiry of his/her term shall be eligible for
reappointment.
SUMMARY STATEMENT IN REGARD TO COMPLIANCE OF ASSETS MONEY LAUNDERING
PREVENTION ACT, RULES, DIRECTIVES, ORDERS AND POLICIES:
The Bank has formulated and implemented a
comprehensive policy under the style of Nepal
SBIBank Ltd. Policy and Procedural Guidelines on
Know Your Customer (KYC), An Money Laundering
(AML) and Comba ng of Financing of Terrorism (CFT)
Measures-2011.The policy was revised by the Board of
the Bank on 26th June 2014. The bank has established
a dedicated KYC/AML Cell headed by a Senior Manager
level officer at Corporate Office. The KYC/AML
Compliance Cell looks a er overall ma ers rela ng
to KYC/AML compliance issues including employee
trainings. The Bank has designated KYC Compliance
Ocer/Money Laundering Repor ng Ocer (MLRO)
in each of its Branch/Oce/business Group to look
48 Nepal SBI Bank Limited
Proposed Provisions Reason for the
Amendment
The registered (Corporate) office of the Bank will be Due to changes in the
situated in Bagmati Zone, Kathmandu District, Kathmandu address of Registered/
Metropolitan City, Ward No. 29, Lainchour, Nepal Corporate Office of the
Bank.
The authorized capital of the Bank shall be Rs. To increase the capital
10,000,000,000/- (Rupees Ten Billion), which shall be required for banks
divided into 100,000,000 (Hundred Million) ordinary shares business.
of Rs. 100/- (Rupees one hundred) each.
The Issued Capital of the Bank shall be Rs. To increase the capital
6,490,512,353.00 (Six Billion Four Hundred Ninety Million required for banks
Five Hundred Twelve Thousand Three Hundred Fifty business.
Three), which shall be divided into 64,905,123.53 (Sixty
Four Million Nine Hundred Five Thousand One Hundred
Twenty Three and Fifty Three) ordinary shares of Rs. 100
(Rupees One Hundred) each.
The Paid-up Capital of the Bank shall be Rs. To meet capital
6,490,512,353.00 (Six Billion Four Hundred Ninety Million requirement for banks
Five Hundred Twelve Thousand Three Hundred Fifty business.
Three).
The registered (Corporate) office of the Bank will be To change the address
situated in Bagmati Zone, Kathmandu District, Kathmandu of Registered/ Corporate
Metropolitan City, Ward No. 29, Lainchaour, Nepal Office.
A Director nominated, elected or appointed under these To ensure compliance
Articles of Association shall hold office for such term notof the Directives issued
exceeding four years. A Director who retires on the expiry of
by Nepal Rastra Bank
his/her term shall be eligible for reappointment. under point no. 1(16) of
Notwithstanding anything contained hereinabove, the NRB Unified Directives
Chairman and Directors shall not be appointed, elected and 6/072.
nominated for more than two consecutive tenures.
a er KYC/AML issues at the rela onship points. The
Bank has submi ed requisite reports to the concerned
regulatory bodies within the specified deadlines andin
the manner as prescribed in the relevant direc ves,
laws, regula ons etc. The Bank has maintained proper
recording of the transac ons as per the prevailing laws.
For eec ve implementa on of the provisions of KYC
Guidelines; AMLOCK So ware also referred as FCDMS
(Financial Crime Detec on and Management Version)
has been installed. AMLOCK profiles customers
using the available sta c and transac onal data and
is integrated with the Banks Core Banking System
(CBS)Finacle-10. This helps in an cipa ng customer
22 Annual Report
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2014-2015
behavior and iden fying deviant ac vi es. Further,
generation of alerts in different scenarios based
on all possible parameters (product wise, risk wise,
transaction wise etc.), screening of transactions,
monitoring of accounts/transactions and report
genera on has been made ecient.
Correspondent relationships have been managed
keeping in view a risk-based approach. Internal Audit
Department of the bank has conducted the KYC/AML
MAJOR OBSERVATIONS OF THE STATUTORY AUDITORS FOR THE FY 2071/72 2014 15 AND
MANAGEMENT RESPONSE/STATUS OF COMPLIANCE:
S.N. Observation
1 At least 30% of total issued and Paid-up capital should be subscribed
and held by the general public against the public holding of 29.88%
2 Non-compliance with the NRB directives #19 in some cases
3 Risk categorization field though configuration in Core banking it has not
been made as mandatory tab due to which system permits completion
of account opening process even without entering risk category of the
customer.
4 Periodic stock and receivables details with ageing and unit inspections
reports were not been regularly obtained and drawing power not
assessed thereof in some cases
22 Annual Report
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2014-2015
Audit of the Banks Departments/Branches/Oces/
Extension Counters to ensure that the provisions of
the AML laws, rules and direc ves are fully complied
with. The Annual Report on the status of compliance
of KYC/ AML laws, rules, directives, order etc. has
been submitted to the Financial Information Unit
in compliance with FIU Directives and NRB unified
Direc ves. Observa ons made by the auditors and
Nepal Rastra Bank during their respec ve audits have
been taken into account and remedial ac on taken.
Management Response/Status of Compliance
Bank is in process of Further Public Offering (FPO). The Bank has already applied
to SEBON for their approval for issuance of FPO. Revised application is being
submitted to SEBON for their approval for issuance of FPO as the Bank has
recommended for distribution of 27% Bonus Shares to the shareholders in the
upcoming AGM.
Transaction in noncompliant account are not being allowed. The Bank is regularly
publishing the notice in national level news paper for obtaining requisite information
and documents from customers. Further, the Bank has launched KYC Campaign
during December 2015 celebrating the month as KYC Compliance month. Since
Anti Money Laundering Software i.e. AMLOCK has been implemented, the
compliance of the provisions has been made effective.
Bank has since been migrated into next version of finacle from existing version
and the field/tab has been made mandatory in new version. Observation since
been complied with.
Since been complied with
Nepal SBI Bank Limited 49
RISK MANAGEMENT
Since the bank has to deal with various risk
associated with its business opera on , the bank
has a forward looking approach in managing
risks. The bank has robust internal control
system in place focused on extensive risk
management framework for eec ve assessment,
measurement and mi ga on of risk. Primary goal
of our risk management framework is long-term
sustainability of our Bank and having appropriate
balance between risk and return, in order to
enhance shareholder value.
The Risk Management Commi ee of the Board
(RMCB) oversees overall risk governance
framework of The Bank. The Commi ee, on an on-
going basis monitors the eec veness of the risk
management and internal control systems. The
Board is apprised regularly by the RMCB regarding
appropriateness and adequacy of the exis ng risk
iden fica on and measurement system put in
place in the Bank and makes recommenda on for
devising appropriate system & procedures.
Credit risk is the risk of financial loss, the Bank may
face as a result of a borrower or a counterparty
not mee ng its obliga ons in line with the original
contract. Since majority of the Banks assets are in
the form of loans and advances, management of
credit risk becomes the most crucial task.
The Credit Risk Management Commi ee (CRMC),
monitors Credit Risk, ensuring compliance and
implementa ons of Credit Risk policy/strategy
approved by the Board and incorpora on of
50 Nepal SBI Bank Limited
Regulatory Compliance in Banks Policies and
Guidelines.
Market Risk as defined by Market Risk Management
policy of the Bank, is the risk of probable loss
due to adverse changes in the market value of
the Banks assets and liabili es. The Market Risk
Management Commi ee (MRMC) has the overall
responsibility to monitor/manage various market
risk exposures of the Bank through Market Risk
limits, stop loss limits, etc., at a more granular
level. It is involved in iden fica on, assessment,
monitoring, repor ng and analysis of Market risks
profile associated with Treasury Opera ons.
Opera onal Risk is risk of loss resul ng from
inadequate or failed internal processes, people and
system or from external events. The Opera onal
Risk Management Commi ee (ORMC) reviews
the opera onal risk profile of the Bank at periodic
intervals and recommends suitable controls/
mi ga on for managing opera onal risk in the
Bank. The Commi ee an cipates changes and
threats, concurs on areas of highest priority and
related mi ga on strategies and ensures that
adequate resources are being assigned to mi gate
risks as needed.
For assessment of Pillar I risks and Pillar II risks such
as liquidity risk and interest rate risk, as well as
adequacy of capital and overall risk management
prac ces under normal and stressed condi ons,
the Bank has comprehensive Internal Capital
Adequacy Assessment Process (ICAAP) in place.
22 Annual Report
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2014-2015
SHAREHOLDERS INFORMATION
The Ordinary Shares of the Nepal SBI Bank Limited are listed on the Nepal Stock Exchange. The stock
exchange symbol of Nepal SBIs share is SBI, Two Ins tu onal promoters hold 70.12% of total shares
in the Bank and rest is distributed among nearly 19777 general shareholders. State Bank of India holds
55.09% of the total ownership whereas Employee provident Fund holds 15.03% shares.
Shareholding by Members of the Board and Central Management Team as on Ashad end 2072 (July 16, 2015)
Name Position No. of Shares
Mr. Sanjay Kumar Sureka Director 54745
Mr. Niranjan Kumar Tibrewala Director 21382
Mr. Chhapi Raj Pant CRO 6627
Mr. Dev Raj Adhikari CCO 2089

Distribution of Shareholders as on Ashad end 2072 (July 16, 2015)

Range No of Shareholders Percentage No of Shares Percentage

Upto 100 5722 28.93% 242726 0.79%

101-500 10486 53.02% 2443879 8.00%
501-1000 2020 10.21% 1370110 4.48%
1001-5000 1386 7.01% 2591542 8.48%
5001-10000 92 0.47% 609556 1.99%
Above 10000 71 0.36% 23304761 76.30%
Total 19777 100% 30562574 100%

22 Annual Report
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Nepal SBI Bank Limited 51
2014-2015
FIVE YEARS FINANCIAL HIGHLIGHTS NPRs. in Lacs

Ashadh End F/Y 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15

2067/68 2068/69 2069/70 2070/71 2071/72
Profitability (Key Indicators)
Interest Income 30,999.08 37,694.83 41,105.14 39,766.48 38,213.26
Interest Expenditure 20,960.38 27,707.99 24,869.79 22,316.04 17,738.42
Fee, Commission and Exchange income 3,066.92 3564.90 4,156.12 4,282.32 4,598.23
Other Operating Income 951.73 1,417.62 1,577.56 2,172.67 3,076.91
Staff Expenes 2,554.30 2,891.53 4,165.60 4,430.78 5,522.31
Other Operating Expenses 4,297.43 4,561.26 4,772.47 5060.29 5,157.92
Provision for possible losses 463.08 780.12 1,280.41 829.67 1,166.41
Operating Profit 6,742.52 6,736.45 11,750.55 13,584.70 16,303.34
Profit Before Tax 6,534.69 6,866.54 11,099.59 13,119.45 15,574.61
Profit After Tax 4,645.65 4,801.05 7,714.71 9,229.84 10,654.37
Total Capital and Liabilitiies 460,882.33 580,597.07 647,961.53 610,733.32 592,772.91
Share Capital 21,029.66 23,557.39 26,502.06 30,490.83 38,837.35
Reserves 7,763.27 8,417.20 11,487.52 14,867.15 17,621.79
Liabilities - - - - -
Deposits 424,154.43 533,372.64 591,257.29 544,929.94 516,282.22
Debenture 2,000.00 6,000.00 8,000.00 10,000.00 10,000.00
Bills Payable 806.85 786.16 1,653.55 1,563.67 1,783.43
Proposed Dividend 934.65 1,046.99 1,766.80 1,861.43 434.56
Other Liabilities 4,193.47 7,416.69 7,294.31 7,020.30 7,813.54
Total Assets 460,882.33 580,597.07 647,961.53 610,733.32 592,772.91
Advances (Net) 213,657.71 261,420.94 287,881.47 352,795.83 399,791.73
Investments 189,110.21 244,634.52 259,061.20 177,223.96 93,196.98
Liquid Assets 48,778.26 56,866.32 78,523.29 66,549.71 84,357.48
Net Fixed Assets 4,170.02 7,159.20 6,615.89 6,074.46 6,300.12
Other Assets 5,166.13 10,516.09 15,879.68 8,089.35 9,126.60

22 Annual Report
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52 Nepal SBI Bank Limited
2014-2015
FINANCIAL STATEMENTS FOR THE
FY 2071-72 (16.07.2014-16.07.2015)
 BALANCE SHEET
AS ON 31 ASHAD 2072 16 JULY 2015
CAPITAL & LIABILITIES SCHEDULE This Year Rs. Previous Year Rs.
1. Share Capital 1 3,883,735,565 3,049,083,104
2. Reserves and Funds 2 1,762,178,956 1,486,715,566
3. Debentures & Bonds 3 1,000,000,000 1,000,000,000
4. Loans and Borrowings 4 - -
5. Deposits 5 51,628,221,954 54,492,993,606
6. Bills Payable 6 178,342,832 156,366,610
7. Proposed Cash Dividend 43,456,635 186,142,754
8. Income Tax Liabilities - -
9. Other Liabilities 7 781,354,511 702,030,090
Total Capital and Liabilities 59,277,290,453 61,073,331,730

ASSETS SCHEDULE This Year Rs. Previous Year Rs.

1. Cash Balance 8 1,753,912,290 1,527,028,783
2. Balance with Nepal Rastra Bank 9 4,662,434,374 3,890,989,164
3. Balance with Banks/Financial Institution 10 2,019,400,868 1,236,953,173
4. Money at Call and Short Notice 11 - -
5. Investment 12 9,319,697,947 17,722,395,654
6. Loans, Advances and Bills Purchase 13 39,979,173,045 35,279,583,339
7. Fixed Assets 14 630,012,272 607,446,572
8. Non Banking Assets 15 - -
9. Other Assets 16 912,659,657 808,935,045
Total Assets 59,277,290,453 61,073,331,730

Contingent Liabilities Schedule 17

Directors Declaration Schedule 29
Statement of Capital Fund Schedule 30 (Ka1)
Principal Indicators Schedule 31
Principal Accounting Policies Schedule 32
Notes to Accounts Schedule 33
Schedules 1 to 17 form integral part of the Balance Sheet.

(Priya Ranjan) (Anukool Bhatnagar) (Hasana Sharma)

Chief Financial Officer Managing Director Chairperson

(Sanjay Kumar Sureka) (Keshav Raj Acharya) (Niranjan Kumar Tibrewala)

Director Director Director
As per our attached report of even date

(Siddhartha Sengupta) (Sujit Kumar Varma) (Giridhara Kini) (CA. Rajesh Poudel), Partner
Director Director Director P.L. Shrestha & Co.,
Chartered Accountants

22 Annual Report
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Nepal SBI Bank Limited 55
2014-2015
 PROFIT AND LOSS ACCOUNT
FOR THE PERIOD FROM 1 SHRAWAN 2071 TO 31 ASHAD 2072 17 JULY 2014 TO 16 JULY 2015
Particulars Schedule This Year Rs. Previous Year Rs.
1. Interest Income 18 3,821,326,338 3,976,647,583
2. Interest Expenses 19 1,773,842,303 2,231,604,253
Net Interest Income 2,047,484,035 1,745,043,330
3. Commission and Discount 20 340,354,037 320,425,412
4. Other Operating Incomes 21 307,691,033 217,267,151
5. Exchange Fluctuation Income 22 119,469,424 107,806,967
Total Operating Income 2,814,998,529 2,390,542,860
6. Staff Expenses 23 552,231,467 443,077,803
7. Other Operating Expenses 24 515,793,282 506,028,826
8. Exchange Fluctuation Loss 22 - -
Operating Profit before Provision for Possible Loss 1,746,973,780 1,441,436,231
9. Provision for Possible Losses 25 116,640,954 82,966,699
Operating Profit 1,630,332,826 1,358,469,532
10. Non Operating Income /(Expense) 26 10,708,703 8,728,276
11. Provision for Possible Loss Written Back 27 52,123,586 71,810,082
Profit from Regular Operations 1,693,165,115 1,439,007,890
12. Income/(Expenses) from Extra-ordinary Activities 28 20,039,981 4,131,237
Net profit after considering all activities 1,713,205,096 1,443,139,127
13. Provision for Staff Bonus 155,745,918 131,194,466
14. Provision for Income Tax: 492,023,037 388,960,654
This Years 503,887,138 406,083,233
Up to Previous Years 22,992,061 -
This years Deffered Tax (Income)/Expense (34,856,162) (17,122,579)
Net Profit/(Loss) 1,065,436,141 922,984,007
Schedule 18 to 28 form integral part of the Profit and Loss Account.

(Priya Ranjan) (Anukool Bhatnagar) (Hasana Sharma)

Chief Financial Officer Managing Director Chairperson

(Sanjay Kumar Sureka) (Keshav Raj Acharya) (Niranjan Kumar Tibrewala)

Director Director Director
As per our attached report of even date

(Siddhartha Sengupta) (Sujit Kumar Varma) (Giridhara Kini) (CA. Rajesh Poudel), Partner
Director Director Director P.L. Shrestha & Co.,
Chartered Accountants

22 Annual Report
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56 Nepal SBI Bank Limited
2014-2015
 PROFIT AND LOSS APPROPRIATION ACCOUNT
FOR THE PERIOD FROM 1 SHRAWAN 2071 TO 31 ASHAD 2072 17 JULY 2014 TO 16 JULY 2015
Particulars Schedule This Year Rs. Previous Year Rs.
INCOME
1. Accumulated Profit up to Previous Year 5,815,251 5,055,793
2. This Year's Profit 1,065,436,141 922,984,007
3. Transferred from General Reserve (Debenture Redemption Reserve) 200,000,000 -
4. Investment Adjustment Reserve - 515,360
5. Capital Adjustment Reserve up to Previous Year 85,000,000 35,000,000
Total 1,356,251,392 963,555,160
EXPENSES
1. Accumulated Loss up to Previous Year - -
2. This Year's Loss - -
3. General Reserve 213,087,229 184,596,802
4. Contingent Reserve fund - -
5. Institution Development Reserve - -
6. Dividend Equalization Reserve - -
7. Staff Related Reserve - -
8. Proposed Cash Dividend @ 1.42% 43,456,635 186,142,754
9. Proposed issue of Bonus Shares @ 27% 825,676,065 398,877,300
10. Special Reserve fund - -
11. Exchange Fluctuation Fund 636,333 1,178,556
12. Capital Redemption Reserve - -
13. Capital Adjustment Reserve 135,000,000 85,000,000
14. Investment Adjustment Reserve 377,900 -
15. 12.5% NSBL Debenture 2078 Redemption Reserve 40,000,000 40,000,000
16. 8% NSBL Debenture 2079 Redemption Reserve 40,000,000 40,000,000
17. 7.9% NSBL Debenture 2080 Redemption Reserve 20,000,000 4,821,918
18. Deferred Tax Reserve 34,856,162 17,122,579
Total 1,353,090,324 957,739,909
20. Accumulated Profit/(Loss) 3,161,068 5,815,251

(Priya Ranjan) (Anukool Bhatnagar) (Hasana Sharma)

Chief Financial Officer Managing Director Chairperson

(Sanjay Kumar Sureka) (Keshav Raj Acharya) (Niranjan Kumar Tibrewala)

Director Director Director
As per our attached report of even date

(Siddhartha Sengupta) (Sujit Kumar Varma) (Giridhara Kini) (CA. Rajesh Poudel), Partner
Director Director Director P.L. Shrestha & Co.,
Chartered Accountants

22 Annual Report
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2014-2015
 STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD FROM 1 SHRAWAN 2071 TO 31 ASHAD 2072 16 JULY 2014 TO 16 JULY 2015
Particulars Share Accumulated General Capital Share Investment Proposed Exchange Deferred Other Total
Capital Profit/Loss Reserve Adjustment Premium Adjustment Bonus Fluctuation Tax Reserve & Amount
fund Reserve Reserve Shares Fund Reserve Funds
Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs
Opening Balance at 2,650,205,804 5,815,251 1,110,693,413 85,000,000 - - 398,877,300 13,390,169 112,355,545 159,461,188 4,535,798,670
01.04.2071
Adjustments: 398,877,300 -
Proposed Bonus (398,877,300)
Share of previous
year treated as Share
Capital as per NRB
Directives
Restated Balance 3,049,083,104 5,815,251 1,110,693,413 85,000,000 - - - 13,390,169 112,355,545 159,461,188 4,535,798,670
as on 01.04.2071
Adjustments:

Debenture 200,000,000 (200,000,000) -

Redemption Reserve
previously transferred
to General Reserve
Net profit for the - 1,065,436,141 1,065,436,141
period
Capital Adjustment - 85,000,000 (85,000,000) -
Reserve
Investment - (377,900) 377,900 -
Adjustment Reserve
Transfer to General - (213,087,229) 213,087,229 -
Reserve
Capital Adjustment - (135,000,000) 135,000,000 -
Reserve
Proposed Cash - (43,456,635) (43,456,635)
Dividend
Proposed Bonus - (825,676,065) 825,676,065 -
Shares
Share Premium - 79,159,949 79,159,949

Exchange Fluctuation - (636,333) 636,333 -

Fund
Debenture - (100,000,000) 100,000,000 -
Redemption Reserve
Deferred Tax Reserve - (34,856,162) 34,856,162 -

Share Capital 8,976,396 8,976,396

Closing Balance 3,058,059,500 3,161,068 1,123,780,642 - 79,159,949 377,900 825,676,065 14,026,502 147,211,707 259,461,188 5,645,914,521
as at Asadh end
2072

(Priya Ranjan) (Anukool Bhatnagar) (Hasana Sharma)

Chief Financial Officer Managing Director Chairperson

(Sanjay Kumar Sureka) (Keshav Raj Acharya) (Niranjan Kumar Tibrewala)

Director Director Director
As per our attached report of even date

(Siddhartha Sengupta) (Sujit Kumar Varma) (Giridhara Kini) (CA. Rajesh Poudel), Partner
Director Director Director P.L. Shrestha & Co.,
Chartered Accountants

22 Annual Report
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58 Nepal SBI Bank Limited
2014-2015
 CASH FLOW STATEMENT
FOR THE PERIOD FROM 1 SHRAWAN 2071 TO 31 ASHAD 2072 17 JULY 2014 TO 16 JULY 2015
Particulars This Year Rs. Previous Year Rs.
(a) Cash Flow from Operating Activities 2,046,813,832 (1,035,750,338)
1. Cash Received 4,612,146,654 5,574,509,043
1.1 Interest Income 3,821,326,338 4,854,337,254
1.2 Commission and Discount Income 340,354,037 320,425,412
1.3 Income from Foreign Exchange transaction 116,924,096 103,092,746
1.4 Recovery of loan written off 20,039,981 649,465
1.5 Other Incomes 313,502,202 296,004,166
2. Cash Payment 3,226,015,633 3,648,076,504
2.1 Interest Expenses 1,773,842,303 2,206,380,761
2.2 Staff Expenses 460,039,558 402,263,543
2.3 Office Operating Expenses 390,134,395 398,222,896
2.4 Income Tax Paid 470,804,911 427,048,139
2.5 Other Expenses 131,194,466 214,161,165
Cash Flow before changes in Working Capital 1,386,131,021 1,926,432,539
(Increase) /Decrease of Current Assets 3,513,647,895 1,760,144,207
1. (Increase)/Decrease in Money at Call and Short Notice - 138,925,434
2. (Increase)/Decrease in short term Investment 8,430,226,561 8,195,303,103
3. (Increase)/Decrease in Loans, Advances and Bills Purchase (4,757,613,705) (6,492,295,942)
4. (Increase)/Decrease in Other Assets (158,964,961) (81,788,388)
Increase /(Decrease) of Current Liabilities (2,852,965,084) (4,722,327,084)
1. Increase/(Decrease) in Deposits (2,864,771,652) (4,632,735,847)
2. Increase/(Decrease) in Certificates of Deposits - -
3. Increase/(Decrease) in Short Term Borrowings - -
4. Increase/(Decrease) in Other Liabilities 11,806,568 (89,591,237)
(b) Cash Flow from Investment Activities (134,320,729) (55,192,460)
1. (Increase)/Decrease in Long-Term Investment - -
2. (Increase)/Decrease in Fixed Assets (138,966,110) (60,943,179)
3. Interest income from Long Term Investment - -
4. Dividend Income 4,645,381 3,328,073
5. Others - 2,422,646
(c) Cash Flow from Financing Activities (134,262,019) 27,796,362
1. Increase/(Decrease) in Long Term Borrowings (Bonds,Debentures etc) - 200,000,000
2. Increase/(Decrease) in Share Capital 88,136,345 -
3. Increase/(Decrease) in Other Liabilities (Dividend Paid) (222,398,364) (172,203,638)
4. Increase/(Decrease) in Facilities / Refinance received from NRB - -
(d) Income/Expenses from change in exchange rate in Cash & bank balances 2,545,328 4,714,221
(e) This Years Cash Flow from All Activities 1,780,776,412 (1,058,432,215)
(f) Opening Balance of Cash and Bank Balances 6,654,971,120 7,713,403,335
(g) Closing Balance of Cash and Bank Balances 8,435,747,532 6,654,971,120

(Priya Ranjan) (Anukool Bhatnagar) (Hasana Sharma)

Chief Financial Officer Managing Director Chairperson

(Sanjay Kumar Sureka) (Keshav Raj Acharya) (Niranjan Kumar Tibrewala)

Director Director Director
As per our attached report of even date

(Siddhartha Sengupta) (Sujit Kumar Varma) (Giridhara Kini) (CA. Rajesh Poudel), Partner
Director Director Director P.L. Shrestha & Co.,
Chartered Accountants

22 Annual Report
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2014-2015
 SCHEDULE 1

SHARE CAPITAL AND OWNERSHIP

AS ON 31 ASHAD 2072 16 JULY 2015
Particulars This Year Rs. Previous Year Rs.
1. Share Capital
1.1 Authorized Capital 7,000,000,000 3,000,000,000
a) 70,000,000 Ordinary Shares of Rs. 100 each 7,000,000,000 3,000,000,000
b)..Non -Reedemeble Preference shares of Rs.each - -
c)..Reedemable Preference Shares of Rs each - -
1.2 Issued Capital 3,063,395,600 2,659,182,200
a) 30,633,956 Ordinary Shares of Rs. 100 each 3,063,395,600 2,659,182,200
b)..Non -Reedemeble Preference shares of Rs.each - -
c)..Reedemable Preference Shares of Rs each - -
1.3 Paid Up Capital 3,058,059,500 2,650,205,804
a) 30,580,595 Ordinary Share of Rs. 100 Each 3,058,059,500 2,650,205,804
b)..Non -Reedemeble Preference shares of Rs.each - -
c)..Reedemable Preference Shares of Rs each - -
1.4 Proposed Bonus Share 825,676,065 398,877,300
1.5 Calls in Advance - -
1.6 Total Amount ( 1.3+1.4+1.5) 3,883,735,565 3,049,083,104

As a result of issue of Right Shares (2:1) declared
by the 15th AGM (FY 2065-66) and allotted
during the FY 2066-67 and Bonus Shares issued
in the past from time to time, total (12635.79
kitta of bonus and 5385.20 for right issue)
18,020.99 shares have come into fraction
figures. In the absence of clear legal provisions
permitting issuance of Share Certificate for such
fraction entitlements of the shareholders, the
Bank has credited such fractions entitlement
in a dematerialized (De-mat) form without
issuing physical Share Certificates. Such
fraction entitlement of the shareholders is also
accounted under share capital.

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60 Nepal SBI Bank Limited
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Share Ownership Details This Year Previous Year
% Share Capital Rs. Share Capital Rs. %
1. Domestic Ownership 44.91% 1,373,191,946 1,185,103,568 44.72%
1.1 Nepal Government - - 0 -
1.2 "A" Class Licensed Institutions - - 0 -
1.3 Other Licensed Institutions - - 0 -
1.4 Other Entities 15.03% 459,509,333 399,573,337 15.08%
1.5 General Public 29.88% 913,682,613 785,530,231 29.64%
1.6 Others - - 0 -
2. Foreign Ownership 55.09% 1,684,867,554 1,465,102,236 55.28%
Total 100.00% 3,058,059,500 2,650,205,804 100.00%

Note :-
1) None of the General Public Shareholders hold 0.50% or more of the shares of the Bank individually.
2) Other En es reported is Karmachari Sanchaya Kosh.
3) The Foreign Ownership reported is State Bank of India.

SCHEDULE 2
RESERVES AND FUNDS
AS ON 31 ASHAD 2072 16 JULY 2015
Particulars This Year Rs. Previous Year Rs.

1. General/Statutory Reserve 1,123,780,642 1,110,693,413

2. Capital Reserve Fund 79,159,949 -
2.1 Share Premium 79,159,949
3. Capital Redemption Reserve Fund - -
4. Capital Adjustment Reserve Fund 135,000,000 85,000,000
5. Other Reserves and Funds 407,050,795 271,816,733
5.1 Contingent Reserve - -
5.2 Institution Development Reserve - -
5.3 Dividend Equalization Reserve - -
5.4 Special Reserve Fund - -
5.5 Asset Revaluation Reserve - -
5.6 Deferred Tax Reserve 147,211,707 112,355,545
5.7 Other Free Reserves - -
5.8 Investment Adjustment Reserve 377,900 -
5.9 Debenture Redemption Reserves 259,461,188 159,461,188
6. Accumulated Profit/(Loss) 3,161,068 5,815,251
7. Exchange Fluctuation Fund 14,026,502 13,390,169
Total 1,762,178,956 1,486,715,566

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 SCHEDULE 3
DEBENTURES AND BONDS
AS ON 31 ASHAD 2072 16 JULY 2015
Particulars This Year Rs. Previous Year Rs.
1. 12.5% Nepal SBI Bank Debentures 2078 of Rs.1,000 each (Unsecured) 400,000,000 400,000,000
Issued on 12.02.2012 and maturing on 11.02.2022
(Outstanding balance of Redemption Reserve Rs.136,776,256)

2. 8% Nepal SBI Bank Debentures 2079 of Rs.1,000 each (Unsecured) 400,000,000 400,000,000
Issued on 03.02.2013 and maturing on 02.02.2023
(Outstanding balance of Redemption Reserve Rs. 97,863,014)

3. 7.9% Nepal SBI Bank Debentures 2080 of Rs.1,000 each (Unsecured) 200,000,000 200,000,000
Issued on 20.04.2014 and maturing on 19.04.2024
(Outstanding balance of Redemption Reserve Rs. 24,821,918)
Total (1+2+3) 1,000,000,000 1,000,000,000

Note :-
ICRA Nepal has assigned ra ng of [ICRANP] LAA (pronounced ICRA NP L Double A) to 7.9% Nepal SBI Bank Debentures 2080 of NRs 20 crores.
Instruments with this Ra ng are considered to have high degree of safety regarding mely servicing of financial obliga ons. Such instruments carry
very low credit risk.

SCHEDULE 4
LOANS AND BORROWINGS
AS ON 31 ASHAD 2072 16 JULY 2015
Particulars This Year Rs. Previous Year Rs.
A. Local - -
1. Nepal Government - -
2. Nepal Rastra Bank - -
3. Repo Obligations - -
4. Inter Bank and Financial institutions - -
5. Other Organised Institutions - -
6. Others - -
Total - -
B. Foreign - -
1. Banks - -
2. Others - -
Total - -
Total (A+B) - -

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62 Nepal SBI Bank Limited
2014-2015
 SCHEDULE 5
DEPOSITS
AS ON 31 ASHAD 2072 16 JULY 2015
Particulars This Year Rs. Previous Year Rs.
1. Non-Interest bearing accounts
A. Current Deposits 4,818,048,457 4,115,406,375
1. Local Currency 4,585,202,369 3,907,188,461
1.1 Nepal Government 132,191,612 29,048,792
1.2 "Ka" Class Licensed Institutions 7,412,697 7,935,015
1.3 Other Licensed Financial Institutions 23,281,321 84,022,054
1.4 Other Organized Institutions 4,293,755,994 3,614,852,543
1.5 Individuals 128,560,745 171,330,057
1.6 Others - -
2. Foreign Currency 232,846,088 208,217,914
2.1 Nepal Government - -
2.2 "Ka" Class Licensed Institutions - -
2.3 Other Licensed Financial Institutions - 48,100
2.4 Other Organized Institutions 220,185,349 198,507,491
2.5 Individuals 12,660,739 9,662,323
2.6 Others - -
B. Margin Deposits 324,371,232 283,146,228
1. Employees Earnest Money - -
2. Gurantee Margin 89,849,568 85,754,602
3. Letter of Credit Margin 234,521,664 197,391,626
C. Others 197,470,090 140,489,354
1. Local Currency 197,470,090 140,489,354
1.1 Financial Institutions - -
1.2 Other Organized Institutions 1,743,740 -
1.3 Individual 195,726,350 140,489,354
2. Foreign Currency - -
2.1 Financial Institutions - -
2.2 Other Organized Institutions - -
2.3 Individual - -
Total of Non-Interest Bearing Accounts 5,339,889,779 4,539,041,957
2. Interest Bearing Accounts
A. Saving Deposits 21,485,400,112 16,610,549,438
1. Local Currency 21,291,641,565 16,459,385,967
1.1 Organized Institutions 510,489,754 430,699,630
1.2 Individual 20,781,151,811 16,028,686,337
1.3 Others - -

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 SCHEDULE 5 Contd...
DEPOSITS
AS ON 31 ASHAD 2072 16 JULY 2015

Particulars This Year Rs. Previous Year Rs.

2. Foreign Currency 193,758,547 151,163,471
2.1 Organized Institutions 1,055,668 705,500
2.2 Individual 192,702,879 150,457,971
2.3 Others - -
B. Fixed Deposits 19,129,478,724 28,569,413,388
1. Local Currency 14,528,246,270 16,782,937,209
1.1 Organized Institutions 8,582,225,703 10,954,961,981
1.2 Individual 5,946,020,567 5,827,975,228
1.3 Others - -
2. Foreign Currency 4,601,232,454 11,786,476,179
2.1 Organized Institutions 4,601,232,454 11,786,476,179
2.2 Individual - -
2.3 Others - -
C. Call Deposits 5,673,453,339 4,773,988,823
1. Local Currency 4,033,714,861 4,474,492,500
1.1 "Ka" Class Licensed Institutions - 564
1.2 Other Licensed Financial Institutions 474,954,589 1,817,320,495
1.3 Other Organized Institutions 3,271,231,435 2,218,324,694
1.4 Individual 287,528,837 438,846,747
1.5 Others - -
2. Foreign Currency 1,639,738,478 299,496,323
2.1 "Ka" Class Licensed Institutions - -
2.2 Other Licensed Financial Institutions - -
2.3 Other Organized Institutions 1,639,738,478 299,496,323
2.4 Individual - -
2.5 Others - -
D. Certificate of Deposit - -
1. Organized Institutions - -
2. Individual - -
3. Others - -
Total of Interest Bearing Accounts 46,288,332,175 49,953,951,649
Total Deposit (1+2) 51,628,221,954 54,492,993,606

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 SCHEDULE 6
BILLS PAYABLE
AS ON 31 ASHAD 2072 16 JULY 2015
Particulars This Year Rs. Previous Year Rs.
1. Local Currency 40,798,632 26,150,468
2. Foreign Currency 137,544,200 130,216,142
Total 178,342,832 156,366,610

SCHEDULE 7
OTHER LIABILITIES
AS ON 31 ASHAD 2072 16 JULY 2015
Particulars This Year Rs. Previous Year Rs.
1. Pension/Gratuity / Leave Fund 351,547,087 259,355,178
2. Employee Provident Fund - -
3. Employees Welfare Fund 2,030,351 -
4. Provision for Staff Bonus 155,745,918 131,194,466
5. Interest Payable on Deposits 39,611,740 58,337,971
6. Interest Payable on Borrowings/ Debenture 49,133,537 44,922,775
7. Unearned Discount and Commission - -
8. Sundry Creditors 9,661,829 61,640,393
9. Branch Adjustment Account - -
10. Deferred Tax Liability - -
11. Dividend Payable 27,414,811 20,213,786
12. Others 146,209,238 126,365,521
a.TDS Payable 50,718,926 35,789,222
b. Others 95,490,312 90,576,299
Total 781,354,511 702,030,090

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 SCHEDULE 8
CASH BALANCE
AS ON 31 ASHAD 2072 16 JULY 2015
Particulars This Year Rs. Previous Year Rs.
1. Local Currency (Including Coins) 1,716,561,889 1,506,823,342
2. Foreign Currency 37,350,401 20,205,441
Total 1,753,912,290 1,527,028,783

SCHEDULE 9
BALANCE WITH NEPAL RASTRA BANK
AS ON 31 ASHAD 2072 16 JULY 2015
Particulars Local Currency Foreign Currency This Year Rs. Previous Year Rs.
INR Convertible Total

1. Nepal Rastra Bank 4,636,402,359 - 26,032,015 26,032,015 4,662,434,374 3,890,989,164

a. Current Account 4,636,402,359 - 26,032,015 26,032,015 4,662,434,374 3,890,989,164
b. Other Account - - - - - -

Note: Balance as per confirma on statements from NRB is Rs. 4,684,868,749 and all the dierences are reconciled.

SCHEDULE 10
BALANCE WITH BANKS/FINANCIAL INSTITUTIONS
AS ON 31 ASHAD 2072 16 JULY 2015
Particulars Local Currency Foreign Currency This Year Previous Year
INR Convertible Total Rs. Rs.
1. Local Licensed Institutions 729,842,302 - - - 729,842,302 345,803,344
a. Current Account 729,842,302 - - - 729,842,302 345,803,344
b. Other Account - - - - - -
2. Foreign Banks - 1,032,479,180 257,079,386 1,289,558,566 1,289,558,566 891,149,829
a. Current Account - 1,032,479,180 257,079,386 1,289,558,566 1,289,558,566 891,149,829
b. Other Account - - - - - -
Total 729,842,302 1,032,479,180 257,079,386 1,289,558,566 2,019,400,868 1,236,953,173

Note: Balance as per confirma on statements from respec ve licensed ins tu ons is Rs. 3,801,813,140 and all the dierences are reconcilied.

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 SCHEDULE 11
MONEY AT CALL AND SHORT NOTICE
AS ON 31 ASHAD 2072 16 JULY 2015
Particulars This Year Rs. Previous Year Rs.
1. Local Currency - -
2. Foreign Currency - -
TOTAL - -

SCHEDULE 12
INVESTMENTS
AS ON 31 ASHAD 2072 16 JULY 2015
Particulars Purpose This Year Rs. Previous Year Rs.
Trading Other
1. Nepal Government Treasury Bills - 2,102,429,750 2,102,429,750 5,171,692,154
2. Nepal Government Saving Bonds - - - -
3. Nepal Government Other securities - 454,550,000 454,550,000 804,550,000
4. Nepal Rastra Bank Bonds - - - -
5. Foreign Securities - - - -
6. Local Licensed Institutions - 101,600,000 101,600,000 -
7. Foreign Banks - 5,428,919,902 5,428,919,902 11,716,198,000
8. Corporate Shares - 29,955,500 29,955,500 29,955,500
9. Corporate Bonds and Debentures - - - -
10. Other Investments: - - - -
10.1 Deposit Collection into NRB - 1,190,000,000 1,190,000,000 -
10.2 Mutual Fund 18,367,795 18,367,795 -
Total Investment 18,367,795 9,307,455,152 9,325,822,947 17,722,395,654
Provision - 6,125,000 6,125,000 -
Net Investment 18,367,795 9,301,330,152 9,319,697,947 17,722,395,654

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 SCHEDULE 12 Ka)
INVESTMENT IN SHARES, DEBENTURES AND BONDS
AS ON 31 ASHAD 2072 16 JULY 2015
Particulalrs Cost Price Market Provision This Year Previous
Rs. Price Rs. Amount Rs. Year
Rs. Rs.
1. Investment in Shares 48,218,960 154,506,270 6,125,000 42,093,960 29,955,500
1.1 Rural Micro-finance Development Center Ltd. -
51,950 Ordinary Shares of Rs. 100 fully paid up 5,195,000 34,027,250 5,195,000 5,195,000
137,000 Right Shares of Rs. 100 fully paid up 13,700,000 89,735,000 13,700,000 13,700,000
18,895 Bonus Shares of Rs. 100 fully paid up - 12,376,225 - -
1.2 Nepal Grameen Bikash Bank Ltd.
(Previous Madhya Paschimanchal Gremeen
Bikash Bank Ltd.)
30,000 Ordinary Shares of Rs. 100 fully paid up 3,000,000 3,000,000 - 3,000,000
5,000 Shares of Rs. 100 Additional Investment 500,000 500,000 - 500,000
26,250 Shares of Rs. 100 Additional Investment 2,625,000 2,625,000 - 2,625,000
1.3 Mutual Funds
1,043,347 Units NIBL Sambridhi Fund - Mutual Fund 10,433,470 10,537,805 - 10,433,470 -
of Rs 10 each fully paid"
782,999 Units NMB Sulav Fund - Mutual Fund 7,829,990 7,829,990 - 7,829,990 -
of Rs. 10 each fully paid"
1.4 Karja Suchana Kendra Ltd.
3,530 Ordinary Shares of Rs. 100 fully paid up 353,000 - - 353,000 353,000
8,825 Right Shares of Rs 100 fully paid up 882,500 - - 882,500 882,500
24,244 Bonus Shares of Rs 100 fully paid up - - - - -
1.5 Nepal Clearing House Ltd.
25,000 Ordinary Shares of Rs. 100 fully paid up 2,500,000 - - 2,500,000 2,500,000
1.6 National Banking Institute
12,000 Shares of Rs. 100 fully paid up 1,200,000 - - 1,200,000 1,200,000
2. Investment in Debentures and Bonds
2.1
2.2 ..
2.3
Total Investment 48,218,960 154,506,270 6,125,000 42,093,960 29,955,500
3. Provision for Loss
3.1 Up to previous year -
3.2 Additions/Write back this year 6,125,000
Total Provision - - 6,125,000 - -
Net Investment 48,218,960 154,506,270 - 42,093,960 29,955,500

Note: Nepal Grameen Bikas Bank Limited come into existence in 2014, August 15 (Shrawan 30, 2071) a er merger of five Grameen Bikas Banks working in the
five developmental region of Nepal including Madhya Paschimanchal Grameen Bikash Bank Ltd. Nepal Grameen Bikash Bank Ltd. has not distributed dividend
in last three years. Share cer ficate a er merger has not been issued ll the date. Since the lis ng of shares is pending, a provision @ 100% as prescribed vide
NRB Direc ves 8/2072 has been made.

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 SCHEDULE 12.1
INVESTMENT HELD FOR TRADING
AS ON 31 ASHAD 2072 16 JULY 2015
Particulars Cost Previous Current This Year Previous Remarks
Price Rs. Market Price Market Price Profit /Loss Year Profit /
(a) Rs. (b) Rs. (b-a) Rs. Loss Rs.

1. Nepal Government Treasury Bills - - - - - -

2. Nepal Government Saving Bonds - - - - - -
3. Nepal Government Other securities - - - - - -
4. Nepal Rastra Bank Bonds - - - - - -
5. Foreign Securities - - - - - -
6. Shares of Domestic Licensed Institution - - - - - -
7. Debenture and Bond of Domestic Licensed - - - - - -
Institution
8. Shares, Debentures and Bond of Domestic Entity - - - - - -
9. Foreign Bank Investment (Placement) - - - - - -
10. Interbank Lending - - - - - -
11. Other Investments
11.1 1,043,347 Units NIBL Sambridhi Fund - Mutual 10,433,470 10,433,470 10,537,805 104,335
Fund of Rs 10 each fully paid
11.2 782,999 Units NMB Sulav Fund - Mutual Fund 7,829,990 7,829,990 7,829,990 - - -
of Rs. 10 each fully paid
Total Investment 18,263,460 18,263,460 18,367,795 104,335 - -

SCHEDULE 12.2
INVESTMENT HELD TO MATURITY
AS ON 31 ASHAD 2072 16 JULY 2015
Particulars Cost Price (a) Impairment Impairment This Year Previous Remarks
Rs. Till Date (b) This Year Profit /Loss Year Profit /
Rs. (c) Rs. (a-b-c) Rs. Loss Rs.
1. Nepal Government Treasury Bills 2,102,429,750 - - - -
2. Nepal Government Saving Bonds - - - - -
3. Nepal Government Other securities 454,550,000 - - - -
4. Nepal Rastra Bank Bonds - - - - -
5. Foreign Securities - - - - -
6. Shares of Domestic Licensed Institution - - - - -
7. Debenture and Bond of Domestic Licensed Institution - - - - -
8. Shares, Debentures and Bond of Domestic Entity - - - - -
9. Foreign Bank Investment (Placement) 5,428,919,902 - - - -
10. Other Investments - - - -
10.1 Deposit Collection into NRB 1,190,000,000
10.2 Placement into local Banks 101,600,000 - - - -
Total Investment 9,277,499,652 - - - -

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 SCHEDULE 12.3
INVESTMENT AVAILABLE FOR SALE
AS ON 31 ASHAD 2072 16 JULY 2015
Particulars Cost Price Previous Current This Year Previous Remarks
Rs. Market Price Market Price Investment Year Profit
(a) Rs. (b) Rs. Adjustment /Loss Rs.
Reserve
(b-a) Rs.
1. Nepal Government Treasury Bills - - - - -
2. Nepal Government Saving Bonds - - - - -
3. Nepal Government Other securities - - - - -
4. Nepal Rastra Bank Bonds - - - - -
5. Foreign Securities - - - - -
6. Shares of Domestic Licensed Institution - - - - -
7. Debenture and Bond Domestic Licensed Institution - - - - -
8. Shares, Debentures and Bond of Domestic Entity - - - - -
Listed 18,895,000 - 136,138,475 - - *
Not Listed 11,060,500 6,125,000 - **
9. Foreign Bank Investment (Placement) - - - - -
10. Interbank Lending - - - - -
11. Other Investments - - - - -
Total Investment 29,955,500 - 136,138,475 6,125,000 -

Note:
* Even though the current market price is higher than the cost price, these have not been marked to market.
* No Investment Adjustment Reserve has been maintained for investment in Karja Suchana Kendra Ltd., Nepal Clearing House
Ltd., and Na onal Banking Ins tute as NRB Direc ve No 8/ 2072 has exempted maintenance of such reserve against such
investments.

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 SCHEDULE 13
CLASSIFICATION OF LOANS AND BILLS PURCHASE & PROVISIONING
AS ON 31 ASHAD 2072 16 JULY 2015
Particulars Loans & Advances Bills Purchased/Discounted This Year Previous
(Rs). Year (Rs).

Domestic Total Domestic Foreign Total

Deprived Sector
Other Foreign
Insured Uninsured

1. Performing Loan - 1,770,831,841 37,712,426,798 108,547,449 39,591,806,088 - 805,139,120 805,139,120 0,396,945,208 35,623,018,719
1.1 Pass - 1,770,831,841 36,332,155,666 108,547,449 38,211,534,956 805,139,120 805,139,120 39,016,674,076 35,623,018,719
-
1.2 Watch List - 1,380,271,132 1,380,271,132 - - - 1,380,271,132 -
2. Non-Performing Loan - 377,923 74,466,291 - 74,844,214 - 80,038 80,038 74,924,252 91,237,036
2 1 Restructured/Rescheduled - - 149,629 - 149,629 - - - 149,629 27,075,998
2.2 Sub-Standard - - 53,900 - 53,900 - - - 53,900 9,370,737
2.3 Doubtful - - 14,491,008 - 14,491,008 - - - 14,491,008 11,533,509
2.4 Loss - 377,923 59,771,754 - 60,149,677 80,038 80,038 60,229,715 43,256,792
-
A. Total Loan - 1,771,209,764 37,786,893,089 108,547,449 39,666,650,302 - 805,219,158 805,219,158 40,471,869,460 35,714,255,755
3. Loan Loss Provision
3.1 Pass - 17,708,318 363,321,557 1,085,474 382,115,349 - 8,051,391 8,051,391 390,166,740 356,230,187
3.2 Watch List - - 27,605,423 - 27,605,423 - - - 27,605,423 -
3.3 Restructured/Rescheduled - - 149,629 - 149,629 - - - 149,629 27,075,998
3.4 Sub-Standard - - 53,900 - 53,900 - - - 53,900 2,342,684
3.5 Doubtful - - 14,491,008 - 14,491,008 - - - 14,491,008 5,766,755
3.6 Loss - 377,923 59,771,754 - 60,149,677 80,038 80,038 60,229,715 43,256,792
-
B. Total Provisioning - 18,086,241 465,393,271 1,085,474 484,564,986 - 8,131,429 8,131,429 492,696,415 434,672,416
4. Provisioning up to
previous year
4.1 Pass - 15,206,423 334,493,332 - 349,699,755 - 6,530,432 6,530,432 356,230,187 299,006,548
4.2 Restructured/Rescheduled - - 27,075,998 - 27,075,998 - - - 27,075,998 27,630,936
4.3 Sub-Standard - - 2,342,684 - 2,342,684 - - - 2,342,684 -
4.4 Doubtful - - 5,766,755 - 5,766,755 - - - 5,766,755 -
4.5 Loss - 377,923 42,798,831 - 43,176,754 80,038 80,038 43,256,792 79,119,313
-
C. Total previous years - 15,584,346 412,477,600 - 428,061,946 - 6,610,470 6,610,470 434,672,416 405,756,797
provision
D. Written Back from - - 52,123,586 - 52,123,586 - - - 52,123,586 54,051,082
Previous Year
E. Additional Provision of - - 110,147,585 - 110,147,585 - - - 110,147,585 82,966,699
Current Year
Changes in this year - - 58,023,999 - 58,023,999 - - - 58,023,999 28,915,617
Net Loan (A-B) - 1,753,123,523 37,321,499,818 107,461,975 39,182,085,316 - 797,087,729 797,087,729 39,979,173,045 35,279,583,339

Note: Total Exposure under Deprived Sector is Rs. 17,712.10 Lacs (Excluding Investment in share of RMDC and Gramin Bikas Bank Rs. 250.20 Lacs)

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 SCHEDULE 13 Ka
LOAN,ADVANCES AND BILLS PURCHASED SECURITY WISE
AS ON 31 ASHAD 2072 16 JULY 2015
Particulars This Year Rs. Previous Year Rs.
A. Secured 40,471,869,460 35,714,255,755
1. Against Movable/Immovable Assets 36,811,569,369 32,009,081,633
2. Against Guarantee of Local Licensed Institutions
3. Against Government Guarantee 156,120,721 156,120,721
4. Against Internationally Rated Bank Guarantee - -
5. Against Export Documents 1,055,433,528 1,221,728,676
6. Against Fixed Deposit Receipts 785,968,753 887,968,583
a. Own FDR 785,968,753 887,968,583
b. FDR of Other Licensed Institutions - -
7. Against Government Bonds - -
8. Against Counter Guarantee - -
9. Against Personal Guarantee - -
10. Against Other Securities 1,662,777,089 1,439,356,142
B. Unsecured
Total (A + B) 40,471,869,460 35,714,255,755

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 SCHEDULE 14
FIXED ASSETS
AS ON 31 ASHAD 2072 16 JULY 2015
Particulars ASSETS This Year Previous
Rs. Year Rs.
Buildings Vehicles Machinery Office Others
Equipment
1. Cost Price
a. Previous Year balance - 128,149,940 259,166,526 463,211,583 129,171,171 979,699,220 939,427,307
b. Addition during the year - 115,266,800 9,258,843 14,577,726 1,613,929 140,717,298 67,314,487
c. Revaluation/Written Back - - - - - - -
this year
d. Sold during the year - (5,600,000) (811,576) (1,014,451) - (7,426,027) (27,042,574)
e. Write off during the year - - (589,370) - - (589,370) -
Total Cost (a+b+c+d+e) - 237,816,740 267,024,423 476,774,858 130,785,100 1,112,401,121 979,699,220
2. Depreciation -
a. Up to the Previous Year - 77,825,091 214,012,717 284,794,648 54,780,192 631,412,648 536,998,105
b. For this year - 27,095,682 23,468,137 57,481,980 8,606,764 116,652,563 115,477,434
c. Depreciation on - - - - - - -
revaluation/Write Back
d. Depreciation on Assets - (4,127,083) (1,382,756) (1,006,523) - (6,516,362) 21,062,891
Sold/Write off
Total Depreciation - 100,793,690 236,098,098 341,270,105 63,386,956 741,548,849 631,412,648
3. Book Value (WDV) - 137,023,050 30,926,325 135,504,753 67,398,144 370,852,272 348,286,572
(1-2)
4. Land 259,160,000 - - - - 259,160,000 259,160,000
5. Capital - - - - - - -
Construction (Pending
Capitalization)
6. Leasehold Assets - - - - - - -
Total (3+4+5+6) 259,160,000 137,023,050 30,926,325 135,504,753 67,398,144 630,012,272 607,446,572

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 SCHEDULE 15
NON BANKING ASSETS
AS ON 31 ASHAD 2072 16 JULY 2015
Name & Date of Total Amount Loss Provision Net Non Previous Year
Address of assuming of Non Banking Banking Assets Rs.
Borrower or Non Banking Assets (Rs) (Net NBA)
Party Assets
In % In Amount
Nil
- -
Total - - - -

SCHEDULE 16
OTHER ASSETS
AS ON 31 ASHAD 2072 16 JULY 2015
Particulars This Year Rs. Previous Year Rs.
1. Stock of Stationery 4,518,922 4,517,332
2. Income receivable on Investment 48,878,619 82,532,473
3. Accrued Interest on Loan 73,945,606 68,057,910
Less: Interest Suspense Account (73,945,606) - (68,057,910)
4. Commission Receivable - -
5. Sundry Debtors 124,650,115 59,788,773
6. Staff Loan & Advances 493,465,110 418,252,497
7. Pre Payments 19,311,546 6,727,382
8. Cash in Transit - -
9. Other Transit Items (Including Cheques) - -
10. Drafts paid without notice 22,359,375
Less: Provision (22,359,375) - -
11. Expenses not written off (Govt. Development Bond Premium) 1,249,546 9,902,104
12. Branch Adjustment Account - -
13. Deferred Tax Assets 147,211,706 112,355,544
14. Others 73,374,093 114,858,940
a) Advance Income Tax (Net of Liability) 38,043,002 59,261,128
b) Others 35,331,091 55,597,812
Total 912,659,657 808,935,045

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 SCHEDULE 16 Ka)
OTHER ASSETS ADDITIONAL DETAILS
AS ON 31 ASHAD 2072 16 JULY 2015
Particulars This Year Rs. Previous Year
Up to 1Year 1 to 3 years Above 3years Total Rs.
1. Accrued Interest on Loan 33,991,248 7,013,755 32,940,603 73,945,606 68,057,910
2. Drafts Paid without notice - - 22,359,375 22,359,375 32,000,000
3. Branch Adjustment Account - - - - -
4. Local/ Foreign Agency Account - - - - -
Total 33,991,248 7,013,755 55,299,978 96,304,981 100,057,910

SCHEDULE 17
CONTINGENT LIABILITIES
AS ON 31 ASHAD 2072 16 JULY 2015
Particulars This Year Rs. Previous Year Rs.
1. Claims on institution not accepted by the Institution 170,000 370,000
2. Letter of Credit (Full Amount) 2,111,273,300 2,640,614,887
a. Less than 6 months maturity 2,111,273,300 2,640,614,887
b. More than 6 months maturity - -
3. Rediscounted Bills - -
4. Unexpired Guarantees/Bonds 894,702,630 953,781,311
a. Bid Bonds 84,461,338 63,096,370
b. Performance Bonds 810,241,292 890,314,941
c. Other Guarantee/Bonds - -
5. Unpaid portion of partly paid shares - -
6. Forward Exchange Contract Liabilities 66,218,843 -
7. Bills under Collection 20,793,300 86,825,944
8. Acceptance & Endorsement 354,675,594 454,119,750
9. Underwriting Commitment - -
10. Irrevocable Loan Commitment* 5,961,257,307 4,911,424,508
11. Guarantee issued against on Counter Guarantee of
Internationally Rated Banks 4,350,958,991 3,996,632,907
12. Advance Payment Guarantee 134,033,371 102,078,582
13. Financial Guarantee 101,600,000 96,200,000
14. Contingent Liabilities on Income Tax 9,294,795 -
15. Others 11,411,229 -
Total 14,016,389,360 13,242,047,889

* As defined by Capital Adequacy Framework 2007 (Updated July 2008)

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 SCHEDULE 18
INTEREST INCOME
FROM 1 SHRAWAN 2071 TO 31 ASHAD 2072 17 JULY 2014 TO 16 JULY 2015
Particulars This Year Rs. Previous Year Rs.
A. On Loans, Advances and Overdraft 3,566,178,613 3,412,068,164
1. Loans & Advances 2,839,345,090 2,781,135,131
2. Overdraft 726,833,523 630,933,033
B. On Investment 74,381,897 94,613,833
1. Nepal Government Securities 69,261,202 94,106,655
a. Treasury Bills 13,972,448 25,463,045
b. Development Bonds 55,288,754 68,643,610
c. National Saving Certificates - -
2. Foreign Securities - -
3. Nepal Rastra Bank Bonds (Reverse Repo &
Deposit Collection) 3,603,397 -
4. Debenture & Bonds - -
5. Interest on Inter Bank Lending 1,517,298 507,178
a. Banks/Financial Institutions 1,517,298 507,178
b. Other Organizations - -
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 180,765,828 469,965,586
1. Certificate of Deposits - -
2. Inter-Bank Loan - -
3. Others 180,765,828 469,965,586
a. Placement with Foreign Banks 156,920,315 447,062,424
b. Others 23,845,513 22,903,162
Total 3,821,326,338 3,976,647,583

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 SCHEDULE 19
INTEREST EXPENSES
FROM 1 SHRAWAN 2071 TO 31 ASHAD 2072 17 JULY 2014 TO 16 JULY 2015
Particulars This Year Rs. Previous Year Rs.
A. ON DEPOSIT LIABILITIES 1,673,914,607 2,145,363,029
1. Fixed Deposits 1,070,777,456 1,561,425,450
1.1 Local Currency 934,103,254 1,146,428,583
1.2 Foreign Currency 136,674,202 414,996,867
2. Saving Deposits 456,141,936 449,373,084
2.1 Local Currency 455,344,220 448,750,599
2.2 Foreign Currency 797,716 622,485
3. Call Deposits 146,995,215 134,564,495
3.1 Local Currency 141,108,379 134,220,593
3.2 Foreign Currency 5,886,836 343,902
4. Certificate of Deposits - -
B. ON BORROWINGS 99,927,696 86,241,224
1. Debentures & Bonds 97,800,000 85,809,315
2. Loan from Nepal Rastra Bank - -
3. Inter Bank /Financial Institutions Borrowing 2,127,696 431,909
4. Other Corporate Institutions
5. Other Borrowings
C. ON OTHERS
Total 1,773,842,303 2,231,604,253

SCHEDULE 20
COMMISSION AND DISCOUNT INCOME
FROM 1 SHRAWAN 2071 TO 31 ASHAD 2072 17 JULY 2014 TO 16 JULY 2015
Particulars This Year Rs. Previous Year Rs.
A. Bills Purchase & Discount 69,217 12,500
1. Local - -
2. Foreign 69,217 12,500
B. Commission 137,952,464 167,748,794
1. Letters of Credit 30,436,467 27,553,152
2. Guarantees 45,583,790 85,343,793
3. Collection Fees 2,284,987 3,514,639
4. Remittance Fees 59,647,220 51,337,210
5. Credit Card - -
6. Share Underwriting/ Issue - -
7. Government Transactions - -
8. Agency Commission (E pra) - -
9. Exchange Fee - -
C. Others 202,332,356 152,664,118
1 Card Transactions 193,684,783 136,413,342
2 Agency Commission 8,462,230 16,193,502
3 Others 185,343 57,274
Total 340,354,037 320,425,412

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 SCHEDULE 21
OTHER OPERATING INCOME
FROM 1 SHRAWAN 2071 TO 31 ASHAD 2072 17 JULY 2014 TO 16 JULY 2015
Particulars This Year Rs. Previous Year Rs.
1. Safe Deposit Lockers Rental 5,417,326 4,410,850
2. Issue & Renewals of Credit Cards - -
3. Issue & Renewals of ATM Cards 68,487,425 64,021,362
4. Telex / T. T. 39,986,752 36,277,174
5. Service Charges 170,644,008 97,364,340
6. Renewal Fees 8,272,250 11,269,716
7. Others 14,883,272 3,923,709
Total 307,691,033 217,267,151

SCHEDULE 22
EXCHANGE FLUCTUATION GAIN/LOSS
FROM 1 SHRAWAN 2071 TO 31 ASHAD 2072 17 JULY 2014 TO 16 JULY 2015
Particulars This Year Rs. Previous Year Rs.
a. Revaluation Gain (Loss) 2,545,328 4,714,221
b. Trading Gain (except Exchange Fees) 116,924,096 103,092,746
Total Gain/ (Loss) 119,469,424 107,806,967

SCHEDULE 23
STAFF EXPENSES
FROM 1 SHRAWAN 2071 TO 31 ASHAD 2072 17 JULY 2014 TO 16 JULY 2015
Particulars This Year Rs. Previous Year Rs.
1. Salary 227,472,299 195,018,272
2. Allowances 156,364,147 138,191,046
3. Contribution to Provident Fund 21,948,148 18,620,420
4. Training Expenses 841,475 420,732
5. Uniform 863,657 420,774
6. Medical 8,306,305 8,028,677
7. Insurance 21,108,882 19,039,428
8. Pension, Gratuity and Leave Provision 98,341,160 46,713,977
9. Others (Canteen) 16,985,394 16,624,477
Total 552,231,467 443,077,803

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 SCHEDULE 24
OTHER OPERATING EXPENSES
FROM 1 SHRAWAN 2071 TO 31 ASHAD 2072 17 JULY 2014 TO 16 JULY 2015
Particulars This Year Rs. Previous Year Rs.
1. House Rent 90,845,072 83,189,220
2. Electricity & Water 18,103,085 18,310,153
3. Repair & Maintenance 25,727,260 19,512,550
a. Building (on lease) 831,866 1,398,097
b. Vehicles 3,045,453 3,014,056
c. Others(Computer, Office Equipment, Furniture ) 21,849,941 15,100,397
4. Insurance 8,621,247 7,973,021
5. Postage, Telex, Telephone & Fax 10,392,487 10,188,422
6. Small equipments 427,472 562,786
7. Travelling Allowances & Expenses 12,229,200 13,267,283
8. Printing & Stationery 23,425,593 16,841,253
9. Books & Periodicals 1,274,159 1,191,287
10. Advertisements 5,081,499 6,384,989
11. Legal Expenses 1,443,807 1,389,695
12. Donations 5,000,000 -
13. Expenses relating to Board of Directors 1,375,192 1,099,705
a. Meeting Fees 1,052,500 624,000
b. Other Expenses 322,692 475,705
14. Annual General Meeting Expenses 2,633,899 1,855,551
15. Expenses relating to Audit 365,189 462,684
a. Audit Fees 271,200 271,200
b. Other Expenses 93,989 191,484
16. Commission on Remittances - -
17. Depreciation on Fixed Assets 116,652,563 115,477,434
18. Amortization of Preliminary Expenses - -
19. Share Issue expenses - -
20. Technical Services Fee 19,713,695 19,391,577
21. Entertainment 1,443,383 1,462,690
22. Written Off Expenses - -
23. Security Expenses 50,337,736 50,624,579
24. Credit & Deposit Guarantee Premium 19,533,106 16,950,562
25. Commission and Discount - -
26. Others 101,167,638 119,893,385
a) Information Technology Support Cost 22,973,235 39,421,517
b) Fuel 21,087,003 21,990,487
c) Bank Promotion 349,338 929,442
d) Nostro Transaction Charges 2,599,498 1,674,492
e) Outsourcing Expenses 7,539,254 7,141,983
f) Credit Information Report Charge 6,665,400 5,691,160
g) Master Card and Visa Charges 4,455,403 9,999,843
h) Other operating expenses 35,498,507 33,044,461
Total 515,793,282 506,028,826

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 SCHEDULE 25
PROVISION FOR POSSIBLE LOSS
FROM 1 SHRAWAN 2071 TO 31 ASHAD 2072 17 JULY 2014 TO 16 JULY 2015
Particulars This Year Rs. Previous Year Rs.
1. Increase in Loan Loss Provision 110,147,585 82,966,699
2. Increase in Provision for Loss on Investment 6,125,000 -
3. Provision Against Non-Banking Assets - -
4. Provision Against Other Assets 368,369 -
Total 116,640,954 82,966,699

SCHEDULE 26
GAIN/ LOSS FROM NON OPERATING ACTIVITIES
From 1 Shrawan 2071 to 31 Ashad 2072 (17 July 2014 to 16 July 2015)
Particulars This Year Rs. Previous Year Rs.
1. Profit/ (Loss) on Sale of Investments - 2,422,646
2. Profit/ (Loss) on Sale of Assets 252,153 391,624
3. Dividend (Net) 4,645,381 3,328,073
4. Subsidies received from Nepal Rastra Bank - -
a. Reimbursement of losses of specified branches - -
b. Interest Indemnity - -
c. Exchange Counter - -
5. Others 5,811,169 2,585,933
Total Non-Operating Income/ (Expenses) 10,708,703 8,728,276

SCHEDULE 27
PROVISION FOR POSSIBLE LOSSES WRITE BACK
From 1 Shrawan 2071 to 31 Ashad 2072 (17 July 2014 to 16 July 2015)
Particulars This Year Rs. Previous Year Rs.
1. Loan Loss Provision Write Back 52,123,586 54,051,082
2. Provision against Non Banking Assets Write Back - 17,759,000
3. Investment Provision Write Back - -
4. Provision against other Assets Write Back - -
Total 52,123,586 71,810,082

SCHEDULE 28
INCOME/ EXPENSES FROM EXTRA ORDINARY ACTIVITIES
From 1 Shrawan 2071 to 31 Ashad 2072 (17 July 2014 to 16 July 2015)
Particulars This Year Rs. Previous Year Rs.
1. Recovery of Write off Loan 5,085,368 -
2. Voluntary Retirement Scheme Expenses - -
3. Loan Write -Offs (4.28 (ka) ) - (859,228)
4. Other Income/(expenses)
(recovery of interest from written off loans) 14,954,613 4,990,465
Total 20,039,981 4,131,237

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 SCHEDULE 28 Ka)
STATEMENT OF LOAN WRITTEN OFF
FY 2071/72 FY 2014/15
S.No. Types of Loan Written off Type of Basis of Loan Sanction Initiations made for recovery Remarks
amount Security & valuation of Authority /
Rs. Amount collateral Designation
1 Working Capital Loan - - - - - -
2 Project Loan - - - - - -
3 Fixed Capital Loan - - - - - -
4 Personal Loan - - - - - -
5 Other Loan - - - - - -
Total Loan - - - - - -

SCHEDULE 29
STATEMENT OF LOANS AND ADVANCES EXTENDED TO DIRECTORS/CHIEF EXECUTIVE /
PROMOTERS/EMPLOYEES AND SHAREHOLDERS
AS ON 31 ASHAD 2072 16 JULY 2015
Details of Loans & Advances including Bills Purchased and discounted provided to Directors, CEO, Promoters, Employees and Shareholders holding more than 1% shares (included
in total loans & advances) and their undivided family members or Company in which such family members are the Managing Agent or Guarantor of such company is as under:

Name of Promoter/Director/Chief Executive Outstanding up to Recovered in Current Additional Outstanding as of

Last Year Year Lending Asadh end 2072
Principal Interest Principal Interest in this year Principal Interest
A. Directors -
1. - - - - - - -
B. Chief Executive - - - - - - -
1. - - - - - - -
2. . - - - - - - -
C. Promoters - - - - - - -
1. ................................................ - - - - - - -
2. - - - - - - -
D. Employees - - - - - - -
1. .. - - - - - - -
2. - - - - - - -
E. Shareholders - - - - - - -
1. .. - - - - - - -
2. . - - - - - - -
Total - - - - - - -

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 CAPITAL ADEQUACY TABLE SCHEDULE 30 (Ka1)
AS ON 31 ASHAD 2072 16 JULY 2015 (Rs in '000)
Particulars This Year Rs. Previous Year Rs.
1.1 RISK WEIGHTED EXPOSURES As on Ashad end 2072 As on Ashadh End 2071
a Credit Risk 45,441,740 40,232,074
b Operational Risk 3,009,910 2,451,490
c Market Risk 455,780 381,149
Total Risk Weighted Exposures (Before adjustments of Pillar II) 48,907,430 43,064,713
Adjustments Under Pillar II
Add: SRP 6.4a (7) 2% of the Gross Income as per NRB Direction 477,451 438,249
Add: SRP 6.4a (9) 2% of the total RWE as per NRB Direction 978,149 861,294
Total Risk Weighted Exposures (After Banks adjustments of Pillar II) 50,363,030 44,364,256
1.2 CAPITAL FUND
(A) Core Capital (Tier I) 5,631,511 4,522,408
a Paid-up Equity Share Capital 3,058,060 2,650,206
b Irredeemable Non-cumulative preference shares - -
c Share Premium 79,160 -
d Proposed Bonus Equity Shares 825,676 398,877
e Statutory General Reserves 1,123,781 1,110,693
f Retained Earnings - -
g Accumulated Profit/(Loss) 3,161 5,815
h Capital Redemption Reserve - -
i Capital Adjustment Reserve 135,000 85,000
j Dividend Equalization Reserves - -
k Debenture Redemption Reserves 259,461 159,461
l Other Free Reserve 147,212 112,356
m Less: Goodwill - -
n Less: Deferred Tax Assets -
o Less: Fictitious Assets - -
p Less: Investment in equity in licensed Financial Institutions - -
q Less: Investment in equity of institutions with financial interests - -
r Less: Investment in equity of institutions in excess of limits - -
s Less: Investments arising out of underwriting commitments - -
t Less: Reciprocal crossholdings - -
u Less: Purchase of land & building in excess of limit and unutilized - -
v Less: Other - -
Adjustments Under Pillar II
Less: SRP 6.4a(1) Shortfall in Provision - -
Less: SRP 6.4a(2) Loans and Facilities extended to Related Parties and Restricted Lending - -
(B) Supplementary Capital (Tier II) 1,432,177 1,369,620
a Cumulative and/or Redeemable Preference Share - -
b Subordinated Term Debt (Unsecured) 1,000,000 1,000,000
c Hybrid Capital Instruments - -
d General Loan Loss Provision 417,772 356,230
e Exchange Equalization Reserve 14,027 13,390
f Investment Adjustment Reserve 378 -
g Assets Revaluation Reserve - -
h Other Reserves - -
Total Capital Fund (Tier I and Tier II) 7,063,688 5,892,028
1.3 CAPITAL ADEQUACY RATIOS
Tier 1 Capital to Total Risk Weighted Exposures 11.18% 10.19%
Tier 1 and Tier 2 Capital to Total Risk Weighted Exposures 14.03% 13.28%

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 SCHEDULE 30 Kha)
RISK WEIGHTED EXPOSURE FOR CREDIT RISK
AS ON 31 ASHAD 2072 16 JULY 2015
(Rs in '000)

A. Balance Sheet Exposures Ashad end 2072 Previous Year

Book Value Specific Eligible Net Value Risk Risk
Provision CRM Weight Weighted
Exposures
a b c d=a-b-c e f=d*e Net Value Risk
Weighted
Exposures
Cash Balance 1,753,912 1,753,912 0% - 1,527,029 -
Balance With Nepal Rastra Bank 4,662,434 4,662,434 0% - 3,890,989 -
Gold - - 0% -

Investment in Nepalese Government Securities 2,556,980 2,556,980 0% - 5,976,242 -

All Claims on Government of Nepal 156,121 156,121 0% - 156,121 -
Investment in Nepal Rastra Bank securities - - 0% -

All claims on Nepal Rastra Bank 1,212,514 1,212,514 0% - 47,006

Claims on Foreign Government and Central Bank - 0% -
(ECA 0-1)
Claims on Foreign Government and Central Bank - - 20% -
(ECA -2)
Claims on Foreign Government and Central Bank - - 50% -
(ECA -3)
Claims on Foreign Government and Central Bank - - 100% -
(ECA-4-6)
Claims on Foreign Government and Central Bank - - 150% -
(ECA -7)
Claims On BIS, IMF, ECB, EC and MDB's recognized - 0% -
by the framework
Claims on Other Multilateral Development Banks - - 100% -
Claims on Public Sector Entity (ECA 0-1) - - 20% -
Claims on Public Sector Entity (ECA 2) - - 50% -
Claims on Public Sector Entity (ECA 3-6) - - 100% -
Claims on Public Sector Entity (ECA 7) - - 150% -

Claims on domestic banks that meet capital adequacy 1,916,292 - 1,916,292 20% 383,258 947,858 189,572
requirements
Claims on domestic banks that do not meet capital 130,282 - 130,282 100% 130,282 337,423 337,423
adequacy requirements
Claims on foreign bank (ECA Rating 0-1) 249,649 - 249,649 20% 49,930 52,820 10,564
Claims on foreign bank (ECA Rating 2) 30,848 - 30,848 50% 15,424 12,422 6,211
Claims on foreign bank (ECA Rating 3-6) - - 100% -

Claims on foreign bank (ECA Rating 7) - - 150% -

Claims on foreign bank incorporated in SAARC region 6,437,982 - 6,437,982 20% 1,287,596 12,542,106 2,508,421
operating with a buffer of 1% above their respective
regulatory capital requirement
Claims on Domestic Corporates 25,864,684 703,251 25,161,433 100% 25,161,433 22,568,322 22,568,322
Claims on Foreign Corporates (ECA 0-1) - - 20% -
Claims on Foreign Corporates (ECA 2) - - 50% -

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 SCHEDULE 30 Kha) Contd....
RISK WEIGHTED EXPOSURE FOR CREDIT RISK
As on 31 Ashad 2072 (16 July 2015)
(Rs in '000)
A. Balance Sheet Exposures Ashad end 2072 Previous Year
Book Value Specific Eligible Net Value Risk Risk
Provision CRM Weight Weighted
Exposures
a b c d=a-b-c e f=d*e Net Value Risk
Weighted
Exposures
Claims on Foreign Corporates (ECA 3-6) - - 100% -
Claims on Foreign Corporates (ECA 7) - - 150% -
Regulatory Retail Portfolio (Not Overdue) 10,296,016 - 131,884 10,164,132 75% 7,623,099 8,147,368 6,110,526
Claims fulfilling all criterion of regularity retail except - - 100% - 0 -
granularity
Claims secured by residential properties 1,759,779 - - 1,759,779 60% 1,055,867 1,896,737 1,138,042
Claims not fully secured by residential properties - - 150% - 0 -
Claims secured by residential properties (Overdue) 66,516 15,777 - 50,739 100% 50,739 65,015 65,015
Claims secured by Commercial real estate 30,000 - 30,000 100% 30,000 60,000 60,000
Past due claims (except for claims secured by 119,246 59,147 - 60,099 150% 90,149 65,089 97,634
residential properties)
High Risk claims 964,375 - 59,758 904,617 150% 1,356,926 924,856 1,387,284
Investments in equity and other capital instruments of 37,263 - 37,263 100% 37,263 18,895 18,895
institutions listed in stock exchange
Investments in equity and other capital instruments of 11,061 6,125 - 4,936 150% 7,404 11,061 16,592
institutions not listed in the stock exchange
Staff loan secured by residential property 205,947 205,947 60% 123,568 167,863 100,718

Interest Receivable/claim on government securities 3,182 3,182 0% - 12,595 -

Cash in transit and other cash items in the process - - - 20% - 0 -
of collection
Other Assets (as per attachment) 2,652,770 1,341,741 - 1,311,029 100% 1,311,029 1,198,318 1,198,318
TOTAL (A) 61,117,853 1,422,790 894,893 58,800,170 38,713,967 60,626,135 35,813,537

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 RISK WEIGHTED EXPOSURE FOR CREDIT RISK
As on 31 Ashad 2072 (16 July 2015) SCHEDULE 30 Kha) Contd....
(Rs in '000)
B. Off Balance Sheet Exposures Ashad end 2072 Previous Year
Book Value Specific Eligible Net Value Risk Risk
Provision CRM Weight Weighted
Exposures
a b c d=a-b-c e f=d*e Net Value Risk
Weighted
Exposures
Revocable Commitments - 0% -
Bills Under Collection 20,793 20,793 0% - 86,826 -
Forward Exchange Contract Liabilities 66,219 - 66,219 10% 6,622
LC Commitments With Original Maturity Upto 6 2,111,273 118,505 1,992,768 20% 398,554 2,512,164 502,433
months domestic counterparty
Foreign counterparty (ECA Rating 0-1) - - 20% -
Foreign counterparty (ECA Rating 2) - - 50% -
Foreign counterparty (ECA Rating 3-6) - - 100% -
Foreign counterparty (ECA Rating 7) - 150% -
LC Commitments With Original Maturity Over 6 - - 50% -
months domestic counterparty
Foreign counterparty (ECA Rating 0-1) - - 20% -
Foreign counterparty (ECA Rating 2) - - 50% -
Foreign counterparty (ECA Rating 3-6) - - 100% -
Foreign counterparty (ECA Rating 7) - - 150% -
Bid Bond, Performance Bond and Counter guarantee 964,686 116,825 847,861 50% 423,931 4,712,357 2,356,179
domestic counterparty
Foreign counterparty (ECA Rating 0-1) 108,075 86,460 21,615 20% 4,323
Foreign counterparty (ECA Rating 2) - - 50% -
Foreign counterparty (ECA Rating 3-6) 4,172,901 - 4,172,901 100% 4,172,901
Foreign counterparty (ECA Rating 7) - - 150% -
Underwriting commitments - - 50% -
Lending of Bank's Securities or Posting of Securities - - 100% -
as collateral
Repurchase Agreements - - 100% -
Advance Payment Guarantee 134,033 4,940 129,093 100% 129,093 97,562 97,562
Financial Guarantee 101,600 9,012 92,588 100% 92,588 87,188 87,188
Acceptances and Endorsements 354,676 5,182 349,494 100% 349,494 446,746 446,746
Unpaid portion of Partly paid shares and Securities - - 100% - - -
Irrevocable Credit commitments (short term) 5,961,257 314,982 5,646,275 20% 1,129,255 4,638,816 927,763
Irrevocable Credit commitments (long term) - - 50% -
Other Contingent Liabilities 20,706 - 20,706 100% 20,706
Contingent Liabilities for Guarantee Claimed not 170 17 153 200% 306 333 666
accepted/ honoured
TOTAL (B) 14,016,389 - 655,923 13,360,466 6,727,773 12,581,992 4,418,537
Total RWE for Credit Risk Before Adjustment 75,134,242 1,422,790 1,550,816 72,160,636 45,441,740 73,208,127 40,232,074
(A + B)
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 Bank's adjustments 75,134,242 1,422,790 1,550,816 72,160,636 45,441,740 73,208,127 40,232,074
under Pillar II

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 SCHEDULE 30 (Ga)
ELIGIBLE CREDIT RISK MITIGANTS
As on 31 Ashad 2072 (16 July 2015) (Rs in '000)
Credit Exposures Deposits Deposits Gold Govt.& G'tee Sec/G'tee G'tee of G'tee Sec/G'tee Total
with with NRB of of other domestic of of
Bank other Securities Govt. Sovereigns Banks MDBs Foreign
Banks/FI of Banks
Nepal
(a) (b) (c) (d) (e) (f) (g) (h) (I)
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 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 MDB's
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
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 703,251 703,251
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) 131,884 131,884

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 ELIGIBLE CREDIT RISK MITIGANTS
As on 31 Ashad 2072 (16 July 2015) SCHEDULE 30 (Ga) Contd....
(Rs in '000)
Credit Exposures Deposits Deposits Gold Govt.& G'tee Sec/G'tee G'tee of G'tee Sec/G'tee Total
with with NRB of of other domestic of of
Bank other Securities Govt. Sovereigns Banks MDBs Foreign
Banks/FI of Banks
Nepal
(a) (b) (c) (d) (e) (f) (g) (h) (I)
Regulatory Retail Portfolio (Overdue)
Claims fulfilling all criterion of regularity 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 claims secured by -
residential properties)
High Risk claims 59,758 59,758
Investments in equity and other capital instruments -
of institutions listed in stock exchange
Investments in equity and other capital instruments -
of institutions not listed in the stock exchange
Other Assets (as per attachment) -
Total 894,893 - - - - - - - - 894,893
Off Balance Sheet Exposures
Revocable Commitments -
Bills Under Collection
Forward Exchange Contract Liabilities
LC Commitments With Original Maturity Upto 6 118,505 118,505
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 75,062 41,763 116,825
guarantee domestic counterparty
Foreign counterparty (ECA Rating 0-1) 86,460.12 86,460
Foreign counterparty (ECA Rating 2) -

Foreign counterparty (ECA Rating 3-6) -

Foreign counterparty (ECA Rating 7) -

Contingent Liabilities for Guarantee Claimed not 17 17
accepted/ honoured
Underwriting commitments -
Lending of Bank's Securities or Posting of -
Securities as collateral

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 SCHEDULE 30 (Ga) Contd....
ELIGIBLE CREDIT RISK MITIGANTS
As on 31 Ashad 2072 (16 July 2015) (Rs in '000)

Credit Exposures Deposits Deposits Gold Govt.& G'tee Sec/G'tee G'tee of G'tee Sec/G'tee Total
with with NRB of of other domestic of of
Bank other Securities Govt. Sovereigns Banks MDBs Foreign
Banks/FI of Banks
Nepal
(a) (b) (c) (d) (e) (f) (g) (h) (I)
Repurchase Agreements -
Advance Payment Guarantee 4,940 4,940
Financial Guarantee 9,012 9,012
Acceptances and Endorsements 5,182 5,182
Unpaid portion of Partly paid shares and Securities -
Irrevocable Credit commitments (short term) 314,982 314,982
Irrevocable Credit commitments (long term) -
Claims on foreign bank incorporated in SAARC
region operating with a buffer of 1% above their
respective regulatory capital requirement
Other Contingent Liabilities -
Total 527,700 - - - - - 41,763 - 86,460 655,923
Grand Total 1,422,593 - - - - - 41,763 - 86,460 1,550,816

SCHEDULE 30 Gha)
RISK WEIGHTED EXPOSURE FOR OPERATIONAL RISK
As on 31 Ashad 2072 (16 July 2015) (Rs in '000)
S.N. Particulars Previous Years from Ashad end 2072 As on Ashad
end 2071
FY 2068/69 FY 2069/70 FY 2070/71
1 Net Interest Income 998,684 1,623,535 1,745,043
2 Commission and Discount Income 255,352 313,697 320,425
3 Other Operating Income 141,762 157,756 217,267
4 Exchange Fluctuation Income 101,138 101,915 107,807
5 Addition/Deduction in Interest Suspense during the period (55,621) (5,658) (3,285)
6 Gross income (a) 1,441,315 2,191,245 2,387,257
7 Alfa (b) 15% 15% 15%
8 Fixed Percentage of Gross Income [c=(ab)] 216,197 328,687 358,089
9 Capital Requirement for operational risk (d) (average of c) 300,991 245,149
10 Risk Weight (reciprocal of capital requirement of 10%) in times (e) 10 10
11 Equivalent Risk Weight Exposure [f=(de)] 3,009,910 2,451,490
SRP 6.4a (8) Adjustments under Pillar II (If Gross Income for the last three years is negative)
1 Total Credit and Investment (net of Specific Provision) -
2 Capital Requirement for Operational Risk -
3 Risk Weight (reciprocal of capital requirement of 10%) in times 10
4 Equivalent Risk Weight Exposure (g) -
5 Equivalent Risk Weight Exposure [h=f+g] 3,009,910 2,451,490

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 SCHEDULE 30 (Nga)
RISK WEIGHTED EXPOSURE FOR MARKET RISK
As on 31 Ashad 2072 (16 July 2015)
Rs. in 000
S.No. Currency As on Ashad end 2072 Relevant
Open Position Ashad
end 2071 (NPR)
Open Position Open Position Relevant
(FCY) (NPR) Open Position
1 INR 559,467.41 895,567 895,567 747,917
2 USD 68.81 6,991 6,991 2,192
3 EUR 13.59 1,509 1,509 1,310
4 GBP 13.26 2,106 2,106 3,668
5 THB - - - -
6 CHF 0.86 91 91 13
7 AUD 61.72 4,656 4,656 4,831
8 CAD 2.18 171 171 7
9 SGD - - 17
10 JPY 554.64 456 456 2,343
11 HKD - - -
12 DKK - - -
13 SEK - - -
14 SAR - - -
15 QAR - - -
16 AED - - -
17 MYR - - -
18 KRW - - -
19 CNY 0.30 5 5 -
20 KWD - - -
21 BHD - - -
(a) Total Open Position 911,552 762,298
(b) Fixed Percentage 5% 5%
(c) Capital Charge for Market Risk (=ab) 45,578 38,115
(d) Risk Weight (reciprocal of capital requirement of 10%) in times 10 10
(e) Equivalent Risk Weight Exposure (=cd) 455,780 381,149

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 SCHEDULE 31

PRINCIPAL INDICATORS
FOR 5 YEARS
Particulars Indicators Fiscal Year
2067/2068 2068/2069 2069/2070 2070/2071 2071/2072
1. Percent of Net Profit/Gross Income % 13.21 11.25 16.47 19.97 23.22
2. Earnings Per Share Rs. 24.85 22.93 32.75 34.83 34.84
3. Market Value per Share (as on mid July, date of closing) Rs. 565.00 635.00 850.00 1,280.00 887.00
4. Price Earning Ratio Times 22.73 27.69 25.95 36.75 25.46
5. Dividend (including bonus) on share capital % 17.50 17.50 20.00 22.0745 28.42
6. Cash Dividend on Share Capital % 5.00 5.00 7.50 7.0237 1.42
7. Interest Income/Loans & Advances % 11.24 11.27 11.20 9.55 8.81
8. Staff Expenses/Total Operating Expenses % 37.28 38.78 46.61 46.68 51.71
9. Interest Expenses/Total Deposit and Borrowings % 4.92 5.14 4.16 4.02 3.37
10. Exchange Gain/Total Income % 2.01 2.37 2.18 2.33 2.60
11. Staff (Statutory) Bonus/ Total Staff Expenses % 20.37 19.19 21.04 22.85 22.00
12. Net Profit/Loans & Advances % 2.14 1.81 2.64 2.58 2.63
13. Net Profit/ Total Assets % 1.01 0.83 1.19 1.51 1.80
14. Total Credit/Deposit % 51.20 49.62 49.55 65.54 78.39
15. Total Operating Expenses/Total Assets % 6.07 6.06 5.22 5.21 4.79
16. Adequacy of Capital Fund on Risk Weightage Assets
a. Core Capital % 10.32 9.16 9.59 10.19 11.18
b. Supplementary Capital % 1.20 2.05 2.80 3.09 2.84
c. Total Capital Fund % 11.52 11.21 12.39 13.28 14.03
17. Liquidity (CRR) % 7.00 8.33 9.58 9.32 10.92
18. Non Performing Credit/Total Credit % 1.10 0.54 0.37 0.26 0.19
19. Base Rate (For the month of Ashadh) % NA NA 9.86 8.78 7.71
20. Weighted Average Interest Rate Spread % 2.86 2.70 3.38 3.45 3.85
21. Book Net worth Rs. 2,869,602,150 3,196,710,863 3,798,957,417 4,535,798,670 5,645,914,521
22. Total Shares No. 18,693,033 20,939,898 23,557,385 26,502,058 30,580,595
23. Total Employees No. 505 538 538 607 596
24. Return on Shareholder's Equity % 16.19 15.02 20.31 22.85 21.51
25. Book Value Per Share Rs. 153.51 152.66 161.26 171.15 184.62
26. Cost to Income Ratio % 49.29% 49.79% 40.68% 39.70% 37.94%
27. ATM Terminals No. 69 75 75 75 78
28. Branches No. 43 50 56 56 56

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PRINCIPAL ACCOUNTING POLICIES
FINANCIAL YEAR FROM 1 SHRAWAN 2071 TO 31 ASHAD 2072
17 JULY 2014 TO 16 JULY 2015
1) General informa on
Nepal SBI Bank Limited is a limited liability
public listed company domiciled in Nepal.
The registered oce of the Bank is situated
at Ha sar, Kathmandu, Nepal. It is a Joint
Venture of State Bank of India, incorporated in
India, which holds 55.09% shares in the Bank.
The Bank carries out commercial banking
ac vi es and other financial services in Nepal
under the license from Nepal Rastra Bank
(NRB, The Central Bank of Nepal) as Class Ka
licensed ins tu on.
2. Approval of Financial Statements
The Financial Statements for the year ended 31
Ashad 2072 (16 July 2015) were authorised for
issue by the Board of Directors on its mee ng
held on 17.12.2015 and have recommended for
approval of shareholders in the Annual General
Mee ng.
3. Statement of Compliance
The Financial Statements have been prepared
in accordance with Nepal Accoun ng Standards
(NAS) issued by the Nepal Accoun ng Standard
Board except otherwise stated, Banks & Financial
Ins tu ons Act 2063, presenta on requirement
of Nepal Rastra Bank Direc ves and in conformity
with the Companies Act 2063.
4. Basis of Financial Statements Prepara on
The Financial Statements are prepared under
the historical cost conven on basis and on
the accrual basis of accoun ng, except for
interest income on loans and advances, which
is accounted for on cash basis as per NRB
direc ve, investment held for trading and
foreign currency items. The figures in Financial
Statements are presented in Nepalese Rupees
SCHEDULE 32
and have been rounded to the nearest Rupee.
5. Use of Es mates
The prepara on of financial statements requires
management to make es mates and assump ons
that aect the reported amount and applica on
of policies of the assets, income, expenses and
disclosure rela ng to the con ngent liabili es in
the Financial Statements. Management believes
that es mates used in the prepara on of financial
statements are prudent and reasonable.
Es mates and assump ons are reviewed on an
ongoing basis. Revisions to accoun ng es mates
are recognised in the period in which the es mate
is revised and in any future period aected. These
policies have been consistently applied to all the
years presented except otherwise stated.
6. Interest Income Recogni on
Interest income from loans and advances is
recognised on cash basis as per the Direc ves
of Nepal Rastra Bank, which is not in line with,
recogni on of interest income on accrual
basis, of Nepal Accoun ng Standard (NAS) 7
(Revenue).
Interest income from investments and stas
loans is recognised on accrual basis.
7. Commission and Fee Income Recogni on
Commission and fee income mainly comprises
fees receivable from customers for guarantees,
le er of credit and other services provided
by the Bank. Such income is recognised as
revenue on cash basis at the me the services
are provided.
8. Dividend Income Recogni on
Dividend on equity share is recognised as income
when the right to receive is established.

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9. Foreign Currency Transac ons and Balances
Foreign currency assets and liabili es are
translated into Nepalese Rupees at the
prevailing middle rate ruling on the Balance
Sheet date.
Income arising from the dierence between
buying and selling rates of foreign exchange
transac ons are recorded on a daily basis
and shown as Trading Gain/loss on Foreign
Exchange
Gains/losses arising due to fluctua on in
exchange rate of dierent foreign currencies
is accounted for on daily basis as Revalua on
Gain/Loss. As per Direc ves of Nepal Rastra
Bank, 25% of the revalua on gain is transferred
to Exchange Fluctua on Reserve through Profit
and Loss Appropria on Account.
10. Interest Expense Recogni on
Interest payable on deposit liabili es, debenture
bond borrowings and other liabilities are
accounted for on accrual basis.
11. Presenta on of Loans, Advances and Bills
Purchased
Loans, advances and bills purchased are
presented in the Balance Sheet net o with its
provisions in accordance with the Direc ves
issued by Nepal Rastra Bank. The loans, advances
and bills purchased are classified and presented
as per the Direc ves of Nepal Rastra Bank.
12. Loan Loss Provision
Provision for possible losses on loans, advance
and bills purchased has been made to cover
risks inherent in banks loan por olio. Provision
for possible losses on loans, advances and bills
purchased are made at the rates ranging from
1% to 100% according to classifica on of such
assets as per Direc ves of Nepal Rastra Bank.
13. Loan (Book) Write o
Unrecoverable loans and advances graded
92 Nepal SBI Bank Limited
Loss in compliances with NRB Direc ves are
wri en o in the books as per criteria/ policy
upon approval of the Board of Directors.
Amount recovered against loans wri en
o are recognised as income in the year of
recovery.
14. Loans to the Stas
Loans and advances granted to the stas
in accordance the Sta Loan Schemes as
prescribed by sta bye laws are presented
under Other Assets as prescribed in the
Direc ves of Nepal Rastra Bank.
15. Investments
The Bank has segregated its investment
por olio into following three categories in
compliance with NRB Direc ves:
a. Held for Trading:
An investment that is made for the purpose of
genera ng a profit from short term fluctua ons
in price is classified under this category. An asset
is classified as held for trading even if it is a part
of a por olio of similar assets for which there is a
pa ern of trading for the purpose of genera ng a
profit from short term fluctua ons in price. These
investments are marked to market and dierences
reflected in the profit and loss account.
b. Held to Maturity:
Investments made with posi ve intent and
ability of the bank to hold ll maturity is
classified as held to maturity investments.
The held to maturity investments are valued
at amor sed cost i.e. the cost price less any
impairments (if applicable). The impairments
are included in the profit and loss accounts for
the period.
c. Available for Sale:
All other investments that are neither held for
trading nor held to maturity are classified
under this category. These investments are
22 Annual Report
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 marked to market on a regular basis and the
dierence is adjusted through reserves.
Bank maintains Investment Adjustment Reserve
(eligible as Tier 2 capital) to the extent of 2% of
available for sale por olio as per Direc ves of
Nepal Rastra Bank.
16) Fixed Assets and Deprecia on
i) Fixed assets are stated at cost less
accumulated deprecia on.
ii) Land is not depreciated.
iii) Asset with a value less than Rs 5,000 is
charged o as a revenue expense in the
year of purchase irrespec ve of its useful
life.
iv) Fixed assets and cost on improvements
and renova on of leasehold proper es
are depreciated at rates based upon their
expected useful lives, using the straight-
line method and grouped under Others
in schedule 14. The es mated useful lives
and deprecia on rates of fixed assets are as
follows:
Asset Heads Useful Life Depreciation
(years) Rate (%)
Equipments and Computer & Accessories 2.5 -5
Furniture 6.67-10
Civil Construction (Leasehold assets) 13.33
Vehicle 6.66
17) Intangible Assets
a. Basis of Recogni on
An intangible asset is recognised if it is probable
that the future economic benefits that are
a ributable to the assets will flow to the bank
and the cost of the assets can be measured
reliably.
b. Measurement
So ware represents the value of computer
applica on so ware licensed for use of the Bank,
other than so ware applied to the opera on
so ware system of computers. These intangible
22 Annual Report
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assets are carried at its cost, less accumulated
deprecia on and any impairment losses. These
assets are included under the account head
Computers and Accessories and amor zed
accordingly.
18) Non-Banking Assets (NBAs)
Non-Banking Assets represent proper es that
are acquired in full or par al sa sfac on of
debts.
The Bank has adopted a policy of acquiring
proper es that are placed as collateral in full
or par al sa sfac on of debts as per prevailing
laws and guidelines. The value of such
proper es is determined as per Direc ves of
Nepal Rastra Bank.
Non-Banking Assets are stated net of provision
for losses in the Balance Sheet as per NRB
Direc ves.
19) Employee Benefits
Short Term Employee Benefit
The undiscounted amount of short-term
employee benefits, such as salaries, medical
benefit, sta bonus etc. which are expected to
40 20 be paid in exchange for the service rendered
15 - 10 by employees is recognised during the period
7.50 when the employee renders the service.
15
The Bank oers leave encashment facility
to its confirmed employees which may be
encashed during the service period as per the
Sta Service Rule of the Bank and unused leave
up to prescribed limit in Sta Service Rule is
accumulated and paid at the me of separa on
from service. Provision for leave is made on
accrual basis determined by the management
as per Sta Service Rules of the Bank.
Defined Contribu on Plan
Bank contributes 10% of Basic Salary of all
permanent employees as provident fund
to Nepal SBI Bank Limited Re rement
Nepal SBI Bank Limited 93
 Fund and same amount is contributed
from employee. Nepal SBI Bank Limited
Re rement Fund is an approved re rement
fund which is independently administrated.
Banks contribu on is charged as expense
when employee has rendered service to bank.
Bank pays insurance premium of life
insurance and group accidental policy of its
permanent employee as per Sta Service
Rules of the Bank. Insurance policy is in the
name of a specified plan par cipant and bank
has no legal liability to cover any loss on the
policy and insurer has sole responsibility for
paying the benefit. The amount of insurance
premium paid is charged as expense for the
period.
Defined Benefit Plan
Permanent employee of bank is eligible for
gratuity payment on their separa on from
service as per Sta Service Rule of the Bank.
Provision for gratuity is made on accrual basis
determined by the management as per Sta
Service Rule of the Bank taking the propor on
of service period served by permanent
employees. Gratuity is accumulated as
provision and has not been transferred to any
other re rement funds.
20) Sta onery Stock
Sta onery purchased is stated at cost and
charged to revenue at the me of consump on.
21) Provision for Taxa on
Provision for taxa on is computed on the basis
of the Income Tax Act 2058 and amendments
thereto.
22) Deferred Tax
Deferred tax assets and liabili es are recognized
for the future tax consequences a ributable to
temporary dierences between the financial
94 Nepal SBI Bank Limited
statement carrying amounts of exis ng assets
and liabili es, and their respec ve tax bases.
Deferred tax assets and liabili es are measured
using tax rates expected to apply to taxable
income in the years in which those temporary
dierences are expected to be recovered or
se led based on the laws that have been
enacted or subsequently enacted on the
repor ng date.
Deferred tax assets arising from temporary
dierence are recognized to the extent there is
certainty that sucient future taxable income
will be available against which such deferred tax
assets can be realized. Deferred tax assets and
liabili es are presented under Other Assets or
Liabili es as Per Nepal Accoun ng Standard
9 and NRB Direc ves No. 4. An amount equal
to total of deferred tax income is transferred
to Deferred Tax Reserve under Other Reserve
presented in Schedule 2.
23) Lease
Assets held under finance leases are ini ally
recognized as assets of the Bank at their fair
value at the incep on of the lease or, if lower,
at the present value of the minimum lease
payments. The corresponding liability to the
lessor is included in the financial statement as
a finance lease obliga on.
Lease payments are appor oned between
finance expenses and reduc on of the lease
obliga on so as to achieve a constant rate
of interest on the remaining balance of the
liability. Finance expenses are recognized
immediately in profit or loss, unless they
are directly a ributable to qualifying assets.
Con ngent rentals are recognized as expenses
in the periods in which they are incurred.
Opera ng lease payments are recognized as an
expense on a straight-line basis over the lease
22 Annual Report
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2014-2015
 term, except where another systema c basis
is more representa ve of the me pa ern
in which economic benefits from the leased
asset are consumed.
24) Provisions, Con ngent Liabili es and
Con ngent Assets
The Bank creates a provision when there
is a present obliga on as a result of past
events that probably requires an ou low
of resources and a reliable es mate can be
made of the amount of the obliga on. A
disclosure for a con ngent liability is made
when there is a possible obliga on or a
present obliga on that may, but probably
will not, require an ou low of resources.
When there is a possible obliga on or a
present obliga on in respect of which the
likelihood of ou low of resources is remote,
no provision or disclosure is made.
Con ngent assets are not recognised in the
financial statements. However, con ngent assets
are assessed con nuously and if it is virtually
certain that an economic benefit will arise, the
asset and related income are recognised in the
period in which the change occurs.
Liabili es on account of deriva ve contracts
are reported under con ngent liabili es
under Forward Exchange Contract liabili es.
These include no onal principal on
outstanding forward rate agreements.
25) Cash & Cash Equivalents
Cash & cash equivalents comprise cash and
bank balances.
26) Previous Years Figures
Previous years figures are grouped or
regrouped wherever necessary to facilitate
comparision.

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 SCHEDULE 33
NOTES TO ACCOUNTS
FINANCIAL YEAR FROM 1 SHRAWAN 2071 TO 31 ASHAD 2072
17 JULY 2014 TO 16 JULY 2015

1. Shareholders Equity
1.1 Change in Paid-up Capital
Particulars This Year Rs. Previous Year Rs. Change Remarks
Paid-up Share Capital 3,883,735,565 3,049,083,104 8,976,396.00 The Bank has allotted 89,763.96 numbers of unsubscribed
shares of Public Quota through Open Bidding (Auction) Process.

1.2 Proposed increase in Paid-up Share Capital

The Banks Board mee ng held on 17.12.2015 has proposed to issue 27% bonus share. A er approval
of proposed issue of bonus share by Annual General Mee ng, the Banks Paid-up Share Capital will be
Rs. 3,883,735,565. Such proposed bonus share is presented under Share Capital as per NRB Direc ves.
1.3 Paid-up Share Capital
Paid up share capital of the Bank has moved over the years as follows:
Financial Year Cumulative Paid-up Remarks
Share Capital Rs.
2050/051 (1993/94) 119,820,000.00 Opening Share Capital at Rs. 100 Paid up. First issue of Share Capital was Rs. 120,000,000.
2051/052 (1994/95) 119,871,000.00 Further allotment and subscription of Share Capital of Rs. 51000
2052/053 (1995/96) 119,977,000.00 Further allotment and subscription of Share Capital of Rs. 106,000
2053/054 (1996/97) 119,946,000.00 Further allotment and subscription of Share Capital of Rs. 19,000 and cancellation of share of Rs. 50,000
2054/055 (1997/98) 119,946,000.00
2055/056 (1998/99) 119,946,000.00
2056/057 (1999/00) 119,946,000.00
2057/058 (2000/01) 143,935,200.00 Issuance of 20% Bonus Shares
2058/059 (2001/02) 424,893,300.00 Issuance of 1:2 Right Shares
2059/060 (2002/03) 425,157,300.00 Further allotment previous Right Issue
2060/061 (2003/04) 426,875,900.00 Further allotment previous Right Issue
2061/062 (2004/05) 431,865,600.00 Further allotment previous Right Issue
2062/063 (2005/06) 640,236,100.00 Issuance of 2:1 Right Shares
2063/064 (2006/07) 647,798,400.00 Further allotment previous Right Issue
2064/065 (2007/08) 874,527,840.00 Issuance of 35% Bonus Shares
2065/066 (2008/09) 874,527,840.00
2066/067 (2009/10) 1,861,324,239.00 Issuance of 40% Bonus Shares and issuance of 2:1 Right Shares
2067/068 (2010/11) 2,102,966,165.00 Issuance of 12.5% Bonus Shares and allotment of previously unsubscribed right issue.
2068/069 (2011/12) 2,355,738,504.00 Issuance of 12.5% Bonus Shares and cancellation of last years allotment of previously unsubscribed right
issue.
2069/070 (2012/13) 2,650,205,804.00 Issuance of 12.5% Bonus Shares
2070/071 (2013/14) 3,049,083,104.00 Issuance of 15.05% Bonus Shares

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 1.4 General Reserve
As required under the Banks and Financial Ins tu ons Act, 2063, 20% of the current years net profit
amoun ng to Rs. 213,087,229 has been transferred to General Reserve.
1.5 Share Premium
The Bank has allo ed 89,763.96 number of unsubscribed shares of Public Quota through Open
Bidding (Auc on) Process vide public no ce dated 09.12.2014. The shares were allo ed to 15 winning
bidders on 17.12.2014 at bidding price ranging from minimum of Rs. 981 to maximum of Rs. 1051. Rs.
79,159,949 has been booked under Share Premium for money received in excess of face value of the
auc oned shares.
1.6 Capital Adjustment Reserve
The opening Capital Adjustment Reserve of Rs. 85,000,000 is transferred to Profit & Loss Appropria on
Account for the purpose of issue of Bonus Shares. Debenture Redemp on Reserve Rs. 200,000,000.00, which
was previously shown along with General Reserve as per NRB Direc ve has been transferred to Profit &
Loss Appropria on Account for the purpose of issue of Bonus Share. Further, Rs. 135,000,000.00 has been
appropriated under Capital Adjustment Reserve.
1.7 Investment Adjustment Reserve
As per NRB Unified Direc ves 4/2072 and 8/2072, Bank has made Investments Adjustment Reserve as under:
Particulars Investment Required Change in Charge in
Amount Reserve Investment Reserve Profit/ Loss A/c
Opening Balance as on 2071.04.01 0.00
1. Investment in Listed Share of Rural Micro-finance Development 18,895,000 377,900 377,900
Center Ltd., Investment Adjustment Reserve @ 2%
2. Investment in non-Listed Share of Nepal Grameen Bikash Bank 6,125,000 6,125,000 6,125,000
Ltd., Investment Adjustment Reserve @ 100%
2. Investment in Other Corporate Bodies (Exempted Investment)* 4,935,500 0.00
Closing Balance as on 31.03.2072 29,955,500 6,502,900 377,900 6,125,000

* Exemp on to maintain Investment Adjustment Reserve for investment in share of Karja Suchana
Kendra Ltd. Nepal Clearing House Ltd. and Na onal Banking Ins tute has been provided under
NRB Direc ves 4/2072.
1.8 Income Tax, Deferred Tax Income and Deferred Tax Reserve
Provision for income tax has been made as per the provisions of Income Tax Act and amendment thereof.
Out of total income tax Rs. 22,992,061 for previous years, Rs. 20,699,397 represents the addi onal corporate
income tax as per amended assessment by LTO up to FY 2065/66, FY 2066/67 and FY 2067/68 and Rs.
2,292,664 represents the addi onal corporate income tax assessed by the Bank on income tax returns then
provided in financial statements of the FY 2069-70 and FY 2071-71.

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 Deferred Tax has been calculated as per the Nepal Accoun ng Standard 9 - Income Taxes. The movement in
deferred tax assets/ liabili es is as follows:
Particulars / Items Carrying Tax Base Deductible Taxable Net Deductible Deferred Tax
Amount Rs. Temporary Temporary Temporary Asset Rs.
Rs. Difference Difference Difference C*
Rs. (A) Rs. (B) C = (A) (B) Tax rate @ 30%*
Fixed Assets 370,852,272 487,651,499 116,799,227 116,799,227 35,039,768
Provision for Gratuity and Leave 351,547,087 0 351,547,087 351,547,087 105,464,126
Provision for Draft Fraud 22,359,375 0 22,359,375 22,359,375 6,707,813
744,758,734 487,651,499 490,705,689 0 490,705,689 147,211,707
Opening Balances (2071.04.01) 112,355,545
Differences 34,856,162
Accounted in Profit and Loss Account as 34,856,162
Deferred Tax Income

* Current income tax rate applicable to the bank.

1.9 Debenture Redemp on Reserve
Debenture Redemp on Reserve has been appropriated as under:
S. No. Debentures Period Debenture Debenture Debenture Debenture
Amount Redemption Redemption Redemption
Reserve as on Reserve Reserve as on
01.04.2071 (a) appropriated 31.03.2072 (a+b)
during the year
(b)
1 12.5% NSBL Debenture 2078 Issued on: 12.02.2012 400,000,000 96,776,256 40,000,000 136,776,256
Maturity on: 11.02.2022
2 8% NSBL Debenture 2079 Issued on: 03.02.2013 400,000,000 57,863,014 40,000,000 97,863,014
Maturity on: 02.02.2023
3 7.9% NSBL Debenture 2080 Issued on: 20.04.2014 200,000,000 4,821,918 20,000,000 24,821,918
Maturity on: 19.04.2024
Total 1,000,000,000 159,461,188 100,000,000 259,461,188

1.10 Exchange Fluctua on Reserve

Revalua on gain arising out of exchange fluctua on during the year is Rs 2,545,328. As per Direc ves of
Nepal Rastra Bank, 25% of such gain amoun ng to Rs 636,333 has been transferred to Exchange Fluctua on
Reserve.
2. Summary of Changes in Deposit Liabili es
Particulars This Year Rs. Previous Year Rs. Growth Amount Rs. Growth %
Call Deposits 5,673,453 4,773,989 899,464 18.84%
Current Deposits 4,818,048 4,115,406 702,642 17.07%
Fixed Deposits 19,129,479 28,569,413 -9,439,934 -33.04%
Margin Deposits 324,371 283,146 41,225 14.56%
Saving Deposits 21,485,400 16,610,549 4,874,851 29.35%
Matured Fixed Deposits 197,471 140,491 56,980 40.56%
Total 51,628,222 54,492,994 -2,864,772 -5.26%

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98 Nepal SBI Bank Limited
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3. Deposit Insurance
Bank has insured the saving and fixed deposits up to Rs. 200,000 of all natural individuals with Deposit
and Credit Guarantee Corpora on. As on the date of Balance Sheet the total amount of insured deposit
is Rs. 991.88 crores of 494,133 number of customers.
4. Bills Payables
Bills payables include the amount of dra issued by the NSBL and other banks but not presented for
payment by the customers.
5. Other Liabili es
5.1 Provision for Gratuity
During the FY 2071-72, the Bank has provided Rs 59,403,257 on account of sta gratuity liability as
per Sta Service Rule of the Bank. A sum of Rs 4,224,141 was paid as gratuity during the year to the
stas re red from Banks service. Separate fund as required by the Labour Rule, 2048 has not been
created for sta gratuity liability.
5.2 Provision for Leave Encashment
During the FY 2071-72, the Bank has provided Rs 38,937,903 for accrued leave encashment. A sum
of Rs 1,925,110 was paid against leave en tlement during the year to the stas re red from Banks
service.
5.3 Employee Welfare Fund
The fund Rs. 2,030,351 is the remaining balance in the employee welfare fund, which is to be
transferred to designated accounts maintained with Commercial Banks in the name of Employee
welfare fund.
5.4 Provision for Sta Bonus
Provision for sta bonus amoun ng to Rs. 155,745,918 has been computed and provided for at 10%
of net profit (before tax) a er bonus.
5.5 Sundry Creditors
Sundry creditors include the Bankers Cheque issued for payment against banks liabili es but not
presented for payment.
5.6 Dividends Payable
The total dividend payable as on the Balance Sheet date is as under:

Dividend Payables declared during As on Ashad end 2072 As on Ashad end 2071
FY2052/53 263,000.00 264,200.00
FY2053/54 248,200.00 249,600.00
FY2054/55 283,400.00 285,200.00
FY2055/56 172,500.00 174,450.00
FY2056/57 259,250.00 262,050.00
FY2059/60 575,069.00 591,820.00
FY2062/63 536,275.00 580,811.00
FY2063/64 882,218.00 984,628.00

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 Contd...
Dividend Payables declared during As on Ashad end 2072 As on Ashad end 2071
FY2066/67 1,431,253.00 1,841,334.00
FY2067/68 1,745,275.00 2,312,267.00
FY2068/69 2,425,342.00 3,302,479.00
FY2069/70 5,684,821.00 9,364,947.00
FY2070/71 12,908,208.00 NA
Total 27,414,811.00 20,213,786.00

5.7 Others
Other liabili es in schedule 4.7 include the amount to be payable for the expenses incurred.
5.8 Sta Housing Fund
As the Bank has a provision for extending housing loans to the eligible sta, a separate sta housing
fund has not been created as prescribed by the Labour Act, 2048.
6. Con ngent Liabili es
6.1 Con ngent Bank Guarantee Liability
Rs. 170,000 has been booked as con ngent liability under Claims on ins tu on not accepted by the
Ins tu on. The amount represents the Bank Guarantee claimed by Nepal Government Body a er
expiry of the Bank Guarantee for which Bank is not liable to pay.
6.2 Con ngent Liabili es on Income Tax
The Large Taxpayers Oce (LTO) can amend the tax returns submi ed by the Bank within four years
from the date of submission except assessment is inaccurate by reason of fraud. LTO can amend the
tax liability of the Bank and order to pay addi onal tax. However, if the Bank felt that the amended tax
assessment by LTO is not jus fiable as per prevailing income tax act, the Bank may appeal against the
amended tax assessment by LTO. The process of appeal is to be done gradually with Director General
of Inland Revenue Department for Administra ve Review, then appeal to Revenue Tribunal and at last
appeal to Supreme Court.
Till the date of Balance Sheet, The Banks corporate tax up to FY 2065-66 has been se led by the
LTO. Similarly, LTO has completed tax audit and amended tax liability for FY 2066/67 and FY 2067/68.
However, Bank has appealed against amended tax liability assessment by LTO for FY 2066/67 and FY
2067/68 with Revenue Tribunal. The total con ngent tax liability for these two years Rs. 9,294,795 has
been stated in schedule 17 as con ngent tax liabili es on Income tax.
Tax returns filed under self assessments for the FY2068-69, FY 2069-70 and FY 2070-71 is yet to be
assessed by the LTO.
6.3 Other Con ngent Liabili es
Other con ngent liabili es represent Rs. 893,575 for salary in lieu of increment of salary from
retrospec ve date, which may be paid to the resigned sta and Rs. 10,517,654 against disputed claim
with Master Card for increment of minimum fees unilaterally, while trea ng the country as developed
na on, to which the Bank has presently contested.

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Assets
7. Reconcilia on Status of Agency Accounts Outstanding as on 16.07.2015
Rs. in 000
Branch TOTAL =< 3 MONTHS >3=< 9 MONTHS > 9 MONTHS
No. of Net Amount No. of Net Amount No. of Net Amount No. of Net Amount
Entries (Rs) Entries (Rs) Entries (Rs) Entries (Rs)
Total Amount 5,012 1,109,932 3,479 1,060,395 241 15,566 1,292 33,970
(Previous Years) (6,012) (587,254) (4,218) (534,066) (280) (26,243) (1,514) (26,945)

Un-reconciled amount represents the net amount of un-reconciled debit and credit entries. The Bank
regularly follows up on the ma er for iden fica on and will be adjusted in subsequent year in due
course of business.
8. Summary of Loans and Advances disbursed, recovered and Principal & Interest Wri en-o Rs. in 000
Particulars This Year Previous Year
a. Opening Balance 35,714,256 29,193,903
b. Loans Disbursed 239,804,150 173,195,354
c. Loans Recovered 235,046,537 166,674,142
d. Loans Written Off - 859
Closing Balance (a+b-c-d) 40,471,869 35,714,256
Interest Written Off - 2,313

During the current year Rs. 14,954,613 has been recovered from wri en-o interest and Rs. 5,085,368
from the wri en-o principal of loans.
9. Details of leasehold assets amor zed and So ware Cost
Particulars Balance as on 16 July Added/ (Sold ) during Amortized During the Balance as on 16 July
2014 (Rs) the year (Rs) Year (Rs) 2015 (Rs)
Lease hold Assets 69,681,920 1,236,656 7,303,189 63,615,387
Software 3,138,129 1,269,555 1,154,433 3,253,251
Total 72,820,049 2,506,211 8,457,622 66,868,638

10. Other Assets

10.1 Sta onery Stock
As at balance sheet date, the Bank has closing stock of sta onery of Rs. 4,518,922. There is no material
items that are disposable at the balance sheet date were held in possession.
10.2 Income receivable on Investment
Income receivable on investments includes interest accrued on placements, bonds and treasury bills
as follows:
Particulars Local Currency Foreign Currency Total
Interest Accrued on Placements 45,696,787 45,696,787
Interest Accrued on Development Bonds 999,712 999,712
Interest Accrued on NRB Deposit Collection 375,553 375,553
Amortization of Discount on Treasury bill 1,806,567 1,806,567
3,181,832 45,696,787 48,878,619

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 10.3 Accrued Interest Receivable of Loan (adjusted with interest suspense)
As at balance sheet date, the Banks accrued interest receivable on loans, advances and bills purchased
is valued at Rs. 73,945,606 as presented in the financial statements under Schedule 16 Other Assets.
These comprise of interest on loans, advances and bills purchased that have accrued but not yet
realized in cash as at balance sheet date. The por on of interest that has not yet fallen due stood at
Rs. 19,421,644 while those that are under overdue status stood at Rs. 54,523,962.
The bank has recognized interest suspense equivalent to the en re accrued interest that has not been
realized in cash. This treatment is in compliance with the regulatory provisions.
10.4 Sundry Debtors
Sundry Debtors mainly comprise of accounts receivables from business partners like MasterCard,
VISA interna onal and Parent Company SBI against ATM card transac ons.
10.5 Sta Loans and Advances
Sta Loans and Advances are extended in line with the Sta Service Bye Law and Sta Loan Scheme
of the bank. Loans extended to stas have increased during the year as more stas became eligible
and availed such facili es. The loans outstanding as at the balance sheet date were as under:
Staff Loans and Advance As on Ashad 2072 As on Ashad 2071 Increase
Housing Loan 205,947,324 167,862,979 38,084,345
Personal Loan & Staff Loan 287,517,786 250,389,518 37,128,268
Total (in Other Assets schedule 16) 493,465,110 418,252,497 75,212,613

10.6 Prepayments
Following is the breakdown of prepayments amount presented in financial statements under Schedule
16 Other Assets.
Prepaid Items: As on Ashad 2072 As on Ashad 2071 Increase/ -Decrease
Rent 13,571,285 877,716 12,693,569
Insurance 5,592,218 4,971,982 620,236
Office Expenses 148,043 877,684 -729,641
Total 19,311,546 6,727,382 12,584,164

10.7 Dra Paid Without No ce (FY A.D. 1998/99 B.S.2055/56)

Bank had filed a case with the Kathmandu District Court for recovery of Rs 32,000,000 on account of loss
incurred by the Bank due to the negligence of collec ng Banks. Since the decision of the Kathmandu
District Court and Appellate Court was not in favor of the Bank, a review pe on was filed with the
Supreme Court. Hearing on the Banks pe on is under process. The Bank has already received Rs
9,640,625 from an insurance company and collec ng banks, for the balance, 100% provision has been
made against possible loss for the balance amount of Rs 22,359,375 since 15.07.2005.
As this year, Rs 9,640,625 received from insurance company and collec ng banks has been ne ed
with the total amount of Dra paid without no ce; Rs 9,640,625 of previous years amount has also
been regrouped. As a result, previous years total other assets and other liabili es have been reduced
by Rs. 9,640,625.

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 10.8 Expenses not wri en o (Govt. Development Bond Premium)
Particulars Premium to be written off as Premium written of during Premium to be written off as
on 01.04.2071 (Rs) the year (Rs) on 31.03.2072 (Rs)
Govt. Development Bond 9,902,104 8,652,558 1,249,546

10.9 Others (schedule 16)

Others include Rs. 9,337,553 as advance and deposits for service availing by the banks and Rs.
22,513,529 receivable from NRB against reimbursement of NRB bond and export incen ves.
11. Weighted Average Interest Spread
Particulars Rate %
Average Rate of Return on Interest Earning Assets i.e. Loan and Advances (including staff loans), Investments in Fixed 7.02
Deposits and Shares)
Average Cost of Fund on Deposits, Borrowings, Debenture and NRB Refinance) 3.17
Average Net Spread (overall) 3.85

12. Summary of Concentra on Exposure

Particulars Loans, Advances & Deposits & Inter Contingent
Bills Purchased Bank Borrowing Liabilities
Total amount as on 16/07/2015 40,471,869 51,628,222 7,947,244
Highest exposure to a single unit (group) 1,134,825 3,066,276 1,065,896
Percentage of exposure to single unit/total 2.80% 5.94% 13.41%

13. Loan against collateral of its own assets

Bank has not taken any loans against collateral of its own assets.
14. Lease
14.1 Finance Lease
The Bank has not entered into finance lease and does not have any obliga on in respect of such.
14.2 Opera ng Lease
The Bank has entered into a lease arrangement for oce premises and ATM space outside of the
branch for dierent periods con nuing from previous years, which can be terminated by either party
on prior no ce of the period of 90 to 180 days. Details of lease payment are as follows:

Particulars This Year Rs Previous Year Rs

Amount due during the Current Period 90,845,072 83,189,220
Amount due within one year from the balance sheet date 92,245,445 87,348,681
Amount due in the period from second year to sixth year from balance sheet date 388,281,302 532,411,008
Amount due for the remaining period after sixth year from balance sheet date 61,424,187 117,130,422

15. Related Party Informa on and Balances

15.1 Related Party Informa on
The following are the details of related par es:

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 Particulars Relationship Remarks
State Bank of India Parent Company 55.09 % holding in the Bank
Employee Provident Fund (EPF) Promoter 15.03 % holding in the Bank
Mrs. Hasana Sharma Directors nominated by EPF
Mr. Alok Kumar Sharma Managing Director & CEO Key Management Personnel
Mr. V K Tyagi Chief Operating Officer & Dy. CEO Key Management Personnel
Mr. Anil Kumar Singh (Repatriated on 25.04.2015) Chief Financial Officer Key Management Personnel
Mr. Priya Ranjan (Since 07.07.2015) Chief Financial Officer Key Management Personnel
Subsidiaries of State Bank of India Fellow Subsidiaries
Mr. Manoj Kumar Agrawal (retired on 10.01.2015) Public Director
Mr. Niranjan Kumar Tibrewal Public Director
Mr. Gokul Ram Thapa (Replaced on completion of tenure on the Board on 02.07.2015) Professional Director
Mr. Keshav Raj Acharya (Since 06.07.2015) Professional Director
Mr. R. Karthikeyan (Replaced on 29.03.2015) Directors nominated by SBI
Mr. Mirtyunjay Mahapatra (Replaced on 28.05.2015) Directors nominated by SBI
Mr. Siddhartha Sengupta (Since 28.05.2015) Directors nominated by SBI
Mr. Sujit Kumar Varma (Since 03.08.2015) Directors nominated by SBI
Mr. Giridhara Kini (Since 06.12.2013) Directors nominated by SBI

15.2 Key Management Personnel

Salary to the key management personnel is borne by State Bank of India, the parent company under
the Technical Service Agreement (TSA) entered with the Bank which is approved by Nepal Rastra Bank.
The key management personnel are also provided with living, medical and other related facili es as
per TSA.
15.3 Related Party Balances/Transac ons
The details of the related party transac ons are as follows: Rs. in 000
S. No. Related Parties Particulars This Year Previous Year
1. State Bank of India Technical Service Fee (Expenses) 19,714 19,392
2. State Bank of India & Fellow Subsidiaries Receivable against placement (asset) 5,474,609 11,783,443
3. State Bank of India & Fellow Subsidiaries Against outstanding Agency Balance (Asset) 1,009,062 825,908
4. State Bank of India & Fellow Subsidiaries Interest recognized as income during the year (Income) 161,178 447,062
5. Employee Provident Fund Deposit 588,433 1,342,139
6. Mr. Manoj Kumar Agrawal Ex. Public Director Receivable as per NRB direction 2,736 -
(Retired 10.01.2015)

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16. Classifica on of Assets and Liabili es based on Maturity as on Ashad end 2072 (16 July 2015)
Rs. In Lacs
S.N. Particulars 1-7 8-30 31-90 91-180 181-270 271-365 More than Total
days days days days days days 1 year
Assets
1 Cash Balance 17539 17539
2 Balance with Banks & FIs 66818 66818
3 Investment in Foreign Banks - 5,385 23,116 9,837 16,967 - - 55305
4 Call Money 0
5 Government Securities 2000 0 19289 6677 0 4959 0 32924
6 Nepal Rastra Bank Bonds - - - 2,000.00 - 2,545.50 - 4546
7 Inter Bank & FI Lending - 0
8 Loans & Advances 9254 19146 93175 61529 71515 69551 80550 404719
9 Interest Receivable 5 563 257 67 141 3 0 1037
10 Reverse Repo - - - - - - - 0
11 Acceptance Receivable 0 0
12 Payments under S.No. 20,21 & 22 5153 16028 31449 29732 17688 20991 18045 139087
13 Others 6917 20956 27873
Total (A) 107687 41122 167286 109842 106311 98048 119551 749848
Liabilities
14 Current Deposits 23377 30022 53399
15 Saving Deposits (including call) 71338 200250 271589
16 Fixed Deposits 2857 14664 35213 50498 46117 30371 11574 191295
17 Debentures/Bonds 10000 10000
18 Borrowings 0 0 0 0 0 0 0 0
Call/Short Notice 0
Inter-bank/Financial Institutions 0 0
Refinance 0
Others 0
19 Other Liabilities and Provisions 10617 205 2609 622 810 723 4520 20105
Sundry Creditors 789 789
Bills Payable 1880 1880
Interest Payable 887 887
Provisions 6113 205 2609 621.83 810 723 4520 15602
Others 947 947
20 Acceptance Liabilities 1,083 578 1,874 13 3,547
21 Irrevocable Loan Commitment 2,125 1,472 9,351 16,515 11,923 18,218 8 59,613
22 Letter of Credit/Guarantee 1,946 13,978 20,224 13,204 5,765 2,772 18,038 75,927
23 Repo 0
24 Payable under s.no.11 0
25 Others 7415 7415
Total (B) 113341 30897 69272 80852 64615 52085 281828 692890
Net Financial Assets (A-B) -5655 10225 98014 28991 41696 45963 -162276 56958
Cumulative Net Financial Assets -5655 4570 102585 131575 173271 219234 56958 0

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 DISCLOSURE UNDER CAPITAL ADEQUACY FRAMEWORK OF NRB BASEL II
As on 31 Ashad 2072 (16 July 2015)
1. CAPITAL STRUCTURE & CAPITAL ADEQUACY
i. Core Capital (Tier I) (Amount in Lacs)
Particulars Amount
A Paid-up Equity Share Capital 30,581
B Share Premium 792
C Statutory General Reserve 11,238
D Proposed Bonus Equity Shares 8,257
E Accumulated Profit/(Loss) 32
F Capital Adjustment Reserve 1,350
G Debenture Redemption Reserve 2,594
H Other Free Reserve 1,472
I Less: Deferred Tax Assets 0
J Less: Purchase of land & building in excess of limit and unutilized 0
Total Core Capital (Tier I) 56,316

ii. Supplementary Capital (Tier II) (Amount in Lacs)

Particulars Amount
A Subordinate Term Debt 10,000
B General Loan Loss Provision 4,178
C Investment Adjustment Reserve 4
D Exchange Equalization Reserve 140
Total Supplementary Capital (Tier II) 14,322

iii. Informa on about Subordinate Term Debt (Amount in Lacs)

1. 12.5% Nepal SBI Bank Debentures 2078 of Rs.1,000 each (Unsecured) issued on 12.02.2012 and maturing on 11.02.2022 of Rs. 4,000.00 lacs;
2. 8% Nepal SBI Bank Debentures 2079 of Rs.1,000 each (Unsecured) issued on 03.02.2013 and maturing on 02.02.2023 of Rs. 4,000.00 lacs and
3. 7.9% Nepal SBI Bank Debentures 2080 of Rs. 1,000 each (Unsecured) issued on 20.04.2014 and maturing on 19.04.2024 of Rs. 2,000.00 lacs.
- Outstanding Amount 10,000
Fixed Maturity Period of 10 Years
Interest Payment - Half Yearly
At the time of liquidation, right of claims will be only after depositors
Redeemable and Non-Convertible
- Outstanding Balance of Redemption Reserve 2,595
- Amount raised during the year
- Amount released during the year due to maturity -
- Amoutn Eligible to be reckoned as Capital Fund 10,000

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 iv. Deduc on From Capital
Particulars Amount
Deferred Tax Assets 0
Purchase of land & building in excess of limit and unutilized 0
Total 0

v. Total Qualifying Capital

(Amount in Lacs)
Particulars Amount
Total Core Capital (Tier I) 56,316
Total Supplementary Capital (Tier II) 14,322
Total Capital Fund (Tier I + Tier II) 70,638

vi. Capital Adequacy Ra o

Capital Adequacy Ratio (Percentage) 14.03%

vii. Summary of the banks internal approach to assess the adequacy of capital to support current
and future ac vi es
The Bank has Internal Capital Adequacy Assessment Process (ICAAP) Policy , which is revised every
year to support current and future ac vi es. The ICAAP review process is intended to ensure that
we have adequate capital to support all the risks in business, to improve upon them over me and
achieve be er risk management techniques in monitoring and managing risks. ICAAP Commi ee
meets at monthly intervals to review the internal capital assessment commensurate with the risk
profile and review the por olios which require capital charge. ICAAP Commi ee also reviews
strengthening of risk management, applying internal limits, strengthening the level of provisions
and reserves, and improving internal controls.

2. RISK EXPOSURE
i. Risk Weighted Exposure for Credit Risk, Market Risk and Opera onal Risk (Amount in Lacs)
Particulars Amount
A Risk Weighted Exposure for Credit Risk 454,417
B Risk Weighted Exposure for Operational Risk 30,099
C Risk Weighted Exposure for Market Risk 4,558
D Add: 2% of the total RWE as per NRB Direction. 9,781
E Add: 2% of the Gross Income as per NRB Direction 4,775
Total Risk Weighted Exposure (A+B+C+D) 503,630

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 ii. Risk Weighted Exposure under each 11 Categories of Credit Risk (Amount in Lacs)

S.No. Categories Amount

1 Claims on Government and Central Bank -
2 Claims on Other Official Entities -
3 Claims on Banks 18,665
4 Claims on Corporate and Securities Entities 251,614
5 Claims on Regulatory Retail Portfolio 76,231
6 Claims Secured by Residential Properties 11,066
7 Claims Secured by Commercial Real Estate 300
8 Past Due Claims 901
9 High Risk Claims 13,569
10 Other Assets 14,420
11 Off Balance Sheet Items 67,278
Total 454,044

iii. Amount of Non Performing Assets (Gross and Net Amount) (Amount in Lacs)
Particulars Gross Amount Provision Net Amount
A Restructured 1 1 -
B Sub-standard 1 1 -

C Doubtful 145 145 -

D Loss 602 602 -
Total 749 749 -

iv. Non Performing Assets (NPA) Ra os

NPA Ratios Percentage (%)
- Gross NPA to Gross Advances 0.19%
- Net NPA to Net Advances 0.00%

v. Movement of Non Performing Assets (Amount in Lacs)

S.No. Particulars Opening Balance Closing Balance Movement
(Ashad End 2071) (Ashad End 2072)
Non Performing Loan
1 Restructured Loan 271 1 (270)
2 Sub-Standard 94 1 (93)
3 Doubtful 115 145 30
4 Loss 432 602 170

vi. Write o of Loans and Interest Suspense

Nil

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 vii. Movement of Loan Loss Provision and Interest Suspense
Loan Loss Provision
(Amount in Lacs)
S.No. Particulars Opening Balance Closing Balance Movement
(Ashad End 2071) (Ashad End 2072)
1 Pass 3,562 3,902 340
2 Watch List - 276 276
3 Restructure 271 1 (270)
4 Sub-Standard 23 1 (22)
5 Doubtful 58 145 87
6 Loss 433 602 169
Total Loan Loss Provision 4,347 4,927 580

Viii. Interest Suspense (Amount in Lacs)

S.No. Particulars Opening Balance Closing Balance Movement
(Ashad End 2071) (Ashad End 2072)
1 Interest Suspense 681 739 58

ix. Details of Addi onal Loan Loss Provision

(Amount in Lacs)
S.No. Particulars Ashad End 2072
1 Pass 340
2 Watch List 276
3 Restructure -
4 Sub-Standard 1
5 Doubtful 145
6 Loss 341
Total 1,103

x. Segrega on of the Banks Investment por olio

Investments are segregated as per NRB Direc ve. At the present, investment under category
Held for Trade is Nil and investments under other categories are as follows:

A. Investment Held for Trading

(Amount in Lacs)
S.No. Particulars Cost Price Previous Current This Year Previous Remarks
Rs. Market Market Profit /Loss Year Profit
Price (A) Price (B) (B-A) /Loss
Rs. Rs.
Mutual Fund Investments:
1 1,043,347 Units NIBL Sambridhi Fund - Mutual 104 104 105 1
Fund of Rs 10 each fully paid
2 782,999 Units NMB Sulav Fund - Mutual Fund of 78 78 78 - - -
Rs. 10 each fully paid
Total Investment 182 182 183 1 - -

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B. Investment Held to Maturity
(Amount in Lacs)
S.No. Particulars Cost Price (a) Impairment Impairment This Year Previous Remarks
Rs. Till Date (b) This Year (c) Profit /Loss Year Profit /
Rs. Rs. (a-b-c) Loss Rs.
Rs.
1 Nepal Government Treasury Bills 21,024 - - - -
2 Nepal Government Other securities 4,546 - - - -
3 Foreign Bank Investment (Placement) 54,289 - - - -
4 Deposit Collection into NRB 11,900 - - - -
5 Placement into local Banks 1,016 - - - -
Total Investment 92,775 - - - -

B. Investment Available for Sale (Amount in Lacs)

S.No. Particulars Cost Price Previous Current This Year Previous Remarks
Rs. Market Market Investment Year Profit
Price(a) Price (b) Adjustment /Loss
Rs. Rs. Reserve Rs.
(b-a) Rs.
1 Shares, Debentures and Bond of Domestic Entity
Listed 188.95 - 1,361.38 - -
Not Listed* 110.61 - - 61.25 -
Total Investment 299.56 - 1,361.38 - -
* No Investment Adjustment Reserve has been maintained for investment in Karja Suchana Kendra Ltd., Nepal Clearing House Ltd., and Na onal Banking
Ins tute as NRB Direc ve No 8/ 2072 has exempted maintenance of such reserve against such investments.

3. RISK MANAGEMENT FUNCTION

i. Strategies and Policies
Credit risk process is a joint eort between its marke ng and credit areas. Credit ocers are
engaged in analyzing inherent risks in the customers business, ability to repay and structure a
facility that simultaneously accommodates the financing needs, while assuring security, protec on
and control of the banks assets and collateral.
ii. The Structure and Organiza on of the Relevant Risk Management Func on
A comprehensive Risk Management System has been ensured to deal with various types of risks.
The risk management func on is overseen by the Board of Directors through the Risk Management
Commi ee of the Board (RMCB) and Audit Commi ee of the Board (ACB). Besides, there are Credit
Risk Management Commi ee (CRMC), Asset Liability Management Commi ee (ALCO), Market
Risk Management Commi ee (MRMC) and Opera onal Risk Management Commi ee (ORMC) for
formula ng and reviewing the risk management policies and monitoring their implementa on in the
ma ers related to credit, market and opera onal risks. The progress of the ac on implementa on is
reviewed by the Banks Board, including review of the decisions of the Central Management Commi ee.
The Bank has already migrated to Basel-II norms and the Capital to Risk Weighted Assets Ra o (CRAR)
is also being worked out as per the guidelines of Basel-II. The Bank also plans to go for Opera onal
Risk Management Solu on so ware in near future for assessing the Opera onal Risk on an ongoing

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 basis. To control, obviate and mi gate the opera onal risk, the Bank has put in place comprehensive
opera onal guidelines and has also issued various manuals, such as Cash Module Manual, IT manual,
Finacle Job cards, TFCPC manual, Internet Banking guidelines, Mobile Banking opera onal guidelines,
Credit assessment and process guidelines for the opera ng units.
The Risk structures are being revisited at frequent intervals and the requisite policies, systems are
being introduced and kept updated. For both credit and market risks, stress tes ng is being done
regularly. With all branches on Core Banking Solu on (CBS), Credit Informa on and MIS works on
a robust pla orm. The Bank has direct access to the CIB database which have been allocated to
our opera ng units/oces, enabling them to generate Credit Informa on Report on borrowers /
prospec ve borrowers from this database. An MIS website is maintained by Bank to provide easy
access to the central database, which is being extensively used by the opera ng units. Various
returns to be submi ed to regulatory agencies are now being centrally generated at Corporate
oce level, thus enabling branches to focus more on business development and customer services.
The Bank has Integrated Risk Management Department headed by Chief Risk Ocer (CRO) to
strengthen the Risk Management structure, which includes assessing, iden fying, monitoring and
reducing per nent business risk that could interface with the Banks objec ves and goal.
iii. The Scope and Nature of Risk Repor ng and / or Measurement Systems
Risk repor ng / measurement system is done through regular customer interac ons,
site inspec ons & annual reviews. These are con nuous processes. Further, review of the
banks performance is conducted every quarter and findings are reported to the BOD.
iv. Policies for Hedging and / or the mi ga ng risk and strategies and processes for monitoring the
con nuing eec veness of hedges / mi gates
Policies for mi ga ng risks & strategies are as outlined in the respec ve manuals and as discussed
at various levels a er customer interac ons / visits, during annual reviews, quarterly reviews and
at mee ngs at various levels.
v. Eligible CRM (Credit Risk Mi gants)
Particulars Eligible CRM
Deposits with Bank 14,226
Govt.& NRB Securities -
Gtee of domestic banks 418
Gtee of foreign banks 865
Total 15,509

22 Annual Report
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Nepal SBI Bank Limited 111
2014-2015
 SCHEDULE 34

PARTICULARS REGARDING LOAN AVAILED BY THE PROMOTER/PROMOTER GROUP

SHAREHOLDERS FROM ANY BANK/FINANCIAL INSTITUTION AGAINST PLEDGE OF
SHARES HELD BY THEM
S.No Name of the Promoter/ Shares Held by Promoters Particulars of the Loan Remarks
Promoter Group
Shareholders
Total Percentage of Name of Loan Amount Number
Number of the Total Paid the Lending of Shares
Shares Up Capital Bank/ Pledged
Financial
Institution
1 State Bank of India(SBI) 16,848,676 55.09% NA Nil Nil
2 Employees Provident Fund (EPF) 4,595,093 15.03% NA Nil Nil

22 Annual Report
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112 Nepal SBI Bank Limited
2014-2015
 SCHEDULE 35

COMPARISON OF UNAUDITED AND AUDITED FINANCIAL STATEMENT

FOR THE FY 2071/72
Rs in 000
S.No. Particulars As per As per Reason for Variance
Unaudited Audited
Finalcial Finalcial Variance
Statement as Statement as
on 16.07.2015 on 16.07.2015
Rs. Rs.
In Amount In %
1 Total Capital and Liabilities (1.1 to 1.7) 59,277,291 59,277,291 - -
1.1 Paid Up Capital 3,058,060 3,883,736 825,676 27.00% Due to proposed bonus share.
1.2 Reserve and Surplus 2,631,312 1,762,179 (869,133) -33.03% Due to proposed bonus shares
and cash dividend.
1.3 Debenture and Bond 1,000,000 1,000,000 - -
1.4 Borrowings - -
1.5 Deposits (a+b) 51,628,222 51,628,222 - -
a. Domestic Currency 44,932,960 44,932,960 - -
b. Foreign Currency 6,695,262 6,695,262 - -
1.6 Income Tax Liability - -
1.7 Other Liablities 959,697 1,003,154 43,457 4.53% Due to proposed cash dividend.
2 Total Assets (2.1 to 2.7) 59,277,291 59,277,291 - -
2.1 Cash and Bank Balance 8,435,748 8,435,748 - -
2.2 Money at Call and Short Notice - -
2.3 Investments 9,319,698 9,319,698 - -
2.4 Loans and Advances (Net) 39,979,173 39,979,173 - -
a. Real Estate Loan 1,992,285 1,992,285 - -
1. Residential Real Estate Loan (Except Personal 348,718 348,718 - -
Home Loan up to Rs. 10 Million)
2. Business Complex & Residential Apartment 29,700 29,700 - -
Construction Loan
3. Income Generating Commercial Complex Loan - - -
4. Other Real Estate Loan (Including Land Purchase 1,613,867 1,613,867 - -
& Plotting)
b. Personal Home Loan of Rs. 10 Million or Less 2,013,983 2,013,983 - -
c. Margin Type Loan - - -
d. Term Loan 2,223,477 2,223,477 - -
e. Overdraft Loan / TR Loan / WC Loan 22,231,944 22,231,944 - -
f. Others 11,517,484 11,517,484 - -
2.5 Fixed Assets (Net) 630,012 630,012 - -
2.6 Non Banklng Assets (Net) - - -
2.7 Other Assets 912,660 912,660 - -

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Nepal SBI Bank Limited 113
2014-2015
 SCHEDULE 35 Contd...

COMPARISON OF UNAUDITED AND AUDITED FINANCIAL STATEMENT

FOR THE FY 2071/72
Rs in 000
S.No. Particulars As per As per Reason for Variance
Unaudited Audited
Finalcial Finalcial Variance
Statement as Statement as
on 16.07.2015 on 16.07.2015
Rs. Rs.
In Amount In %
3 Profit and Loss Account -
3.1 Interest Income 3,821,326 3,821,326 - -
3.2 Interest Expenses 1,773,842 1,773,842 - -
A. Net Interest Income (3.1-3.2) 2,047,484 2,047,484 - -
3.3 Fees, Commission and Discount 340,354 340,354 - -
3.4 Other Operating Income 307,691 307,691 - -
3.5 Foreign Exchange Gain/Loss (Net) 119,469 119,469 - -
B. Total Operating Income (A.+3.3+3.4+3.5) 2,814,998 2,814,998 - -
3.6 Staff Expenses 552,231 552,231 - -
3.7 Other Operating Expenses 515,792 515,792 - -
C. Operating Profit Before Provision (B.-3.6-3.7) 1,746,975 1,746,975 - -
3.8 Provision for Possible Losses 116,641 116,641 - -
D. Operating Profit (C.-3.8) 1,630,334 1,630,334 - -
3.9 Non Operating Income/Expenses (Net) 10,709 10,709 - -
3.10 Write Back of Provision for Possible Loss 52,124 52,124 - -
E. Profit From Regular Activities (D + 3.9+3.10) 1,693,167 1,693,167 - -
3.11 Extraordinary Income/Expenses (Net) 20,040 20,040 - -
F. Profit before Bonus and Taxes (E + 3.11) 1,713,207 1,713,207 - -
3.12 Provision for Staff Bonus 155,746 155,746 - -
3.13 Provision for Tax 492,023 492,023 - -
G. Net Profit/Loss (F-3.12-3.13) 1,065,438 1,065,438 - -

22 Annual Report
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114 Nepal SBI Bank Limited
2014-2015
 SCHEDULE A
UNAUDITED FINANCIAL RESULTS QUARTERLY
As at end of the 4th Quarter (31/03/2072) of the Fiscal Year 2071/72
Rs. in 000
S.No. Particulars This Quarter Ending Previous Quarter This Quarter Ending
as on 31.03.2072 Ending as on 32.03.2071
(16.07.2015) 30.12.2071 (13.04.2015) (16.07.2014)
Unaudited Unaudited Audited
1 Total Capital and Liabilities (1.1 to 1.7) 59,277,291 62,307,344 61,082,973
1.1 Paid Up Capital 3,058,060 3,058,059 3,049,083
1.2 Reserve and Surplus 2,631,312 2,393,823 1,486,716
1.3 Debenture and Bond 1,000,000 1,000,000 1,000,000
1.4 Borrowings - 30,017 -
1.5 Deposits (a+b) 51,628,222 54,773,623 54,492,994
a. Domestic Currency 44,932,960 44,969,697 42,027,199
b. Foreign Currency 6,695,262 9,803,926 12,465,795
1.6 Income Tax Liability - - -
1.7 Other Liablities 959,697 1,051,822 1,054,180
2 Total Assets (2.1 to 2.7) 59,277,291 62,307,344 61,082,973
2.1 Cash and Bank Balance 8,435,748 8,102,781 6,654,971
2.2 Money at Call and Short Notice - 400,000 -
2.3 Investments 9,319,698 12,243,789 17,722,396
2.4 Loans and Advances (Net) 39,979,173 39,749,865 35,279,583
a. Real Estate Loan 1,992,285 2,004,850 1,559,898
1.Residential Real Estate Loan (Except Personal 348,718 352,539 291,657
Home Loan up to Rs. 10 Million)
2.Business Complex & Residential Apartment 29,700 44,550 59,400
Construction Loan
3. Income Generating Commercial Complex Loan - - -
4. Other Real Estate Loan (Including Land 1,613,867 1,607,761 1,208,841
Purchase & Plotting)
b. Personal Home Loan of Rs. 10 Million or Less 2,013,983 2,101,720 2,259,904
c. Margin Type Loan - - -
d. Term Loan 2,223,477 2,112,380 2,107,760
e. Overdraft Loan / TR Loan / WC Loan 22,231,944 22,000,841 21,885,295
f. Others 11,517,484 11,530,074 7,466,726
2.5 Fixed Assets (Net) 630,012 645,868 607,447
2.6 Non Banking Assets (Net) - - -
2.7 Other Assets 912,660 1,165,041 818,576

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Nepal SBI Bank Limited 115
2014-2015
 SCHEDULE A Contd...
UNAUDITED FINANCIAL RESULTS QUARTERLY
As at end of the 4th Quarter (31/03/2072) of the Fiscal Year 2071/72 Rs. in 000
3 Profit and Loss Account This Quarter Ending Previous Quarter This Quarter Ending
as on 31.03.2072 Ending as on 32.03.2071
(16.07.2015) 30.12.2071 (13.04.2015) (16.07.2014)
Unaudited Unaudited Audited
3.1 Interest Income 3,821,326 2,845,667 3,976,648
3.2 Interest Expenses 1,773,842 1,341,132 2,231,604
A. Net Interest Income (3.1-3.2) 2,047,484 1,504,535 1,745,044
3.3 Fees, Commission and Discount 340,354 337,658 320,425
3.4 Other Operating Income 307,691 143,942 217,267
3.5 Foreign Exchange Gain/Loss (Net) 119,469 86,955 107,807
B. Total Operating Income (A.+3.3+3.4+3.5) 2,814,998 2,073,090 2,390,543
3.6 Staff Expenses 552,231 390,552 443,078
3.7 Other Operating Expenses 515,792 362,010 506,028
C. Operating Profit Before Provision (B.-3.6-3.7) 1,746,975 1,320,528 1,441,437
3.8 Provision for Possible Losses 116,641 92,825 82,967
D. Operating Profit (C.-3.8) 1,630,334 1,227,703 1,358,470
3.9 Non Operating Income/Expenses (Net) 10,709 6,076 8,728
3.10 Write Back of Provision for Possible Loss 52,124 51,681 71,810
E. Profit From Regular Activities (D + 3.9+3.10) 1,693,167 1,285,460 1,439,008
3.11 Extraordinary Income/Expenses (Net) 20,040 17,149 4,131
F. Profit before Bonus and Taxes (E + 3.11) 1,713,207 1,302,609 1,443,139
3.12 Provision for Staff Bonus 155,746 118,419 131,194
3.13 Provision for Tax 492,023 356,245 388,961
G. Net Profit/Loss (F-3.12-3.13) 1,065,438 827,945 922,984
4 Ratios At the End of this Quarter At the End of Previous At the End of
Quarter Corresponding Previous
Year Quarter
4.1 Capital Fund to Risk Weighted Assets (RWA) 13.47% 13.54% 13.28%
4.2 Non Performing Loan (NPL) to Total Loan 0.19% 0.18% 0.26%
4.3 Total Loan Loss Provision to Total NPL 657.59% 651.41% 476.42%
4.4 Cost of Fund (Annualized) 3.17% 3.17% 3.99%
4.5 Credit to Deposit Ratio (Calculated as per NRB 79.11% 77.97% 75.23%
Directives)
4.6 Base Rate 7.71% 7.28% 8.78%
4.7 Average Monthly Interest Rate Spread LCY 5.43% 5.34% 4.93%
(Calculated as per NRB Directives)
Additional Information
Average Yield total Assets (Local Currency) 8.03% 7.99% 9.03%
(Annualized)
Return on Equity (Annualized) 21.51% 22.68% 22.85%
Return on Assets (Annualized) 1.70% 1.75% 1.50%

The above figures may undergo change on comple on of statutory audit and/ or as per direc ves of Nepal Rastra Bank.

22 Annual Report
nd
116 Nepal SBI Bank Limited
2014-2015
NOTES:

22 Annual Report
nd
118 Nepal SBI Bank Limited
2014-2015
GLIMPSE OF 21ST ANNUAL GENERAL MEETING OF SHAREHOLDERS HELD ON 28TH JANUARY 2015 AT KATHMANDU
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