Nabil 21-22
Nabil 21-22
01. Overview
1.1 Profile of Nabil Bank
1.2 Vision, Mission and Value Statement
5
5
03. Products
and Services
Chart of Deposit Products
Chart of Remittance Services
61
61
1.3 Major Highlights 6 Chart of Loan and Other Services 62
1.4 Awards and Recognition 6 3.1 SBU Wise Briefing of Products and Services 63
1.5 Bank’s Network and Non-Financial Highlights 7 A. National Corporate 63
1.6 Milestones 9 B. Infrastructure and Project Financing 63
1.7 Organization Structure 11 C. Retail Lending 63
1.8 Financial Highlights 14 D. Mid Corporate, SME and Microfinance
1.9 Message from Chairman 18 (Including Deprived Sector Lending) 64
1.10 Message from Chief Executive Officer 20 E. Retail and Wholesale Liability Management 65
1.11 Nabil Bank’s Strategic Direction 22 F. Remittance Business Centre 66
1.12 Sustainability Report 2021/22 23 G. Cards and eBanking 66
1.13 The Board of Directors 36 H. Treasury 69
1.14 Management Team 40 I. Digi Bank 69
1.15 Macroeconomic Outlook 42 J. Other Services 71
02. 04.
Operating and
Financial Review Governance
2.1 Five Year Trend Analysis of 4.1 The Board of Directors 73
Bank’s Financial Position 45 4.2 Board Committees 74
A. Shareholder’s Equity 45 A. Risk Management Committee 74
B. Deposit Mobilization 46 B. Audit Committee 75
C. Loans 46 C. Committee Relating to Staff Services
D. Investments 47 and Facilities 76
E. Net Assets 48 D. Committee Relating to
2.2 Company’s Market Share Information 49 Money Laundering Prevention 77
A. Business Volume 49 4.3 Business Ethics and Anti Corruption
B. Alternate Channels 49 Measures 78
C. Digital Banking 49 4.4 Policy For Maintenance and Back-up
2.3 Disclosure on Non-Performing Assets 49 of Records 78
A. Movemnent in Non-Performing Assets 4.5 Extent Of Compliance with
and Corresponding Provisions 49 National Standards [NAS/NFRS] 79
B. Details of Accounts Restructured as per 4.6 Employees 80
Regulatory Guidelines 50 4.7 Human Resource Policy and
2.4 Five Year Trend Analysis of Human Resource Dynamics 81
Bank’s Operating Performance 50 4.8 Contribution of Bank Towards
A. Total Revenue 51 Employees Health and Safety 85
B. Operating Profit 51 4.9 Corporate Social Responsibility and
C. Profit before Tax 51 Sustainable Development Goals 84
D. Profit after Tax 51
E. Earnings per Share 52
F. Non Interest Income from Operating Activities 52
G. Operating Expenses 52
H. Impairment Charge 53
I. Income Taxes 53
2.5 Value Generation and Distribution 54
2.6 Bank’s Contribution to National Economy 55
2.7 Vertical and Horizontal Analysis of
Bank’s Unaudited Quarterly Report 57
A. Interim Financial Position 57
B. Interim Financial Performance 58
2 Nabil Bank Limited
05.
Financial Statement
And Other Disclosures
08.
D. Disclosure under Sub rule (3) and (4) of Rule 20 of The
Directive Related to Corporate Governance for Listed
Companies, 2074 107
Nabil Investment
Banking Limited
5.2 Financial Statement And Related Disclosures 115
Independent Auditor’s Report 115 8.1 Overview 260
Consolidated Financial Statements 115 8.2 Commentry on Key Items of Statement
Notes to the Consolidate Financial Statements 132 of Financial Position of Past Five Years 260
1. Reporting Entity 132 8.3 Commentry on Key Items of Income
2. Basis of Preparation 132 Statements of Past Five Years 261
3. Significant Accounting Policies 136 8.4 Director’s Report 262
4. Schedules of Explanatory Information to 8.5 Information Under Section 109(4)
Financial Statements 153 of Company’s Act, 2063 267
5. Disclosure and Additional Information 194 8.6 Independent Auditor’s Report of
5.1. Risk Management 194 Nabil Investment Banking Ltd. 271
5.2. Capital Management 203 8.7 Financial Statement of
5.3. Classification of Financial Assets and Nabil Investment Banking Ltd. 274
09.
Financial Liabilities 219
5.4. Operating Segment information for the Bank 221
Nepal Bangladesh
5.5. Share Options and Share Based Payments
5.6. Contingent Liabilities and Commitment
224
224
Capital Limited
5.7. Related Party Disclosure 225
5.8. Notes to Business Combination 228 9.1 Overview 285
5.9. Additional Disclosure of 9.2 Independent Auditor’s Report of
Non Consolidated Entities 229 Nepal Bangladesh Capital Limited 286
5.10. Events After Reporting Date 229 9.3 Financial Statement of
5.11. Interim Financial Report-Unaudited for Q4 230 Nepal Bangladesh Capital Limited 288
10.
5.12. Comparision of Audited and
Unaudited Financial Statements
5.13. Movement in Regulatory Reserve
233
240
NBBL Securities
5.14. COVID-19 Related Disclosures 241 Limited
5.15. Restatement in the Financial Statement 242
06.
10.1 Overview 302
10.2 Independent Auditor’s Report of
Erstwhile Nepal Bangladesh NBBL Securities Limited 302
Bank Limited 10.3 Financial Statement of NBBL Securities Limited 305
CRISP
the value creation process. The reenergized Team
Nabil recognizes that providing tailor made services
to our customers to help meet their banking needs is
the only way forward. With the extensive experience
that each of us brings to this organization, we
believe that we will be able to delight our customers
in each of their experiences with us.
Date of incorporation: 11th May 1984 under the then Companies Act 1964 AD
Commencement of banking services: 12th July 1984
License: ‘A’ class licensed institution under the then Bank and Financial Institution Act 2017 A.D
Subsidiary: Nabil Investment Banking Ltd., Nepal Bangladesh Capital Ltd. and NBBL Securities Ltd.
Stock Symbol: Listed in Nepal Stock Exchange under the stock symbol ‘NABIL’
1.2
VISION
As the nation’s first joint venture Bank, we will
consistently surge together ahead providing the entire
VALUE STATEMENT
gamut of financial services across all demographic Each and every Nabilian is committed to be Customer
strata and geographic regions of the nation, constantly focused, Result oriented, Innovative, Synergistic and
evolving to better ourselves, so as to always better serve Professional or
our stakeholders. C.R.I.S.P. every day in everything we do.
MISSION
To be the ‘Bank of 1st Choice’ of all our
stakeholders.
“SME Financier of the Year – 2022” under Global SME Finance Award 2022
National HR Excellence Award – 2022
Highest Tax Payer – FY 2020/21
Excellence in Consumer Debit Card Business 2022
Excellence in e-Commerce Acquiring Business 2022
Leading Partner Bank in Nepal by ADB, Year 2022
231 17
Extension 250
Branches Counters ATM
THOUSAND
1.78
MILLION
65.5
THOUSAND
Number of
Deposit Accounts
Number of
Loan Accounts
4
POS Terminals
THOUSAND
THOUSAND
0.9 29
MILLION
9
QR Terminals
Mobile Banking Credit Card
Users
Users
0.6
MILLION
[ICRANP-IR]
Debit Card
170
International
AA-
Credit Rating
Users Correspondents
Training
Programs Training
Conducted Participants CSR Investment
JOURNEY OF HIGHEST
TAX PAYER AWARD
FY:
2010/11
BY
2014/15 INLAND
2016/17
2018/19 REVENUE
2019/20
2020/21 DEPARTMENT
People Excellence Award –
Large Enterprise
(By Federation of Nepalese
Chamber of Commerce &
Leading partner Bank of Nepal
Industry FNCCI)
(By Asian Development Bank)
2013 2014 2016
Best Presented
2013 Best Presented
2015 Financial Institution of the
Annual Report Award Annual Report Award Year (By Frost and Sullivan)
(By the Institute of Chartered (By the Institute of Chartered
Accountants of Nepal) Accountants of Nepal)
2.61 20.94
2.11 17.76
1.71 15.19
1.58 13.61
1.27
10.19
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
ROA for FY 2021/22 includes net profit of NPR 0.96 Billion of erstwhile ROE for FY 2021/22 includes net profit of NPR 0.96 Billion of erstwhile
Nepal Bangladesh Bank Ltd. Nepal Bangladesh Bank Ltd.
CREDIT TO DEPOSIT RATIO (In Percentage) CAPITAL ADEQUACY RATIO (In Percentage)
92.49
89.84 13.07 13.09
13.00
12.77
82.66
81.96
12.50
79.72
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
NON PERFROMING LOAN TO TOTAL LOAN (In Percentage) EARNING PER SHARE AND DIVIDEND SHARE (In Percentage)
36.16 38.00
35.26 30.00
0.98 34.00 34.00
0.84 33.57
0.74
0.55
22.86
201.36
1,359.00 188.15
800.00 881.90
920.00
765.00
70.58 77.25
60.88
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
CRISP
just the sum of our individual results. With better
competitive advantage, we believe we will now be
able to garner greater chunk of the market which
will ultimately add value to the Bank’s bottom line in
the short, medium or long term. Having an impactful
team, greater efficiencies and increased bottom line
is what we envision for the bank going forward.
The Financial Year 2021/22 has been a year foot forward. We will exert enhanced focus representation including in the remotest part
of unprecedented strategic shift in terms of on simplifying the whole banking experience of the country. Many new branches are in the
growth and transformation for the Bank. With and delighting our customers by equally pipeline and we are also working tirelessly to
the historic acquisition of erstwhile Nepal recognizing the need of the nation as well. increase our customer reach, be it physical or
Bangladesh Bank, it has been successful in Significant effort and focus have also shifted virtual.
gaining substantial volume growth as well as in towards consolidation in the aftermath of
expanding its geographical footprint. I believe the pandemic, and supply chain disruptions The Bank is in its mission to gradually
the bank will reap the synergistic benefits of due to the ongoing geo political tensions that transform our banking services to make it
the acquisition in terms of diversification of its impacted the businesses globally. more impactful, always seeking to promote
portfolio, strengthening of its revenue base, individual, social and environmental well
cost rationalization and Human Resource Nabil has also succeeded to establish itself in being.
realignment. That aside, many other changes the global platform and has been recognized
with many international awards like ‘SME The ability to see into the future comes from
like digitizing the banking experience,
Financier of the Year – Asia’ by Global SME strong roots of the past and Nabil is where it
continued focus on granularity of the portfolio
Finance Awards 2022. The Bank has also is purely due to the dedication and the vision
and on sustainable business practices has
bagged ‘National HR Excellence Award – of our predecessors, both members from the
helped strengthen the market position of the
2022’ in the year. The Government of Nepal board and staff. I convey my deep respect and
Bank.
has recognized the Bank as the Largest Tax appreciation for their contribution to the Bank’s
With the world economy taking a hit by the Payer in the banking sector of Nepal for success. I express my deep appreciation for the
ongoing regional conflict, challenge of recovery the Fiscal Year 2020/21, in continuation of valuable contribution of the Bank’s outgoing
post pandemic, our own economy has also the Bank regularly being one of the largest director, Mr. Udaya Krishna Upadhyaya. I also
had to bear the brunt. Nabil has sailed through contributors to the government treasury. welcome our newly elected Director, Mr. ARM
satisfactorily amidst such challenging situation Nazmus Shakib along with our reappointed
in the history of Nepalese banking. Despite Our performance during the year has been Directors Mr. Nirvana Chaudhary and Mr.
the challenges posed by fluctuating interest exemplary and I am certain of the growth Malay Mukherjee.
rates, shrinking interest margins and intense that awaits us in the coming year. Despite
of the constrained growth due to the current I would like to express my sincere gratitude to
competition, we have achieved organic growth
liquidity situation; the Bank is well positioned our regulators Nepal Rastra Bank, Securities
in our books. We’ve also added 100 branches
to provide a superior return to its shareholders. Exchange Board of Nepal and Office of
and 11 extension counters from the acquisition
Our focus on customer service, business Company Registrar for their continued
and expanded our balance sheet by 44%. The
expansion and profitability will continue in guidance and support. I would also like to
Bank’s overall performance has improved,
the coming years as well. We will always thank all our customers and business partners
and we remain among the forerunners of the
continue to conduct the business of the Bank for their trust and cooperation. I humbly
industry.
in a responsible manner with added focus on acknowledge the contribution of shareholders
The focus now is to provide seamless banking providing finance to support the real economy who have provided valuable guidance and
services to our customers with end to end for positive impacts in the society and support.during the period. I would like to
integration of all financial services. Bringing environment. Our focus on service delivery and extend my sincere gratitude to our shareholders
the bank to the hands of the customers is now excellence, IT systems and transaction security, and expect similar guidance and co-operation
going to be the priority of the bank with focus compliance and risk management, expansion in the days ahead. The brand Nabil is what
on digitization. Sustainable business practices of branch network and customer base, is made by Team Nabil and the team is what
and sound corporate governance is embed into business growth and profitability will continue. continues to drive the bank forward into a
the essence of business of the bank. With the glorious future. Many thanks to my fellow
launch of Digibank and nBank, we believe we We have simultaneously focused on enhancing Directors and staff for your continued support.
have redefined and consolidated our journey financing access through continued expansion
for digital transformation by putting our best of the number of customer touch points and
The Bank’s focus in the year 2021-22 shares which will help maintain the requisite Many international challenges like the ongoing
has been to boost stakeholder value whilst level of capital in the business. With significant Russia – Ukraine war, economic slowdown and
providing the support and foundation to increase in our size and volumes, we are domestic challenges like import restrictions,
reenergize the economy of the country which committed to increasing stakeholder value to decline in forex reserves continue to pose a
is struggling to cope with the after effects of the best. Withdrawal of relaxations given out threat to achieving organic growth as well
the pandemic. With the various relaxations by the regulator for loan repayment and the as to regularization and recovery. The bank
provided in the regulations being withdrawn hit taken by the businesses has caused the is committed to taking all the challenges in
and businesses slowing return to the usual, the NPA to gross loan ratio to shoot up to 1.62%. its stride and striving to grow in the face of
real impact of the pandemic is being felt and Concerted efforts are being made for recovery adversities as well.
all our efforts have been to stabilize and grow and the health of the accounts are also
our books. monitored continuously to avoid any further The vision of building a sustainable bank
degradation. which continues to provide value to all its
In the backdrop of a stable politico-economic stakeholders comes right from the Board of
environment, economy is slowly starting to With a vision to strengthen the capital base, Directors of the Bank, who bring along with
come out of the slowdown caused by the enhance competitiveness, increase bottom them vast wealth of experience from diverse
pandemic. Hike in interest rates and intense lines with increase in volumes of funded and backgrounds to our organization. Their
competition made the liquidity situation a non-funded business, strengthen the human continuous guidance and support in building
bit difficult during the year. The economy resource pool and to increase the physical the brand of Nabil has been a crucial factor
witnessed increase in growth rate of GDP, presence of the bank, the bank acquired in the success that the bank has seen. We
import, export, deposit mobilization, credit another commercial bank (erstwhile Nepal continue to remain thankful to the Chairman
expansion and annual average inflation rate. Bangladesh Bank) during the year which is one and to the Board of Directors for always
The Balance of payment also turned negative of the important milestones in the journey of helping us maintain our focus and their
which was in a surplus in the previous year. the bank. We believe that this move will help continued support.
the bank in achieving its goal of transforming
We were able to post net profit of NPR 4.26 the banking experience and also help in I will not be wrong to say that my team is
billion which is amongst the best in the reenergizing the brand. Upon completion of the what makes me and makes the entire bank.
industry. This is excluding the profit earned acquisition, the bank’s geographical footprint We wouldn’t be what we are and where we
by erstwhile Nepal Bangladesh Bank which has increased to 231 branches, 17 extension are without the efforts put in by each and
was acquired during the year. A significant counters and 250 ATMs. every member of them and hence I would like
volume of loans, deposits and non-funded to take this opportunity to express my sincere
business was also acquired which helped post The bank is committed to providing the best in appreciation to each and every member of my
a growth of 50.31% in loans and 44.57% class service to its customers and to this end Nabil family. We have now grown ever bigger
in deposits. We believe that the bank will has worked continuously in the integration of and we have added many new members to
continue to experience synergistic benefits banking into digital platforms. Communication our family. I trust and believe that we will all
of the acquisition in many years to come. with the customers have also been taken function as one single organism and one single
Providing the best returns to it’s investors while digital via the bank’s website, social media family to lead this organization into a better
running a sustainable business has always handles, internet banking and mobile banking future. Let us all continue to surge together
been a priority of the bank. As such, the Bank applications. This process of digitsation has ahead.
has proposed a total dividend of 30% with also aided in the sustainability initiative of the
11.50% being paid out in cash whilst 18.50% bank and helped in building a future ready
has been capitalized in the form of bonus bank.
Gyanendra Prasad Dhungana
Chief Executive Officer
across five year period covering financial year In its long term strategic plan the Bank
2020-21 through 2024-25. It encompasses is also open to strategic mergers and
the Bank’s strategic direction for future and acquisitions in order to benefit from scale
action plans to drive the Bank forward in line and complement in key business areas. In
with its Vision and Mission. NABIL 2025 is 2021-22 the bank acquired erstwhile Nepal
inspired from the eastern philosophy of Panch Bangladesh Bank Ltd. as its first commercial
Tatva leading to a five pillar structural balance bank acquisition. Current strategic focus has
between the Agni Tatva as Sales Pillar, the been maintained on seamless post-merger
Vayu Tatva as Support Pillar, the Akash Tatva integration and synergy benefits. The bank is
as Strategy Pillar, the Jal Tatva as Control also continuously scanning the possibilities for
Pillar, and the Prithvi Tatva as Compliance further acquisitions based on potential synergy
Pillar. benefits.
NABIL 2025 has been structured in three The Bank has recognized vast opportunities
phases. The Phase I strategies covered short at the grass roots entrepreneurial level across
term plans in the year 2020-21 and it has semi-urban and rural Nepal. A sustainable
been successfully executed. Currently the Bank financing business model must be integrated
is executing Phase II strategies which covers into this level thereby enhancing the
the medium term plans in years 2021-22 entrepreneurial capabilities and channeling
and 2022-23. This will be followed by the the financial resources. Nabil Sustainable
execution of Phase III strategies which covers Banking and Nabil School of Social Enterprise
the long term plans in years 2023-24 and are two flagship initiatives of the Bank with
2024-25. an objective to proliferate entrepreneurship
and positively impact people’s lives. The
Over the years the Bank has built competitive Bank has initiated towards creating enterprise
advantages in the areas of brand recognition, ecosystem across Nepal by working closely
technology, network, human resource, and with local governments, nongovernment
customer base. Through NABIL 2025, the organizations, academic institutions, other
Bank intends to further build on its competitive social organizations, and individuals.
advantages and transform into a digital bank
and a granular Bank. Structurally, our economy is a developing
one and there will be continued demand
The Bank has prioritized for significant for resources from all sectors including
enhancements in its technology infrastructure. infrastructure, corporate, and consumer. There
In 2020-21 the Bank had upgraded its core are challenges emanating from a primarily
banking system to Finacle version 10.2.25 import led economy. Expectations are that
from Infosys. In 2021-22 the bank launched fiscal policy and monetary policy will be aimed
its virtual banking app “nBank App” replacing at tackling the structural challenges. Banking,
its earlier mobile banking app. In the coming in general, will continue to work towards
years the Bank has planned an array of expanding financial access and delivering
technology enhancement projects aimed at efficient financial intermediation.
Nabil Bank envisions to always better serve delivering exceptional and smooth customer
our stakeholders by delivering the entire gamut experience across all channels. Nabil Bank will be strengthening its
of financial services across all demographic competitive advantages and building new
strata and geographic regions of the nation. It The Bank intends to further granularize its capabilities in core areas such as structural
is reflected in the Bank’s mission statement to risk assets and liability portfolio by increasing realignments, management depth, human
be the ‘Bank of 1st Choice’ of all our exposure on the retail and SME segments. resource, technology adoption, virtual banking,
stakeholders. As an institution and as a team It aims to reach out to more people by business growth, risk management, network
the Bank lives by its C.R.I.S.P. core values expanding branch network into the sub urban expansion, and efficiency gains. Through the
which has enabled the Bank to evolve over and less penetrated markets. The recent year execution of NABIL 2025 Nabil Bank aims to
time and lead the domestic financial services acquisitions have significantly contributed on continue as the most trusted bank and lead
industry. this front. Future expansions are likely to be the domestic banking industry into the era of
more selective and revolve around specific digital banking.
Nabil Bank is executing its long term strategic market based strategy, including potential for
framework “NABIL 2025” which spans overseas expansion.
As the world charges forward into the while making every investment decision, partnership for carbon accounting financials
technological revolution, the earth’s depleting leading to long-term investments in sustainable (PCAF). The report has been prepared
limited resources have become the focal economic activities. internally and contains information and data
point of conversations on sustainability provided by business departments and support
across the globe. In this day and age, it is In order to ensure the ESG goals are functions.
crucial to look at the impact (both positive operationalized at the ground level, the Bank
has undertaken numerous Sustainable Banking SUSTAINABILITY JOURNEY OF THE
and negative) of present-day actions on
Initiatives. BANK
the future. Therefore, Nabil Bank has also
taken proactive steps to attain leadership in Nabil bank ltd is a leading commercial bank in Nepal
ABOUT THIS REPORT and pioneer in sustainable banking. The Bank has
the domain of sustainability in the banking
been diligently striving to improve the sustainability
industry of Nepal. The Bank has begun its This report outlines Nabil Bank progress
of its services and operations. To ensure its long term
journey towards sustainable finance, striving in incorporating Sustainable Development
performance and impact, the bank has prioritized
to gradually integrate environmental and Goals, Environmental and Social factors into environmental, social and economic sustainability.
social considerations in its activities to avoid, its operations, services and portfolio. The
report focuses on the bank’s sustainability, In terms of environmental, social and economic
minimize, or offset negative impacts.
sustainable financing and committed towards sustainability, Nabil Bank has undertaken number of
efforts including installation of sustainable techniques
The Sustainable Banking model is guided environmental and social factors.
such as rainwater harvesting within office building,
by principles of protecting environment, promotion circular economy and also investment in
minimizing social risk, protecting human rights
Scope: renewable energy. The Bank has also taken steps
and promoting good governance, through The report is limited to information pertaining to reduce the use of paper by promoting e-banking
to the services and operations of Nabil Bank and mobile banking and recently launch nBank
financial inclusion, economic empowerment
services. The Bank has been encouraging financial
of women and marginalized communities, ltd, unless specified otherwise. Services and
inclusion, by providing financial/entrepreneurship
capacity building and collaborative operations covered within the boundary of literacy training. The Nabil Bank has been providing
partnerships. Sustainable Banking involves this report includes the bank’s 255 Branches banking services to stimulate entrepreneurships
mitigating risks that arise from Environmental, and 283 ATMs, 18 Extension counters, 8 and supporting Small and Medium sized enterprise
Branchless Banking across 7 provinces. (SMEs) in the country. The bank has been offering a
Social, and Governance (ESG) aspects.
variety of financial products and services to support
Nabil Bank has also adopted the business
Standards: the local economy grow and thrive.
model integrated with the people and the
environment, aligning business activities Best effort has been made to assure data Overall, Nabil Bank’ sustainability path demonstrates
with the UN Sustainable Development accuracy and report quality. This report also its commitment to creating long term value for all
Includes Bank’s disclosure on greenhouse gas stakeholders while also contributing towards the
Goals (SDGs), giving due weightage to
(GHG) emission in project finance under the sustainable development of Nepal.
environmental, social, and governance (ESG)
MESSAGES (WITH RESPECT TO business, and implementing environmentally way we lend, the products and services we
SUSTAINABILITY AND IMPACT) practices across our operations. offer, and the way we manage our operations.
Chairman’s Desk: We believe that this approach is essential for We understand the crucial role that banks play
long-term financial stability and for building in shaping the economy and society, and we
As a chairman of the bank, I am pleased to
trust with all of our stakeholders. I am proud are committed to using to our influence for
present our sustainability report for the year.
of the progress we have made in integrating good. This means investing in and supporting
Sustainability is a core part of our business
sustainability into our business, and I am projects that promote environmental and social
strategy, and we are committed to using our
confident that our commitment to sustainable sustainability, as well as working to reduce our
financial resources in a way that promotes
banking will continues to drive positive change own carbon footprint.
environmental and social sustainability,
and benefit all of our stakeholders in the years
while also ensuring financial stability and We are also committed to transparency and
ahead.
profitability. open communication with our customers,
CEO’s Desk: stakeholders, and the public. We believe that
Over the past year, we have made significant
by working together, we can create a more
progress in integrating sustainability into our As a CEO, I am proud to say that we are
sustainable future for all.
operations and decision-making processes. committed to making a positive impact on the
This includes decision to disclose emission world through responsible and ethical banking Thank you for choosing to bank with us and
generated under loans and investment practices. Our focus on sustainability extends for your support in our efforts to make a
following PCAF standards, Rural Banking, to all aspects of our business, including the difference.
Sustainable loan products, supporting small
FINANCIAL LITERACY
GYB/SYB TRAINING Aug-2021
December 2021 Financial Literacy, Entrepreneurship WASTE MANAGEMENT
GYB/SYB training provided to Tila and Development and Access to Finance Program 28 November, 2022
Pancheswor in coordination with local Doko Recyclers
Around 30 programs with 2500 plus
government and National Youth Council participants Shredding the waste paper
117 participants on Pancheswor and 196 that ultimately use for recycling
from Tila has attended 7 days GYB/SYB products
training provided by ILO certified trainer
Deputy General Manager Desk: Sustainability has come along as the core initiative, but rather an core values of all that
principle and an essential component of ethical we do. We have the privilege and responsibility,
As a vertical chief of sustainable banking
business operations in the new world. It as members of the sustainable development
development, I want to take a moment to
encapsulates our dedication to environmental team, of incorporating environmental, social,
address the importance of sustainability
sustainability, social responsibility, and long- and governance considerations into our
in our work, as well as the impact it has
term financial success. At our organization, we decision-making processes to create a shift
on our organization, society, economy and
believe that sustainability is not a standalone toward Impact Financing.
environment as a whole.
SUSTAINABILITY REPORTING-2023
Sustainable banking is the necessity of Nepalese Economy
We are glad to publish our first sustainability report, which represents an important step towards in fulfilling our commitment to sustainability. The
purpose of this report is to provide transparency and accountability for our efforts to reduce our environmental and societal impact.
FY 2078/79 FY 2021-2022
APRIL 13 2022
OCT 12 2021 JAN 14 2022 JULY 15 2022
EMPLOYEES (CHAITRA END 2078)
(ASHWIN END 2078) (POUSH END 2078) (ASHADH END 2079)
Q3
Q1 Q2 Q4
NABIL SUSTAINABLE BANKING decisions based on risk, return, and impact. It since January 2021, the Bank is part of this
would collaborate with various development global initiative to measure and disclose the
The Nabil Sustainable Banking (NSB
stakeholders to build a pipeline of business greenhouse gas emissions associated with its
was formed with the goal of integrating
in priority and underserved areas for capital portfolio of loans and investments. A steering
Environmental, Social, and Governance
investment. committee has been formed under Sustainable
(ESG) norms into the financial market
Banking & Development Vertical, for PCAF
in order to assist capital flows toward Nabil Sustainable Banking aims to bringing measure and disclose. On March 17th 2023
Nepal’s commitment to the UN Sustainable positive impact on following key outcome areas Bank has disclosed its GHG emission under
Development Goals.
Financial Inclusion Infrastructure and Project Financing Portfolio
Nabil Bank, under Sustainable Banking (IPF).
Green Banking and Green Products
initiatives, intends to achieve the following
Commercial Agro Surging Towards Sustainability:
goals:
Women Entrepreneurship Development During Earth Hour, Nabil Bank supported and
Promote environmental, social, and Youth Employment promoted the placement of biodegradable
governance factors in lending; prayer flags at Boudhanath Stupa, Kathmandu
Startup and accelerators
Develop tailored sustainable financial Considering the growing concerns over climate
Value and Supply Chain Ecosystem
products and services to enhance access to change in the world, Nabil Bank has launched
Integration of returnee Migrants
finance, with an emphasis on the unbanked, an eco-friendly awareness campaign on the
remote, backward, and rural populations. occasion of Earth Hour that is celebrated
NABIL BANK INITIATIVES TO
across the world on 26 March 2022 by
Increase access to financing to foster ATTAIN SDG GOALS
business and raise people’s living standards. replacing the prayer flags at Boudhanath
SDG 13 Climate Action
Stupa with Biodegradable Prayer Flags. As
Exploring better commercial options for rural
the old prayer flags are made from nylon
branches in order to ensure their long-term
PCAF Membership: cloth and rope, they have been replaced with
viability and survival.
biodegradable ones which are made out of
Showcase Nabil Bank and its sustainable The Partnership for Carbon Accounting eco-friendly materials. Nabil Bank not only
initiative to the local and international Financials (PCAF) is “a global partnership aims to promote the use of biodegradable
markets. of financial institutions that work together materials in Boudhanath Stupa, but also
to develop and implement a harmonized intends to encourage social entrepreneurs
The purpose of Sustainable Banking is to
approach to assess and disclose the who have actively been contributing towards
incorporate ESG standards into financial
greenhouse gas (GHG) emissions associated sustainability by producing eco-friendly
markets in order to promote capital flows that
with their loans and investments. Nabil products.
achieve sustainable development goals, with
Bank has obtained membership of PCAF
Emission Factor Type Emissions Generated and Avoided Emissions for renewable sectors
Emission Factor Option - Physical Activity Based, i.e., Option 2 (Energy produced annually in Mega Watt hour in FY 2020/21) &
- Economic Activity Based, i.e., Option 3 (Company Revenue in the financials of FY 2020/21)
Country - ROW (Rest of the World) Asia Pacific since Scope 1 and Scope 2 Emission Factors data specific to Nepal is not available &
- In case of Physical Activity Based emission factor for hydropower projects, the PCAF database provided factor specific to
Nepal based on Combined Margin Grid Emission Factor has been referred for calculation
Source The Global GHG Accounting & Reporting Standard for the Financial Industry by PCAF (First edition published on November 18,
2020) & PCAF Database last updated on December 22, 2021
The analysis is based on regional emission attribution is determined from the total equity excluded for disclosure in the report as these
factors at an industry group level (GICS code) and debt of borrowing entities from their last projects are run of river (ROR projects), have
as available from the PCAF Database and available audited financial statement of FY low construction/lifecycle emissions and the
bank’s attribution to the absolute emissions up 2020/21. emissions associated to these projects are
to the extent of its financing. generally their Scope 3 emissions coming from
The construction emissions for renewable the Contractors and the Supply Chain which is
Though disclosure is for FY 2021/22, the (energy) projects financed by bank are not available for the calculation.
(Weighted data quality score for above calculation is 3.37 where score of 1 indicates high data quality and score of 5 indicates low data quality.)
The highest emission is observed to be from representing 26.79% of the IPF portfolio on expansion programs and bank’s loan exposure
Construction Materials (GICS sector/Materials/ the reporting date. to them is now diminishing due to scheduled
Construction Materials) which mainly comprise repayments while new exposure to this sector
of mine based clinker/cement plants financed However, the construction/cement units shall focus on more efficient cement plant
by bank and the exposure therein is almost which are financed by bank have already technologies and satisfactory ESDD outcome.
commissioned and/or completed their capacity
AVOIDED EMISSIONS FROM LOANS AND INVESTMENTS IN ENERGY &RENEWABLES (OPERATIONAL PROJECTS)
The avoided emission attributable to renewable energy projects (viz., ROR hydropower schemes and Grid Solar PV Plant) financed by Nabil bank
under IPF division that are under operation is also disclosed below:
GLOBAL INDUSTRY CLASSIFICATION EMISSION tCO2e BANK’S EXPOSURE IN USD DATA QUALITY
S.N.
STANDARD (GICS) (AVOIDED) MILLION SCORE
Score 3
1 Renewable Electricity (Hydropower) 2,086.54 26.82 Option 2 (2b)
Score 3
2 Renewable Electricity (Solar) 45.27 1.23 Option 2 (2b)
Please contact mentioned staff for any queries regarding the sustainability report.
Amrit Singh Karki
Officer - Sustainable Banking & Development
Nabil Bank Limited
Head Office
Teendhara, Kathmandu
Cell: +977 9851031170
Email: [email protected]
Web: https://nabilbank.com
Agriculture Sector
Loan
Outstanding Province
Province Count (In Mio) Contribution (%)
Koshi 634 5,021 15%
Madhesh 543 3,661 11%
Karnali 36 55 0%
Energy Sector
Young and energetic Mr. Poudyal brings with him a global and
innovative approach to business development and policy building.
Mr. Poudyal is currently on the Board of Nepalese Association of
Australian Education Representatives (NAAER) and also on the
Board of Association of Nepalese Alumni from Australia (ANAA).
Furthermore, he has been serving as the Managing Director of
Nepal Education Consultancy since 2015.
CENTRE TO LEFT
CRISP
better the manner in which we do things internally
so that we can design and deliver our products and
services in a better manner externally. With brighter
minds and newer ideas in our quiver, we believe we
can redesign our thought processes to come up with
newer way of doing things.
02 FINANCIAL REVIEW OPERATING AND
NPR in Million
AT MID JULY
PARTICULARS
2022 2021 2020 2019 2018
Assets:
Cash, cash equivalents and due from NRB 24,089 15,310 24,821 18,672 15,325
Investments and placements 71,704 49,912 44,022 36,540 28,666
Loans and advances 310,573 206,623 153,890 133,559 113,625
Property, equipments and intangibles 3,828 1,927 1,390 1,093 1,037
Other assets 9,625 17,467 13,557 11,276 10,423
Total 419,818 291,239 237,680 201,139 169,076
Liabilities:
Due to NRB 4,657 5,450 53 88 33
Customer deposits and due to BFIs 329,576 227,977 193,035 164,373 135,979
Borrowing, debt securities and subordinated liabilities 17,206 2,097 2,036 - 60
Deferred tax liabilities 1,779 1,367 1,439 852 804
Other liabilities 13,619 20,338 15,261 12,637 11,614
Total 366,836 257,229 211,824 177,950 148,490
Shareholders Equity
Share Capital 22,833 13,844 10,097 9,012 8,043
Other components of equity 30,149 20,166 15,758 14,177 12,543
Total 52,982 34,010 25,856 23,189 20,586
Total Liabiilties and Equities 419,818 291,239 237,680 201,139 169,076
Deposit book of the Bank reveals a major Presented about is the average volume of
concentration on local currency resources deposit balances held in customer accounts,
(96.45%) against foreign currency resources composite for both bank and non-bank
(3.55%). The greater reliance on local currency customers and average volume of borrowing,
customers, amounted to NPR 310,573
deposits stem from the fact that these are the along with respective weighted average
Million. This signifies a CAGR of 27.42%
primary resource required for expanding credit cost of current and previous fiscal year. As
over past five years which is substantiated
and maintaining prudential liquidity ratios presented, total cost of deposit has increased
by a growth of 50.31% over last year. The
while foreign currency deposits are limited in to 5.89% from 4.35% a year prior. Higher
substantial increase in in the lending books is
number to few institutional clients. The Bank cost of servicing and maintaining client has
due to acquisition of NPR 3.03 Billion of Loan
has been able to increase its local currency resulted in increase of 154 basis point in cost
& Advances to BFIs and NPR 77.60 Billion of
deposits by 47.9% and while industry growth of deposit. The same trend in cost of deposit
Loan & Advances to Customers from the books
registered a growth of 8.84% for total deposit has been observed in case of commercial
of erstwhile Nepal Bangladesh Bank Ltd.
(all currencies) in the current year. Despite banks. Weighted Average cost of local currency
intense competition, ongoing pandemic and deposit as of Mid July 2019 was 4.40% which
increasing cost of deposit, the Bank was able surged up to 7.18% as of Mid July 2022 with
to increase its deposit higher than the industry increment of 278 basis point.
growth.
D. INVESTMENTS at NPR 52,982 Million which represents a Financial Position across four different line
growth of 55.78% over last year. Further, in items viz. Placements with BFIs, Investment
the current year the Bank has proposed bonus
share of 18.5% equivalent to NPR 4,224 Securities, Investments in Subsidiaries and in
Million and cash dividend of 11.5% equivalent Associates. This review of investment book is
to NPR 2,626 Million. During the fiscal year composite of all the four items taken together.
Bank has been able to provide satisfactory The Bank’s investment book increased by
return in terms of ROE and highest dividend to 43.66% to NPR 71,704 million at end of
its shareholder’s among commercial banks. current year. Over the past five years, a CAGR
of 14.81% has been registered.
The investment book of the Bank is looked
after by the Treasury department on a profit In the current year, placement in BFIs
center model following up with functions decreased by 10.08% to NPR 8,871
of liquidity management, maintenance of million whereas the Bank invested heavily in
prudential liquidity ratios including investments government bonds and treasury bills which has
gone up by 56.57% in the current year.
NPR in Million
Investment securities comprise a mix of
AT MID JULY GROWTH
PARTICULARS government securities measured at amortized
2022 2021 2020 VOLUME % cost and equity instruments measured at
Placement with Banks and FIs 8,871 9,865 10,231 (994) (10.08) fair value, almost entirely denominated in
Investment Securities 62,455 39,889 33,633 22,566 56.57 local currency. This ultimately resulted in
Investment in Subsidiaries 298 78 78 220 282.05 an increase in the gross investment book of
Investment in Associates 80 80 80 - - the Bank. The Bank has remained vigilant in
exploring opportunities in developing markets
Total 71,704 49,912 44,022 21,792 43.66
in Asia whilst striving to maintain a balance of
in domestic government securities, money risk and return in its placement book.
The Bank has been able to consistently
increase its shareholder’s equity over last market dealings and placing surplus foreign
five year with a CAGR of 25.98%. Bank’s currency resources in overseas markets.
shareholder’s equity as of FY 2021/22 stands Investment is reported in the Statement of
NPR in Million
AT MID JULY 2022 AT MID JULY 2021
PARTICULARS
VOLUME INTEREST YIELD VOLUME INTEREST YIELD
Government Securities 34,794 1,803 5.18 30,407 1,378 4.53
Placements denominated in Foreign Currency 12,228 181 1.48 12,404 262 2.11
Total 47,022 1,984 4.22 42,812 1,640 3.83
The Bank was able to raise the yield of Government securities to 5.18% from 4.53% on year on year basis which led to an increment of yield on
overall Investment Securities to 4.22% from 3.83%.
2.3 DISCLOSURE ON
NON-PERFORMING ASSETS
FY 2021/22 FY 2020/21
LOAN CLASSIFICATION NON PERFORMING NON PERFORMING
PROVISION PROVISION
ASSET ASSET
Restructured and Rescheduled 210 110 139 22
FY 2021/22 FY 2020/21
LOAN CLASSIFICATION NON PERFORMING NON PERFORMING
PROVISION PROVISION
ASSET ASSET
Restructure with 12.5% provision 114 14 134 17
Revenue of the Bank includes avenues like The Bank has been able to register an Bank’s financial performance for the fiscal
Net Interest Income, Net fee and Commission operating profit of NPR 6,282 million which is year has been satisfactory despite the many
Income, Net Trading Income and other one of the highest across the industry for the challenges encircling the global economy
operating income. The Bank has registered fiscal year. With a CAGR of 3.62% over past as well as domestic one. Bank recorded a
total revenue of NPR 11,473 million in the five years, Nabil has been able to generate a profit before tax of NPR 6,288 million which
fiscal year which represents a CAGR of 9.45% satisfactory level of operating profit in relation signifies a CAGR of 3.60% over past five years.
over past five years.
Year on year increase in profit before tax is
NPR in Million
recorded at 0.51%.
AT MID JULY GROWTH
PARTICULARS D. PROFIT AFTER TAX
2022 2021 2020 VOLUME %
Net interest income 8,919 8,076 6,984 843 10.44
Net fees and
1,579 1,489 1,242 90 6.07
commission income
Net trading income 565 644 468 (79) (12.24)
Other operating income 410 1,451 430 (1,041) (71.72)
Total 11,473 11,660 9,124 (186) (1.60)
The Bank witnessed 1.60% decrease in total to its business volume. Year on year growth of
revenue. The major factor behind the decrease operating profit is recorded at 0.89%. Major
in revenue is due to higher volume of sale of contributing factors in increasing operating
investment securities during previous year due profit despite decrease in net trading and
to regulatory provision in comparison to the operating income are increase in net interest,
review year and lower income under NDF as fee & commission income and decrease
the income from NDF fell down due to increase in operating expense. The bank has been
in cost of fund in comparison to the yield on following strategies to minimize operating Bank has registered a healthy profit after tax
NDF. Positive growth of 10.44% and 6.07% expense via optimal expense management figure of NPR 4.25 Billion in the current year
were recorded under Net Interest Income and techniques. which is one of the highest among commercial
Net Fee & Commission Income respectively. banks. Despite the various challenges in the
economy during the period, the Bank managed to regulatory provision in comparison to the income and decreasing operating expense. The
to sustain its net profit by with only 6% decline review year and lower income under NDF as Bank has recorded five year CAGR of net profit
from that of year prior. The major factor the income from NDF fell down due to increase of 2.83%. The Bank has been able to provide
behind the decrease in net profit on year on in cost of fund in comparison to the yield on satisfactory returns to the shareholders and
year basis is due to higher volume of sale of NDF. However, the Bank fared well in terms remains committed to generate above industry
investment securities during previous year due of increasing net interest, fee &commission average returns.
Non-interest income from operating activities The Bank has recorded healthy growth among G. OPERATING EXPENSE
of the Bank encompasses net fees and segments like Card & Remittance Business, off
commission income, net Trading Income and balance sheet business and dividend on equity
Other Operating Income line items presented in investment. The Bank continues to identify and
the Statement of Profit or Loss, taken together. expand other avenues that are independent
Under these headings, the Bank generated net from the lending book and can contribute in
income of NPR 2,554 million in the current feebased income such as cards, e-commerce,
year which shows decrease of 28.73%. A remittance, ancillary banking services, etc.
major chunk of such decrease was due to sale Banks equity investments are not a part of the
of lower volume of investment securities in the trading book as most investments are made
review period. The bank also generated lower in the capacity of promoter shareholder in
income on trading investments by due to lower microfinance companies and unit investments
positioning on NDF because of increase in in mutual fund. Disposal of investments and
cost of fund. The historical growth trend over fixed assets are one-off transactions and are
the past five years period stands at 7.95% in not part of the trading book.
CAGR terms.
NPR in Million
This review encompasses personnel expense,
AT MID JULY GROWTH
PARTICULARS other operating expense and depreciation
2022 2020 2019 VOLUME %
and amortization line items presented in the
Loan Administration 493 578 409 (85) (14.66)
Statement of Profit or Loss, taken together.
Cards and Remittance business 373 269 275 104 38.69 Under these headings, the Bank incurred total
Off Balance Sheet business 506 455 366 51 11.31 expense of NPR 4,073 million in the current
Foreign Exchange gains 695 768 773 (73) (9.51) year which is a negative growth of 11.58%
Dividend on equity instruments 207 77 101 130 168.52 over that of previous year. The historical
growth trend over the past five years period
Gain on Disposal of Investment (2) 1,238 - (1,240) (100.17)
stands at 14.60% in CAGR terms.
Gain on Disposal of Fixed Assets (4) 1 2 (5) (658.08)
Other Income 287 199 215 88 44.47
Total 2,554 3,584 2,140 (1,029) (28.73)
The Bank has been successful in generating has contributed 74.02% in the total value financial intermediation. Value generation from
value of NPR 10,822 million during the generation. Remaining 25.98% of value financial intermediation have increased by
review period which is a decrement of 0.13% generation engenders from financial services, 13.16% and from financial services decreased
from corresponding period last year. Financial encompassing conveyance of various auxiliary by 25.17% respectively in the review year
intermediation, a core business of the bank, services, which are not directly relating to despite of many economic challenges.
NPR in Million
2022 2021 CHANGES
PERIOD ENDING MID JULY
AMOUNT SHARE % AMOUNT SHARE % AMOUNT %
To Employee 2,659 24.57% 3,412 31.48% (753) -22.07%
To Governments 1,940 17.93% 2,259 20.84% (318) -14.09%
To Long term Financier 367 3.39% 201 1.85% 167 83.03%
To Investor 2,626 24.26% 609 5.62% 2,017 331.05%
To Provide for maintenance and expansion 3,230 29.85% 4,357 40.20% (1,126) -25.85%
- Depreciation and Amortisation 390 3.60% 142 1.31% 248 175.49%
- Provision for Loan and Investment Loss 1,119 10.34% 828 7.64% 291 35.20%
- Deferred Tax 91 0.84% (531) -4.90% 622 -117.21%
- Capital / Retained Earning / Reserves 1,630 15.06% 3,918 36.16% (2,288) -58.40%
Total Value Addition 10,822 100.00% 10,837 100.00% (14) -0.13%
Application of value created during the review stock dividend of 18.50% amounting to NPR to its shareholders, which solidifies Bank’s
period has been applied in the interest of all 4.22 billion which is reported under Capital/ determination towards meeting shareholder’s
stakeholders along with prioritizing a long Retained Earnings in the table presented expectations. Moreover, Bank feels an
term interest of its business. Value generation below. immense pride assisting the government
towards investors stands at NPR 2,626 in serving the nation building initiative by
million resultant of 11.50% cash dividend. In Higher return apportioned to shareholders applying 17.93% of its total value generation
addition, investors have also benefitted with consistently over the period portrays Bank’s as corporate tax payment.
competency in delivering exceptional return
CONTRIBUTION TOWARDS 17.08 billion in cash dividend alone before DIGITIZATION OF FINANCIAL
GOVERNMENT deduction of applicable taxes over the period of ECOSYSTEM
operation of the Bank.
Nabil Bank has been awarded as the highest The Bank has envisioned to undergo
tax payer entity among Bank and Financial ALIGNMENT WITH ECONOMIC metamorphosis into complete digitized
Institutions for the fiscal year 2020/21. The POLICIES banking system and has been striving to do
Bank has been able to earn the title for the so in its actions. Banking services of the Bank
It is very important that financial institutions
seventh time over the last eleven years. Nabil includes digitized services like Mobile Banking,
march in line with the economic policies
Bank feels immensely proud for making Internet Banking, Online Account Opening,
envisioned by the country. Nepal Rastra Bank
substantial contribution to the national coffer Video KYC, QR Code, auto approving loan
has been entrusted with the authority to
which will help in nation building mechanism system, Nabil Cash Machine among others. In
regulate BFIs and thus direct BFIs towards
of the government. Tax paid by Nabil bank for addition to the digitized services, the Bank has
policies envisioned for the country. Nepal
last eleven years have been mentioned in the been striving to automate internal operating
Rastra Bank regulates and guides BFIs through
table below: procedures under Digi Workspace which will
various Acts, directives and circulars to
In Million ultimately affect the banking services targeted
ensure that BFIs remain vigilant in economic
to customers.
FISCAL YEAR TAX EXPENSE wellbeing of the country. Nabil Bank has
2011/12 728 been very prudent in abiding by the directions CORPORATE SOCIAL
2012/13 947 laid out by Nepal Rastra Bank. The Bank RESPONSIBILITY
2013/14 981 is very cautious in protecting the funds of
As a catalyst in the overarching value system,
2014/15 897
depositors and utilizing those funds to uplift
Nabil assumes the moral duty of giving a
sectors like Agriculture, Micro Industries,
2015/16 1,199 fair share of the value created back to the
Small Industries, Medium Industries, Cottage
2016/17 1,538 community. The Bank has been allocating 1
Industries, Deprived Sector, Energy among
2017/18 1,682 percent of net profit to CSR fund. As a part
others. In doing so, the Bank has been prudent
2018/19 1,810 of our CSR initiatives, we have organized
in maintaining adequacy of capital vis-à-vis
several programs throughout the nation. These
2019/20 1,551 risk inherent to loans. The Bank is determined
activities included charities to local institutions,
2020/21 2,259 in serving people by increasing its scope of
tree plantation, donation of electronic
2021/22 1,940 financial intermediation and financial access.
devices, allocation of health supplies, poverty
Total 15,532 FINANCIAL ACCESS alleviation, blood donation among others. The
Bank contributed NPR 38.52 Million under
CONTRIBUTION TOWARDS Integration of the majority of the population
CSR activities during the review period.
INVESTORS into the scope of banking system is an
The Bank’s CEO, Mr. Gyanendra Prasad Dhungana accepting the highest tax payer award for FY 2020/21.
CRISP
right combination of each of these ideas might
just be what the bank needs to achieve its fullest
potential. With the right attitude and aptitude, we
will surge together ahead in solidarity and with
uncompromising dedication. Each of us realizes
that while alone we may be able to go faster,
together we will go further.
DEPOSIT
LOCAL CURRENCY FOREIGN CURRENCY
Nabil Bachat Yojana Call Nabil USD Special Savings Account (Individual)
Nabil Bal Bachat Khata
Fixed Nabil USD Elite Savings Account (Individual)
Nabil Corporate Staff Savings Account
Nabil Gen Alpha Account Cumulative Fixed Deposit NRN Fixed Deposit
Nabil General Savings Account Karnali Kramik Fixed Deposit
USD
Nabil Gen-N Account Nabil Remittance Fixed Deposit
GBP
Nabil Gold Savings Account Nabil Choice Fixed Deposit
AUD
Nabil Jestha Bachat Khata Nabil Smart Fixed Deposit
Nabil Premium Nari Bachat Khata Nabil Akshaya Kosh Muddati Khata
Nabil Premium Payroll Savings Account
Nabil Premium Remittance Savings Account
Nabil Remittance Savings Account
Nabil Shareholders Savings Account
Nabil Social Security Savings Account
Nabil Corporate General Savings
Nabil Corporate Premium Savings
Nabil Gold Payroll Savings
Nabil Gaurav Bachat Khata
Nabil Chhori Beti Bachat Khata
Nabil Insta Kit Account
nsavings Account
Nabil Quick Savings Account
Nabil NRN Savings Account
Nabil Sahuliyat Khata
REMITTANCE
Nabil Remit Western Union Other Remittance Alliance
Domestic Remittance Western Union ID Payment KEB Hana Bank Global (South Korea)
Inward International Payments Western Union- Account Payment Network Kookmin Bank (South Korea)
Al Sadd Exchange (Qatar) (WU APN) Axis Bank (India)
Third-Party Payment Doha Bank (Qatar)
CG Remit
City Express
Outward Remittance
Customized SME Loans General Loan Products Nabil Kisan Karja Housing Fixed Deposit (Nabil Bank)
Nabil Nari Karja Low Cost Housing Nabil Udhyamshil Karja NCell Housing (Corporate Employees Fixed Deposit (Other Banks)
Other Services
Nabil SmartBank (Mobile Banking) Visa & Master Credit Card Manager’s Cheque (MC) Issuance Nabil Corporate Pay
NabilNet (Internet Banking) Master Card Intl. Credit Card Advance Payment Certificate Demand Draft
QR Code Payment Visa Intl. Prepaid Card Bills Inward/Outward POS Service
Safe Deposit Locker Visa Intl. Debit Card Documentary Credits (Import/Export LC)
Visa Electron Prepaid Card Nabil iCard Documents Against Payment/Collection
Visa Electron Debit Card SWIFT- outward/Inward Guarantees
3.1 PRODUCTS AND SERVICES
SBU WISE BRIEFING OF
Nabil has structured its delivery platform by B. INFRASTRUCTURE AND other flexi features available in the domestic
constituting specific Strategic Business Units PROJECT FINANCING market, financing is available for purchase
(SBUs) to ensure single window customer of land, construction of buildings, furnishing,
Infrastructure and Project Financing (IPF)
dealing in specific product segments. For refurbishment and purchase of individual
is a one window banking designed for
effective and efficient delivery, most of the homes and apartments.
catering to large capital intensive projects
Bank’s product and service offerings are
such as hydropower, telecommunication, Nabil Mortgage Loan
channeled through these SBUs. All SBUs are
cement manufacturing, aviation and other
equipped with the resources and expertise This product offers clients with a simple
infrastructure projects. IPF primarily caters to
required for driving business in their respective option to obtain credit against mortgage of
large funding requirements of megaprojects
markets. their residential or commercial property. The
through loan syndication.
customers can mortgage both residential and
Within respective markets, the SBUs undertake
In addition to providing other corporate commercial properties and enjoy comfortable
market research, product enhancement,
banking services to our valued clients, the Unit EMIs over long tenures going up to 35
delivery channel optimization, relationship
also facilitates Foreign Direct Investment (FDI) years. Clients have access to credit towards
marketing and stakeholder relationship
in the infrastructure sector in the capacity of funding their social obligations like marriages,
management. The Bank’s product and services
‘Agent/Escrow Bank’ on behalf of the foreign travel plans, education, and equity infusion
are being offered through following SBUs:
lenders. Nabil has been a forerunner in in businesses and any of their personal
Nabil Bank’s continuous effort in breaking new financing large infrastructure projects and has requirements.
ground with innovative products/services in wide experience in dealing with some of the
Nabil Auto Loan
the banking industry has always enhanced the leading hydropower projects and mine based
value of stakeholders. cement plants in the country. This product is designed for financing of motor
vehicles for private as well as commercial use.
A. NATIONAL CORPORATE C. RETAIL LENDING Clients can easy avail financing for purchase of
National Corporate (NC) is a one window Nabil Bank offers an array of loan products cars, vans, jeeps, taxis, trucks, bus etc. either
banking designed for catering the entire gamut which can be taken in an individual’s name for personal use or use by offices such as
of financial services to large corporates. for moving into your new home, buying your schools, hotels, hospitals, transport operators,
NC offers entire banking services required dream car, invest in business or simply manage small businesses among others. Nabil has
for corporate establishments such as short term cash for personal and social tie-ups with the leading automobile dealers
manufacturing and processing industries, obligations. to ensure that clients get the best deals.
export and import trading, real estate Customers can choose Nabil Auto Loan to
Nabil has been providing loans at competitive enjoy flexible schemes, a simple application
development, hotels, agro production, service
interest rates with faster loan processing process and quick loan processing for getting
industries and others. NC offers capital
schedules to its retail segment. Retail lending their dream car.
investment in the form of multiyear term
products are offered through all our touch
loan, working capital in the form of Cash
points across Nepal. Within this segment, the Nabil Education Loan
Credit and structured time loans (Permanent
Bank offers a range of products and has been
Working Capital), trade transactions in the Nabil has introduced Education Loan for
introducing various attractive schemes and tie-
form of letter of credit, bank guarantees, financing higher education to aspiring Nepali
ups within those products on a regular basis.
import loans, pre/post shipment loans, bills students choosing Nepali or foreign universities
and documentary negotiation/collection/ and colleges as their next study destinations.
Nabil Housing Loan
advising and open account arrangements. As a Specially packaged study loans cover funding
Banker to most of the nation’s large corporate Nabil Home Loans are affordable and flexible for tuition, accommodation, travel and
houses for over three and half decades, Nabil and designed to take clients closer to their insurance required for the duration of their
has the necessary expertise and experience dream home. We have an accommodating full course. Nabil has promoted its education
to foresee the requirements of businesses eligibility criteria and we offer lower EMIs with loan as a social initiative within a financially
and has tailored its products to meet those highest loan tenure in the industry at attractive feasible framework. Nabil is the largest caterer
requirements. interest rates. With the most competitive of education loan in Nepal and is amongst
interest rates, extended loan tenures and the most preferred banks by the Australian/
CRISP
professional manner, we will be able to work towards
the common goal. Professionalism in our manners
and proficiency in our dealings within the team and
with the customers is what will drive our organization
forward and help reap the true benefits of the
synergy. Being a thorough Nabilian is not only about
what we do but also about how we do it.
STRUCTURE OF THE BOARD empowered to further delegate authority and Management Committee, Committee relating to
assign responsibility through the organizational the Staff Services and Facilities and Committee
There are seven members in the Board
structure. The Board, may form committees relating to Money Laundering Prevention
including the Chairman. All the board
for specific purpose considering the job (AML Committee) which were formed as
members are non-executive directors and
requirement ascribing specific responsibilities per Section 7 of NRB Unified Directive
thus, they do not take part in day-to-day
and delegating its authorities and powers to Number 6. Each Committee can include a
management decisions. The board of directors
such committees. minimum three members and a maximum of
are from diverse backgrounds and possess
five members. All Board Committees have a
specialization and expertise in various fields However, the Board keeps certain important Member Secretary who is engaged and has
and thus bring about an external perspective authorities and rights to itself including, but expertise in the concerned area of business
on company affairs and provide constructive not limited to, the approval of strategic plans, within the Bank. For effective discussions of
suggestions to the CEO. Individual directors performance targets, policy documents, annual the items in agenda, other members from the
exercise their authority at the board meetings budgets, annual financial statements and Bank’s Management, whose responsibilities
and the Board acts in the collective interest of the authority or the delegation of authority to relate to the matter in agenda, are also
the shareholders. The prime objective of the approve credit and market risk limits. invited as required. Agendas of the meeting
Board is to form policies and provide guidance
are communicated to the BOD members
and suggestions to the management for long A total of 35 board meetings were held during
in advance of the Board meeting for their
term sustainability of the Bank with reasonable the year. NPR 6.53 million was paid out as
meetings. Board members have timely access
returns to the shareholders and maximize meeting allowances and NPR 3.33 million
to adequate information so as to enable them
shareholders’ wealth. was expensed out against other expenses of
to conduct appropriate review of the agenda
the board which includes the communication
The Board decides on corporate and business and actively participate in discussions during
allowance paid to the board members,
strategies, approves capital and operational the meetings. They may seek independent
travelling and accommodation expenses of the
plan and consistently monitors and reviews professional advice wherever they feel so is
members among other things.
management’s performance so as to ensure needed. Directors can also make offsite visits
that the actual performances are in tandem INFORMATION TO THE BOARD to branches to obtain a better understanding
with the annual and long-term targets. of local business conditions, participate in
Nabil has open communication culture which
Similarly, the Board sets strategic path for the business promotion and corporate social
has fostered healthy working relationship
organization, identifies business objectives, responsibility related activities and interact
across all levels. Open communication
reviews management’s performance and with customers and employees.
policy at the Board level has smoothened
provides guidance to the management towards the communication and information sharing DIRECTOR’S APPOINTMENT AND
achieving targeted goals and objectives. between the Board and the Bank’s executive INDUCTION
team. The Board receives reports and
The Board is collectively responsible for long Director’s appointment, retirement and re-
presentation from the conveners of Board
term sustainability of the Bank. To this election are done as per the provisions laid
Committees and the CEO which covers the
end, the Board exercises its authority within out in the prevailing Companies Act, Bank and
key issues related to credit exposures, risk
the framework of regulatory provisions, Financial Institution Act, Articles of Association
portfolio, liquidity, financial performance,
Companies Act, Bank and Financial of the Bank and other relevant Laws and
business expansion, audit and compliance.
Institutions Act, Memorandum and Articles Regulations. Directors take oath of secrecy and
The Board regularly reviews management
of Association and other relevant laws and fidelity in presence of the Chairman and the
performance against approved budget target
regulations. The Board delegates executive Chairman in presence of the Governor of Nepal
and goals.
responsibility for running the Bank’s business Rastra Bank at the latter’s office immediately
to the Chief Executive Officer. The CEO heads There are four permanent Board level after the appointment. They are also given
the executive management team and is Committees viz. Audit Committee, Risk induction training within a month of their
Mr. Nirvana Kumar Chaudhary 15/15 The committee also reviewed the response
Roles and Responsibilities
Ms. Asha Rana Adhikary 12/12
to be provided to NRB regarding findings
Following are the major functions and of inspection report and recommended for
Mr. Udaya Krishna Upadhyaya 3/3 responsibilities of the Committee in line with presentation to the Board for approval to
Note: *The Committee was re constituted after the resignation of related Act, Rules and NRB Directives. submit to NRB.
Director Mr. Udaya Krishna Upadhyaya.
1. Review AML/CFT related Policies and The Committee discussed the media news
Roles and Responsibilities
Programs put up by the CEO and further related to use of bank accounts to invest
1. To assist Board of the Bank to formulate in Virtual currencies like Crypto Currency
recommend to the Board for its review/
“Remuneration Policy” and Bitcoin, which is illegal in Nepal
approval as required.
2. To study and analyze market salary and instructed for monitoring of such
2. Review the quarterly reports on
structure and submit report to the Board transactions on a periodic basis. Similarly,
implementation status of the AML/CFT
with regards to possible consequences in US Department of Treasury – OFAC
framework in the Bank.
the Bank due to change in remuneration sanctions to Russia was also discussed, the
3. Update and track issues and events
structure of the market committee noted that frequent publication
related to AML/CFT globally and make an
3. To recommend revision of remuneration of of OFAC’s recent actions, sanction list
assessment of risk in national perspective
CEO and that of entire employees to the update and executive order regarding
and the Bank.
Board in line with Remuneration Policy as prohibiting certain “imports, exports and
4. Provide recommendations/ feedback to
well as prevailing rules and guidelines, if new investment” has created sanction
the Board and the Management on issues
such revision is deemed essential compliance more challenging to conduct
pertaining to AML/CFT.
transactions for Russia origin
D. COMMITTEE RELATING 5. Accomplish any other additional goods, and shipment from Russia.
TO MONEY LAUNDERING responsibilities that may be entrusted upon
The committee reviewed the annual AML/
PREVENTION (AML COMMITTEE) the Committee from time to time as per the
CFT risk assessment report of the bank and
stipulations of prevailing laws, instructions/
AML Committee of the Board has been instructed to submit the risk assessment
directions of the regulatory authority or
formed in line with the provision of Directives report to NRB and adhered the feedback
Board of Directors of the Bank.
of Nepal Rastra Bank. The Committee from NRB, if received any. The committee
oversees implementation of Assets (Money) decided to present the report to the Board
Agendas Discussed in AML Committee
Laundering Prevention Act, 2064, Assets for information.
Meetings:
(Money) Laundering Prevention Rules, 2073,
NRB Unified Directives and other legal and The Committee discussed on the following The Committee perused the implementation
regulatory requirements related to Money agendas in its meetings. status of KYC and AML/CFT Framework
Laundering Prevention. updates and decided to present the quarterly
1. Annual Review and Revision of KYC and reports to the Board for Board’s information
Members of the AML Committee of the Board AML/CFT Policy of Nabil Bank Limited.
and deliberation.
as of 16 July 2022 are: 2. Findings and Response of NRB AML/ CFT
Targeted Inspection Report.
The Human Resource Policy of Nabil Bank Employee Training and Skill Development CORPORATE NO. OF
also known as Employee Bylaws is guided by Programs COMPOSITION
TITLE STAFFS
Bank and Financial Institution Act 2073 and Performance Appraisal Management 153 7%
Labour Act 2074. The Policy approved by
Retirement, Gratuity, Job Safety, Service Officer 465 22%
NRB emphasizes on enhancing the employees’
Period Calculation Assistant 1357 64%
skills, promoting inclusion and equality,
Conduct and Discipline of Employees Total 2130 100%
ensuring safety and health of the employees
and motivating for best delivery of services. Disciplinary Action
The Bank believes that the employees are the Others – Fidelity Insurance, Internship, and
most valuable assets for the Bank’s growth and Bank account, Tax deduction, Settlement
success and hence focuses on attracting and after retirement etc.
managing best in class talent to deliver on its
goal of growth, profitability and sustainability. HUMAN RESOURCE DYNAMICS
Staff demography based on nature of job
The HR policy of Nabil Bank includes
provisions related to: NATURE OF NO. OF
COMPOSITION
JOB STAFFS
Organizational Structure and Employee
Permanent 2130 65%
Management
Contract 1129 35%
Salary, Allowances and Other Benefits
Total 3259 100%
Attendance and Leave
LEVEL
GENDER MANAGEMENT LEVEL OFFICER LEVEL OTHERS
ASSISTANT
Female 22 152 602 22
Male 131 313 755 133
Total 153 465 1357 155
09
CITIES AND 01
EDUCATION
COMMUNITIES
02
08 HEALTH
MANAGEMENT
CSR
AREAS 03
07 ECONOMIC
SCIENCE AND DEVELOPMENT
TECHNOLOGY
06 04
LITERATURE POVERTY
CULTURE/ART ALLEVIATIONS
05
ENVIRONMENT
11 13 15 17
SUSTAINABLE CLIMATE LIFE ON LAND PARTNERSHIPS
CITIES ACTION FOR THE GOALS
AND
10 12 14 16
COMMUNITIES
REDUCED RESPONSIBLE LIFE BELOW PEACE, JUSTICE
INEQUALITIES CONSUMPTION WATER AND STRONG
AND INSTITUTIONS
PRODUCTION
Nabil School of Social Entrepreneurship who seek to engage in innovation and problems. Through a unique action driven
(Nabil SSE) was initiated to promote enterprise for the benefit of society. This program, it actively seeks to support,
social entrepreneurship in Nepal. NABIL program helps individuals start, sustain, reassure, value, legitimize and guide
SSE’s vision is to empower people from and scale social enterprises, charities and individuals in their efforts to realize their
all backgrounds to create positive social community projects. goals and potential. It works with the
change. help of an ever-growing network made up
Nabil SSE believes that individual social of a wide range of skilled people.
Nabil SSE dreams of a society which entrepreneurs are key to providing
values and actively supports those effective solutions for community
1. 2.
3. 5.
6.
4. 7.
1. Mahendra Morang Adarsh Multiple Campus, Province 1 5. Kshitiz Internaional College, Lumbini Province
2. Birgunj Public College, Madhesh Province 6. Surkhet Model College, Karnali Prvoince
3. Campion College, Bagmati Province 7. Sudur Paschimanchal Academy, Sudur Paschim Province
4. LA GRANDEE International College, Gandaki Province
With the collaboration with the Sustainable Banking team of establishes awareness in local people and entrepreneurs regarding
the bank itself, different videos were produced to showcase the the Nabil Sustainable Banking, the initiatives of the bank. Such kind
successful cases of agro loan and entrepreneurship development of video production is believed to develop and promote agriculture
videos that has significant contribution in promoting the and livestock business, entrepreneurship development of women and
entrepreneurship at the local level. Through this kind of video, it is youth. The video is focused in different areas such as agro farming,
believed to have awareness among the customer regarding the loan goat farming, and micro hydro. With coverage in different areas, it
facility that they can reach to the bank. is believed that these video will have some impact in fostering the
entrepreneurship in the country.
This video enables people to know the basic of financials and the
loan that are available in the market to scale up the business and
With the overarching goal to provide access to finance and Council and Nabil Bank. The objective of this program is to make
empowerment of women through banking channel, eight days’ youth independent through amplification of Youth entrepreneurship
entrepreneurship and financial literacy program was conducted in and self-employment. The training also aimed to make participants
Tila, Jumla from December 6 to 13, 2021. The entrepreneurship aware on financial literacy and to provide financial access to
training was conducted by Tila Rural Municipality along with entrepreneurship project. The closing ceremony of the event was
trainers from National Youth Council to youth and women under a witnessed by Chairman of Nabil Bank, Mr. Upendra Poudyal and
tripartite agreement among Tila Rural Municipality, National Youth DCEO Sujit Kumar Shakya.
The branches of the Sudurpaschim Provinces were visited by entrepreneurship was provided in Bitthadchir, Bajhang. The total
Nabil Sustainable Banking team from December 24 to January number of participants was around 100. Also, similar program
2, 2022 with the objective to provide financial literacy and was conducted in Alitaal, Dadeldhura in the presence of more
entrepreneurship training to the local people and motivate them than 100 local participants.
for entrepreneurship and access to finance. A day of training on
PANCHKHAL MUNICIPALITY
RAM KUMAR MAHABIR PRASAD facilitate eye care service to reduce cataract Blood is needed in all health care facilities
KEDIA EYE HOSPITAL blindness in Bara & Parsa District and is and is also required for a host of life saving
serving around 130,000 patients & performs procedures. Blood donation is a regular social
Ram Kumar Mahabir Prasad Kedia Eye
Surgery of Around 15,000 Patients Annually. work conducted by Nabil Bank. By partnering
Hospital (RM Kedia Eye Hospital) is a non-
The Hospital is providing its services on both with various social organizations, different
profit organization serving for eye care service
shifts (Day Shift & Evening Shift), during branch of Nabil Bank conduct blood donation
in Bara & Parsa district since 45 Years. The
evening hours there is arising lightning problem program every year.
Hospital was established by M.B Kedia Sewa
because of unavailability of sufficient light
Trust running under umbrella of Nepal Netra Blood which is donated are used for the
poles. So, the bank has extended its support to
Jyoti Sangh. The Hospital is Pure charitable service of sick people, suffering from accident,
RM Kedia Eye Hospital for the upgradation of
service & main objective of hospital is to cancer patient and pre-mature baby, which is
the infrastructures in the hospital premises.
KANCHANPUR NETRAHIN SANGH for the players and to conduct the program event will help to increase the importance of
effectively. the disable people and show that they can also
“Kanchanpur Netrahin Sangha” located at
stand somewhere and compete like a normal
Bheemdatt-18 Kanchanpur is an organization People with physical and mobility impairments people also above all this kind of event also
where more than 200 visually impaired need decent canes, walkers, wheelchairs, helps in maintaining good relation with the
persons are associated. The organization has and above all, barrier free homes and people.
organized weekly wheelchair marathon and neighborhoods. Some also need every day
Visual Impairment race program on 3rd Dec personal help to do every day self-care tasks. NIJGADH HEALTH CAMP
2021, in the occasion of International Day Regardless of the type and degree of disability,
Lions Club of Nijgadh City is a reputed local
of person with disabilities. For the same the disrespect, insults, and physical and emotional
Club working in different social activities. It has
bank has provided the financial assistance to abuse are equally unacceptable regardless of
been carrying out Health Camps, School Bags
purchase various required items and uniform type and degree of disability. So, this kind of
Distribution Programs/activities in Nijgadh
4.9.3 CULTURE
JANAKPUR LITERATURE FESTIVAL presented as the part of the festival. With the but also helps in creating new values for later
TO PROMOTE THE LOCAL same mission, NawaMithila has organized JLF generation.
CULTURE 2022 with the support of Nabil Bank.
NawaMithila has inaugurated Janakpur Culture and Heritage are known as the
Literature Festival (JLF) in the year 2019 invaluable resources which creates a unique
which has now become the landmark event tourist attraction for the country. Nepal
for the Janakpur City. With a mission of is a country which is rich in culture and
celebrating extraordinary stories, amplifying heritage. Whereas, preserving and promoting
brave voices and tackling national issues, the heritage for future generation is quite
JLF for the first time in 2019 brought an difficult. The culture and festivals are slowly
opportunity for the citizens of Janakpur to dissolving because of the lack of attention. If
explore the interconnections between literature this continues, then different culture, festivals,
and art, theater, films, music, television, and heritage will surely be history. Thus,
journalism, and political activism. People this kind of the program will not only help
from all over Nepal participated in the festival in supporting the literature program not only
and learned about the local tradition that was contributes in the socio-economic development
KARNALI KRAMIK MUDDHATI The accounts opened under this scheme are with the installation of CCTV as this will allow
KHATA eligible to get NPR 1,000 as cash incentive the police to keep an eye on criminal activities.
along with the contribution of the province To support the activity of DPO Illam, the bank
According to the data of the Ministry of Social government. The amount thus accumulated has provided support for the installation of
Development, 41,000 teenage girls of Karnali will be enabled to be withdraw when the CCTV.
Province got married in the last three years. girl reaches the age of 20, completion of
Karnali Province is one of the provinces where secondary education, and remains unmarried
PUBLIC AWARENESS AT
early marriage is widely practiced despite until the age of 20. The impact of this project KHADBARI
the laws and regulations of the government. is believed to raise the standard of the girl In today’s context, people are equipped with
Among those teenage girls, 19% went through child, bind them not to get married at a young cell phone but do not have the contact number
teen pregnancy. The risk of both mother and age (to the extent possible), and also to raise of concerned authority to report the cases/
child is high during teen pregnancy. So, to awareness regarding saving and banking incidents immediately after it occurs. So, to
uplift the socio-economic condition of girls habits. connect such issues, DPO has issued contact
in Karnali Province, Nabil Bank launched
number of their office/official so that each
a deposit scheme named, “Karnali Kramik CCTV AT ILLAM incident is reported which is the first step to
Muddhati Khata” on 23rd Falgun 2077. In
District Police Office, Illam approached bank bring the cases to be tested in the court of law.
this fiscal year 929 girls opened an account
with expectation of contribution for installation To make this event happen, the District Police
under this scheme. This deposit scheme is
of CCTV at the locality. The installation of Office (DPO) Khadbari has reached Nabil Bank
believed to support the vision of the provincial
CCTV cameras in the municipality serves as for the support. This event will allow general
government i.e., “Bank Khata Chhoriko,
a serious deterrent to criminals and those public for reporting the incident/criminal
Surakchya Jeevan Variko”. carrying out illegal activities. Therefore, Nabil activity.
Bank has assisted the District Police of Illam
5.1 DISCLOSURE
REGULATORY
A. STATEMENT OF DIRECTOR’S under regulations of SEBON. The financial The directors are also entrusted with the
RESPONSIBILITY statements of FY 2021/22 of the Bank and fundamental responsibility of keeping adequate
the Group have been prepared on the basis of accounting records that are sufficient to
The statement of director’s responsibility
NFRS. show and explain the Bank’s transactions
addressed to the shareholders of the Bank
and disclose with reasonable accuracy at
should be read in conjunction with the The financials of FY 2021/22 of the Bank and any time, the financial position of the Bank
Auditor’s Report, that is introduced in order the Group have been prepared on the basis which also enables them to ensure that
to distinguish the respective responsibilities of of format prescribed in the Unified Directives its financial statement comply with NRB
the Board from that of auditors in relation to whilst complying with the provisions of the directives. Section 1(6) of Directive 6 of
the preparation and presentation of financial Companies Act and Banks and Financial NRB Unified Directives 2078 also specifies
statements of the Bank. The Board of Directors Institutions Act (BAFIA). Apart from the the requirement of maintaining records of
is responsible for preparing the Annual Report, specific provisions of Unified Directives of transactions up-to date and intact at all times.
the separate financial statements of the Bank NRB, BAFIA and the Companies Act, the Moreover, it also restricts the directors to add/
and the consolidated financial statements of financial statements have been prepared on modify official accounting records in their
the Bank and its subsidiary (ies) in accordance the basis of NFRS. As such, consistency has personal capacity. Further, the directors have
to the prevailing laws and regulations of Nepal. been maintained. In preparing the consolidated general responsibility for taking such steps as
and separate financial statements, it is are reasonably open to them to safeguard the
Section 108 read together with Section 109
required to: assets of the Group and to prevent and detect
of the Companies Act of Nepal stipulates
the ultimate responsibilities of the Board of fraud and other irregularities.
Select suitable accounting policies and then
Directors to prepare the financial statements apply them consistently; As such, the Bank and its subsidiary have
of the Company to its shareholders for
Make judgments and estimates that are implemented policies, procedures and
presentation in AGM. Further, Section 4 (2)
reasonable and prudent; and mechanisms that are intended to mitigate the
of Directive No. 8 of NRB Unified Directive
State whether they have been prepared in risks that may arise due to control lapses. The
2078 prescribes preparation and presentation
accordance with NFRS/ Nepal Accounting Bank has constituted Audit Committee that
of consolidated financial statements of the
Standards (NAS). comprises of four non-executive directors and
Bank and its subsidiary (ies) in addition to the
the Head- Internal Audit, who is the secretary
preparation of separate financial statements Financial statements should be prepared
of the Committee. The Audit Committee
in line with Directive No. 4. The consolidated on going concern basis unless it is not
functions independently and reports directly to
financial statement of the group has been appropriate. Since the directors are satisfied
the Board of Directors.
prepared in accordance with Nepal Financial that the Group and the Bank have the
Reporting Standards 2013 (NFRS) developed resources to continue the business for the Chairman
by Accounting Standards Board, Nepal foreseeable future and there are no indicators
On behalf of the Board
(ASBN). The financial statements comply that casts significant doubt on the Bank’s and
with the requirements of the Companies Act its subsidiary’s going concern assumption, the
2006 and amendments thereto and also financial statements are continually prepared
provides appropriate disclosures required on going concern basis.
C. DISCLOSURE RELATED TO 4. Legal Proceedings: The Bank does not have knowledge of any
SUBRULE (2) OF RULE 26 OF a) A lawsuit filed by or against the body such claims
SECURITIES REGISTRATION AND corporate during the quarterly period: No 5. Analysis of stock performance of the body
ISSUANCE REGULATION, 2073 mentionable suits have been filed by the Bank corporate:
except for regular lawsuits concerning loan a) Management’s view on the Stock Exchange
1. Report of the Board of Directors -
recovery and tax liabilities arising in normal - The Bank’s share price is guided by market
Disclosed in the “Director’s Report” portion of
course of banking business. operations of the capital market. The Bank
this report.
b) A lawsuit filed by or against the promoter does not comment on its share transactions.
2. Auditor’s report - Disclosed before this
or director of the body corporate involving b) High, Low and Closing price of the stocks
financial statements within this report.
statutory regulations or criminal offence: The of the company during each quarter of the
3. Audited financial reports - Disclosed in Bank does not have any knowledge of any preceding year of the preceding year along
appropriate part of this report and financial such claims with total volume of trading of shares and
statement. number of days traded.
c) A lawsuit, if any, filed against the promoter
and director for committing economic crimes:
MAXIMUM PRICE MINIMUM PRICE CLOSING PRICE TOTAL SHARES TOTAL DAYS
QUARTER (MONTH)
PER SHARE(NPR) PER SHARE (NPR) PER SHARE (NPR) TRADED TRADED
First Quarter (Mid-October 2021) 1,560 1,345 1,482 6,367,223 57
Second Quarter (Mid-January 2022) 1,740 1,086 1,110 7,159,890 59
Third Quarter (Mid-April 2022) 1,213 953 971 3,361,004 58
Fourth Quarter (Mid-July 2022) 990 726 824 28,878,002 64
D. DISCLOSURE UNDER SUBRULE (3) AND (4) OF RULE 20 OF THE DIRECTIVE RELATED TO CORPORATE
GOVERNANCE FOR LISTED COMPANIES, 2074
Name of the listed Company Nabil Bank Limited
Address, Email, and Website Nabil Centre, Beena Marg, Durbarmarg - Post Box No: 3729, Kathmandu, Email:
[email protected], https://www.nabilbank.com
Phone No. 4227181, 4221718
Report for the fiscal year 2078/79
a) Presence/absence of Chairman or person nominated by Chairman in Board Meetings (Reason Present as mentioned in Table 1(d)
of absence in the Board Meeting if any)
b) Maintenance of record of details related to Meetings of Board of Director like attendance of Maintenance of separate record
Directors, agenda of the meeting, and decision there of
c) Maximum gap in days between two consecutive Board Meetings 37 days
d) Date of Annual General Meeting that accounted for the approval of Meeting Fees of Board of 7th Jan 2020 (35th AGM)
Director
e) Sitting fee per meeting of Board of Director Chairman (NPR 20,000), Director (NPR 15,000)
f) Meeting fees paid to Directors during the FY NPR 3,820,000
d) Following information were submitted/not submitted in written by Directors within 15 days of their appointment or nomination:
Detail of any contract established or likely to be established with the organization by the Director or Submitted
his family member
Detail of shares and debenture of the organization or its subsidiary owned by the Director or his Submitted
family member
If the Director is shareholder of any other organization or holds the position of director in any other Submitted
organization, details thereof
Detail of family member of Director who works as an employee or holds a position in the Submitted
management team in the organization
Detail of listed organization of similar nature where the director has served as a salaried employee or Submitted as no such remuneration taken
held the position of Director, management team or CEO
Details of legal action taken against board members by regulatory No legal actions were taken
Mrs. Asha Rana Adhikary : Coordinator these assets, possibility of appreciation Mr. Pravin Tibrewala (Member)
or depreciation in the quality of these
Mr. Ananta Poudyal : Member Mr. Krishna Dutta Bhattarai (Member
assets. In addition, quarterly submission
Secretary)
Mr. Malay Mukherjee : Member of report to Board of Director containing
Mr. Ganesh Prasad Awasthi : Member assessment of activities of Asset Liability Committee relating to Staff Services and
(Chief Operating Officer) Committee (ALCO). Facilities:
Mrs. Namita Dixit : Member Studying the effect that can spill over
Mr. Nirvana Kumar Chaudhary
Secretary(Chief Risk Officer) to financial status of the Bank due to
(Coordinator)
problem in any sector of the economy and
ii) Number of meetings held during Mrs. Asha Rana Adhikary (Member)
advising policies to be adopted to mitigate
F.Y.2021/22: 14 such effects to Board of Director. Mr. Gyanendra Prasad Dhungana
(Member)
iii) Roles and responsibilities of Risk Proposing appropriate risk management
Management Committee: system and process to Board of Mr. Manoj Kumar Gyanwali (Member)
Director and seeking approval for the Mr. Niraj Sharma (Member Secretary)
Advising the Board of Director about
implementation of the same.
the adequacy, appropriateness Committee related to Money Laundering
and development of ongoing Risk c) Presence/absence of Internal Control Prevention:
Identification and Management System of System: Present
the organization. Mr. Udaya Krishna Upadhyay
d) Name of committee formed to implement (Coordinator)
Advising the Board of Director about the
Internal Control System (Specify reason if Mr. Ananta Poudyal (Member)
level of business risk, risk appetite of
no such committee is formed): The internal
the Bank, strategy for development of Mrs. Namita Dixit (Member)
control structure of the Bank constitutes of
Risk Management System, policies and Mrs. Prakash Babu Panta (Member)
Board of Director directly supervising the risk
procedures.
and control measures in every function in Mrs. Sabitri Dahal (Member Secretary)
Estimating, evaluating, managing the Bank through its committees like Audit
and supervising risk based on Risk Committee, Risk Management Committee, Committee related to Merger and
Management Reports obtained from Committee relating to staff services and Acquisition:
Management Team on ongoing basis and facilities and Committee relating to Money Mr. Udaya Krishna Upadhyay
advising the Board of Director regarding Laundering Prevention. (Coordinator)
the same.
e) Details related to Internal Risk Mr. Malay Mukherjee (Member)
Advising the Board of Director upon the
matters like Capital Adequacy, Internal Management Committee Mrs. Asha Rana Adhikary (Member)
Capital Adequacy Assessment Procedure i) Structure of Committee Board of Director : Mr. Ananta Poudyal (Member)
(ICAAP), coherence between policies and Mr. Anil Keshary Shah (Member)
business strategy and risk appetite of the Mr. Upendra Prasad Poudyal (Chairman)
Mr. Sujeet Kumar Shakya (Member)
organization. Mr. Nirvana Kumar Chaudhary (Director)
Mr. Manoj Kumar Gyanwali (Member
Advising the Board of Director in Mr. Malay Mukherjee (Director)
Secretary)
development of necessary policies and Mrs. Asha Rana Adhikary (Director),
infrastructure for Risk Management Mr. Ananta Poudyal (Director)
b. Public information not disclosed by organization or the organization had to incur punitive measures charged by SEBON or any other
organization: None
Preparation of financial statement of previous fiscal year of the organization on the Yes (Financial Statements of FY 2078/79 prepared as per NFRS)
basis of NFRS:
Date of approval of financial statement of previous fiscal year by board of director: 2nd Nov, 2021
Published date of quarterly financial reports: Presented in point 4 (a)
Latest audit date: 2nd Nov, 2021
Date of approval of Financial Statement by AGM: 14th Jan 2022
Details related to internal audit of bank:
i) Audit performed by Internal Audit or by recruitment of external expertise: Audit
performed by Internal Audit department
ii) Details of external expertise employed for audit (if any): External Expertise was
assigned for IT Audit
iii) Periodicity of Internal Audit: Yearly
Meeting fee per meeting: NPR 15,000 per Meeting (After deduction of 15% tax – NPR12,750 per Meeting)
Date of submission of Report by Audit Committee to BOD: 16th Aug 2022
Date of submission of minutes of meeting for fiscal year 2021/22 by Audit Committee to BOD:
194 582 2021/12/20 Whether the company has complied with the
stipulations set while granting the license by Yes
195 582 2021/12/20
the regulatory body:
196 589 2022/01/25
Whether the company has compiled with the
197 589 2022/01/25
directions given by the regulatory body during Yes
198 589 2022/01/25 any regulation, inspection or supervision:
199 590 2022/02/08 None except for the ones
Details of any ongoing litigations in the court
200 593 2022/04/12 that occur in the normal
of law against the company or it’s directors:
course of business
201 593 2022/04/12
202 593 2022/04/12
Name of Compliance Officer: Anjuli Shrestha
203 599 2022/06/23
Designation: Head of Compliance
204 600 2022/06/28
Date: 19th December, 2022
205 599 2022/06/23
Stamp of organization:
206 600 2022/06/28
Date of approval of the report by Board of Director:
207 600 2022/06/28
208 599 2022/06/23
209 599 2022/06/23
210 599 2022/06/23
211 605 2022/06/29
212 605 2022/06/29
121
122 Nabil Bank Limited
GROUP BANK
PARTICULARS NOTE
2079 ASHADH 32 2078 ASHADH 31 2079 ASHADH 32 2078 ASHADH 31
Equity
Share Capital 4.26 22,832,908,632 13,844,451,156 22,832,908,632 13,844,451,156
Share Premium 175,555 158,758,428 175,555 158,758,428
Retained Earnings 3,139,621,635 4,352,686,499 2,899,544,565 4,162,928,789
Reserves 4.27 27,253,541,510 15,854,875,384 27,249,118,543 15,844,157,037
Total Equity Attributable to Equity Holders 53,226,247,332 34,210,771,467 52,981,747,295 34,010,295,410
Non Controlling Interest 220,848,629 196,793,783 - -
Total Equity 53,447,095,961 34,407,565,250 52,981,747,295 34,010,295,410
Total Liabilities and Equity 420,749,061,528 292,738,772,477 419,818,100,950 291,238,946,422
Contingent Liabilities and Commitments 4.28 251,172,394,535 128,655,349,875 251,172,394,535 128,655,349,875
Net Assets Value per share 233.11 188.17 232.04 245.66
Sandip Babu Paudel Manoj K. Gyawali Gyanendra Prasad Dhungana Upendra Prasad Poudyal Nirvana Chaudhary CA Sunir Kumar Dhungel
Head - Finance DCEO- Finance & HR Chief Executive Officer Board Chairman Board Vice Chairman Managing Partner
S.A.R. Associates,
Chartered Accountants
Malay Mukherjee Asha Rana Adhikary Ananta Poudyal Pravin Tibrewala A.R.M.Nazmus Sakib CA Prakash Jung Thapa
Board Member Board Member Board Member Board Member Board Member Partner
P.J.P.N. & Co., Chartered
Accountants
Date: December 11, 2022
Place: Kathmandu, Nepal
Consolidated Statement of Profit or Loss
For the period ended 32 Ashadh 2079 (Jul 16, 2022)
NPR
GROUP BANK
PARTICULARS NOTE
2079 ASHADH 32 2078 ASHADH 31 2079 ASHADH 32 2078 ASHADH 31
Interest Income 4.29 23,420,890,773 17,253,789,633 23,340,747,062 17,188,718,781
Interest Expense 4.30 14,414,019,258 9,112,175,169 14,421,875,671 9,112,834,007
Sandip Babu Paudel Manoj K. Gyawali Gyanendra Prasad Dhungana Upendra Prasad Poudyal Nirvana Chaudhary CA Sunir Kumar Dhungel
Head - Finance DCEO- Finance & HR Chief Executive Officer Board Chairman Board Vice Chairman Managing Partner
S.A.R. Associates,
Chartered Accountants
Malay Mukherjee Asha Rana Adhikary Ananta Poudyal Pravin Tibrewala A.R.M.Nazmus Sakib CA Prakash Jung Thapa
Board Member Board Member Board Member Board Member Board Member Partner
P.J.P.N. & Co., Chartered
Accountants
Date: December 11, 2022
Place: Kathmandu, Nepal
Sandip Babu Paudel Manoj K. Gyawali Gyanendra Prasad Dhungana Upendra Prasad Poudyal Nirvana Chaudhary CA Sunir Kumar Dhungel
Head - Finance DCEO- Finance & HR Chief Executive Officer Board Chairman Board Vice Chairman Managing Partner
S.A.R. Associates,
Chartered Accountants
Malay Mukherjee Asha Rana Adhikary Ananta Poudyal Pravin Tibrewala A.R.M.Nazmus Sakib CA Prakash Jung Thapa
Board Member Board Member Board Member Board Member Board Member Partner
P.J.P.N. & Co., Chartered
Accountants
Date: December 11, 2022
Place: Kathmandu, Nepal
Balance at Shrawan 01, 2077 (16-Jul-2020) 10,461,789,526 158,758,428 7,353,126,407 615,900,000 781,141,314 3,413,558,431 - 3,781,216,604 1,039,472,777 27,604,963,486 147,489,817 27,752,453,303
Gains/(losses) on revaluation - - - - - - - - - - -
Total Comprehensive Income for the year - - - - - 2,104,580,228 - 4,599,972,141 6,733,801 6,711,286,170 68,503,966 6,779,790,136
Transfer to Reserves during the year - - 906,000,000 32,400,000 - - 47,911,831 (1,328,860,281) 387,905,323 45,356,874 45,356,874
Transfer from Reserves during the year - - - - 222,226,978 (1,083,165,278) - 861,054,488 (77,194,462) (77,078,274) (77,078,274)
Equity : - - - - - - - - - - - -
Dividend to Equity-Holders - -
Other - - - - - - - - - - -
Total Contributions by and Distributions 3,382,661,630 - 906,000,000 32,400,000 326,505,012 (1,083,165,278) 47,911,831 (4,028,502,245) 310,710,861 (105,478,189) (19,200,000) (124,678,189)
Balance at Ashadh 31, 2078 (15-Jul-2021) 13,844,451,156 158,758,428 8,259,126,407 648,300,000 1,107,646,326 4,434,973,381 47,911,831 4,352,686,499 1,356,917,439 34,210,771,467 196,793,783 34,407,565,250
Reserves added through acquisition 4,336,721,887 101,555 3,517,668,389 71,212,612 1,770,446,111 216,296,259 - (620,100,162) 6,566,604,150 15,858,950,802 - 15,858,950,802
Balance at Shrawan 01, 2078 (16-Jul-2021) 18,181,173,043 158,859,983 11,776,794,796 719,512,612 2,878,092,437 4,651,269,640 47,911,831 3,732,586,338 7,923,521,589 50,069,722,269 196,793,783 50,266,516,052
GROUP
Gains/(losses) on revaluation - - - - - - - - - - -
Total Comprehensive Income for the year - - - - - (596,990,529) - 4,287,129,502 - 3,690,138,973 24,964,468 3,715,103,441
Transfer to Reserves during the year - - 852,000,000 32,600,000 - - 512,224,194 (1,270,062,046) 406,880,965 533,643,113 - 533,643,113
Transfer from Reserves during the year - - - - (515,632,334) (485,461,510) - 515,632,333 (38,515,351) (523,976,862) (523,976,862)
Equity : - - - - - - - - - - - -
Dividend to Equity-Holders - -
Total Contributions by and Distributions 4,651,735,589 (158,684,428) 852,000,000 32,600,000 (449,756,644) (485,461,510) 512,224,194 (4,880,094,205) (608,176,906) (533,613,911) (909,622) (534,523,533)
Balance at Ashadh 32, 2079 (16-Jul-2022) 22,832,908,632 175,555 12,628,794,796 752,112,612 2,428,335,793 3,568,817,601 560,136,025 3,139,621,635 7,315,344,682 53,226,247,332 220,848,629 53,447,095,961
Sandip Babu Paudel Manoj K. Gyawali Gyanendra Prasad Dhungana Upendra Prasad Poudyal Nirvana Chaudhary CA Sunir Kumar Dhungel
Head - Finance DCEO- Finance & HR Chief Executive Officer Board Chairman Board Vice Chairman Managing Partner
S.A.R. Associates,
Chartered Accountants
Malay Mukherjee Asha Rana Adhikary Ananta Poudyal Pravin Tibrewala A.R.M.Nazmus Sakib CA Prakash Jung Thapa
Board Member Board Member Board Member Board Member Board Member Partner
P.J.P.N. & Co., Chartered
Date: December 11, 2022 Accountants
Place: Kathmandu, Nepal
Consolidated Statement of Changes in Equity
For the period ended 32 Ashadh 2079 (Jul 16, 2022)
NPR
BANK
ATTRIBUTABLE TO EQUITY-HOLDERS OF THE BANK
PARTICULARS SHARE SHARE GENERAL EXCHANGE REGULATORY FAIR VALUE REVALUATION RETAINED OTHER
TOTAL
CAPITAL PREMIUM RESERVE EQUALISATION RESERVE RESERVE RESERVE EARNING RESERVE
Balance at Shrawan 01, 2077 (16-Jul-2020) 10,461,789,526 158,758,428 7,353,126,407 615,900,000 781,141,314 3,413,558,431 - 3,653,276,037 1,036,917,819 27,474,467,962
Gains/(losses) on revaluation -
Total Comprehensive Income for the year - - - - - 2,104,580,228 - 4,527,552,838 6,733,801 6,638,866,867
Transfer to Reserves during the year 906,000,000 32,400,000 - 47,911,831 (1,318,141,934) 379,741,934 47,911,831
Transfer from Reserves during the year 222,226,978 (1,083,165,278) 860,938,301 (77,194,462) (77,194,461)
Dividend to Equity-Holders -
Other -
Total Contributions by and Distributions 3,382,661,630 - 906,000,000 32,400,000 326,505,012 (1,083,165,278) 47,911,831 (4,017,900,086) 302,547,472 (103,039,419)
Balance at Asar 31, 2078 (15-Jul-2021) 13,844,451,156 158,758,428 8,259,126,407 648,300,000 1,107,646,326 4,434,973,381 47,911,831 4,162,928,789 1,346,199,092 34,010,295,410
Reserves added through acquisition 4,336,721,887 101,555 3,513,195,948 71,212,612 1,770,446,111 229,884,010 - (639,314,207) 6,566,271,705 15,848,519,621
Restated balance at Shrawan 01, 2078 (16-Jul-2021) 18,181,173,043 158,859,983 11,772,322,355 719,512,612 2,878,092,437 4,664,857,391 47,911,831 3,523,614,582 7,912,470,797 49,858,815,031
BANK
ATTRIBUTABLE TO EQUITY-HOLDERS OF THE BANK
PARTICULARS
Gains/(losses) on revaluation -
Transfer to Reserves during the year 852,000,000 32,600,000 512,224,194 (1,270,062,046) 404,393,479 531,155,627
Transfer from Reserves during the year (515,632,334) (485,461,510) 515,632,333 (38,515,350) (523,976,862)
Dividend to Equity-Holders - -
Other - -
Total Contributions by and Distributions 4,651,735,589 (158,684,428) 852,000,000 32,600,000 (449,756,644) (485,461,510) 512,224,194 (4,880,094,205) (610,664,391) (536,101,396)
Balance at Ashadh 32, 2079 (16-Jul-2022) 22,832,908,632 175,555 12,624,322,355 752,112,612 2,428,335,793 3,582,405,352 560,136,025 2,899,544,565 7,301,806,406 52,981,747,295
Malay Mukherjee Asha Rana Adhikary Ananta Poudyal Pravin Tibrewala A.R.M.Nazmus Sakib CA Prakash Jung Thapa
Board Member Board Member Board Member Board Member Board Member Partner
P.J.P.N. & Co., Chartered
Accountants
Date: December 11, 2022
Place: Kathmandu, Nepal
Consolidated Statement of Cash Flows
For the period ended 32 Ashadh 2079 (Jul 16, 2022)
NPR
GROUP BANK
PARTICULARS
2079 ASHADH 32 2078 ASHADH 31 2079 ASHADH 32 2078 ASHADH 31
CASH FLOWS FROM OPERATING ACTIVITIES:
Interest Received 21,210,936,597 16,906,103,246 21,131,394,949 16,841,032,395
Fees and other income received 2,270,955,551 1,629,635,199 2,067,170,171 1,514,966,900
Dividend received - - - -
Receipts from other operating activities 848,888,208 2,124,042,953 769,293,682 2,021,644,940
Interest paid (14,080,375,571) (8,738,495,370) (14,083,905,172) (8,739,154,208)
Commission and fees paid (463,875,729) (76,726,480) (464,375,729) (77,226,480)
Cash payment to employees (2,285,462,107) (3,314,678,712) (2,231,583,004) (3,270,687,044)
Other expense paid (1,095,572,797) (1,121,968,734) (1,026,530,731) (1,058,610,687)
Operating cash flows before changes in operating
assets and liabilities 6,405,494,152 7,407,912,102 6,161,464,166 7,231,965,816
(Increase)/Decrease in operating assets
Due from Nepal Rastra Bank (5,013,067,589) 11,996,859,426 (5,013,067,589) 11,996,859,426
Placement with bank and financial institutions 994,316,733 365,367,489 994,316,733 365,367,489
Other trading assets (53,363,336) 52,539,773 (29,728,860) -
Loan and advances to bank and financial institutions (1,788,621,414) (2,819,540,926) (1,788,621,414) (2,819,540,926)
Loan and advances to customers (103,820,408,271) (50,620,217,385) (103,820,408,271) (50,620,217,385)
Other assets 9,529,576,377 (3,869,035,268) 9,484,356,056 (3,828,370,007)
Increase/ (Decrease) in operating liabilites
Due to bank and financial institutions (1,149,095,677) 2,273,844,039 (1,149,095,677) 2,273,844,039
Due to Nepal Rastra Bank (792,955,424) 5,397,107,151 (792,955,424) 5,397,107,151
Deposit from customers 102,797,934,456 32,612,151,912 102,747,840,011 32,668,000,389
Borrowings 10,720,730,171 - 10,720,730,171 -
Other Liabilities 10,734,333,164 8,109,827,075 11,444,059,384 7,178,321,370
Net cash flow from operating activities before tax paid 28,564,873,342 10,906,815,388 28,958,889,286 9,843,337,362
Income taxes paid (2,307,364,498) (2,358,538,706) (2,239,698,931) (2,304,770,245)
Net cash flow from operating activities (A) 26,257,508,844 8,548,276,682 26,719,190,355 7,538,567,117
Sandip Babu Paudel Manoj K. Gyawali Gyanendra Prasad Dhungana Upendra Prasad Poudyal Nirvana Chaudhary CA Sunir Kumar Dhungel
Head - Finance DCEO- Finance & HR Chief Executive Officer Board Chairman Board Vice Chairman Managing Partner
S.A.R. Associates,
Chartered Accountants
Malay Mukherjee Asha Rana Adhikary Ananta Poudyal Pravin Tibrewala A.R.M.Nazmus Sakib CA Prakash Jung Thapa
Board Member Board Member Board Member Board Member Board Member Partner
P.J.P.N. & Co., Chartered
Accountants
Date: December 11, 2022
Place: Kathmandu, Nepal
1. REPORTING ENTITY 1.3. Ownerships held by the Bank in NBBL Securities is a public limited company
subsidiary and associate companies domiciled in Nepal. It was incorporated on 9th
1.1. Corporate information August, 2019 with paid up capital of NPR 20
Nabil Bank Limited (hereinafter referred to 1.4. Subsidiary company Million. The subsidiary is not listed. The group
Nabil Investment Banking Limited (hereinafter represents the Bank and its Subsidiaries.
as “the Bank”) is a public limited company
domiciled in Nepal. It was incorporated on referred to as “the Subsidiary”) is a public 1.5. Principal activities of the Bank
May 11, 1984 under then Companies Act limited company domiciled in Nepal. It was
Principal activities of the Bank comprise full-
1964 A.D. of Nepal. It is a class “A” licensed incorporated on February 07, 2010 under
fledged commercial banking services including
commercial bank regulated under the Banks the then Companies Act 2006 A.D. of Nepal.
financial intermediation, trade finance services,
and Financial Institutions Act 2017 A.D. It is a Merchant Banker licensed under the
remittance, treasury, cards and e-banking,
It commenced banking operations on 12th Securities Businessperson (Merchant Banker)
Regulations, 2008 A.D. It commenced its agency services and other ancillary banking
July 1984 and has its registered head office services to a diverse clientele encompassing
commercial operations on May 26, 2010 and
in ‘Nabil Center’, Tindhara, Durbarmarg, individuals, corporates, multinationals, state
operates from its registered office at Central
Kathmandu, Nepal. It is listed on the Nepal owned enterprises, public sector companies,
Plaza, Narayanchaur, Naxal, Kathmandu,
Stock Exchange. developmental aid agencies, embassies, NGOs
Nepal. The Subsidiary is not listed.
and INGOs.
1.2. Consolidated financial statements
Nepal Bangladesh Capital Ltd is a public
The accompanying consolidated financial limited company domiciled in Nepal. It was 1.6. Principal activities of the Subsidiary
statements comprise the Bank (Parent incorporated on 25th October 2017 under Principal activities of the subsidiaries are issue
Company) and its Subsidiaries (together the then Companies Act 2006 AD of Nepal management, portfolio management services,
referred to as the ‘Group’ and individually as It is a Merchant Banker licensed under the underwriting of securities, securities trustee,
‘Group entities’) and the Group’s interest in its Securities Businessperson (Merchant Banker) registrar to shares, fund management and
associate company. The Bank is the ultimate Regulations, 2008 A.D. It commenced depository services, depository participant
parent of the Group. its commercial operation on January 10, services in a central depository services, corporate
2019 and operates its registered office advisory services, allied support services, etc.
at Bijulibazaar, Kathmandu, Nepal. The
subsidiary is not listed.
OWNERSHIP AT
NAME OF COMPANY STATUS PRINCIPAL ACTIVITIES
16-JUL-2022
Nabil Investment Banking Ltd. Subsidiary 52.00% Merchant Banker under license from Securities Board of Nepal
Nepal Bangladesh Capital Ltd. Subsidiary 100% Merchant Banker under license from Securities Board of Nepal
NBBL Securities Ltd. Subsidiary 100% Established with the aim of carrying out the security brokerage activities
NADEP Laghubitta Bittiya Sanstha Ltd. Associate 25.00% Microfinance Institution under class “D” license from Central Bank
2. BASIS OF PREPARATION Nepal (ICAN). These financial statements statements for the reporting period are given
comply with the regulations of Nepal Rastra in Note 3.
2.1. Statement of compliance
Bank, requirements of the Companies Act and
The consolidated financial statements of the also provide appropriate disclosures required 2.1.1. Reporting pronouncements
Group have been prepared in accordance with under regulations of the Securities Board of Nepal The Accounting Standards Board of Nepal
Nepal Financial Reporting Standards (NFRS) (SEBON). has developed NFRS (updated 2018) by
developed by the Accounting Standards Board, converging with International Financial
Nepal (ASBN) and pronounced for application Significant accounting policies followed by Reporting Standards (IFRS) as issued by the
by the Institute of Chartered Accountants of the Group in the preparation of financial
A change in the ownership interest of the Group’s voting rights and potential
Investments in equity instruments presented
a subsidiary without a loss of control is voting rights.
in SoFP line items Other Trading Assets and
Investment Securities measured at fair value accounted for as equity transactions. This in
The Group reassesses whether or not it
under NFRS 9 ‘Financial Instruments’. effect is the adjustment made in the carrying
controls an investee if facts and circumstances
amounts of the controlling and non-controlling
Land and buildings held as non-banking indicate that there are changes to one or more
interests to reflect the changes in their relative
assets presented in SoFP line item Investment of the above.
interests in the Subsidiary.
Property measured at fair value under NAS 40
The financial statements of subsidiaries
‘Investment Property’. 3.2.3 Investment in subsidiary
are included in the consolidated financial
Liabilities for employee defined benefit The Group has recognized Nabil Investment statements from the date that control
obligations and liabilities for long service leave Banking Ltd. as a Subsidiary company in commences until the date that control ceases.
presented in SoFP line item Other Liabilities which the Bank held 52% controlling interest Where Subsidiaries have been sold or acquired
measured at fair value under NAS 19 at the report date. Furthermore, the group during the year, assets, liabilities, income and
‘Employee Benefits’. has recognized Nepal Bangladesh Capital Ltd expenses of the said subsidiary are included in
and NBBL Securities Ltd., as a Subsidiary the consolidated financial statements from the
3.2 Basis of consolidation
company in which the Bank has held 100% date the Group gains control until the date the
The Group’s financial statements comprise controlling interest at the report date. There Group ceases to control the subsidiary.
consolidation of the financial statements of the has been no change in the Bank’s holding in
Bank and those of the following entities: the Subsidiary for the reporting period and the When necessary, adjustments are made to
previous comparative period. the financial statements of subsidiaries to
a. The Subsidiary, in accordance with NFRS
bring their accounting policies in line with the
10 – “Consolidated Financial Statements”; and Subsidiaries are investees that are controlled Group’s accounting policies. All intra-group
b. The proportionate share of the profit or loss by the Group. Control is achieved when the assets and liabilities, equity, income, expenses
and net assets of the Associate Company in Group is exposed, or has rights, to variable and cash flows relating to transactions
accordance with NAS – 28 “Investments in returns from its involvement with the investee between members of Group are eliminated in
Associates and Joint Ventures”. and has the ability to affect the returns of full on consolidation.
those investees through its power over the
3.2.1 Business combinations investee. Specifically, the Group controls an There are no significant restrictions on the
During the fiscal year 2078-79, the Bank has investee if, and only if, the Group has all of the ability of the subsidiaries to transfer funds
acquired erstwhile Nepal Bangladesh Bank following: to the Bank in the form of cash dividends or
Limited which was “A” class licensed financial repayment of loans and advances.
institution. Accounting for acquisition of Nepal power over the investee;
Bangladesh Bank Limited has been done as exposure or rights to variable returns from 3.2.4 Cost of acquisition
per NFRS 3 – Business Combination and its involvement with the investee; and The cost of acquisition of a Subsidiary is
Guidance Note on the same issued by ICAN measured as the fair value of the consideration,
the ability to use its power over the investee
dated July 31, 2022. including contingent consideration, given
to affect its returns.
on the date of transfer of title. The acquired
Generally, there is a presumption that a identifiable assets, liabilities and contingent
3.2.2 Non- controlling interests (NCI) majority of voting rights results in control. To liabilities are measured at their fair values
Non-controlling interest represent the support this presumption, and when the Bank at the date of acquisition. Subsequent to the
proportionate share of profit or loss and net has less than a majority of the voting or similar initial measurement, the Bank continues to
assets of the subsidiaries not owned directly rights of an investee, the Bank considers all recognize the investments in Subsidiary at
or indirectly by the Group. The non-controlling relevant facts and circumstances in assessing cost.
interest is presented in the consolidated whether it has power over an investee,
statement of financial position within equity, 3.2.5 Loss of control
including:
separately from the equity attributable to the On loss of control over a Subsidiary, the Group
derecognizes its assets and liabilities and any
3.4.4.2 Financial liabilities subsequently Where the Group’s management assesses On de-recognition of a financial asset, the
measured at amortized cost a reclassification as appropriate, it is done difference between the carrying amount of
prospectively from the reclassification date the asset (or the carrying amount allocated to
All other financial liabilities that are not
which is defined as the first day of the first the portion of the asset derecognized) and the
classified as FVTPL are classified as
reporting period following the change in sum of the consideration received (including
subsequently measured at amortized cost.
business model. The Group does not restate any new asset obtained less any new liability
The general substance of the contractual
any previously recognized gains, losses or assumed) and any cumulative gain or loss that
arrangement results in the Group having an
interest. had been recognized in other comprehensive
obligation:
income is recognized in profit or loss. Any
either to deliver cash or another financial Where financial asset is reclassified so that residual interest in transferred financial assets
asset to the holder; or it is ‘measured at fair value’, its fair value is that qualify for de-recognition that is created
determined at the reclassification date. Any or retained by the Group is recognized as a
to exchange financial assets or financial
gain or loss arising from the difference between separate asset or liability.
liabilities with the holder under conditions that
the previous carrying amount and fair value is
are potentially unfavorable to the Group; or Where there is the Group’s continuing
recognized in profit or loss.
to settle the obligation by delivering variable involvement that takes the form of
number of own equity instruments. Where financial asset is reclassified so that it guaranteeing the transferred asset, the extent
is ‘measured at amortized cost’, its fair value of the continuing involvement is measured
After initial recognition, such financial liabilities at the reclassification date becomes its new at the lower of the original carrying amount
are subsequently measured at amortized carrying amount. of the asset and the maximum amount of
cost using the effective interest rate method. consideration received by the Group and which
Amortized cost is calculated by taking into 3.4.6 De-recognition of financial assets it could be required to repay.
account any discount or premium on issuance and financial liabilities
and issuance costs that are an integral part of 3.4.6.2. De-recognition of financial
3.4.6.1 De-recognition of financial
the effective interest rate. liabilities
assets
The Group derecognizes a financial liability
The amortization is presented as interest The Group derecognizes a financial asset,
when its contractual obligations are discharged
expense in profit or loss. Gains or losses are or where applicable a part of financial asset
or cancelled or expired. Where an existing
also recognized in profit or loss when the or part of a group of similar financial assets,
financial liability is replaced by another from
liabilities are derecognized. when:
the same lender on substantially different
Total Committed Cash flow 1,967,169,476 3.19. Share capital and reserves
Interest Portion 74,253,378 Ordinary shares in the Bank are recognized
Lease Liability 1,892,916,098 at the amount paid per ordinary share.
Right of Use Assets (ROU) 1,713,666,161 Nabil Bank Ltd.’s shares are listed at Nepal
Addition during the year 309,085,309 Stock Exchange Ltd. The holders of ordinary
shares are entitled to one vote per share at
Gross Right of Use Assets (ROU) 2,022,751,470
general meetings of the bank and are entitled
Accumulated Depreciation – ROU (202,542,802) to receive the annual dividend payments.
Net Right of Use Assets (ROU) 1,820,208,668 The Bank does not have any other form of
Lease payment during the year 200,798,706 share capital (preference shares, convertible
instruments, share based payments, etc.) apart
As per NFRS 16 – Leases, if the lessee All non-monetary assets and liabilities held from the ordinary shares.
elects to apply this standard, the lessee shall at historical cost are translated at historical
There are a number of statutory and non-
recognize a lease liability at the date of initial exchange rates (rate prevailing at transaction
statutory reserve headings maintained by
application for leases previously classified date), and those held at fair value are
the Group in order to comply with regulatory
as an operating lease applying NAS 17 and translated at year-end exchange rate.
framework and other operational requirements.
Recognize a right-of-use asset at the date
The resulting exchange gains and losses The various reserve headings are explained
of initial application for leases previously
are recognized in profit or loss OR in other hereinafter:
classified as an operating lease applying NAS
comprehensive income. When gain or loss
17. Accordingly, the group has measured 3.19.1. General reserve
on a non-monetary item is recognized in
the lease liability at the present value of the
other comprehensive income, any exchange This is a statutory reserve under domestic
remaining lease payments, discounted using
component of that gain or loss is also banking regulations specified in NRB directive
the lessee’s incremental borrowing rate at the
recognized in other comprehensive income. no. 4/78. The Bank is required to appropriate
date of initial application.
Similarly, when gain or loss on a non-monetary a minimum 20% of current year’s net profit
item is recognized in profit or loss, any into this reserve heading each year until
In line with this requirement, previously
exchange component of that gain or loss is it becomes double of paid up capital and
recognized operating lease liability has been
also recognized in profit or loss. thereafter a minimum 10% of profit each year.
regrouped in to Lease liability and Right of Use
This reserve is not available for distribution
Assets.
3.18. Financial guarantee and loan to shareholders in any form and requires
3.17. Foreign currency transactions, commitment specific approval of the central bank for any
translation and balances Financial guarantees are contracts that require transfers from this heading. The Subsidiary
All foreign currency transactions are translated the Group to make specified payments to (Nabil Investment Banking Ltd. And Nepal
into the functional currency, which is Nepalese reimburse the holder for a loss that it incurs Bangladesh Capital Ltd) is also required to
Rupees, using the spot exchange rates because a specified debtor fails to make create a General reserve as per section 25(ka)
prevailing at respective transaction dates. All payment when it is due in accordance with the of Securities Business person (Merchant
foreign exchange gains and losses resulting terms of a debt instrument. Loan commitments Banker) Regulations, 2008 which mandates
from the settlement of such transactions are are firm commitments to provide credit under to allocate 10% of Net Profit as reserve for the
recognized in profit or loss. pre-specified terms and conditions. purpose of strengthening financial position and
managing institutional risk.
All monetary assets and liabilities denominated Liabilities arising from financial guarantees or
in foreign currencies are translated into the commitments to provide a loan at a below- 3.19.2. Exchange equalization reserve
functional currency by applying the year end market interest rate are initially measured This is a statutory reserve under domestic
exchange rates, and the resulting foreign at fair value and the initial fair value is banking regulations specified in NRB directive
exchange gains and losses are recognized in
amortized over the life of the guarantee or no. 4/78. The Bank is required to appropriate
profit or loss.
Debenture Redemption Reserve Employees training and capacity development in the current year will have to be transferred
fund to this reserve fund through appropriation of
This is a statutory reserve under domestic
net profit and the amount shall accumulate
banking regulations specified in NRB directive This is a statutory reserve under domestic
in the fund available for related expenses in
no.16/78. The Bank is required to maintain banking regulations specified in NRB directive
the subsequent year. Balance in this fund is
a redemption reserve in respect of borrowing no. 6/78. The Bank is required to incur
directly reclassified to retained earnings in
raised through debenture issuance. The reserve expenses towards employee training and
the subsequent year to the extent of expenses
has been maintained on two out of the three development for an amount that is equivalent
made for employees training related activities.
debenture issued by the bank. The following to at least 3% of the preceding year’s total
The following is the position of the reserve at
is the position of the reserve at the end of the salary and allowances. Any shortfall amount in
the end of the reporting period:
reporting period: meeting this mandatory expense requirement
Title Nabil Debenture 2082 Nabil Debenture 2085 Nabil Debenture 2085
Face Value NPR 1,000 per unit NPR 1,000 per unit NPR 1,000 per unit
Maturity Period 7 Years 7 Years 10 Years
Interest Rate 10% p.a 10% p.a 10.25% p.a
No. of Units Issued 2 million units 2.207 million units 2 million units
Date of Issue 15-Mar-20 25-Jul-21 4-Jul-19
Issue Size NPR 2 billion NPR 2.207 billion NPR 2 billion
Redemption Reserve NPR 666,666,667 Nil NPR 666,666,667
GROUP BANK
PARTICULARS
2079 ASHADH 32 2078 ASHADH 31 2079 ASHADH 32 2078 ASHADH 31
We Debit (203) -
We Credit 482 -
> 24 months - - - -
GROUP BANK
PARTICULARS
2079 ASHADH 32 2078 ASHADH 31 2079 ASHADH 32 2078 ASHADH 31
Other - - - -
GROUP BANK
PARTICULARS
2079 ASHADH 32 2078 ASHADH 31 2079 ASHADH 32 2078 ASHADH 31
Recoveries/Reversal - - - -
Balance at Asar end (end of the year) 136,545,286 113,293,208 136,545,286 113,293,208
GROUP BANK
PARTICULARS
2079 ASHADH 32 2078 ASHADH 31 2079 ASHADH 32 2078 ASHADH 31
Loans and Advances measured at Amortized Cost 307,876,072,448 201,959,189,441 307,876,072,448 201,959,189,441
Note: Collective Impairment reflect loan loss provision against loans graded pass and allocated 1.3% loss provision and Individual impairment reflect loan
loss provision against all other loans, ccategorized as per NRB Directive 2/078.
GROUP BANK
PARTICULARS
2079 ASHADH 32 2078 ASHADH 31 2079 ASHADH 32 2078 ASHADH 31
Products:
Demand and other Working Capital Loans 82,000,729,708 54,428,117,193 82,000,729,708 54,428,117,193
Interest Receivable on loans and advances to Customers 4,086,896,435 2,030,532,063 4,086,896,435 2,030,532,063
GROUP BANK
PARTICULARS
2079 ASHADH 32 2078 ASHADH 31 2079 ASHADH 32 2078 ASHADH 31
Indian Rupee - - -
Japanese Yen - - - -
Chinese Yuan - - - -
Other - - - -
161
[150,000 units @ NPR 100 paid up acquired from erstwhile NBBL]
NPR
2079 ASHADH 32 2078 ASHADH 31 (RESTATED) FAIR VALUATION
SECURITIES
COST FAIR VALUE COST FAIR VALUE HIERARCHY
3. Investments in Mutual Fund Units 1,020,908,942 1,039,103,991 528,007,920 757,379,466
3.1 Nabil Balance Fund 2
[16,800,000 units @ NPR 10 paid up] 168,000,000 181,104,000 168,000,000 236,880,000 Level 1 - MTM
Unit count of shares and mutual fund units presented in the above table are as of Jul 16, 2022. Cost and fair values presented are actual at respective reporting date.
Note: Asociate company obtained listing in the year 2075/76 and is recognized at cost in the Bank’s separate financial statements and at fair value (equity
method) in the Group’s financial statements.
167
4.13 Property and Equipment
NPR
BANK
PARTICULARS LEASEHOLD COMPUTER & FURNITURE EQUIPMENT & TOTAL ASAR TOTAL ASAR
LAND BUILDING VEHICLES MACHINERY
PROPERTIES ACCESSORIES & FIXTURES OTHERS END 2079 END 2078
Cost
Cost :
As on Shrawan 01, 2077 112,645,776 - - 112,645,776 112,645,776
Addition during the year 104,278,034 13,751,715 - - 118,029,749 13,751,715
Acquisition 13,751,715 - 13,751,715 13,751,715
Capitalization 104,278,034 - - - 104,278,034 -
Disposal during the year - - - - - -
Adjustment/Revaluation - 2,134,442 - - 2,134,442 2,134,442
Acquired during the year - 1,130,000 - - 1,130,000 -
Balance as on Asar end 2078 104,278,034 129,661,933 - - 233,939,967 128,531,933
Addition during the Year 65,875,689 84,624,998 - - 150,500,687 -
Acquisition - 84,624,998 - - 84,624,998 -
Capitalization 65,875,689 - - - 65,875,689 -
Disposal during the year - (56,143,652) - - (56,143,652) -
Adjustment/Revaluation - - - - - -
Acquired during the year - 54,225,313 - - 54,225,313
Balance as on Asar end 2079 170,153,724 212,368,592 - - 382,522,315 128,531,933
Depreciation and Impairment
As on Shrawan 01,2077 - 40,230,706 - - 40,230,706 40,534,876
Amortisation charge for the year - 22,926,028 - 22,926,028 15,287,591
Impairment for the year - - - - - -
Disposals - - - - - (2,991,675)
Adjustment - 3,260,442 - - 3,260,442 -
As on Asar end 2078 - 66,417,176 - - 66,417,176 52,830,792
Impairment for the year - - - - - 17,399,208
Depreciation charge for the year - 23,664,126 - - 23,664,126 -
Disposals - (52,861,985) - - (52,861,985) (17,703,378)
Acquired during the year - 50,773,647 - - 50,773,647 -
As on Asar end 2079 - 87,992,965 - - 87,992,965 52,526,622
Capital Work in Progress (Net Book Value) - - - - - -
As on Asar end 2078 104,278,034 63,244,757 - - 167,522,791
As on Asar end 2079 170,153,724 124,375,627 - - 294,529,350 -
Cost
As on Shrawan 01, 2077 - 109,893,904 - - 109,893,904 109,893,904
Addition during the year 104,278,034 16,851,177 - - 121,129,211 121,129,211
Acquisition - 16,851,177 - - 16,851,177 16,851,177
Capitalization 104,278,034 - - - 104,278,034 104,278,034
Disposal during the year - - - - - -
Adjustment/Revaluation - - - - - -
Balance as on Asar end 2078 104,278,034 126,745,081 - - 231,023,115 231,023,115
Addition during the Year 65,875,689 82,312,167 - - 148,187,856 -
Acquisition - 82,312,167 - - 82,312,167 -
Capitalization 65,875,689 - - - 65,875,689 -
Disposal during the year - (56,143,652) - - (56,143,652) -
Adjustment/Revaluation - - - - - -
Acquired during the year - 53,406,063 - - 53,406,063
Balance as on Asar end 2079 170,153,724 206,319,659 - - 376,473,382 231,023,115
Depreciation and Impairment
As on Shrawan 01,2077 - 38,144,089 - - - 38,144,089
Amortisation charge for the year - 22,688,015 - - 14,884,251 22,688,015
Impairment for the year - - - - 22,688,015 -
Disposals - - - - (1,709,770) -
Adjustment - - - - - -
Acquired during the year - 3,260,442 - - - -
As on Asar end 2078 - 64,092,546 - - 60,832,104
Impairment for the year - 23,189,622 - - 23,189,622 -
Depreciation charge for the year - - - - - -
Disposals - (52,861,985) - - - -
Acquired during the year - 50,332,476 - - - -
As on Asar end 2079 - 84,752,659 - - 84,752,659 60,832,104
Capital Work in Progress (Net Book Value) - - - - - -
As on Asar end 2078 104,278,034 62,652,535 - - - 166,930,570
As on Asar end 2079 170,153,724 121,566,999 - - 291,720,723 -
Note: Deferred tax is calculated on a stand alone basis for the Bank and the Subsidiary and has not been netted off at a Group Level.
Investment Properties - - - - - -
Deferred tax on temporary differences 37,094,568 (7,895,627) 29,198,941 250,777,831 (2,029,281,948) (1,778,504,117)
Net Deferred Tax Asset / (Liabilities) as on year end of 2079 29,198,941 (1,778,504,117)
Note: Deferred tax is calculated on a stand alone basis for the Bank and the Subsidiary and has not been netted off at a Group Level.
4.16 Other Assets
NPR
GROUP BANK
PARTICULARS
2079 ASHADH 32 2078 ASHADH 31 2079 ASHADH 32 2078 ASHADH 31
Assets held for Sale - - - -
Other Non-Banking Assets - - - -
Bills Receivable - - - -
Accounts Receivable 496,229,382 491,179,495 471,976,857 408,174,785
Accrued Income - - - -
Prepayments and Deposits 265,032,896 337,311,729 263,595,467 336,095,655
Income Tax Deposit 199,853,692 96,928,942 199,853,692 96,928,942
Deferred Employee Expenditure 2,846,751,500 1,744,955,366 2,846,751,500 1,744,955,366
Other Assets 2,530,637,199 949,299,050 2,514,372,424 948,587,970
Total 6,338,504,669 3,619,674,582 6,296,549,940 3,534,742,718
4.21 Borrowings
NPR
GROUP BANK
PARTICULARS
2079 ASHADH 32 2078 ASHADH 31 2079 ASHADH 32 2078 ASHADH 31
Domestic Borrowings
Nepal Government - - - -
Other Institutions 8,103,106,849 - 8,103,106,849
Other - - - -
Sub Total 8,103,106,849 - 8,103,106,849 -
Foreign Borrowings
Foreign Banks and Financial Institutions 2,617,623,322 - 2,617,623,322 -
Multilateral Development Banks - - - -
Other Institutions - - - -
Sub Total 2,617,623,322 - 2,617,623,322 -
Total 10,720,730,171 - 10,720,730,171 -
4.27 Reserves
NPR
GROUP BANK
PARTICULARS
2079 ASHADH 32 2078 ASHADH 31 2079 ASHADH 32 2078 ASHADH 31
Statutory general reserve 12,628,794,796 8,259,126,407 12,624,322,355 8,259,126,407
Exchange equilisation reserve 752,112,612 648,300,000 752,112,612 648,300,000
Corporate social responsibility reserve 90,724,131 65,913,670 90,391,687 65,913,670
Capital redemption reserve - - - -
Regulatory reserve 2,428,335,793 1,107,646,326 2,428,335,793 1,107,646,326
Investment adjustment reserve 5,580,742 5,580,741 5,580,742 5,580,741
Capital reserve 120,061,832 676,542,520 120,061,832 676,542,520
Assets revaluation reserve 560,136,025 47,911,831 560,136,025 47,911,831
Fair value reserve 3,568,817,601 4,434,973,381 3,582,405,352 4,434,973,381
Dividend equalisation reserve - - - -
Actuarial Gain / (Loss) on DBP (47,962,439) (70,377,172) (47,962,439) (70,377,172)
Special reserve 5,141,156 5,141,156 5,141,156 5,141,156
Other reserve 7,141,799,260 674,116,524 7,128,593,428 663,398,177
Total 27,253,541,510 15,854,875,384 27,249,118,543 15,844,157,037
4.28.5 Litigation
The Bank is in dispute with Large tax Payers Office (LTPO) over certain cases of additional tax demanded by LTPO over and above the amounts
declared by the Bank. These cases relate to tax returns filed by the Bank under self-assessment system for annual income years from FY 2063/64
(2006-07) to FY 2073/74 (2016-17). The cumulative incremental tax demand in respect of all these periods is NPR 187 million along with fines
plus interest surcharge of NPR 176 million. Year specific cases are at different stages of legal resolution as per tax administrative proceedings
prescribed in the Income Tax Act of Nepal.
Note: Interest income presented under loans and advances to customer is inclusive of interest income on loans and advances to BFIs.
Note: Interest expense presented under deposits from customers also includes interest expense on deposits from BFIs.
BANK
PARTICULARS
2079 ASHADH 32 2078 ASHADH 31
Opening balance in retained earnings 4,162,928,789 3,576,422,832
Bonus shares issued during the year (4,125,664,492) (3,382,661,629)
CSR Fund expense (178,034,823)
UFL Reserves adjustment (3,483,300) 76,853,205
RE added from NBB (639,314,207) -
Net distributable profit out of current year profits 3,505,077,776 4,070,349,204
Total Balance in retained earnings available for distribution 2,899,544,566 4,162,928,789
PARTICULARS INDICATORS
2017/18 2018/19 2019/20 2020/21 2021/22
3 Market Value per Share NPR 921 800 765 1,359 824
5 Dividend (including bonus) on share capital % 34.00 34.00 35.26 38.00 30.00
7 Interest Income / Loans and Advances % 11.36 11.41 10.98 9.37 10.28
8 Employee Expense / Total Operating Expense % 22.96 17.65 15.80 24.73 14.02
9 Interest Expense on Total Deposit and Borrowings % 4.04 4.96 5.39 4.35 5.77
11 Staff Bonus / Total Employee Expenses % 36.38 34.43 28.17 20.37 26.27
12 Net Profit / Loans and Advances % 3.99 3.38 2.33 2.49 1.88
15 Total Operating Expenses / Total Assets % 4.93 5.49 5.80 5.22 5.33
18 Non Performing Loans / Total Loans % 0.55 0.74 0.98 0.84 1.57
20 Weighted Average Interest Rate Spread % 4.48 4.19 3.51 3.31 2.75
21 Book Net Worth per Share NPR 256 257 256 251 232
30 Total Assets to Shareholders’ Fund times 7.41 8.67 9.19 8.60 7.92
31 Shareholders’ Fund to Liability including Contingent Liability % 11.26 9.80 9.07 9.88 12.51
5.1 Risk management has been effective in practical application structure with well-defined transparent and
of the principles of good risk governance in consistent lines of responsibility.
Effective risk management has been the
the identification, evaluation, measurement, Risk culture: Promotion of strong risk
key to the Bank’s success over the years
monitoring and mitigation of risks across all culture that support and provides
and it is integral to the Bank’s long term
functional areas of the organization. appropriate standard and incentive for
business sustainability. The Bank’s risk
management objective is to strike balance The Bank follows following principles to professional and responsible behavior.
between risk and return towards delivering manage risks in the organization: Risk policies and process: Implementation
optimum risk-adjusted return on capital over Risk appetite and strategy: Establishment of of policies to ensure that risk management
a longer time horizon. Towards achieving this risk appetite statement and strategy which practices and process are effective at
objective, the Bank has implemented robust articulates the nature, type and level of risk all levels and execution of sound risk
risk management architecture as well as the Bank is willing to assume. management process to actively identify,
policies and processes approved by its board Capital management: Capital management measure, control, monitor and report risk
of directors. These encompass identification, is driven by Bank’s strategic objective and inherent in all products activities, process,
measurement and mitigation of risks across accounts for the regulatory, economic and systems and exposure.
various facets of banking operations. commercial environment in which the Bank Risk management infrastructure:
operates. Ensure sufficient resources and systems
5.1.1 Risk Governance Framework
Governance and oversight: Proper infrastructures are in place to enable
The Bank follows three lines of defenses model governance and oversight through a effective risk management.
in its risk governance framework. This model clear, effective and robust governance
BOARDS OF DIRECTORS
To Facilitate Risk Management Bank has Following Risk Organizational Structure in Place:
BOARDS OF DIRECTORS
Detailed information about the Subordinated Term Debts with information on the outstanding amount, maturity, amount raised during the year
and amount eligible to be reckoned as capital funds:
Title Nabil Debenture 2082 Nabil Debenture 2085 NBBL Debenture 2085
Face Value NPR 1,000 per unit NPR 1,000 per unit NPR 1,000 per unit
No. of Units Issued 2 million units 2.207 million units 2 million units
The amount of debenture outstanding netted off by the amount of debenture redemption reserve is included in Tier II capital. The debenture
redemption reserve of NPR 1.33 billion is eligible for inclusion under Tier I Capital.
PERCENTAGE
CAPITAL ADEQUACY RATIOS
NABIL BANK NABIL GROUP
Common Equity Tier 1 Ratio 10.77% 10.88%
Core Capital Ratio – Tier I 10.77% 10.88%
Total Capital Ratio – Tier I + Tier II 13.09% 13.19%
While emanating businesses in the bank, annual budget formulation process. Total risk
Summary of the Bank’s internal approach to
principles of risk, return, capital charge and weighted exposures for the projected level of
assess the adequacy of its capital to support
return against capital consumption (charge) are business is calculated, the required capital
current and future activities, if applicable:
taken into account. The bank also defines risk level is projected, and a plan is formulated to
Nabil Bank adopts robust risk management aspects, taking stock of domestic economic retain the required capital.
framework. The Bank’s policies and scenario, and puts in place the system to
Ever since its establishment, the Bank has
procedures that guides on management of minimize and remove such risk. The risk
been able to generate and retain substantial
risk are approved by the Board of Directors. appetite and approach towards risk taking is
earnings in order to ensure adequate capital
These documents guide on independent well discussed in management level and board
formation, as required for its business growth.
identification, measurement and management level. It is always aligned with the business, its
The Bank is well capitalized and able to
of risks across various businesses. return and capital.
maintain the required capital through internal
The Bank follows Internal Capital Adequacy Basel disclosures have been complied with, generation, and equally through capital
Assessment Process (ICAAP) and Risk addressing the risks and adopting measures to markets if needed.
Management Guideline while taking decision minimize their impact. Increasing complexities
Summary of the terms, conditions and main
on any business. It has always taken note in risks, vulnerabilities of businesses and fast
features of all capital instruments, especially
of ICAAP and has taken steps accordingly in changing world with intense competition pose
in case of subordinated term debts including
ensuring soundness of capital position and a threat to sustainability. The Bank, in order to
hybrid capital instruments.
sustainability of the business. Bank’s different address the varieties of risk that keep coming
committees like Audit Committee, Risk out of business operations, has identified The Bank has not raised any capital through
Management Committee review the business different risks and adopted different measures hybrid capital instruments.
and risks periodically and take account of to minimize them.
stress test results, scenario analysis so as to Information on the terms, conditions and main
align risk, return and capital in sustainable Capital planning is an integral part of the features of debenture issued by the Bank is
manner. Bank’s medium term strategic planning and stated in the preceding Note 5.2.2.1.
AMOUNT
RISK WEIGHTED EXPOSURES
NABIL GROUP
Note: These tables are presented as per the Capital Adequacy Framework 2015 under NRB Directive No. 1.
211
Credit Risk
215
foreign counerparty (ECA Rating: 2) - - - - - - - - - -
Credit Risk Mitigation
As at 16 July 2022
NPR
DEPOSITS G’TEE OF SEC/G’TEE OF G’TEE OF G’TEE
DEPOSITS GOVT. & NRB SEC/G’TEE OF
WITH OTHER GOLD GOVT. OF OTHER DOMESTIC OF TOTAL
CREDIT EXPOSURES WITH BANK SECURITIES FOREIGN BANKS
BANKS/ FIS NEPAL SOVEREIGNS BANKS MDBS
Note: These tables are presented as per the Capital Adequacy Framework 2015 under NRB Directive No. 1.
Operations Risk
As at 16 July 2022
NPR
NOTES:
Year 1 = FY 2075/076
Year 2 = FY 2076/077
Year 3 = FY 2077/078
Note: These tables are presented as per the Capital Adequacy Framework 2015 under NRB Directive No. 1
Note: These tables are presented as per the Capital Adequacy Framework 2015 under NRB Directive No. 1.
Financial Assets :
5.4 Operating Segment Information for offices and business units located in a trade finance operations are reported under
the Bank particular province are grouped together. financial intermediation.
All transactions between the units are Treasury Operations: The Bank’s entire
5.4.1 General Information
conducted on arm’s length basis, with intra investment book and foreign currency
(a) Factors that management used to identify unit revenue and cost being nullified at the operations comes under treasury
the entity’s reportable segments bank level. operations. Treasury is responsible for
The Bank has adopted “Management overall liquidity management, open market
(b) Description of the types of products and
Approach” for identifying the operating operations and investment portfolio.
services from which each reportable
segments i.e. seven segments based on segment derives its revenues Trade Finance Operations: The Bank’s
the geographic locations of its offices in entire trade finance operations like LC,
the 7 provinces of the country. Interest The products and services offered by the Bank Guarantee are handled by trade finance.
earnings and foreign exchange gains/losses can be broadly divided into the following Cards, e-banking and alternate channels:
generated while conducting businesses categories: All the debit and credit card issuance,
under different segments are reported merchant relationships, e-banking,
Financial Intermediation: The core business
under the respective segment. Equity m-banking and ATM management are
of deposit mobilization and lending
and Tax Expense are not allocated to the reported here.
activities along with other auxiliary banking
individual segments. For segmentation
services other than treasury, cards and
purpose, all business transactions of
5.4.4 Reconciliations of reportable segment revenues, profit or loss, assets and liabilities
a. Revenue NPR
PARTICULARS AMOUNT
Total Revenues for reportable segments 58,489,024,978
Other Revenues -
Elimination of intersegment revenues (32,120,902,258)
Entity’s Revenues 26,368,122,721
PARTICULARS AMOUNT
Total profit or loss for reportable segments 6,986,180,485
Other profit or loss (staff bonus) -
Elimination of intersegment profits
Unallocated amounts: (698,618,048)
Profit before income tax 6,287,562,436
c. Assets NPR
PARTICULARS AMOUNT
Total assets for reportable segments 419,818,100,950
Other assets -
Unallocated amounts
Entity’s assets 419,818,100,950
PARTICULARS AMOUNT
Total liabilities for reportable segments 366,836,353,657
Other liabilities -
Unallocated amounts
Entity’s liabilities 366,836,353,657
Note:
5.4.7 Information about major 5.6 Contingent liabilities and in irrevocable commitments and contingent
customers commitment liabilities to the Group. These consist of
There is no concentration in revenue Contingent Liabilities are possible obligations financial guarantees, letter of credit and other
generation of the Group or the Bank to such whose existence will be confirmed only by undrawn commitments to lend. Guarantees,
extent that the revenue from a single external uncertain future events or present obligations Letters of Credit and Acceptances under
customer amounts to 10 percent or more of where the transfer of economic benefits is Letters of Credit commits the Group to make
the Group’s or the Bank’s revenue. not probable or cannot be reliably measured. payments on behalf of customers in the event
The Group applies NAS 37 - “Provisions, of a specific act, generally related to trade
5.5 Share options and share based Contingent Liabilities and Contingent Assets” transactions and performance under contracts.
payment in accounting of contingent liabilities and They carry a similar credit risk to loans.
The Group did not have any share options commitments.
In the normal course of business, the Group
or share-based payment transactions in
To meet the financial needs of customers, the makes various irrevocable commitments
the reporting period or the earliest period
Group enters into various contracts that result and incurs certain contingent liabilities with
presented in this financial statements.
All board of directors are non-executive directors. The directors are entitled to meeting fees on attending board and board committee meetings as
well as monthly allowances to cover for expenses towards communication and periodicals.
5.7.3 Transactions and agreements involving KMP and their Close Family Members (CFM)
CFMs of a KMP are those family members who may be expected to influence, or be influenced by, that KMP in their dealings with the Group. They
may include KMP’s spouse and children, children of the KMP’s spouse and dependents of the KMP or of the KMP’s spouse. CFM are related parties
to the Bank and the Group.
For the reported period there have been no payments or transactions with CFM of KMP except in the normal course of banking business like loans,
deposits and interest on the same, both for the Bank and the Group.
Total - - - -
(b) The net of the acquisition-date amounts equity interest of the acquirer by considering represents the expected synergies and other
of the identifiable assets acquired and the the business valuation of acquiree computed benefits arising from combining the businesses.
liabilities assumed measured in accordance based on Due Diligence Audit carried out by The assets and liabilities of the acquiree has
with this NFRS. professional experts that has been approved been recognized in fair value and the details
by AGM of the both acquirer and acquiree can be observed in the financial statements of
Accordingly, as per the standard goodwill has for the purpose of computing swap ratio. The the acquire as of acquisition date.
been recognized for the excess of the value excess of consideration paid by the acquirer
derived as per (a) over (b). Similarly, Accounting for acquisition of
erstwhile United Finance Company Limited
Goodwill/Gain on Bargain Purchase at acquisition date
(acquired in previous Fiscal Year) has also
PARTICULARS AMOUNT (NPR) been recognized by restating the financial
statement of the previous year as per
Consideration Transferred (A) (43,367,218.87 no of shares * NPR 373.09) 16,179,875,689.48
NFRS – 3 Business Combination along with
Fair Value of Net Identifiable Assets (B) 16,114,000,000.00
considering the explanatory notes prescribed
Good Will/Gain on Bargain Purchase (A-B) 65,875,689.48 by The Institute of Chartered Accountants of
Nepal (ICAN) by recognizing Goodwill of NPR
Goodwill has been measured in a business over the business value of the acquiree has
104,278,034.22 and the details of such
combination effected through exchange of been considered as goodwill because it
recognition has been stated below:
5.9 Additional disclosures of non- 15 days after the year-end date. Further has recommended distribution of 11.50%
consolidated entities adjustment to interest income has been made cash dividend and 18.50% stock dividend
for refund to customers of NPR 470 million. (bonus shares) for the annual period ending
The Group does not have any non-consolidated
July 16, 2022 to be put up for approval at
entities to report for the reporting period and in 5.10.2 Merger between subsidiaries the upcoming shareholders’ annual general
the comparative previous period.
The merger between two subsidiaries of the meeting of the Bank. The equivalent amount
5.10 Events after reporting date bank namely Nabil Investment banking limited thus recommended for distribution would
and Nepal Bangladesh Capital Limited is in be NPR 6,849,872,589.60 that includes
5.10.1 Recognition of interest income NPR 2,625,784,492.68 in cash payout
initial phase and is planned to be completed
The Bank has availed the facility in NRB within next reporting period. and NPR 4,224,088,096.92 in bonus
Directive 4/78 that allows licensed institutions shares. The same are to be paid out of NPR
to recognize in distributable profit for the year 5.10.3 Proposed dividend 4,223,912,541.92 from capital adjustment
such interest income on loans and advance to reserve, NPR 175,555.00 from securities
The 615th meeting of the board of directors
customers that stood accrued at year end but premium, NPR 2,625,784,492.68 from
of the bank held on December 11, 2022
was subsequently recovered in cash within retained earnings.
GROUP BANK
CURRENT YEAR PREVIOUS YEAR CORRESPONDING CURRENT YEAR PREVIOUS YEAR CORRESPONDING
PARTICULARS
GROUP BANK
CURRENT YEAR PREVIOUS YEAR CORRESPONDING CURRENT YEAR PREVIOUS YEAR CORRESPONDING
PARTICULARS
THIS UPTO THIS THIS UPTO THIS THIS UPTO THIS THIS UPTO THIS
QUARTER QUARTER (YTD) QUARTER QUARTER (YTD) QUARTER QUARTER (YTD) QUARTER QUARTER (YTD)
Profit /(Loss) For the Period 1,598,084 5,039,181 917,943 4,668,476 1,620,713 4,972,756 847,683 4,527,553
Other Comprehensive Income 50,266 (1,336,209) 323,649 2,111,314 91,534 (1,294,940) 323,649 2,111,314
Total Comprehensive Income 1,648,350 3,702,972 1,241,591 6,779,790 1,712,247 3,677,815 1,171,332 6,638,867
Basic Earnings Per Share 27.16 34.62 26.80 33.57
Diluted Earnings Per Share 27.16 34.62 26.80 33.57
Profit Attributable To:
Equity holders of the Bank 1,649,999 3,675,199 1,207,867 6,711,286 1,712,247 3,677,815 1,171,332 6,638,867
Non - controlling interest (1,650) 27,774 33,725 68,504 - - - -
5.12 Comparison of unaudited and audited financial statements
For the period ended 32 Ashadh 2079 (Jul 16, 2022)
NPR
VARIANCE
STATEMENT OF FINANCIAL POSITION UN-AUDITED AUDITED REASON FOR VARIANCE
AMOUNT %
Assets
Cash and Cash Equivalents 9,319,810,167 11,051,539,126 1,731,728,959 18.58% Regrouping of Money at Call from
Placement with Banks and FIs to
Cash and Cash Equivalents
Due from Nepal Rastra Bank 13,007,769,444 13,037,239,444 29,470,000 0.23% Regrouping of CSB receivables from
Investment Securities
Placement with Banks and FIs 10,602,624,200 8,870,895,241 (1,731,728,959) -16.33% Regrouping of Money at Call from
Placement with Banks and Fis to
Cash and Cash Equivalents
Derivative Financial Instruments 1,373,614,068 1,373,614,068 - 0.00%
Other Trading Assets - 29,728,860 29,728,860 0.00% Regrouping of Trading Assets of
erstwhile NBB from Investment
Securities
Loans and Advances to Banks and FIs 10,366,938,262 10,366,938,262 - 0.00%
Loans and Advances to Customers 301,073,089,098 300,205,652,927 (867,436,171) -0.29% Reassessment of fair value of staff
loans and additional provisioning
Investment Securities 61,681,087,763 62,455,044,394 773,956,631 1.25% FVTOCI investments updated per
balance confirmation from investee
companies
Current Tax Assets 422,679,325 606,480,035 183,800,710 43.48% Effect of changes in current tax
expense
Investment in Subsidiaries 298,000,000 298,000,000 - 0.00%
Investment in Associates 80,000,000 80,000,000 - 0.00%
Investment Property 930,730,233 1,318,597,583 387,867,350 41.67% Recognition of investment property
as per NFRS 3
Property and Equipment 3,137,963,466 3,536,100,347 398,136,881 12.69% Revaluation of property and
equipment as per NFRS 3
Goodwill and Intangible Assets 124,960,999 291,720,723 166,759,724 133.45% Recognition of goodwill as per
NFRS 3
Deferred Tax Assets - - - 0.00%
Other Assets 3,750,974,149 6,296,549,940 2,545,575,791 67.86% Recognition of Right of Use (RoU)
assets under NFRS 16 - Leases,
regrouping, netting and fair value
measurement effect
Total assets 416,170,241,174 419,818,100,950 3,647,859,776 0.88%
VARIANCE
STATEMENT OF FINANCIAL POSITION UN-AUDITED AUDITED REASON FOR VARIANCE
AMOUNT %
Capital and Liabilities
Due to Banks and FIs 3,353,609,544 3,353,609,544 - 0.00%
Due to Nepal Rastra Bank 4,657,437,355 4,657,437,355 - 0.00%
Derivative Financial Instruments 1,390,736,904 1,390,736,904 - 0.00%
Deposits from Customers 326,222,310,372 326,222,310,372 - 0.00%
Borrowings 10,720,730,171 10,720,730,171 - 0.00%
Current Tax Liabilities - - - 0.00%
Provisions - - - 0.00%
Deferred Tax Liabilities 1,490,389,180 1,778,504,118 288,114,938 19.33% Remeasurements
Other Liabilities 9,252,646,495 12,228,181,442 2,975,534,947 32.16% Recognition of Lease Liability of 2
bio and regrouping, netting and fair
value measurement effect
Debt Securities Issued 6,498,688,989 6,484,843,749 (13,845,240) -0.21% Recognition of unamortised
debenture issuance cost
Subordinated Liabilities - - - 0.00%
Share Capital 22,832,908,632 22,832,908,632 - 0.00%
Share Premium 175,555 175,555 - 0.00%
Retained Earnings 3,371,421,980 2,899,544,565 (471,877,414) -14.00% Appropriation to reserves from
current year profit effected in
Audited
Reserves 26,379,185,997 27,249,118,543 869,932,546 3.30% Appropriation to reserves from
current year profit effected in
Audited
Total Capital and Liabilities 416,170,241,174 419,818,100,950 3,647,859,777 0.88%
Assets
Cash and Cash Equivalents 25,239,498 11,051,539 (14,187,959) -56.21% Actual deposit volume lower than projected
Due from Nepal Rastra Bank 9,298,763 13,037,239 3,738,476 40.20% Actual deposit volume higher than projected
Placement with Banks and FIs 11,603,523 8,870,895 (2,732,628) -23.55% Actual deposit volume lower than projected
Derivative Financial Instruments 10,859,598 1,373,614 (9,485,984) -87.35% Actual business volume lower than
projected
Other Trading Assets - 29,729 29,729 0.00%
Loans and Advances to Banks and FIs 8,188,424 10,366,938 2,178,514 26.60% Actual business volume higher than
projected
Loans and Advances to Customers 217,284,951 300,205,653 82,920,702 38.16% Actual business volume higher than
projected
Investment Securities 44,321,052 62,455,044 18,133,992 40.92% Actual business volume higher than
projected
Current Tax Assets 445,313 606,480 161,167 36.19% Actual business volume higher than
projected
Investment in Subsidiaries 78,000 298,000 220,000 282.05% Due to the addition of nepal bangladesh
capital and NBBL securities
Investment in Associates 80,000 80,000 - 0.00%
Investment Property 8,219 1,318,598 1,310,379 15943.28% Actual Purchase higher than projected
Property and Equipment 1,862,787 3,536,100 1,673,313 89.83% Actual Purchase higher than projected
Goodwill and Intangible Assets 98,041 291,721 193,680 197.55% Due to the acquisition of Erstwhile NBBL
and Erstwhile UFL
Deferred Tax Assets - - - 0.00%
Other Assets 3,211,661 6,296,550 3,084,889 96.05% Actual receivable higher than projected
Total assets 332,579,830 419,818,101 87,238,271 26.23%
Particulars
Interest Income 20,631,810 23,340,747 2,708,937 13.13% Higher income earned than projected
Interest Expense 12,406,665 14,421,876 2,015,211 16.24% Higher Expenses than projected
Net Interest Income 8,225,145 8,918,871 693,726 8.43%
Fee and Commission Income 1,842,332 2,043,274 200,942 10.91% Higher fees and commission income earned
than projected
Fee and Commission Expense 86,991 464,376 377,385 433.82% Higher fees and commission Expenses than
projected
Net Fee and Commission Income 1,755,341 1,578,898 (176,443) -10.05%
Net Interest, Fee and Commisson
Income 9,980,486 10,497,770 517,284 5.18%
Net Trading Income 629,810 564,990 (64,820) -10.29% Lower trading income than projected
Other Operating Income 461,840 410,410 (51,430) -11.14% Lower other operating income than
projected
Total Operating Income 11,072,136 11,473,170 401,034 3.62%
Impairment Charge/ (Reversal) for 653,457 1,118,823 465,366 71.22% Lower reversal of loan than projected
Loans and Other Lossess
Net Operating Income 10,418,679 10,354,347 (64,332) -0.62%
Operating Expense -
Personnel Expenses 2,446,738 2,658,925 212,187 8.67% Higher expenses than projected
Other Operating Expenses 1,268,489 1,023,800 (244,689) -19.29% Lower expenses than projected
Depreciation & Amortisation 135,443 390,030 254,587 187.97% Higher Purchase than projected
Operating Profit 6,568,009 6,281,591 (286,418) -4.36%
Non Operating Income 4,902 8,702 3,800 77.51% Higher non operating income than projected
Non Operating Expense 2,882 2,730 (152) -5.26% Lower non operating expenses than
projected
Profit Before Income Tax 6,570,029 6,287,562 (282,467) -4.30%
Income Tax Expense -
Current Tax 1,971,009 1,940,232 (30,777) -1.56% Effect of ther variance in current tax
Deferred Tax - 91,307 91,307 0.00% Effect of ther variance in Deffered tax
Profit/(loss) for the period 4,599,020 4,256,024 (342,996) -7.46%
Accrued Interest Received after Asadh end 2079 till 15 Shrawan 2079 20,484 468,945,099
Extension of moratorium period of loan provided to Industry or Project under construction 11 644,706,875
Restructured/Rescheduled Loan with 5% Loan Loss Provision 727 5,960,407,523
Enhancement of Working Capital Loan by 20% to COVID affected borrowers 6 41,625,000
Enhancement of Term Loan by 10% to COVID affected borrowers - -
Expiry Date of Additional 20% Working Capital Loan (COVID Loan) extended for upto 1 year with 5%
provisioning - -
Expiry Date of Additional 10% Term Loan (COVID Loan) extended for upto 1 year with 5% provisioning - -
Time Extension provided for repayment of Principal and Interest for upto two years as per clause 41 of NRB
Directives 2 10 190,696,043
Reserves NPR
Sandip Babu Paudel Manoj K. Gyawali Gyanendra Prasad Dhungana Upendra Prasad Poudyal Nirvana Chaudhary CA Gyanendra B. Bhari
Head - Finance DCEO- Finance & HR Chief Executive Officer Board Chairman Board Vice Chairman Partner
BRS & Company,
Chartered Accountants
Malay Mukherjee Asha Rana Adhikary Ananta Poudyal Pravin Tibrewala A.R.M.Nazmus Sakib
Board Member Board Member Board Member Board Member Board Member
Sandip Babu Paudel Manoj K. Gyawali Gyanendra Prasad Dhungana Upendra Prasad Poudyal Nirvana Chaudhary CA Gyanendra B. Bhari
Head - Finance DCEO- Finance & HR Chief Executive Officer Board Chairman Board Vice Chairman Partner
BRS & Company,
Chartered Accountants
Malay Mukherjee Asha Rana Adhikary Ananta Poudyal Pravin Tibrewala A.R.M.Nazmus Sakib
Board Member Board Member Board Member Board Member Board Member
Sandip Babu Paudel Manoj K. Gyawali Gyanendra Prasad Dhungana Upendra Prasad Poudyal Nirvana Chaudhary CA Gyanendra B. Bhari
Head - Finance DCEO- Finance & HR Chief Executive Officer Board Chairman Board Vice Chairman Partner
BRS & Company,
Chartered Accountants
Malay Mukherjee Asha Rana Adhikary Ananta Poudyal Pravin Tibrewala A.R.M.Nazmus Sakib
Board Member Board Member Board Member Board Member Board Member
NPR
GROUP
GROUP
ATTRIBUTABLE TO EQUITY HOLDERS OF THE BANK
NON-
EXCHANGE
PARTICULARS SHARE SHARE GENERAL REGULATORY FAIR VALUE REVALUATION RETAINED OTHER CONTROLLING TOTAL EQUITY
EQUALISATION TOTAL
CAPITAL PREMIUM RESERVE RESERVE RESERVE RESERVE EARNING RESERVE INTEREST
RESERVE
Share based payments - -
Dividends to equity holders: - -
Bonus Shares issued (509,006,900) (509,006,900) (509,006,900)
Cash Dividend Paid (206,836,747) (206,836,747) (206,836,747)
Other (3,954,129) (160,197) (4,114,326)
Total contributions by and
distributions 509,006,900 101,555 441,660,867 1,899,531 68,659,895 395,924,194 - 657,472,320 333,322,092 2,408,047,354 2,412,161,680
Balance as at Ashad End, 2078 9,004,821,193 101,555 3,302,496,828 71,078,009 497,867,213 496,109,029 - 1,504,255,804 634,907,801 15,511,637,434 - 15,511,637,434
Balance as at Shrawan 1, 2078 9,004,821,193 101,555 3,302,496,828 71,078,009 497,867,213 496,109,029 - 1,504,255,804 634,907,801 15,511,637,434 - 15,511,637,434
Adjustment/Restatement
Adjusted Restated Balance at
Sawan 1, 2078 9,004,821,193 101,555 3,302,496,828 71,078,009 497,867,213 496,109,029 - 1,504,255,804 634,907,801 15,511,637,434 - 15,511,637,434
Comprehensive Income for
the year
Profit for the year 951,769,385 951,769,385 951,769,385
Other Comprehensive income,
net of tax - -
Gains/(losses) from investments
in equity instruments measured
at fair value (275,145,409) (275,145,409) (275,145,409)
Gains/(losses) on revaluation - -
Actuarial gains/(losses) on
defined benefit plans - - -
Gains/(losses) on cash flow
hedge - -
Exchange gains/(losses) (arising
from translating financial assets
of foreign operation) - -
Total comprehensive income for
the year - -
GROUP
ATTRIBUTABLE TO EQUITY HOLDERS OF THE BANK
NON-
EXCHANGE
PARTICULARS SHARE SHARE GENERAL REGULATORY FAIR VALUE REVALUATION RETAINED OTHER CONTROLLING TOTAL EQUITY
EQUALISATION TOTAL
CAPITAL PREMIUM RESERVE RESERVE RESERVE RESERVE EARNING RESERVE INTEREST
Sandip Babu Paudel Manoj K. Gyawali Gyanendra Prasad Dhungana Upendra Prasad Poudyal Nirvana Chaudhary CA Gyanendra B. Bhari
Head - Finance DCEO- Finance & HR Chief Executive Officer Board Chairman Board Vice Chairman Partner
BRS & Company,
Chartered Accountants
Malay Mukherjee Asha Rana Adhikary Ananta Poudyal Pravin Tibrewala A.R.M.Nazmus Sakib
Board Member Board Member Board Member Board Member Board Member
BANK
PARTICULARS EXCHANGE
SHARE SHARE GENERAL REGULATORY FAIR VALUE REVALUATION RETAINED OTHER
EQUALISATION TOTAL
CAPITAL PREMIUM RESERVE RESERVE RESERVE RESERVE EARNING RESERVE
RESERVE
Balance as at Shrawan 1, 2077 8,495,814,295 - 2,860,835,960 69,178,478 429,207,318 98,573,540 - 841,639,256 301,425,512 13,096,674,359
Adjustment/Restatement -
Adjusted Restated Balance at Shrawan 1, 2077 8,495,814,295 - 2,860,835,960 69,178,478 429,207,318 98,573,540 841,639,256 301,425,512 13,096,674,359
Gains/(losses) on revaluation -
Transfer to reserve during the year 101,555 437,188,426 1,899,531 68,659,895 - (759,798,111) 252,050,260 101,555
Transfer from the reserve during the year - (81,278,309) 81,084,786 (193,523)
BANK
PARTICULARS EXCHANGE
SHARE SHARE GENERAL REGULATORY FAIR VALUE REVALUATION RETAINED OTHER
EQUALISATION TOTAL
CAPITAL PREMIUM RESERVE RESERVE RESERVE RESERVE EARNING RESERVE
RESERVE
Total contributions by and distributions 509,006,900 101,555 437,188,426 1,899,531 68,659,895 386,876,491 - 624,180,296 333,135,046 2,361,048,138
Balance as at Ashad End, 2078 9,004,821,195 101,555 3,298,024,386 71,078,009 497,867,213 485,450,031 - 1,465,819,551 634,560,557 15,457,722,497
Balance as at Shrawan 1, 2078 9,004,821,195 101,555 3,298,024,386 71,078,009 497,867,213 485,450,031 - 1,465,819,551 634,560,557 15,457,722,497
Adjustment/Restatement
Gains/(losses) on revaluation -
Transfer to reserve during the year - 215,171,562 134,603 1,272,578,895 - (1,674,636,457) 186,751,396 (0)
NPR
BANK
PARTICULARS EXCHANGE
SHARE SHARE GENERAL REGULATORY FAIR VALUE REVALUATION RETAINED OTHER
EQUALISATION TOTAL
CAPITAL PREMIUM RESERVE RESERVE RESERVE RESERVE EARNING RESERVE
RESERVE
Share issued - -
Other - - - -
Total contributions by and distributions 1,080,578,543 - 215,171,562 134,603 1,272,578,895 (255,566,021) - (2,105,133,755) 183,033,295 390,797,123
Balance as at Ashad 26, 2079 10,085,399,738 101,555 3,513,195,948 71,212,612 1,770,446,108 229,884,010 - (639,314,207) 817,593,853 15,848,519,619
Sandip Babu Paudel Manoj K. Gyawali Gyanendra Prasad Dhungana Upendra Prasad Poudyal Nirvana Chaudhary CA Gyanendra B. Bhari
Head - Finance DCEO- Finance & HR Chief Executive Officer Board Chairman Board Vice Chairman Partner
BRS & Company,
Chartered Accountants
Malay Mukherjee Asha Rana Adhikary Ananta Poudyal Pravin Tibrewala A.R.M.Nazmus Sakib
Board Member Board Member Board Member Board Member Board Member
GROUP BANK
PARTICULARS AS AT END OF AS AT AS AT END OF AS AT
26 ASHAD 2079 31 ASHAD 2078 26 ASHAD 2079 31 ASHAD 2078
CASH FLOWS FROM OPERATING ACTIVITIES
Interest received 8,160,264,803 6,973,797,422 8,154,516,060 6,969,782,910
Fees and other income received 1,723,656,742 1,450,373,882 1,705,518,238 1,445,604,666
Divided received - 6,454,088 - 10,254,088
Receipts from other operating activities 150,737,472 510,440,483 171,426,672 456,843,037
Interest paid (5,536,488,263) (4,334,905,893) (5,536,488,263) (4,334,909,600)
Commission and fees paid (66,853,161) (55,450,360) (66,837,093) (55,450,360)
Cash payment to employees (1,358,263,719) (1,220,257,431) (1,351,737,472) (1,210,451,234)
Other expense paid (659,176,307) (443,898,840) (653,820,848) (440,504,044)
Operating cash flows before changes in operating
assets and liabilities 2,413,877,568 2,886,553,350 2,422,577,295 2,841,169,462
(Increase)/Decrease in operating assets
Due from Nepal Rastra Bank 3,738,951,234 5,279,527,635 3,738,951,234 5,279,527,635
Placement with bank and financial institutions 3,072,992,600 (772,153,121) 3,072,992,600 (772,153,121)
Other trading assets 30,907,297 40,167,339 47,582,910 28,043,073
Loan and advances to bank and financial institutions (556,964,144) (862,796,687) (556,964,144) (862,796,687)
Loans and advances to customers (9,800,325,644) (9,192,625,687) (9,800,325,644) (9,192,625,687)
Other assets 347,093,727 (363,573,294) 313,491,484 (334,788,296)
(3,167,344,929) (5,871,453,815) (3,184,271,559) (5,854,793,083)
Increase/(Decrease) in operating liabilities
Due to bank and financial institutions (637,036,833) (4,505,025,300) (637,036,833) (4,505,025,300)
Due to Nepal Rastra Bank (1,080,681,045) 3,029,950,738 (1,080,681,045) 3,029,950,738
Deposit from customers (5,488,721,242) 20,738,614,749 (5,610,563,315) 20,692,816,950
Borrowings - - - -
Other liabilities 971,866,274 150,406,830 952,124,466 128,799,382
(6,234,572,846) 19,413,947,016 (6,376,156,727) 19,346,541,770
Net cash flow from operating activities before tax paid (6,988,040,207) 16,429,046,551 (7,137,850,992) 16,332,918,149
Income taxes paid (621,469,563) (942,739,850) (621,469,563) (927,255,594)
Net cash flow from operating activities (7,609,509,771) 15,486,306,701 (7,759,320,555) 15,405,662,555
GROUP BANK
PARTICULARS AS AT END OF AS AT AS AT END OF AS AT
26 ASHAD 2079 31 ASHAD 2078 26 ASHAD 2079 31 ASHAD 2078
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investment securities 5,662,922,970 (12,337,797,023) 5,666,453,945 (12,262,213,873)
Receipts from sale of investment securities - - - -
Purchase of property and equipment (54,871,168) (66,627,518) (54,526,972) (65,840,121)
Receipt from the sale of property and equipment - - - -
Purchase of intangible assets 33,185,767 9,675,731 33,021,917 9,958,231
Receipt from the sale of intangible assets - - - -
Purchase of investment properties (467,713,446) (72,553,779) (467,713,446) (72,553,779)
Receipt from the sale of investment properties - -
Interest received - -
Dividend received - -
Net cash used in investing activities 5,173,524,123 (12,467,302,589) 5,177,235,443 (12,390,649,542)
CASH FLOWS FROM FINANCING ACTIVITIES
Receipt from issue of debt securities 702,334 702,334 702,334 702,334
Repayment of debt securities
Receipt from issue of subordinated liabilities
Repayment of subordinated liabilities
Receipt from issue of shares - 101,555 - 101,555
Dividends paid (353,183,538) (210,836,747) (315,168,742) (206,836,747)
Interest paid
Other receipt/payment - (193,523) (193,523)
Net cash from financing activities (352,481,204) (210,226,381) (314,466,408) (206,226,381)
Net increase (decrease) in cash and cash equivalents (2,788,466,851) 2,808,777,731 (2,896,551,520) 2,808,786,631
Cash and cash equivalents at Shrawan 1, 2078 5,995,671,403 3,179,295,548 5,995,671,138 3,179,286,383
Effect of exchange rate fluctuations on cash and cash 538,413 7,598,124 538,413 7,598,124
equivalents held
Cash and cash equivalents at 26 Ashad 2079 3,207,742,965 5,995,671,403 3,099,658,031 5,995,671,138
Sandip Babu Paudel Manoj K. Gyawali Gyanendra Prasad Dhungana Upendra Prasad Poudyal Nirvana Chaudhary CA Gyanendra B. Bhari
Head - Finance DCEO- Finance & HR Chief Executive Officer Board Chairman Board Vice Chairman Partner
BRS & Company,
Chartered Accountants
Malay Mukherjee Asha Rana Adhikary Ananta Poudyal Pravin Tibrewala A.R.M.Nazmus Sakib
Board Member Board Member Board Member Board Member Board Member
Sandip Babu Paudel Manoj K. Gyawali Gyanendra Prasad Dhungana Upendra Prasad Poudyal Nirvana Chaudhary CA Gyanendra B. Bhari
Head - Finance DCEO- Finance & HR Chief Executive Officer Board Chairman Board Vice Chairman Partner
BRS & Company,
Chartered Accountants
Malay Mukherjee Asha Rana Adhikary Ananta Poudyal Pravin Tibrewala A.R.M.Nazmus Sakib
Board Member Board Member Board Member Board Member Board Member
2. Mr. Nirvana Kumar Chaudhary 4. To approve cash dividend @ 11.50% (for the purpose of tax on
bonus share and cash dividend) of the paid up capital as proposed
3. Mr. Malay Mukherjee
by the Board
4. Mr. Udaya Krishna Upadhyay
5. To appoint the auditor for the Fiscal Year 2022/23 (2079/80) and to
Representation of public shareholder group fix the auditor’s remuneration for the same; and
6. Election of 3 directors representing the promotor shareholders in the
1. Mrs Asha Rana Adhikari
Board of Director.
2. Mr. Ananta Poudyal
3. Mr. Pravin Tibrewal Special Resolution
1. To increase the Bank’s authorized capital to NPR 28,000,000,000.
7.3 SHAREHOLDER’S PROFILE
2. To approve increment in the Bank’s paid up capital to NPR
As at balance sheet dated (16th July 2022), the Bank’s Share Registrar, 4,224,088,096.92 by issuing bonus shares of 18.50% per unit
M/s Nabil Investment Banking Ltd. has recorded following details of existing share from the profit of the year ended 2021/22.
shareholders: 3. To approve some changes in the section/provisions of the
Memorandum of Association and to authorize the Board (or
SHAREHOLDING NO. OF its nominee) for making necessary changes in the proposed
TOTAL SHARES HELD
RANGE SHAREHOLDERS
amendments if the same is advised by Regulatory Authority(ies).
1-100 110,359 38,78,646
4. To ratify the expenses made by the Bank during FY 2021/22
101-500 55,503 12,80,61,23 (2078/79) under corporate social responsibility as quantified in
501-1,000 12,443 86,68,522 Schedule 4.37 of the financial statements for the purpose of Section
1,001-2,500 7,558 11,55,55,63 105 (1)(c) of the Companies Act, 2063, and
2,501-5,000 2,932 10,21,51,28 5. If it seems suitable for the Bank to merge with and/or acquire any
5,001-10,000 1,242 86,19,169 other suitable bank or financial institution by the Bank, or enter
10,001-25,000 970 14,11,50,12 into strategic foreign partnership, authorize the Board to appoint a
25,001-50,000 193 66,55,801 valuator to make the valuation of all the assets, liabilities and the
business of the bank, to enter into merger or acquisition agreement
50,001-100,000 75 51,30,706
and to make the decision relating to strategic foreign partnership and
Above 100,000 62 14,65,95,009
carrying out all the required activities.
Fractional shares - 89,408
Total 191,337 228,329,086
8.1 OVERVIEW valuation. The subsidiary has entered into decrease in the total assets and liabilities
Management Service Agreement and Service (42%) but a slight increase in equity
Nabil Investment Banking Ltd. (Nabil Invest)
Level Agreement with the Bank. Under the (12.22%). The company’s capital and
is one of the Subsidiary of Nabil Bank Ltd.
Management Service Agreement, the actual liabilities have mainly been concentrated
established as per Companies Act, 2006 on
cost of the staff deputed from the Bank on ‘Payables and Refundable to Investors’
7th of February 2010. It is a Merchant Banker
to the Subsidiary is reimbursed on actual occupying 49.50% and Reserve and Surplus
licensed by the Securities Board of Nepal
basis. Likewise, under the Service Level occupying 20.87% of its total capital and
under the Securities Businessperson (Merchant
Agreement, the Bank has been providing liabilities. On utilization side, the subsidiary
Banker) Rule, 2064. Nabil Bank, as at the
various administrative services necessary held most of the investment in secured
balance sheet date, holds 52% controlling
for the Subsidiary’s service operations. investments in the form of varying terms banks
interest in Nabil Invest.
Such administrative services include general deposit and debentures. The company has also
The other institutional shareholder CG Finco administration, accounting, finance and held investment in equity instruments which
Private Ltd. holds 48% shares. The subsidiary planning, information technology, legal, has occupying a major chunk of utilization
and the parent company share a common advisory and fund management services. (13.97%) to stand at NPR 127.29 million as
financial year that ended on July 16th, 2022. of the fiscal year end.
The transactions between Bank and its
The principal activity of Nabil Invest is to Subsidiary during the review year 2021-22 Under assets side, Cash & Bank Balance and
provide merchant banking and investment has been presented in point 5.7.4 of “Note to Investments occupy major portion thereby
banking services that includes issuance and the Consolidated Financial Statements”. holding 9.88% and 81.27% of total asset
management of public offering, share registrar, respectively.
8.2 COMMENTARY ON KEY ITEMS
depository participant services, mutual fund
OF STATEMENT OF FINANCIAL
services and portfolio management service.
POSITION OF PAST FIVE YEARS
The unit also provides corporate advisory
services that includes services related to loan Financial position of the Subsidiary has
syndication, financial advisory and business changed over the year, with a significant
NPR. IN ‘000
AT MID JULY 2022 2021 2020 2019 2018 2017
Capital and Liabilities
Share Capital 270,000 200,000 200,000 200,000 200,000 150,000
Reserves & Surplus 190,101 209,987 107,270 102,603 111,130 148,319
Payables and Refundable to Investors 438,590 1,133,697 174,391 191,736 465,143 290,579
Other Liabilities and Provisions 12,399 37,057 59,525 17,330 49,468 65,662
Total 911,090 1,580,740 541,186 511,669 825,741 654,559
Assets
Cash and Bank Balance 90,056 691,194 48,282 148,986 511,508 338,444
Investments 740,417 793,567 433,922 298,180 229,553 221,697
Advance Tax (Net of Tax Liability) - - - 5,374 12,241 15,309
Fixed Assets (net of accumulated depreciation) 9,270 11,048 12,727 16,012 22,014 22,332
Deferred Tax Assets 20,221 - 1,510 4,027 4,033 -
Other assets 51,126 84,932 44,745 39,090 46,391 56,777
Total 911,090 1,580,740 541,186 511,669 825,741 654,559
PERIOD ENDING MID JULY 2022 2021 2020 2019 2018 2017
Merchant Banking Fees 45,359 59,072 12,340 23,828 23,188 37,189
Income from Mutual Fund operations 71,699 56,847 52,687 25,339 53,254 60,482
1.2 Deposit mobilization 1.3 Credit Disbursement production sector by 8 percent, transportation,
Deposits at banks and financial institutions Private sector credit from BFIs increased 13.1 communication, and public sector by 15.7
(BFIs) increased 9 percent in the review year percent in the review year compared to a percent, wholesale and retail sector by 13.3
compared to a growth of 21.4 percent in the growth of 27.3 percent in the previous year. percent, and service industry sector by 8.7
previous year. The share of demand, saving, In the review year, private sector credit from percent in the review year.
and fixed deposits in total deposits stand at commercial banks, development banks, and
1.4 Liquidity Management
8.9 percent, 27.6 percent, and 55.8 percent finance companies increased 12.7 percent,
In the review year, NRB mopped up Rs.60
respectively in mid-July 2022. Such shares 13.9 percent, and 29.8 percent respectively.
billion in liquidity of which Rs.28.35 billion
were 10.4 percent, 34.2 percent, and 47 Outstanding loans of BFIs to the agriculture
was through reverse repo auction and
percent respectively a year ago. sector increased by 19.7 percent, industrial
Rs.31.65 billion through deposit collection.
Source: https://sebon.gov.np/public-issues-data
During the review year, Sarbottam Cements The listing of securities during the review year 3.1 Major Activities:
Ltd. and Reliance Spinning Mills Ltd. have has been summarized in below table: Issue Management:
initiated book-building methods for IPO and
are in pipeline for SEBON approval. The IPO NO. OF During the review year, Nabil Invest has
TYPE COUNT
pipeline status as of August 21, 2022, is as SECURITIES concluded two issue management as
undermentioned: IPO 22 257,821,652 mentioned hereunder:
Right 12 119,693,597 Nabil Balanced Fund III (NBF3)
NO. OF
IPO PIPELINE STATUS Bonus 144 563,129,858
COMPANIES 8.5% MBL Debenture 2087
D.2. Lumbini Bikas Bank Debenture 12 Nabil Debenture 2085 (NBLD85) As of the end of the review year, the company
13 Nabil Equity Fund (NEF)
has been managing a portfolio of 735 clients
D.3. Nepal Bank Debenture
with total Assets under Management (AUM) of
14 NADEP Laghubitta Bittiya Sanstha Ltd.
E. Auction Management NRs. 2,844.21 million.
(NADEP)
Prabhu Bank promoter share Fund Management & Depository Services to
15 Prime Life Insurance Company Limited
The total contribution from issue management (PLIC) Nabil Mutual Fund:
in the review year towards gross revenue of the
16 Sana Kisan Bikas Laghubitta Bittiya
company was NRs. 4.99 million. The company has been appointed as the fund
Sanstha Limited (SKBBL)
manager and depository for Nabil Mutual
Underwriting: 17 Swabalamban Laghubitta Bittiya Fund by the fund sponsor Nabil Bank Ltd.
Sanstha Limited (SWBBL) During the review year, it has catered its fund
In the review year, the company has signed an
18 United Insurance Co. (Nepal) Ltd. (UIC) management and depository service to 3
Issue Underwriting agreement for the issue of
mutual fund schemes namely:
following companies: The RTS service agreement with SWBBL
was valid till July 15, 2022 and was not (i) Nabil Equity Fund (NEF),
Mandakini Hydropower Company Limited
renewed for a further period. With the exit of (ii) Nabil Balanced Fund II (NBF2) and
Reliable Nepal Life Insurance Limited SWBBL, the RTS client count as of the end of
(iii) Nabil Balanced Fund III (NBF3) under
Issue underwriting has contributed total of the review period declined to 17. Gross RTS
Nabil Mutual Fund
NRs. 1.31 million in the gross income of the income accounted for in the review year was
company in the review year. NRs. 2.32 million. The contribution from fund management
and depository towards gross revenue of the
Registrar to Shares (RTS): Depository Participant (DP):
company in the review year was NRs. 71.7
million.
During the review year, the company has The company has been rendering DP services
rendered share registrar service to 18 (relating to the De-mat account) to the general
Corporate Advisory Services:
securities of different companies. public. In the review year, the company
has opened 75,700 new De-mat accounts The company has been rendering advisory
1 10% Nabil Debenture 2082 (NBLD82) and achieved the De-mat account count of services to institutions in the form of loan
2 8.5% Nepal Bank Debenture 2087 199,436 level as of the end of the review year. syndication, investment advisory, business
(NBLD87) valuation, etc. The company has introduced
A sum of NRs. 38.22 million has been
6 more products titled E-learning courses
3 Bottlers Nepal (Balaju) Limited (BNL) accounted for in the review year as a
on Capital Market and Investment Banking,
4 Bottlers Nepal (Terai) Limited (BNT) contribution from DP to the gross income of
Share Loan Financing Framework, Techno-
5 Butwal Power Company Limited (BPCL) the company.
Commercial Report, FDI Advisory, Consultancy
6 Deprosc Laghubitta Bittiya Sanstha Services for Development Agencies, and
Portfolio Management Services (PMS):
Limited (DDBL) Escrow Agency Services in the review year.
7 Himalaya Urja Bikas Company Limited The company has been rendering PMS under 3
There has been a total contribution of NRs.
(HURJA) broader categories namely: (i) discretionary, (ii)
6.31 million from this segment to the gross
non-discretionary, and (iii) guaranteed return. A
8 Himalayan Distillery Limited (HDL) revenue of the company in the review year.
variety of products have been offered to clients
9 Nabil Balanced Fund-2 (NBF2)
under these 3 classifications.
There has been a shrink in the review year gross income by 34.09% the regulatory bodies and authorities therefrom for their cooperation
while the expenses have increased by 14.18% as compared with the and guidance. I extend my sincere thanks to S.A.R. Associates,
immediately preceding previous year. The net profit of the company Chartered Accountants’ Partner CA Aman Uprety for professionally
has fallen by 63.56% in the review year. The company has distributed completing the audit of the company. Furthermore, I am thankful to R
35% bonus share (equivalent to NRs. 70,000,000) and 1.8421053% & P Associates, Chartered Accountants’ Partner CA Prahlad Basnet, for
cash dividend (equivalent to NRs. 3,684,210.60) in the current his suggestion and contribution to the audit of Nabil Balanced Fund
period and has proposed for distribution of 20% cash dividend (i.e II and Nabil Balanced Fund III, and Joshi and Bhandary, Chartered
NRs 54,000,000) on the current paid up capital of Rs 270,000,000. Accountants’ partner CA Manmohan Raj Kafle for his contribution in
The proposed dividend is subject to the approval of the members at the audit of Nabil Equity Fund under Nabil Mutual Fund. Similarly, my
the ensuing AGM. The shareholders of the company as on the date special thanks to all the employees of the company for their noteworthy
immediately preceding the AGM date shall be entitled to the dividend contributions to achieving the objectives of the company, and expect
declared by the AGM. similar contributions in the days ahead. Further, I would like to thank
the board members for their valuable suggestions and support.
The additional details as required by section 109(4) of the prevailing
Companies Act have been presented in Annexure. Thank you.
e) Board of Directors:
There has been no change of any members of the BoD during the review year.
f) Board of Directors response on Independent h) Details of shares forfeited: l) Shares held by the directors and officials
Auditor’s Report: of the company and information received by
The company has not forfeited any shares the company on their involvement in trading
The audit of review period was carried out during the review year and to date. shares:
by S.A.R Associates, Chartered Accountants
appointed by the 12th AGM of the company i) Review of the progress made by the The ordinary directors of the company have
convened on 2078/07/17. The engagement company and its subsidiary and the position been nominated as representational directors
partner is CA Aman Urpety. The suggestions of the same at the end of the fiscal year: by the institutional shareholders and they
and remarks indicated by the auditor in the along with KMPs of the company have neither
The progress made and major activities
management letter has been and shall be shareholding nor involvement in trading
undertaken by the company during the review
addressed and implemented to the extent thereon. The same fact applies in the case of
period have already been mentioned above.
reasonable and appropriate to the company independent professional directors.
Until now, the company does not have any
considering the industrial practice, standards
subsidiaries. m) Information provided on the personal
and regulatory framework. The Board
discussed on the auditor’s report and approved interest of Board of Directors and their close
j) Major activities of the company during the
the audited annual financials comprising of relatives regarding contract or agreement
period
statement of financial position, statement done with the company:
of profit & loss, statement of change in The major activities performed/ undertaken
The company has not received any information
equity, statement of cash flow and significant by the company during the review year have
from any directors regarding existence of any
accounting policies & notes to account of the already been mentioned above.
personal interest of themselves and their close
company.
k) Any information is given to the company by relatives in any contract or agreement done
g) Details about proposed dividend its fundamental shareholders: with the company during the review year.
The Board of Directors has proposed 20% There has been no change in the fundamental n) Buy back of shares by the company and
cash dividend equivalent to NRs. 54,000,000 shareholders’ list during the review year and information pertaining to this:
out of the profit of fiscal year 2078/79. The from reporting date until now, thereby, no
The company has not bought back any shares
proposed dividend is subject to approval by information u/s 50(2) and 50(3) of the Act has
during the review year and from reporting date
shareholders at the ensuing AGM. been received in the specified period.
until now.
the review period are NRs. 124,290,464 50,000 towards sitting fees to the members 3. Nabil Equity Fund Fund Manager &
excluding depreciation and amortization. of the Board of Directors and Audit Committee Depository
respectively during the review year. In addition, 4. Nabil Balanced Fund II Fund Manager &
q) Details of the audit committee the Company pays NRs. 4,000 per month to Depository
Professional Independent Directors towards 5. Nabil Balanced Fund III Fund Manager &
An independent audit committee comprising communication and transportation allowance, Depository
of professional independent director Mr. the total of which is NRs. 96,000 in the
Bharat Adhikari as a Coordinator, and other review year. The Company has not provided The Company has entered into the following
two directors as members namely Mr. Sanjay any other financial benefits to the member transactions with its related parties during FY
Pokhrel and Mr. Ganesh Prasad Awasthi is in of its Board of Directors (BoD) or any sub- 2078/79:
existence. The observations during the internal committee of BoD except mentioned above.
audit along with management response thereto
3 Nabil Bank Ltd. Proceeds realized from rendering operational support assistance for the Bank 294,000
w) Income Tax: using the accounting software of P.C.S. (P.) Ltd. Besides, the company has tied up with NPG,
for accounting and reporting of mutual fund Khalti, eSewa, PrabhuPay, and Connect IPS for
The company has made provisions for NRs. schemes under its management. Similarly, convenience to customers in making payments
27,915,044 towards tax expense for the WEALTH is being used for record maintenance for DP-related service fees.
review period which includes the current tax and reporting of PMS clients. The company
liability of NRs. 53,361,522 calculated @ is also working with another vendor for the Furthermore, the company has been
30% on taxable profit of NRs. 177,871,741 development of industry disruptor all-in-one customizing the existing software as required
deferred tax expense of NRs. 28,435,358 and software beginning with PMS. A human and looking to implement new software/
prior period tax adjustment expense of NRs. resource management system (HRMS) is systems for economic automation of office
2,988,880. The total tax expense may change being used for handling the overall HR-related operations.
with the finalization of the tax audit. aspects.
z) Merger/ Acquisition:
x) Location of office: Share Issue Management software and RTS
The company has formed a Merger/ Acquisition
software of P.C.S. (P.) Ltd. is used for issue
The company currently has its office in Naxal, committee and elected therefrom the
management and maintenance of shareholders’
Kathmandu. representative for the Joint Merger/ Acquisition
records and dividend records of RTA clients.
committee to take the process onwards relating
y) Technology: WebCDAS of CDS & Clearing Ltd. is in use
to the merger/ acquisition of Nepal Bangladesh
for rendering DP services. The company has
Capital Ltd.
The company has been using the accounting initiated an ONLINE DE-MAT opening service
software of Micro-Banker Pvt. Ltd. for its as well from the review year.
overall accounting and reporting. It has been
Rimi Shahi Varun Chaudhary Ganesh Prasad Awasthi CA. Aman Uprety
Accounts Incharge Director Director Partner
S.A.R. Associates
Manish Narayan Joshi Adarsha Bazgain Shankar Prasad Pandey
Chief Executive Officer Director Professional Independent Director
Rimi Shahi Varun Chaudhary Ganesh Prasad Awasthi CA. Aman Uprety
Accounts Incharge Director Director Partner
S.A.R. Associates
Manish Narayan Joshi Adarsha Bazgain Shankar Prasad Pandey
Chief Executive Officer Director Professional Independent Director
Rimi Shahi Varun Chaudhary Ganesh Prasad Awasthi CA. Aman Uprety
Accounts Incharge Director Director Partner
S.A.R. Associates
Manish Narayan Joshi Adarsha Bazgain Shankar Prasad Pandey
Chief Executive Officer Director Professional Independent Director
Rimi Shahi Varun Chaudhary Ganesh Prasad Awasthi CA. Aman Uprety
Accounts Incharge Director Director Partner
S.A.R. Associates
Manish Narayan Joshi Adarsha Bazgain Shankar Prasad Pandey
Chief Executive Officer Director Professional Independent Director
7. Right-Of-Use Asset
NPR
PARTICULARS 16/07/2022 15/07/2021
Cost or Deemed Cost
Balance at 15/07/2021 - -
Addition 17,815,029 -
Disposal or Classified as held for sale - -
Balance at 16/07/2022 17,815,029 -
Accumulated Depreciation
Balance at 15/07/2021 -
Depreciation 5,923,190 -
Disposal or Classified as held for sale - -
Balance at 16/07/2022 5,923,190 -
Carrying Amount
At 15th July 2021 - -
At 16th July 2022 11,891,839 -
8. Other Assets
NPR
PARTICULARS 16/07/2022 15/07/2021
Account Receivables 24,252,525 83,004,710
Deposit 529,280 523,000
Staff Advances 1,832,834 711,080
Prepayments 698,272 693,074
Total 27,312,910 84,931,864
9.1 OVERVIEW at Bijulibazaar, Kathmandu, Nepal. The holding 33.21% and 61.85% of total assets
subsidiary is not listed. Furthermore, Balance respectively.
Nepal Bangladesh Capital Ltd is a public
sheet size of the company is NPR 265.19
limited company domiciled in Nepal. It was Similarly, the company reported loss for the
Million as on mid July 2022. The company’s
incorporated on 25th October 2017 under period ended July 16, 2022 of NPR 8.9
Capital and liabilities are mainly concentrated
the then Companies Act 2006 AD of Nepal Million, compared to a profit of NPR 41.40
on ‘Due to customer’ occupying 42.51%
It is a Merchant Banker licensed under the Million for the corresponding previous year.
which was 19.20% a year prior.
Securities Businessperson (Merchant Banker) Due to the fair value loss in the financial
Regulations, 2008 A.D. It commenced Under Assets side, Cash and Cash equivalent investment, the company’s operating profit has
its commercial operation on January 10, and investment occupy major portion thereby been affected.
2019 and operates its registered office
Significant Accounting Policies and Notes to Account form integral part of financial statements
As per our report of even date
Mr. Dhirendra Joshi Mr. Ram Kumar Mahat Mr. Mukundanath Dhungel CA Pratish Shakya
Head - Finance Deputy General Manager Chairman Partner
Pradhan & Shakya Associates,
Mr. Krishna Dutta Bhattarai Mr. Krishna Prasad Subedi Mr. Sandip Babu Paudel Mr. Jyotiman Shrestha Chartered Accountants
Director Director Director Director
Significant Accounting Policies and Notes to Account form integral part of financial statements
As per our report of even date
Mr. Dhirendra Joshi Mr. Ram Kumar Mahat Mr. Mukundanath Dhungel CA Pratish Shakya
Head - Finance Deputy General Manager Chairman Partner
Pradhan & Shakya Associates,
Mr. Krishna Dutta Bhattarai Mr. Krishna Prasad Subedi Mr. Sandip Babu Paudel Mr. Jyotiman Shrestha Chartered Accountants
Director Director Director Director
Significant Accounting Policies and Notes to Account form integral part of financial statements
As per our report of even date
Mr. Dhirendra Joshi Mr. Ram Kumar Mahat Mr. Mukundanath Dhungel CA Pratish Shakya
Head - Finance Deputy General Manager Chairman Partner
Pradhan & Shakya Associates,
Mr. Krishna Dutta Bhattarai Mr. Krishna Prasad Subedi Mr. Sandip Babu Paudel Mr. Jyotiman Shrestha Chartered Accountants
Director Director Director Director
Significant Accounting Policies and Notes to Account form integral part of financial statements
As per our report of even date
Mr. Dhirendra Joshi Mr. Ram Kumar Mahat Mr. Mukundanath Dhungel CA Pratish Shakya
Head - Finance Deputy General Manager Chairman Partner
Pradhan & Shakya Associates,
Mr. Krishna Dutta Bhattarai Mr. Krishna Prasad Subedi Mr. Sandip Babu Paudel Mr. Jyotiman Shrestha Chartered Accountants
Director Director Director Director
Details
PARTICULARS AS AT JULY 16, 2022 AS AT JULY 15, 2021
10.25% Global IME Bank Ltd. Debenture 14,359,000 14,359,000
10.25% Sunrise Bank Ltd. Debenture 2083 2,500,000 2,500,000
10% Laxmi Bank Ltd. Debenture 2086 2,000,000 2,000,000
10% Prabhu Bank Ltd. Debenture 2084 20,111,000 20,111,000
8.5% Sanima Bank Ltd. Debenture 5,000,000 5,000,000
8% Nabil Bank Ltd. Debenture 5,000,000
10.71% Manjushree Finance Ltd.FD 5,477,014 -
10.25% Sangrila Development Bank Ltd. FD 527,395 -
10.03% Nabil Bank Ltd. FD 10,000,000 -
Total 64,974,410 43,970,000
5.3 Financial Investments measured at Fair Value through other Comprehensive Income(Shares)
NPR
PARTICULARS AS AT JULY 16, 2022 AS AT JULY 15, 2021
Investment in Shares 63,740,577 112,958,834
Total 63,740,577 112,958,834
5.4 Financial Investments measured at Fair Value through Profit or Loss (Shares)
NPR
PARTICULARS AS AT JULY 16, 2022 AS AT JULY 15, 2021
Investment in Shares 35,259,680 20,984,650
Total 35,259,680 20,984,650
5.6 Prepayments
NPR
PARTICULARS AS AT JULY 16, 2022 AS AT JULY 15, 2021
Prepayments 209,877 66,092
Total 209,877 66,092
12 Share Capital
NPR
PARTICULARS AS AT JULY 16, 2022 AS AT JULY 15, 2021
Authorized Share Capital
(3,000,000 at NPR 100 each) 300,000,000 300,000,000
Issued Share Capital
(2,000,000 at NPR 100 each) 200,000,000 200,000,000
Paid up Share Capital
(2,000,000 shares at NPR 100 each) 200,000,000 200,000,000
Significant Accounting Policies and Notes to Account form integral part of financial statements
As per our report of even date
Mr. Dhirendra Joshi Mr. Ram Kumar Mahat Mr. Mukundanath Dhungel CA Pratish Shakya
Head - Finance Deputy General Manager Chairman Partner
Pradhan & Shakya Associates,
Mr. Krishna Dutta Bhattarai Mr. Krishna Prasad Subedi Mr. Sandip Babu Paudel Mr. Jyotiman Shrestha Chartered Accountants
Director Director Director Director
10.1 OVERVIEW
NBBL Securities is a public limited company domiciled in Nepal. It was incorporated on 9th August, 2019 with paid up capital of NPR 20 Million.
The subsidiary is not listed. The group represents the Bank and its Subsidiaries.
Significant Accounting Policies and Notes to Account form integral part of financial statements
As per our report of even date
Mr. Bhupendra Pandey Mr. Dhiraj Raj Subedi Mr. Bishwa Prakash Poudel CA Gyanendra Bahadur Bhari
Chairman Director Director Partner
B.R.S. Neupane & Co.
Date: October 20, 2022 Chartered Accountants
Place: Kathmandu, Nepal
Significant Accounting Policies and Notes to Account form integral part of financial statements
As per our report of even date
Mr. Bhupendra Pandey Mr. Dhiraj Raj Subedi Mr. Bishwa Prakash Poudel CA Gyanendra Bahadur Bhari
Chairman Director Director Partner
B.R.S. Neupane & Co.
Date: October 20, 2022 Chartered Accountants
Place: Kathmandu, Nepal
PROVINCE 1
BRANCH NAME ADDRESS CONTACT
Biratnagar Branch Biratnagar, Morang 021-526213
Itahari Branch Itahari, Sunsari 025-580741
Dharan Branch Dharan, Sunsari 025 530130
Birtamod Branch Birtamod, Jhapa 023-543727
Damak Branch Damak, Jhapa 023 575190
Khandbari Branch Khandbari, Sankhuwasabha 029 560873
Chandragadhi Branch Chandragadhi, Jhapa 023-457021
Urlabari Branch Urlabari, Morang 021-540929
Gaighat Branch Gaighat, Udayapur 035-421172
Biratchowk Branch Biratchowk, Morang 021-545639
Inaruwa Branch Inaruwa, Sunsari 025-561007
Duhabi Branch Duhabi, Sunsari 025-541307
Hile Branch Hile, Dhankuta 026-540708
Mahendra Chowk Branch Biratnagar, Morang 9842026708
Tarahara Branch Tarahara, Sunsari 025-475301
Kanchanbari Branch Kanchanbari, Morang 021-460426
Katari Branch Katari, Udayapur 035-450554
Biratnagar (Hanumandas Road) Branch Hanumandas road, Biratnagar, Morang 021-450447
Ilam Branch Ilam Bazar, Ilam 027-524639
Jhumka Branch Jhumka, Sunsari 25-562609
Kakarvitta Branch Kakarvitta, Jhapa 9842654964
Surunga Branch Surunga, Jhapa 9842620000
Biratnagar Rangeli Road Branch Rangeli Road, Biratnagar, Morang 021-514263
Dharan Mahendrapath Branch Mahendrapath, Dharan, Sunsari 025-530166
Bhojpur Branch Bhojpur Bazar, Bhojpur 029-420713
Birtamod BNC Branch BNC Hospital, Birtamod, Jhapa 023-545724
Sankranti Bazar Branch Sankranti Bazar, Terhathum 026-680052
Karsia Branch Karsia, Morang 021-565038
Phidim Branch Phidim Bazar, Panchthar 9845029080
Itahari Pashchim Line Branch Itahari, Sunsari 025-582411
Sindhuwa Branch Sindhuwa, Dhankuta 026-404169
Sangurigadhi Branch Sangurigadhi, Dhankuta 025-400078
Chhathar Branch Chhathar Pokhari, Terhathum 026-420005
Panchkhapan branch Panchkhapan, Sankhuwasabha 029-411084
Salpasilicho Branch Salpasilicho, Bhojpur 9841660142
Rajarani Branch Rajarani, Dhankuta 026-411062
Fikkal Branch Fikkal, Illam 027-540595
Fedap Branch Fedap, Terhathum 026-681031
Diktel Branch Diktel Rupakot, Diktel 9849382685
LUMBINI PROVINCE
BRANCH NAME ADDRESS CONTACT
Butwal Branch Butwal, Rupandehi 071-541059
Bhalwadi Branch Bhalwadi, Rupandehi 071-560357
Bhairahawa Branch Bhairahawa, Rupandehi 071- 524041
Nepalgunj Branch Nepalgunj, Banke 081-524221
Tulshipur Branch Tulshipur, Dang 082 522673
Ghorahi Branch Ghorahi, Dang 082 561685
Sunwal Branch Sunwal, Nawalparasi west 78570506
Kohalpur Branch Kohalpur, Banke 081-541726
Lamahi Branch Lamahi, Dang 082-540848
Sammarimai Branch Sammarimai, Rupandehi 9847386516
Bardaghat Branch Bardaghat, Nawalparasi west 9847020211
Chandrauta Branch Chandrauta, Kapilvastu 076-540661
Manigram Branch Manigram, Rupandehi 071 56125
Kalikanagar Branch Kalikanagar, Rupandehi 071-438031
Bansgadi Branch Bansgadi, Bardiya 084-400194
Butwal (Chauraha) Branch Butwal, Rupandehi 071-542621
Nepalgunj (Dhamboji) Branch Dhamboji Nepalgunj, Banke 081-521081
Tansen Branch Bishal Bazar, Tansen, Palpa 9857073255
Murgiya Branch Murgiya, Rupandehi 9806922883
Khaireni Branch Khaireni, Rupandehi 9847366895
Butwal 2 Branch Butwal, Rupandehi 071-544845
Nepalgunj 2 Branch Dhamboji, Banke 081-524170
Ghorahi 2 Branch Ghorahi, Dang 9851139008
Khajura Branch Khajura, Banke 081-560428
Chatragunj Branch Chatragunj, Arghakhanchi 077-690436
Hapure Branch Hapure, Dang 082-403057
Sandhikharka Branch Sandhikharka, Arghakhanchi 077-420965
Gulariya Branch Gulariya, Bardiya 9851131234
Tamghas Branch Tamghas, Gulmi 9857028975
SUDURPASHCHIM PROVINCE
BRANCH NAME ADDRESS CONTACT
Dhangadhi Branch Dhangadi, Kailali 091-417652
Mahendranagar Branch Mahendranagar, Kanchanpur 099-525450
Tikapur Branch Tikapur, Kailali 091-560701
Alitaal Branch Alitaal, Dadeldhura 9857051400
Bittadchir Branch Bittadchir, Bajhang 9857030985
Pancheshwor Branch Pancheshwor, Baitadi 9741466644
Ramaroshan Branch Ramaroshan, Achham 9741466643
Sayal Branch Sayal, Doti 9841197380
Turmakhand Branch Turmakhand, Achham 9741466642
Lamki Branch Lamki, Kailali 091-540732
Attariya Branch Attariya, Kailali 091-550788
Ratopul Branch Ratopul, Kailali 091-525941
Dhangadhi 2 Branch Chauraha Dhangadhi, Kailali 091-521785
Darchula Branch Darchula 093-420242
Jhalari Branch Jhalari, Kanchanpur 099-540067
Chainpur Branch Chainpur Bazar, Bajhang 091-421143
Chandev Branch Laljhadi, Kanchanpur 9848751003
Calcatta Branch Calcatta, Kanchanpur 9858784510