हिमालयन बैंकको चौथो त्रैमासिक वित्तीय विवरण तथा वितरणयोग्य नाफाHimalayan Bank: Q4 Financial Report & Distributable Profit Statement
- वर्ग:Category:
- Financial Analysis
- प्रकाशित मिति:Published:
- Published on August 14, 2026
Statement of Distributable Profit As on Quarter Ending 32nd Asar 2081
Amount in NPR
Particulars Current Year Upto This Qtr YTD Previous Year Corresponding Qtr YTD
| Net profit or (loss) as per statement of profit or loss | 1,480,385,460 | 129,726,032 |
| Appropriations: | ||
| a. General reserve | (296,077,092) | (25,945,206) |
| b. Foreign exchange fluctuation fund | - | (530,801) |
| c. Capital redemption reserve | (875,000,000) | (875,000,000) |
| d. Corporate social responsibility fund | (11,620,298) | 6,189,756 |
| e. Employees' training fund | (19,738,608) | (29,203,743) |
| f. Other | (46,029,746) | (138,055,785) |
| Profit or (loss) before regulatory adjustment | 231,919,716 | (932,819,746) |
| Regulatory adjustment : | ||
| a. Interest receivable (-)/previous accrued interest received (+) | 186,804,696 | 2,039,784,642 |
| b. Short loan loss provision in accounts (-)/reversal (+) | - | - |
| c. Short provision for possible losses on investment (-)/reversal (+) | - | - |
| d. Short loan loss provision on Non Banking Assets (-)/reversal (+) | (410,346,124) | (1,297,941,031) |
| e. Deferred tax assets recognised (-)/ reversal (+) | (979,440,544) | (1,060,994,141) |
| f. Goodwill recognised (-)/ impairment of Goodwill (+) | - | - |
| g. Bargain purchase gain recognised (-)/reversal (+) | - | - |
| h. Acturial loss recognised (-)/reversal (+) | (14,789,529) | (150,597,143) |
| i. Other (+/-) | - | - |
| Net Profit for the Fourth Qtr end available for Distribution | (985,851,785) | (1,402,567,419) |
| Opening Retained Earning As on Shrawan 1 | (8,854,298,008) | (7,441,526,420) |
| Adjustment (+/-) | - | (10,204,170) |
| Distribution | ||
| Bonus Shares Issued | - | - |
| Cash Dividend Paid | - | - |
| Total Distributable Profit or (Loss) as on Qtr end | (9,840,149,793) | (8,854,298,008) |
| Annualized Distributable Profit/Loss per share | - | - |
Notes to Unaudited Financial Statement:
1. Above financials have been prepared in accordance with Nepal Financial Reporting Standard, Carve-outs issued by Institute of Chartered Accountants of Nepal and the guidelines issued by NRB.
2. Group includes Himalayan Capital Limited,Himalayan Laghubitta Bittiya Sanstha Limited, Himalayan Securities Limited. Intercompany Transactions have been eliminated while preparing group financial statements.
3. Prior period figures have been reclassified/regrouped/restated to make them comparable.
4. Bank has assessed and measured impairment on loans and advances under rules prescribed by Nepal Rastra Bank as it is higher than that calculated in accordance with guidelines on ECL issued by NRB.
5. Investment in associate are accounted at cost while preparing standalone financial statement of the bank. In presenting the group position, associates have been accounted using equity method based on last audited financial statements. Similarly, performance of subsidiaries Himalayan Capital Limited, Himalayan Laghubitta Bittiya Sanstha Limited, Himalayan Securities Limited have been included in the group financials on the basis of unaudited quarterly results.
6. Accured Interest for the quarter on non performing loans (Stage 3 loans) has been suspended in line with guidelines issued by NRB.
7. The above figures are subject to change if instructed otherwise by the Statutory auditors or the Supervising authority.
8. Detailed interim report is available in the Bank's website.
Securities Registration and Issue Regulation 2073, (Rule # 26 (1), Annex -14)
4th Quarter Report, F.Y 2080/81
1. Related Party Disclosure:
The bank has leased premises at Thamel which come under the purview of related party transaction, however these agreement
Group Bank
Current Year This Quarter Current Year Upto This Quarter (YTD) Previous Year Corresponding This Quarter Previous Year Corresponding Upto This Quarter (YTD) Current Year This Quarter Current Year Upto This Quarter (YTD)
| Particulars | ||||||
| Interest Income | 5,641,240,890 | 23,391,371,024 | 6,915,641,818 | 28,381,585,737 | 5,476,486,443 | 22,758,925,817 |
| Interest Expense | 3,533,458,344 | 14,105,902,072 | 4,035,221,815 | 17,457,059,275 | 3,498,424,627 | 13,948,763,382 |
| Net interest income | 2,107,782,546 | 9,285,468,952 | 2,880,420,003 | 10,924,526,462 | 1,978,061,816 | 8,810,162,435 |
| Fee and Commission Income | 547,231,856 | 1,453,937,715 | 432,175,336 | 1,462,162,742 | 496,893,854 | 1,254,603,722 |
| Fee and Commission Expenses | 101,994,595 | 206,374,546 | 36,009,638 | 177,996,714 | 98,195,036 | 192,407,010 |
| Net Fee and Commission Income | 445,237,261 | 1,247,563,169 | 396,165,698 | 1,284,166,028 | 398,698,818 | 1,062,196,712 |
| Net interest, fee and commission income | 2,553,019,807 | 10,533,032,121 | 3,276,585,701 | 12,208,692,490 | 2,376,760,634 | 9,872,359,147 |
| Net Trading Income | 234,562,396 | 832,701,784 | 195,027,823 | 666,430,418 | 218,848,087 | 817,028,871 |
| Other Operating Income | 240,105,539 | 425,667,728 | 160,517,059 | 350,548,564 | 235,710,726 | 470,754,679 |
| Total Operating Income | 3,027,687,742 | 11,791,401,633 | 3,632,130,583 | 13,225,671,472 | 2,831,319,447 | 11,160,142,697 |
| Impairment charges/ (reversal) for Loans and Other losses | (201,860,612) | 2,957,270,362 | 2,467,926,456 | 3,794,267,609 | (228,890,267) | 2,896,498,124 |
| Net operating income | 3,229,548,354 | 8,834,131,271 | 1,164,204,127 | 9,431,403,863 | 3,060,209,714 | 8,263,644,573 |
| Operating expense | ||||||
| Personnel Expenses | 1,118,963,753 | 3,911,460,978 | 925,493,706 | 3,670,052,464 | 1,051,373,187 | 3,656,373,229 |
| Other Operating Expenses | 180,630,517 | 1,397,995,744 | 128,493,797 | 1,340,201,346 | 155,929,804 | 1,299,818,498 |
| Depreciation & Amortisation | 392,161,976 | 713,312,991 | 396,775,398 | 693,284,152 | 383,013,055 | 681,375,529 |
| Operating Profit | 1,537,792,108 | 2,811,361,558 | (286,558,774) | 3,727,865,901 | 1,469,893,668 | 2,626,077,317 |
| Non operating income | 108,639,554 | 124,680,359 | 142,146,235 | 148,188,185 | 108,639,554 | 124,680,359 |
| Non operating expense | 529,135,232 | 648,007,730 | 259,090,668 | 3,363,396,375 | 516,635,232 | 635,507,730 |
| Profit before income tax | 1,117,296,430 | 2,288,034,187 | (403,503,207) | 512,657,711 | 1,061,897,990 | 2,115,249,946 |
| Income Tax Expense | ||||||
| Current Tax | 449,338,247 | 1,675,719,310 | 481,093,733 | 1,796,324,138 | 429,066,242 | 1,593,165,374 |
| Deferred Tax | (85,910,115) | (959,193,608) | (706,592,483) | (1,748,674,099) | (85,017,395) | (958,300,888) |
| Profit\ (Loss) for the period | 753,868,298 | 1,571,508,485 | (178,004,457) | 465,007,672 | 717,849,143 | 1,480,385,460 |
Condensed Consolidated Statement of Comprehensive Income
| Profit/(Loss) for the Period | 753,868,298 | 1,571,508,485 | (178,004,457) | 465,007,672 | 717,849,143 | 1,480,385,460 |
| Other Comprehensive Income | (41,047,532) | (47,962,230) | (38,919,009) | (33,312,718) | (42,378,743) | (49,325,866) |
| Total Comprehensive Income | 712,820,766 | 1,523,546,255 | (216,923,466) | 431,694,954 | 675,470,400 | 1,431,059,594 |
| Basic Earning Per Share | - | 6.96 | - | 2.15 | - | 6.56 |
| Diluted Earning Per Share | - | 6.96 | - | 2.15 | - | 6.56 |
| Profit attributable to: | ||||||
| Equity holders of the Bank | 699,009,868 | 1,467,946,017 | (228,107,113) | 390,922,432 | 675,470,400 | 1,431,059,594 |
| Non-Controlling Interest | 13,810,898 | 55,600,238 | 11,183,647 | 40,772,522 | - | - |
| Total | 712,820,766 | 1,523,546,255 | (216,923,466) | 431,694,954 | 675,470,400 | 1,431,059,594 |
Ratios as per NRB Directive
Particulars Bank Current Year Upto This Quarter (YTD)
Capital fund to RWA 11.69
Tier 1 Capital to RWA 8.19
CET 1 Capital to RWA 8.19
Return on Equity 3.83
Return on Assets 0.37
Non-performing loan (NPL) to total loan 7.96
Total loan loss provision to Total NPL 122.23
Cost of Funds 3.63
Credit to Deposit Ratio ( Average for the month) 72.74
Base Rate (Average) 5.31
Interest Rate Spread 2.83
has been done at an arm's length. Himalayan Capital Limited and Himalayan Securities Limited are subsidiaries of the bank operating from premises jointly leased with the bank. The bank holds 92.5% shares in Himalayan Capital Limited and 51% shares in Himalayan Laghubitta Bittiya Sansthan Limited whereas Himalayan Securities Limited is a wholly owned subsidiary of the bank. The bank has been conducting business with its promoter companies namely Karmachari Sanchaya Kosh and National Life Insurance Company Limited and its three subsidiaries under fair market terms.
2. Major Indicators:
Earnings per share : 6.56
P/E Ratio of the Bank : 29.67
Net worth per share : 177.48
Assets per share : 1,851.04
Liquidity ratio : 35.32
3. Management Analysis:
a. Substantial amount still remains blocked in provision for possible losses on loans and advances which has adversely affected profitability for the quarter. The management is closely reviewing classified accounts & working out feasible means for recovery/regularization of those accounts and targeting reversal of major portion of provision in FY 2083/84.
b. The bank has computed impairment charges in line with the ECL guidelines issued by NRB and it being lower, impairment under directives issued by NRB has been charged to profit.
c. Interest income has been recognized in line with guidelines issued by NRB.
d. Substantial amount of provision for possible loan loss and requirement to maintain Regulatory Reserve for uncollected interest and Non-banking assets has significantly affected capital adequacy position and distributable profit of the bank.
e. Considering the trust of Customers, the Bank is doing the needful to enhance its service standards, explore launching of new products and services, strengthening network, leverage out on the technology and work on solicitation of new business.
4. Details pertaining to legal action:
a. No legal suit (having major impact on banking operation) has been filed by or against the organization during the review quarter period other than those relating to recovery of classified and written off Loan accounts.
b. No legal suit related to criminal activity has been filed by or against the directors and promoters of the Bank during the period.
c. No legal suit has been filed against any director of the organization for any kind of actions related to financial crime.
5. Analysis pertaining to share transactions of the organization:
a. Maximum share price, minimum share price, last share price and total number of share trading days for the Bank during the quarter are as follows:
*As published in the website of Nepal Stock Exchange
Maximum Share Price : 223
Minimum Share Price : 186.20
Last Share Price : 194.50
Total no. of transaction days : 64
Total units of shares traded : 3,117,844
6. Problems and Challenges
The Bank has considered the following domestic and international impediments as problems and challenges:
• Risk concentration on both asset and liability sides continues owing to lack of adequate business sectors
• The market is still overcrowded with financial institutions with intensified competition
• Rise in inflation
• Lack of basic infrastructure such as roadways, connectivity, energy
• Policy uncertainties hence warding off investments and also affecting core business activities of the bank.
• Cut-throat competition in the remittance and services sector
• The continued effect of pressure to lower the lending rates and challenges to maintain cost of fund at lower level.
• Unexpected changes in regulation is a challenge in perceiving long term approach.
• Parking of substantial portion of interest income in regulatory reserve thereby limiting the distributable profit
• Management of NPL and NBA in the present difficult industry and economic environment.
• The increasing stress on Capital Adequacy due to higher NPL and NBA and uncollected interest on loan.
7. Corporate Governance
• Board of Directors:
Committees like Risk Management Committee, Human Resources Committee, AML / CFT Committee, Management Credit Committee, Assets Liabilities Management Committee and other management level risk committees have been constituted to carry out banking operations and these committees have been actively involved in major policy/plans related decisions.
• Internal Control System:
In order to strengthen the internal control mechanism of the Bank, a separate independent internal audit department has been established. The internal audit department carries out audit of various departments on a continuous manner and makes necessary recommendations to the Audit Committee. Accordingly, Audit Committee holds regular meetings to analyze the recommendations and bring about necessary changes. The management via Internal Control Committee reviews and amends the prevalent control system to address any new loopholes or vulnerabilities identified in the course of operation.
• Internal policies, regulations and directives:
In order to carry out various functionalities smoothly and to mitigate risks emanating from business functions, the Bank has instilled a sound operations system. All activities of the Bank are guided by strong internal policies, manuals and guidelines which are reviewed on a regular basis to address new developments / requirements. The Bank has a system to monitor compliance with all regulatory and statutory requirements.
8. Declaration of true and fair status by CEO:
I hereby declare that all the information provided in this document is true, complete and factual and that I take personal responsibility to any deviations thereof. I also declare that the Bank's information or data that assists investors make their investment decisions have not been concealed in any way.
Statement of Distributable Profit As on Quarter Ending 32nd Asar 2081
Amount in NPR
Particulars Current Year Upto This Qtr YTD Previous Year Corresponding Qtr YTD
| Net profit or (loss) as per statement of profit or loss | 1,480,385,460 | 129,726,032 |
| Appropriations: | ||
| a. General reserve | (296,077,092) | (25,945,206) |
| b. Foreign exchange fluctuation fund | - | (530,801) |
| c. Capital redemption reserve | (875,000,000) | (875,000,000) |
| d. Corporate social responsibility fund | (11,620,298) | 6,189,756 |
| e. Employees' training fund | (19,738,608) | (29,203,743) |
| f. Other | (46,029,746) | (138,055,785) |
| Profit or (loss) before regulatory adjustment | 231,919,716 | (932,819,746) |
| Regulatory adjustment : | ||
| a. Interest receivable (-)/previous accrued interest received (+) | 186,804,696 | 2,039,784,642 |
| b. Short loan loss provision in accounts (-)/reversal (+) | - | - |
| c. Short provision for possible losses on investment (-)/reversal (+) | - | - |
| d. Short loan loss provision on Non Banking Assets (-)/reversal (+) | (410,346,124) | (1,297,941,031) |
| e. Deferred tax assets recognised (-)/ reversal (+) | (979,440,544) | (1,060,994,141) |
| f. Goodwill recognised (-)/ impairment of Goodwill (+) | - | - |
| g. Bargain purchase gain recognised (-)/reversal (+) | - | - |
| h. Acturial loss recognised (-)/reversal (+) | (14,789,529) | (150,597,143) |
| i. Other (+/-) | - | - |
| Net Profit for the Fourth Qtr end available for Distribution | (985,851,785) | (1,402,567,419) |
| Opening Retained Earning As on Shrawan 1 | (8,854,298,008) | (7,441,526,420) |
| Adjustment (+/-) | - | (10,204,170) |
| Distribution | ||
| Bonus Shares Issued | - | - |
| Cash Dividend Paid | - | - |
| Total Distributable Profit or (Loss) as on Qtr end | (9,840,149,793) | (8,854,298,008) |
| Annualized Distributable Profit/Loss per share | - | - |
Notes to Unaudited Financial Statement:
1. Above financials have been prepared in accordance with Nepal Financial Reporting Standard, Carve-outs issued by Institute of Chartered Accountants of Nepal and the guidelines issued by NRB.
2. Group includes Himalayan Capital Limited, Himalayan Laghubitta Bittiya Sanstha Limited, Himalayan Securities Limited. Intercompany Transactions have been eliminated while preparing group financial statements.
3. Prior period figures have been reclassified/regrouped/restated to make them comparable.
4. Bank has assessed and measured impairment on loans and advances under rules prescribed by Nepal Rastra Bank as it is higher than that calculated in accordance with guidelines on ECL issued by NRB.
5. Investment in associate are accounted at cost while preparing standalone financial statement of the bank. In presenting the group position, associates have been accounted using equity method based on last audited financial statements. Similarly, performance of subsidiaries Himalayan Capital Limited, Himalayan Laghubitta Bittiya Sanstha Limited, Himalayan Securities Limited have been included in the group financials on the basis of unaudited quarterly results.
6. Accured Interest for the quarter on non performing loans (Stage 3 loans) has been suspended in line with guidelines issued by NRB.
7. The above figures are subject to change if instructed otherwise by the Statutory auditors or the Supervising authority.
8. Detailed interim report is available in the Bank's website.
Securities Registration and Issue Regulation 2073, (Rule # 26 (1), Annex -14)
4th Quarter Report, F.Y 2080/81
1. Related Party Disclosure:
The bank has leased premises at Thamel which come under the purview of related party transaction, however these agreement
Group Bank
Current Year This Quarter Current Year Upto This Quarter (YTD) Previous Year Corresponding This Quarter Previous Year Corresponding Upto This Quarter (YTD) Current Year This Quarter Current Year Upto This Quarter (YTD)
| Particulars | ||||||
| Interest Income | 5,641,240,890 | 23,391,371,024 | 6,915,641,818 | 28,381,585,737 | 5,476,486,443 | 22,758,925,817 |
| Interest Expense | 3,533,458,344 | 14,105,902,072 | 4,035,221,815 | 17,457,059,275 | 3,498,424,627 | 13,948,763,382 |
| Net interest income | 2,107,782,546 | 9,285,468,952 | 2,880,420,003 | 10,924,526,462 | 1,978,061,816 | 8,810,162,435 |
| Fee and Commission Income | 547,231,856 | 1,453,937,715 | 432,175,336 | 1,462,162,742 | 496,893,854 | 1,254,603,722 |
| Fee and Commission Expenses | 101,994,595 | 206,374,546 | 36,009,638 | 177,996,714 | 98,195,036 | 192,407,010 |
| Net Fee and Commission Income | 445,237,261 | 1,247,563,169 | 396,165,698 | 1,284,166,028 | 398,698,818 | 1,062,196,712 |
| Net interest, fee and commission income | 2,553,019,807 | 10,533,032,121 | 3,276,585,701 | 12,208,692,490 | 2,376,760,634 | 9,872,359,147 |
| Net Trading Income | 234,562,396 | 832,701,784 | 195,027,823 | 666,430,418 | 218,848,087 | 817,028,871 |
| Other Operating Income | 240,105,539 | 425,667,728 | 160,517,059 | 350,548,564 | 235,710,726 | 470,754,679 |
| Total Operating Income | 3,027,687,742 | 11,791,401,633 | 3,632,130,583 | 13,225,671,472 | 2,831,319,447 | 11,160,142,697 |
| Impairment charges/ (reversal) for Loans and Other losses | (201,860,612) | 2,957,270,362 | 2,467,926,456 | 3,794,267,609 | (228,890,267) | 2,896,498,124 |
| Net operating income | 3,229,548,354 | 8,834,131,271 | 1,164,204,127 | 9,431,403,863 | 3,060,209,714 | 8,263,644,573 |
| Operating expense | ||||||
| Personnel Expenses | 1,118,963,753 | 3,911,460,978 | 925,493,706 | 3,670,052,464 | 1,051,373,187 | 3,656,373,229 |
| Other Operating Expenses | 180,630,517 | 1,397,995,744 | 128,493,797 | 1,340,201,346 | 155,929,804 | 1,299,818,498 |
| Depreciation & Amortisation | 392,161,976 | 713,312,991 | 396,775,398 | 693,284,152 | 383,013,055 | 681,375,529 |
| Operating Profit | 1,537,792,108 | 2,811,361,558 | (286,558,774) | 3,727,865,901 | 1,469,893,668 | 2,626,077,317 |
| Non operating income | 108,639,554 | 124,680,359 | 142,146,235 | 148,188,185 | 108,639,554 | 124,680,359 |
| Non operating expense | 529,135,232 | 648,007,730 | 259,090,668 | 3,363,396,375 | 516,635,232 | 635,507,730 |
| Profit before income tax | 1,117,296,430 | 2,288,034,187 | (403,503,207) | 512,657,711 | 1,061,897,990 | 2,115,249,946 |
| Income Tax Expense | ||||||
| Current Tax | 449,338,247 | 1,675,719,310 | 481,093,733 | 1,796,324,138 | 429,066,242 | 1,593,165,374 |
| Deferred Tax | (85,910,115) | (959,193,608) | (706,592,483) | (1,748,674,099) | (85,017,395) | (958,300,888) |
| Profit\ (Loss) for the period | 753,868,298 | 1,571,508,485 | (178,004,457) | 465,007,672 | 717,849,143 | 1,480,385,460 |
Condensed Consolidated Statement of Comprehensive Income
| Profit/(Loss) for the Period | 753,868,298 | 1,571,508,485 | (178,004,457) | 465,007,672 | 717,849,143 | 1,480,385,460 |
| Other Comprehensive Income | (41,047,532) | (47,962,230) | (38,919,009) | (33,312,718) | (42,378,743) | (49,325,866) |
| Total Comprehensive Income | 712,820,766 | 1,523,546,255 | (216,923,466) | 431,694,954 | 675,470,400 | 1,431,059,594 |
| Basic Earning Per Share | - | 6.96 | - | 2.15 | - | 6.56 |
| Diluted Earning Per Share | - | 6.96 | - | 2.15 | - | 6.56 |
| Profit attributable to: | ||||||
| Equity holders of the Bank | 699,009,868 | 1,467,946,017 | (228,107,113) | 390,922,432 | 675,470,400 | 1,431,059,594 |
| Non-Controlling Interest | 13,810,898 | 55,600,238 | 11,183,647 | 40,772,522 | - | - |
| Total | 712,820,766 | 1,523,546,255 | (216,923,466) | 431,694,954 | 675,470,400 | 1,431,059,594 |
Ratios as per NRB Directive
Particulars Bank Current Year Upto This Quarter (YTD)
Capital fund to RWA 11.69
Tier 1 Capital to RWA 8.19
CET 1 Capital to RWA 8.19
Return on Equity 3.83
Return on Assets 0.37
Non-performing loan (NPL) to total loan 7.96
Total loan loss provision to Total NPL 122.23
Cost of Funds 3.63
Credit to Deposit Ratio ( Average for the month) 72.74
Base Rate (Average) 5.31
Interest Rate Spread 2.83
has been done at an arm's length. Himalayan Capital Limited and Himalayan Securities Limited are subsidiaries of the bank operating from premises jointly leased with the bank. The bank holds 92.5% shares in Himalayan Capital Limited and 51% shares in Himalayan Laghubitta Bittiya Sansthan Limited whereas Himalayan Securities Limited is a wholly owned subsidiary of the bank. The bank has been conducting business with its promoter companies namely Karmachari Sanchaya Kosh and National Life Insurance Company Limited and its three subsidiaries under fair market terms.
2. Major Indicators:
Earnings per share : 6.56
P/E Ratio of the Bank : 29.67
Net worth per share : 177.48
Assets per share : 1,851.04
Liquidity ratio : 35.32
3. Management Analysis:
a. Substantial amount still remains blocked in provision for possible losses on loans and advances which has adversely affected profitability for the quarter. The management is closely reviewing classified accounts & working out feasible means for recovery/regularization of those accounts and targeting reversal of major portion of provision in FY 2083/84.
b. The bank has computed impairment charges in line with the ECL guidelines issued by NRB and it being lower, impairment under directives issued by NRB has been charged to profit.
c. Interest income has been recognized in line with guidelines issued by NRB.
d. Substantial amount of provision for possible loan loss and requirement to maintain Regulatory Reserve for uncollected interest and Non-banking assets has significantly affected capital adequacy position and distributable profit of the bank.
e. Considering the trust of Customers, the Bank is doing the needful to enhance its service standards, explore launching of new products and services, strengthening network, leverage out on the technology and work on solicitation of new business.
4. Details pertaining to legal action:
a. No legal suit (having major impact on banking operation) has been filed by or against the organization during the review quarter period other than those relating to recovery of classified and written off Loan accounts.
b. No legal suit related to criminal activity has been filed by or against the directors and promoters of the Bank during the period.
c. No legal suit has been filed against any director of the organization for any kind of actions related to financial crime.
5. Analysis pertaining to share transactions of the organization:
a. Maximum share price, minimum share price, last share price and total number of share trading days for the Bank during the quarter are as follows:
*As published in the website of Nepal Stock Exchange
Maximum Share Price : 223
Minimum Share Price : 186.20
Last Share Price : 194.50
Total no. of transaction days : 64
Total units of shares traded : 3,117,844
6. Problems and Challenges
The Bank has considered the following domestic and international impediments as problems and challenges:
• Risk concentration on both asset and liability sides continues owing to lack of adequate business sectors
• The market is still overcrowded with financial institutions with intensified competition
• Rise in inflation
• Lack of basic infrastructure such as roadways, connectivity, energy
• Policy uncertainties hence warding off investments and also affecting core business activities of the bank.
• Cut-throat competition in the remittance and services sector
• The continued effect of pressure to lower the lending rates and challenges to maintain cost of fund at lower level.
• Unexpected changes in regulation is a challenge in perceiving long term approach.
• Parking of substantial portion of interest income in regulatory reserve thereby limiting the distributable profit
• Management of NPL and NBA in the present difficult industry and economic environment.
• The increasing stress on Capital Adequacy due to higher NPL and NBA and uncollected interest on loan.
7. Corporate Governance
• Board of Directors:
Committees like Risk Management Committee, Human Resources Committee, AML / CFT Committee, Management Credit Committee, Assets Liabilities Management Committee and other management level risk committees have been constituted to carry out banking operations and these committees have been actively involved in major policy/plans related decisions.
• Internal Control System:
In order to strengthen the internal control mechanism of the Bank, a separate independent internal audit department has been established. The internal audit department carries out audit of various departments on a continuous manner and makes necessary recommendations to the Audit Committee. Accordingly, Audit Committee holds regular meetings to analyze the recommendations and bring about necessary changes. The management via Internal Control Committee reviews and amends the prevalent control system to address any new loopholes or vulnerabilities identified in the course of operation.
• Internal policies, regulations and directives:
In order to carry out various functionalities smoothly and to mitigate risks emanating from business functions, the Bank has instilled a sound operations system. All activities of the Bank are guided by strong internal policies, manuals and guidelines which are reviewed on a regular basis to address new developments / requirements. The Bank has a system to monitor compliance with all regulatory and statutory requirements.
8. Declaration of true and fair status by CEO:
I hereby declare that all the information provided in this document is true, complete and factual and that I take personal responsibility to any deviations thereof. I also declare that the Bank's information or data that assists investors make their investment decisions have not been concealed in any way.