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12 Aug, 2026
मुक्तिनाथ विकास बैंकको चौथो त्रैमासिक वित्तीय विवरण

मुक्तिनाथ विकास बैंकको चौथो त्रैमासिक वित्तीय विवरणMuktinath Bikas Bank: Q4 Interim Financial Statements

वर्ग:Category:
Financial Analysis
प्रकाशित मिति:Published:
Published on August 12, 2026

MUKTINATH BIKAS BANK LTD.

Interim Financial Statements

4th Quarter of Financial Year 2079-80

Consolidated Statement of Financial Position

As on 31st Asar 2080

NPR in '000

Particulars Group 31st Asar2080207920802079
Assets
Cash and Cash Equivalent3,247,3187,210,3673,100,8786,583,140
Due from Nepal Rastra Bank13,496,20312,874,42513,496,20312,874,425
Placement with Bank and Financial Institutions----
Derivative Financial Instruments----
Other Trading Assets165,409170,819--
Loans and Advances to BFIs853,3651,621,934853,3651,621,934
Loans and Advances to Customers100,508,83197,223,243100,508,83197,223,243
Investment Securities19,187,51214,609,82219,128,51214,566,722
Current Tax Assets42,3034,80642,31717,184
Investment in Subsidiaries--244,046244,046
Investment in Associates165,663161,723155,550155,550
Investment Property892,306461,901859,191428,785
Property and Equipment1,961,3102,107,9161,952,5142,101,433
Goodwill and Intangible Assets10,53911,5629,98910,618
Deferred Tax Assets186,234125,877185,119124,762
Other Assets590,267627,386525,806568,362
Total Assets141,307,261137,211,780141,062,320136,520,203
Liabilities
Due to Banks and Financial Institutions1,002,1273,718,0261,002,1273,718,026
Due to Nepal Rastra Bank415,630415,630415,630415,630
Derivative Financials Instrument----
Deposits from Customers123,443,325117,335,443123,539,443117,430,719

Borrowings - 2,083 - 2,083

Current Tax Liabilities----
Provisions----
Deferred Tax Liabilities----
Other Liabilities2,052,3772,435,9911,910,0541,895,658
Debt Securities Issued1,248,6501,274,9861,248,6501,248,017
Subordinated Liabilities----
Total Liabilities128,162,109125,182,159128,115,904124,710,133
Equity
Share Capital8,000,3897,046,9388,000,3897,046,938
Share Premium----
Retained Earnings692,3721,382,460675,7561,354,102
Reserves4,280,4173,418,4114,270,2713,409,030
Total Equity Attributable to Equity Shareholders12,973,17711,847,80912,946,41611,810,070
Non Controlling Interest171,975181,813--
Total Equity13,145,15212,029,62212,946,41611,810,070
Total Equity and Liabilities141,307,261137,211,780141,062,320136,520,203

Statement of Distributable Profit or Loss

For the Quarter ended Asar 2080

(As per NRB Regulation)

NPR in '000

Particulars Bank Current Year Upto this Qtr. YTD Bank Previous Year Corresponding Qtr. YTD

Net profit or (loss) as per statement of profit or loss1,518,3611,350,360
Appropriations:
a. General Reserve(303,672)(273,585)

b. Foreign Exchange Fluctuation Fund (1,673) (647)

c. Capital Redemption Reserve(250,000)(250,000)
d. Corporate Social Responsibility Fund(15,184)(13,504)
e. Staff Skill Development Fund(7,691)(9,227)
f. Other--

- CSR Expenses routed through Statement of Profit & Loss 12,643 10,321

Profit or (loss) before regulatory adjustment952,785813,718
Regulatory adjustment
a. Interest receivable (-)/previous accrued interest received (+)(67,921)236,701
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 (+)(214,213)59,071
e. Deferred tax assets recognised (-)/ reversal (+)(37,675)6,050
f. Goodwill recognised (-)/ impairment of Goodwill (+)--
g. Bargain purchase gain recognised (-)/reversal (+)--
h. Actuarial loss recognised (-)/reversal (+)--
i. Other (+/-)--

- Gains/(losses) from investments in equity instruments (26,539) 27,503

- Interest Capitalized Reserve (2,239) (1,208)

Net profit for the year ended available for distribution604,1971,141,836
Opening Retained Earnings as on Shrawan 11,354,102194,701
Adjustment (+/-)-17,564
Distribution:
Bonus shares Issued(953,451)-
Cash dividend paid(329,092)-
Total Distributable profit or (loss) as on Year end675,7561,354,102
Annualised Distributable Profit/Loss per share8.4519.22

Disclosure Pursuant to Securities Registration and Issue Regulation, 2073 (Rule 26(1), Annexure 14)

4th Quarter of Financial Year 2079-80

1. Financial Statements

a) The Nepal Financial Reporting Standard (NFRS) compliant financial statement of the fourth quarter has been published along with this report.

b) Transaction with Related Parties

The Group comprises of Muktinath Bikas Bank (The Bank), Muktinath Capital Limited (Subsidiary) & Muktinath Krishi Company Limited (Associate). The transactions with related parties are as follows:

(In 000's)

Particulars Muktinath Capital Ltd. Muktinath Krishi Co. Ltd.

Nature of Relationship Subsidiary Associate

Deposits Outstanding 96,118 56,820

Condensed Consolidated Statement of Profit or Loss

For the Quarter ended Asar 2080

NPR in '000

Particulars

Group Current Year This Quarter Up to This Quarter (YTD) Previous Year Corresponding This Quarter Up to This Quarter (YTD)

Bank Current Year This Quarter Up to This Quarter (YTD) Previous Year Corresponding This Quarter Up to This Quarter (YTD)

Interest Income2,449,0799,702,3202,844,33411,060,2302,448,1099,696,5622,841,75511,048,871
Interest Expense1,149,9744,952,2031,548,4656,469,7091,150,0644,952,7131,550,1376,471,381
Net Interest Income1,299,1054,750,1171,295,8694,590,5211,298,0454,743,8491,291,6184,577,490
Fees and Commission Income228,819729,255190,151718,181193,587647,171168,959648,292
Fees and Commission Expense41,675105,19731,74697,77233,43197,35429,64590,120
Net Fee and Commission Income187,144624,058158,406620,409160,157549,817139,314558,172
Net Interest, Fee and Commission Income1,486,2495,374,1751,454,2755,210,9301,458,2015,293,6651,430,9325,135,662
Net Trading Income(19,581)(10,003)8,00226,2392,46310,5842,9929,159
Other Operating Income4,49282,65928,41357,6436,08093,9585,83951,045
Total Operating Income1,471,1615,446,8301,490,6895,294,8111,466,7455,398,2071,439,7625,195,865
Impairment Charge/(reversal) for loans and other losses(353,353)572,370(440,250)793,567(353,353)572,370(440,250)793,567
Net Operating Income1,824,5144,874,4601,930,9404,501,2451,820,0984,825,8371,880,0134,402,299
Operating Expenses
Personnel Expenses524,4851,663,035653,9111,673,486519,6881,637,626646,9961,646,265
Other Operating Expenses183,579513,005153,526456,675173,741492,373151,154445,922
Depreciation and Amortisation60,565275,784104,722299,82460,546273,130102,021295,058
Operating Profit1,055,8852,422,6361,018,7802,071,2601,066,1242,422,707979,8412,015,054
Non Operating Income1472825331,4671472825331,467
Non Operating Expenses284,799294,94565,54165,541284,799294,94565,54165,541
Profit before Income Tax771,2332,127,973953,7732,007,186781,4722,128,044914,8341,950,980
Income Tax Expenses
Current Tax240,315652,415310,422632,209243,386647,358303,389614,683
Deferred Tax(37,675)(37,675)(14,988)(14,988)(37,675)(37,675)(14,063)(14,063)
Profit for the Period568,5931,513,234658,3381,389,964575,7611,518,361625,5091,350,360

Condensed Consolidated Statement of Comprehensive Income

Profit/(Loss) for the period568,5931,513,234658,3381,389,964575,7611,518,361625,5091,350,360
Other Comprehensive Income(37,340)(52,924)11,90612,638(37,340)(52,924)11,90612,638
Total Comprehensive Income531,2531,460,310670,2441,402,603538,4211,465,437637,4141,362,999
Earnings per Share
Basic Earnings per Share-18.91-19.72-18.98-19.16
Diluted Earnings per Share-18.91-19.72-18.98-19.16
Profit attributable to:
Equity holders of the Bank571,4421,508,544654,1691,376,193575,7611,518,361625,5091,350,360
Non-controlling Interest(2,848)4,6894,16913,772----
Total568,5931,513,234658,3381,389,964575,7611,518,361625,5091,350,360

Interest Paid on Deposits 510 364

Guarantees Outstanding - 3,995

Income earned on guarantees - 20

Dividend Received22,955-
Dividend from Muktinath Mutual Fund-I6,175-
RTS & Other Fees1,063-

c) Key Financial Indicators

Earnings Per Share (NPR) 18.98 Liquidity Ratio 27.95%

Price Earnings Ratio (Times) 19.13 Return on Equity 12.27%

Net Worth Per Share (NPR) 161.82 Total Assets Value Per Share (NPR) 1763.19

Notes:

i. Figures presented above may vary from the audited figures if instructed by the Central Bank and/or Statutory Auditors.

ii. The financial statements presented have been prepared in compliance with the Nepal Financial Reporting Standards (NFRS) and in accordance to the directives issued by Nepal Rastra Bank (NRB).

iii. The Bank has recognised impairment on loans and advances as the higher of total impairment calculated as per NFRS 9 and existing regulatory provisions as per NRB Directive.

iv. The Group financial statements include the figures of Muktinath Bikas Bank Limited, Muktinath Capital Limited and Muktinath Krishi Company Limited.

v. Interest income on loans and advances has been recognized as per the Interest Income Recognition Guidelines 2025 issued by NRB.

vi. Loans and Advances includes the interest accrued and staff loans are presented net of impairment charge.

vii. The detailed interim financial statement has been published in website of the Bank (www.muktinathbank.com.np).

Ratios as per NRB Directives

Particulars

Group Current Year This Quarter Up to This Quarter (YTD) Previous Year Corresponding This Quarter Up to This Quarter (YTD)

Bank Current Year This Quarter Up to This Quarter (YTD) Previous Year Corresponding This Quarter Up to This Quarter (YTD)

Capital fund to RWA----
Tier I Capital to RWA----
CET I Capital to RWA----
Non-performing loan (NPL) to Total Loan----
Total loan loss provision to Total NPL----
Cost of Funds----
Credit to Deposit Ratio----
Base Rate (Quarterly Average)----
Interest Rate Spread----
Return on Assets----
Return on Equity----

2. Management Analysis

The ongoing economic situation has significantly affected recoveries and the business for the quarter. Nevertheless, the Bank focused on a robust debt recovery to achieve optimal returns all while prioritizing long term sustainability and fostering resilience in a challenging economic environment. Furthermore, the Bank is dedicated to managing risks effectively, delivering exceptional customer service, maximizing returns and intensifying recovery efforts to strengthen its financial position.

Analysis of Bank's Interim Financial Statement:

The total assets of the Bank in the reporting period grew by 3.33% to reach to NPR 141.06 Bn with the increase in loans (BFIs and Customer) by 2.55% and deposits to customers by 5.20%. Correspondingly, the Bank reported NPR 1.51 Bn in profitability with the growth of 12.44% as compared to the corresponding quarter previous year. The non-performing assets have significantly increased to 4.77% from 2.97% in the same quarter last year.

3. Details Related to Legal Proceedings

a) No information regarding the lawsuit by or against the Bank has been filed during the period under review except for the regular cases of debt recovery.

b) No information regarding the lawsuit on account of violation of prevailing laws or commission of criminal offences has been filed against the promoter or director of the Bank during the quarterly period under review.

c) No information regarding the lawsuit of financial fraud/crime has been filed against the promoters and management team of the Bank during the quarterly period under review.

4. Analysis of Bank's Share Transaction

a) All the shares of the Bank are listed on Nepal Stock Exchange. The Bank's share price is determined by the market's movement and Bank's management is neutral in this regard.

b) The Bank has complied with all the prevailing norms of SEBON and directives issued by NRB.

c) Details of share transactions during the quarter is as follows:

Price History Transaction History

Maximum Price 386 No. of Shares Transacted 1,658,272

Minimum Price 357.4 No. of Transaction 10,487

Closing Price 363 Total Days Transacted 64

(Source: www.nepalstock.com.np)

5. Problems and Challenges

The internal, external problems and challenges faced by the Bank are as follows:

a) Internal Challenges:

i. Challenges in the recovery of loans due to external circumstances.

ii. Challenges in business growth due to low credit demand.

iii. Challenges in increasing non-interest income.

iv. Challenges in retaining the skilled manpower.

b) External Challenges:

i. Stiff competition among Banks & Financial Institutions.

ii. Changes in regulatory provisions.

iii. Risk of increase in non-performing loans.

iv. Challenges due to stress in National Economic Outlook.

v. Risk of cyber security.

vi. Migration of youths to foreign countries for better opportunities.

vii. Excess market liquidity with limited investment avenues.

c) Strategy

Going forward, the bank intends to:

i. Optimize utilization of assets and resources of the Bank.

ii. Develop a comprehensive risk management framework and its effective implementation.

iii. Improving the assets quality.

iv. Embrace digital banking in every service area possible.

v. Develop quality human resources through robust training and development.

6. Corporate Governance

The Bank is committed in maintaining the highest level of ethical standards, corporate governance, and compliance. The board of directors and management strictly comply with all the regulatory norms issued by NRB and various other regulatory authorities. Further, the Bank adheres to all the regulatory and legal requirements and the industry best practices.

7. Declaration by CEO

I, CEO of the Bank, take responsibility for the truthfulness of the information disclosed in this report to the best of my knowledge. Further, the information disclosed herein are true and fair and have not knowingly concealed any material information which may affect the decision of the investor.

जनता बैंकमा होइन, बैंक जनतामा जानु पर्छ

MUKTINATH BIKAS BANK LTD.

Interim Financial Statements

4th Quarter of Financial Year 2079-80

Consolidated Statement of Financial Position

As on 31st Asar 2080

NPR in '000

Particulars Group 31st Asar2080207920802079
Assets
Cash and Cash Equivalent3,247,3187,210,3673,100,8786,583,140
Due from Nepal Rastra Bank13,496,20312,874,42513,496,20312,874,425
Placement with Bank and Financial Institutions----
Derivative Financial Instruments----
Other Trading Assets165,409170,819--
Loans and Advances to BFIs853,3651,621,934853,3651,621,934
Loans and Advances to Customers100,508,83197,223,243100,508,83197,223,243
Investment Securities19,187,51214,609,82219,128,51214,566,722
Current Tax Assets42,3034,80642,31717,184
Investment in Subsidiaries--244,046244,046
Investment in Associates165,663161,723155,550155,550
Investment Property892,306461,901859,191428,785
Property and Equipment1,961,3102,107,9161,952,5142,101,433
Goodwill and Intangible Assets10,53911,5629,98910,618
Deferred Tax Assets186,234125,877185,119124,762
Other Assets590,267627,386525,806568,362
Total Assets141,307,261137,211,780141,062,320136,520,203
Liabilities
Due to Banks and Financial Institutions1,002,1273,718,0261,002,1273,718,026
Due to Nepal Rastra Bank415,630415,630415,630415,630
Derivative Financials Instrument----
Deposits from Customers123,443,325117,335,443123,539,443117,430,719

Borrowings - 2,083 - 2,083

Current Tax Liabilities----
Provisions----
Deferred Tax Liabilities----
Other Liabilities2,052,3772,435,9911,910,0541,895,658
Debt Securities Issued1,248,6501,274,9861,248,6501,248,017
Subordinated Liabilities----
Total Liabilities128,162,109125,182,159128,115,904124,710,133
Equity
Share Capital8,000,3897,046,9388,000,3897,046,938
Share Premium----
Retained Earnings692,3721,382,460675,7561,354,102
Reserves4,280,4173,418,4114,270,2713,409,030
Total Equity Attributable to Equity Shareholders12,973,17711,847,80912,946,41611,810,070
Non Controlling Interest171,975181,813--
Total Equity13,145,15212,029,62212,946,41611,810,070
Total Equity and Liabilities141,307,261137,211,780141,062,320136,520,203

Statement of Distributable Profit or Loss

For the Quarter ended Asar 2080

(As per NRB Regulation)

NPR in '000

Particulars Bank Current Year Upto this Qtr. YTD Bank Previous Year Corresponding Qtr. YTD

Net profit or (loss) as per statement of profit or loss1,518,3611,350,360
Appropriations:
a. General Reserve(303,672)(273,585)

b. Foreign Exchange Fluctuation Fund (1,673) (647)

c. Capital Redemption Reserve(250,000)(250,000)
d. Corporate Social Responsibility Fund(15,184)(13,504)
e. Staff Skill Development Fund(7,691)(9,227)
f. Other--

- CSR Expenses routed through Statement of Profit & Loss 12,643 10,321

Profit or (loss) before regulatory adjustment952,785813,718
Regulatory adjustment
a. Interest receivable (-)/previous accrued interest received (+)(67,921)236,701
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 (+)(214,213)59,071
e. Deferred tax assets recognised (-)/ reversal (+)(37,675)6,050
f. Goodwill recognised (-)/ impairment of Goodwill (+)--
g. Bargain purchase gain recognised (-)/reversal (+)--
h. Actuarial loss recognised (-)/reversal (+)--
i. Other (+/-)--

- Gains/(losses) from investments in equity instruments (26,539) 27,503

- Interest Capitalized Reserve (2,239) (1,208)

Net profit for the year ended available for distribution604,1971,141,836
Opening Retained Earnings as on Shrawan 11,354,102194,701
Adjustment (+/-)-17,564
Distribution:
Bonus shares Issued(953,451)-
Cash dividend paid(329,092)-
Total Distributable profit or (loss) as on Year end675,7561,354,102
Annualised Distributable Profit/Loss per share8.4519.22

Disclosure Pursuant to Securities Registration and Issue Regulation, 2073 (Rule 26(1), Annexure 14)

4th Quarter of Financial Year 2079-80

1. Financial Statements

a) The Nepal Financial Reporting Standard (NFRS) compliant financial statement of the fourth quarter has been published along with this report.

b) Transaction with Related Parties

The Group comprises of Muktinath Bikas Bank (The Bank), Muktinath Capital Limited (Subsidiary) & Muktinath Krishi Company Limited (Associate). The transactions with related parties are as follows:

(In 000's)

Particulars Muktinath Capital Ltd. Muktinath Krishi Co. Ltd.

Nature of Relationship Subsidiary Associate

Deposits Outstanding 96,118 56,820

Condensed Consolidated Statement of Profit or Loss

For the Quarter ended Asar 2080

NPR in '000

Particulars

Group Current Year This Quarter Up to This Quarter (YTD) Previous Year Corresponding This Quarter Up to This Quarter (YTD)

Bank Current Year This Quarter Up to This Quarter (YTD) Previous Year Corresponding This Quarter Up to This Quarter (YTD)

Interest Income2,449,0799,702,3202,844,33411,060,2302,448,1099,696,5622,841,75511,048,871
Interest Expense1,149,9744,952,2031,548,4656,469,7091,150,0644,952,7131,550,1376,471,381
Net Interest Income1,299,1054,750,1171,295,8694,590,5211,298,0454,743,8491,291,6184,577,490
Fees and Commission Income228,819729,255190,151718,181193,587647,171168,959648,292
Fees and Commission Expense41,675105,19731,74697,77233,43197,35429,64590,120
Net Fee and Commission Income187,144624,058158,406620,409160,157549,817139,314558,172
Net Interest, Fee and Commission Income1,486,2495,374,1751,454,2755,210,9301,458,2015,293,6651,430,9325,135,662
Net Trading Income(19,581)(10,003)8,00226,2392,46310,5842,9929,159
Other Operating Income4,49282,65928,41357,6436,08093,9585,83951,045
Total Operating Income1,471,1615,446,8301,490,6895,294,8111,466,7455,398,2071,439,7625,195,865
Impairment Charge/(reversal) for loans and other losses(353,353)572,370(440,250)793,567(353,353)572,370(440,250)793,567
Net Operating Income1,824,5144,874,4601,930,9404,501,2451,820,0984,825,8371,880,0134,402,299
Operating Expenses
Personnel Expenses524,4851,663,035653,9111,673,486519,6881,637,626646,9961,646,265
Other Operating Expenses183,579513,005153,526456,675173,741492,373151,154445,922
Depreciation and Amortisation60,565275,784104,722299,82460,546273,130102,021295,058
Operating Profit1,055,8852,422,6361,018,7802,071,2601,066,1242,422,707979,8412,015,054
Non Operating Income1472825331,4671472825331,467
Non Operating Expenses284,799294,94565,54165,541284,799294,94565,54165,541
Profit before Income Tax771,2332,127,973953,7732,007,186781,4722,128,044914,8341,950,980
Income Tax Expenses
Current Tax240,315652,415310,422632,209243,386647,358303,389614,683
Deferred Tax(37,675)(37,675)(14,988)(14,988)(37,675)(37,675)(14,063)(14,063)
Profit for the Period568,5931,513,234658,3381,389,964575,7611,518,361625,5091,350,360

Condensed Consolidated Statement of Comprehensive Income

Profit/(Loss) for the period568,5931,513,234658,3381,389,964575,7611,518,361625,5091,350,360
Other Comprehensive Income(37,340)(52,924)11,90612,638(37,340)(52,924)11,90612,638
Total Comprehensive Income531,2531,460,310670,2441,402,603538,4211,465,437637,4141,362,999
Earnings per Share
Basic Earnings per Share-18.91-19.72-18.98-19.16
Diluted Earnings per Share-18.91-19.72-18.98-19.16
Profit attributable to:
Equity holders of the Bank571,4421,508,544654,1691,376,193575,7611,518,361625,5091,350,360
Non-controlling Interest(2,848)4,6894,16913,772----
Total568,5931,513,234658,3381,389,964575,7611,518,361625,5091,350,360

Interest Paid on Deposits 510 364

Guarantees Outstanding - 3,995

Income earned on guarantees - 20

Dividend Received22,955-
Dividend from Muktinath Mutual Fund-I6,175-
RTS & Other Fees1,063-

c) Key Financial Indicators

Earnings Per Share (NPR) 18.98 Liquidity Ratio 27.95%

Price Earnings Ratio (Times) 19.13 Return on Equity 12.27%

Net Worth Per Share (NPR) 161.82 Total Assets Value Per Share (NPR) 1763.19

Notes:

i. Figures presented above may vary from the audited figures if instructed by the Central Bank and/or Statutory Auditors.

ii. The financial statements presented have been prepared in compliance with the Nepal Financial Reporting Standards (NFRS) and in accordance to the directives issued by Nepal Rastra Bank (NRB).

iii. The Bank has recognised impairment on loans and advances as the higher of total impairment calculated as per NFRS 9 and existing regulatory provisions as per NRB Directive.

iv. The Group financial statements include the figures of Muktinath Bikas Bank Limited, Muktinath Capital Limited and Muktinath Krishi Company Limited.

v. Interest income on loans and advances has been recognized as per the Interest Income Recognition Guidelines 2025 issued by NRB.

vi. Loans and Advances includes the interest accrued and staff loans are presented net of impairment charge.

vii. The detailed interim financial statement has been published in website of the Bank (www.muktinathbank.com.np).

Ratios as per NRB Directives

Particulars

Group Current Year This Quarter Up to This Quarter (YTD) Previous Year Corresponding This Quarter Up to This Quarter (YTD)

Bank Current Year This Quarter Up to This Quarter (YTD) Previous Year Corresponding This Quarter Up to This Quarter (YTD)

Capital fund to RWA----
Tier I Capital to RWA----
CET I Capital to RWA----
Non-performing loan (NPL) to Total Loan----
Total loan loss provision to Total NPL----
Cost of Funds----
Credit to Deposit Ratio----
Base Rate (Quarterly Average)----
Interest Rate Spread----
Return on Assets----
Return on Equity----

2. Management Analysis

The ongoing economic situation has significantly affected recoveries and the business for the quarter. Nevertheless, the Bank focused on a robust debt recovery to achieve optimal returns all while prioritizing long term sustainability and fostering resilience in a challenging economic environment. Furthermore, the Bank is dedicated to managing risks effectively, delivering exceptional customer service, maximizing returns and intensifying recovery efforts to strengthen its financial position.

Analysis of Bank's Interim Financial Statement:

The total assets of the Bank in the reporting period grew by 3.33% to reach to NPR 141.06 Bn with the increase in loans (BFIs and Customer) by 2.55% and deposits to customers by 5.20%. Correspondingly, the Bank reported NPR 1.51 Bn in profitability with the growth of 12.44% as compared to the corresponding quarter previous year. The non-performing assets have significantly increased to 4.77% from 2.97% in the same quarter last year.

3. Details Related to Legal Proceedings

a) No information regarding the lawsuit by or against the Bank has been filed during the period under review except for the regular cases of debt recovery.

b) No information regarding the lawsuit on account of violation of prevailing laws or commission of criminal offences has been filed against the promoter or director of the Bank during the quarterly period under review.

c) No information regarding the lawsuit of financial fraud/crime has been filed against the promoters and management team of the Bank during the quarterly period under review.

4. Analysis of Bank's Share Transaction

a) All the shares of the Bank are listed on Nepal Stock Exchange. The Bank's share price is determined by the market's movement and Bank's management is neutral in this regard.

b) The Bank has complied with all the prevailing norms of SEBON and directives issued by NRB.

c) Details of share transactions during the quarter is as follows:

Price History Transaction History

Maximum Price 386 No. of Shares Transacted 1,658,272

Minimum Price 357.4 No. of Transaction 10,487

Closing Price 363 Total Days Transacted 64

(Source: www.nepalstock.com.np)

5. Problems and Challenges

The internal, external problems and challenges faced by the Bank are as follows:

a) Internal Challenges:

i. Challenges in the recovery of loans due to external circumstances.

ii. Challenges in business growth due to low credit demand.

iii. Challenges in increasing non-interest income.

iv. Challenges in retaining the skilled manpower.

b) External Challenges:

i. Stiff competition among Banks & Financial Institutions.

ii. Changes in regulatory provisions.

iii. Risk of increase in non-performing loans.

iv. Challenges due to stress in National Economic Outlook.

v. Risk of cyber security.

vi. Migration of youths to foreign countries for better opportunities.

vii. Excess market liquidity with limited investment avenues.

c) Strategy

Going forward, the bank intends to:

i. Optimize utilization of assets and resources of the Bank.

ii. Develop a comprehensive risk management framework and its effective implementation.

iii. Improving the assets quality.

iv. Embrace digital banking in every service area possible.

v. Develop quality human resources through robust training and development.

6. Corporate Governance

The Bank is committed in maintaining the highest level of ethical standards, corporate governance, and compliance. The board of directors and management strictly comply with all the regulatory norms issued by NRB and various other regulatory authorities. Further, the Bank adheres to all the regulatory and legal requirements and the industry best practices.

7. Declaration by CEO

I, CEO of the Bank, take responsibility for the truthfulness of the information disclosed in this report to the best of my knowledge. Further, the information disclosed herein are true and fair and have not knowingly concealed any material information which may affect the decision of the investor.

"Not in the bank, the bank should go to the people"

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