नारायणी डेभलपमेन्ट बैंकको चौथो त्रैमासिक वित्तीय विवरणNarayani Development Bank Fourth Quarter Financial Results

Particulars Group: This Quarter Ending Group: Immediate Previous Year Ending (Audited) Bank: This Quarter Ending
Assets
Cash and Cash Equivalent	395,026,869	94,264,515	395,026,869
Due from Nepal Rastra Bank	64,401,495	58,147,270	64,401,495
Placement with Banks and FIs	-	-	-
Derivative Financial Instruments	-	-	-
Other Trading Assets	-	-	-
Loans and Advances to Banks and FIs	-	-	-
Loans and Advances to Customers	153,741,530	187,845,771	153,741,530
Investment Securities	33,520,159	39,153,365	33,520,159
Current Tax Assets	11,345,250	2,241,573	11,345,250
Investment in Subsidiaries	-	-	-
Investment in Associates	-	-	-
Investment Property	36,132,137	36,132,137	36,132,137
Property and Equipment	25,133,965	40,763,038	25,133,965
Goodwill and Intangible Assets	3,987,982	4,737,501	3,987,982
Deferred Tax Assets	13,929,844	47,182,985	13,929,844
Other Assets	36,330,042	15,506,667	36,330,042
Total Assets	773,549,274	525,974,823	773,549,274
Liabilities
Due to Banks and FIS	-	-	-
Due to Nepal Rastra Bank	-	-	-
Derivative Financial Instruments	-	-	-
Deposit from Customers	580,393,938	449,675,444	580,393,938
Borrowings	-	-	-
Current Tax Liabilities	-	-	-
Provisions	-	-	-
Deferred Tax Liabilities	-	-	-
Other Liabilities	38,436,096	51,039,555	38,436,096
Debt Securities Issued	-	-	-
Subordinated Liabilities	-	-	-
Total Liabilities	618,830,035	500,714,999	618,830,035
Equity
Share Capital	524,993,055	262,467,600	524,993,055
Share Premium	30,852,977	10,101,374	30,852,977
Retained Earnings	(522,340,105)	(468,543,224)	(522,340,105)
Reserves	121,213,313	221,234,074	121,213,313
Total Equity Attributable to Equity Holders	154,719,240	25,259,824	154,719,240
Non Controlling Interest	-	-	-
Total Equity	154,719,240	25,259,824	154,719,240
Total Liabilities and Equity	773,549,274	525,974,823	773,549,274

Condensed Consolidated Statement of Profit and Loss

As on Quarter ended 32nd Ashadh 2083

Particulars Group: Current Year This Quarter Group: Current Year Upto this Quarter (YTD) Group: Previous Year Corresponding This Quarter Group: Previous Year Corresponding Upto this Quarter (YTD) Bank: Current Year This Quarter Bank: Current Year Upto this Quarter (YTD)

Interest income	6,545,111	22,877,321	6,271,212	36,667,473	6,545,111	22,877,321
Interest expense	6,889,465	25,676,365	6,842,158	36,017,650	6,889,465	25,676,365
Net interest income	(344,354)	(2,799,044)	(570,946)	649,823	(344,354)	(2,799,044)
Fee and commission income	267,812	376,729	115,004	566,456	267,812	376,729
Fee and commission expense	-	-	36,019	36,019	-	-
Net fee and commission income	267,812	376,729	78,985	530,437	267,812	376,729
Net interest, fee and commission income	(76,542)	(2,422,315)	(491,961)	1,180,260	(76,542)	(2,422,315)
Net trading income	-	-	-	-	-	-
Other operating income	138,967	304,281	4,422,371	5,984,252	138,967	304,281

Statement of Distributable Profit or Loss

As on Quarter ended 32nd Ashadh 2083

Amount in full figure

Particulars Amount

Net Profit for the period end Ashadh, 2083 (53,796,881)

Net profit or (loss) as per statement of profit or loss

Appropriations:

a. General reserve -

b. Foreign exchange fluctuation fund -

c. Capital redemption reserve -

d. Corporate social responsibility fund -

e. Employees' training fund -

f. Other -

Profit or (loss) before regulatory adjustment (53,796,881)

Regulatory adjustment (if any) -

Distributable profit or (loss) (53,796,881)

Ratio as per NRB Directives Third Quarter

As on Quarter ended 32nd Ashadh 2083

Group Bank

Current Year Previous Year Corresponding Current Year Previous Year Corresponding

This Quarter Upto this Quarter (YTD) This Quarter Upto this Quarter (YTD) This Quarter Upto this Quarter (YTD) This Quarter Upto this Quarter (YTD)

Capital Fund To RWA 29.41% 29.41% -7.84% -7.84% 29.41% 29.41% -7.84% -7.84%

Non Performing Loan (NPL) To Total Loan 48.49% 48.49% 50.97% 50.97% 48.49% 48.49% 50.97% 50.97%

Total Loan Loss provision To Total NPL 93.00% 93.00% 79.55% 79.55% 93.00% 93.00% 79.55% 79.55%

Total Loan Loss provision To Total Loan 45.00% 45.00% 40.55% 40.55% 45.00% 45.00% 40.55% 40.55%

Cost of Fund 4.74% 4.74% 6.25% 6.25% 4.74% 4.74% 6.25% 6.25%

Credit To Deposit Ratio 49.34% 49.34% 74.07% 74.07% 49.34% 49.34% 74.07% 74.07%

Base Rate 18.87% 18.87% 16.24% 16.24% 18.87% 18.87% 16.24% 16.24%

Interest Spread 3.76% 3.76% 4.50% 4.50% 3.76% 3.76% 4.50% 4.50%

Notes to NFRS Compliant Financial Statement

• The above financial statement has been prepared in accordance with Nepal Financial Reporting standards (NFRS) and in the format prescribed by Nepal Rastra Bank.

• Recognition of Impairment Charges on Loans and Advances

The Bank, following regulatory backstop as mentioned in Clause 16 of “NFRS 9- Expected Credit Loss Related Guidelines, 2024” has recognized impairment on credit exposures as the HIGHER of total ECL calculated as per NFRS 9 and existing regulatory provisions as mentioned in Unified NRB Directives No. 2.

Following is the details of impairment under both methods:

Particulars Amount

Total Impairment as per NRB 129,784,671.95

Total Impairment as per ECL 76,936,788.91

The higher of two above, i.e. Rs 129,784,671.95 has been taken in account for impairment loss on loan and advances for the reporting period.

Total operating income	62,425	(2,118,034)	3,930,410	7,164,512	62,425	(2,118,034)	3,930,410
Impairment charge/(reversal) for loans and other losses	(10,033,003)	(4,687,882)	30,143,748	627,025	(10,033,003)	(4,687,882)	30,143,748
Net operating income	10,095,428	2,569,848	(26,213,338)	6,537,487	10,095,428	2,569,848	(26,213,338)
Operating expense	-	-	-	-	-	-	-
Personnel expenses	6,261,605	21,543,754	5,014,192	19,755,235	6,261,605	21,543,754	5,014,192
Other operating expenses	6,907,527	21,042,473	3,522,529	18,635,078	6,907,527	21,042,473	3,522,529
Depreciation & Amortization	951,493	5,621,536	6,805,713	11,033,446	951,493	5,621,536	6,805,713
Operating Profit	(4,025,198)	(45,637,915)	(41,555,773)	(42,886,271)	(4,025,198)	(45,637,915)	(41,555,773)
Non operating income	9,829	4,215,893	-	-	9,829	4,215,893	-
Non operating expense	-	12,374,860	3,003,878	4,960,147	-	12,374,860	3,003,878
Profit before income tax	(4,015,368)	(53,796,881)	(44,559,651)	(47,846,418)	(4,015,368)	(53,796,881)	(44,559,651)
Income tax expense	-	-	-	-	-	-	-
Current Tax	-	-	-	-	-	-	-
Deferred Tax	-	-	(122,155)	(9,510,049)	-	-	(122,155)
Profit for the period	(4,015,368)	(53,796,881)	(44,437,496)	(38,336,369)	(4,015,368)	(53,796,881)	(44,437,496)

Condensed Consolidated Statement of Other comprehensive income

As on Quarter ended 32nd Ashadh 2083 (Amount in NPR)

Particulars Group Current Year This Quarter Group Current Year Upto this Quarter (YTD) Group Previous Year Corresponding This Quarter Group Previous Year Corresponding Upto this Quarter (YTD) Bank Current Year This Quarter Bank Current Year Upto this Quarter (YTD) Bank Previous Year Corresponding

Profit or loss for the year (4,015,368) (53,796,881) (44,437,496) (38,336,369) (4,015,368) (53,796,881) (44,437,496)

Other comprehensive income

a) Items that will not be reclassified to Profit or loss

• Gains/(losses) from Investments in equity instruments measured at fair value	(332,043)	677,792	2,229,280	3,319,833	(332,043)	677,792	2,229,280
• Gains/(losses) on revaluation	-	-	-	-	-	-	-
• Actuarial gains/(losses) on defined benefit plans	-	-	-	-	-	-	-
• Income tax relating to above items	-	(203,338)	(668,784)	(995,950)	-	(203,338)	(668,784)
Net other comprehensive income that will not be reclassified to profit or loss	(332,043)	474,455	1,560,496	2,323,883	(332,043)	474,455	1,560,496

b) Items that are or may be reclassified to profit or loss

• Gains/(losses) on cash flow hedge	-	-	-	-	-	-	-
• Exchange gains/(losses) (arising from translating financial assets of foreign operation)	-	-	-	-	-	-	-
• Income tax relating to above items	-	-	-	-	-	-	-
• Reclassify to profit or loss	-	-	-	-	-	-	-
Net other comprehensive income that are or may be reclassified to profit or loss	-	-	-	-	-	-	-
c) Share of other comprehensive income of associate accounted as per equited method	-	-	-	-	-	-	-
Other comprehensive income for the period, net of income tax	(332,043)	474,455	1,560,496	2,323,883	(332,043)	474,455	1,560,496
Total comprehensive income for the period	(4,347,411)	(53,322,426)	(42,877,000)	(36,012,486)	(4,347,411)	(53,322,426)	(42,877,000)
Basic earning per share	(11.87)	(11.87)	(14.61)	(14.61)	(11.87)	(11.87)	(14.61)
Diluted earning per share	(11.87)	(11.87)	(14.61)	(14.61)	(11.87)	(11.87)	(14.61)
Profit attributable to:
Equity holders of the Bank	(4,347,411)	(53,322,426)	(42,877,000)	(36,012,486)	(4,347,411)	(53,322,426)	(42,877,000)
Non-controlling interest	-	-	-	-	-	-	-
Profit for the period	(4,347,411)	(53,322,426)	(42,877,000)	(36,012,486)	(4,347,411)	(53,322,426)	(42,877,000)

and hence actuarial gain/loss has not been separately disclosed and will change as per actuary report.

The above figures are subject to change upon otherwise instruction from statutory auditors and/or regulatory authorities.

Detailed Financial Report is uploaded in the website of the bank (www.ndbl.com.np).

Previous period figures have been regrouped / rearranged/ restated wherever necessary.

Securities Registration and Issuance Rules 2073, Schedule - 14

(Related to Rule 26, Sub-rule (1))

Fourth Quarter Report of F.Y. २०८२/८३

1. Financial Statements

• (a) The balance sheet and profit & loss statement for the quarterly period are attached herewith.

• (b) Key Financial Ratios:

Earnings Per Share : Rs (११.८७) Price Earnings Ratio : Rs (६९.१९) Net Worth Per Share : Rs ३४.१३

Value of Total Assets Per Share : Rs २२१.०५ Liquidity Ratio : ८०.५३% Capital Fund Ratio : २९.४१%

2. Management Analysis

• During the review period, due to slowdown in economic activities and business transactions in the country, decline in business confidence, etc., qualitative growth in new loan investments could not take place. However, quality loans are gradually increasing.

• In the coming days, the bank will advance with business plans for sustainable institutional development, providing reliable quality banking services and protecting stakeholders' interests.

• Although non-performing loans could not decrease as expected during the review period, they are gradually declining. Despite existing factors such as various disruptive activities, threats, business slowdown in the economy, and difficulties in coordination with local bodies, recovery efforts have been effectively moved forward, targeting gradual reduction of NPLs through practical and legal processes in the coming days.

3. Details Regarding Legal Actions

Cases pending in the Supreme Court regarding banking offense against the perpetrator who made unauthorized money transfer during testing phase of the bank's mobile banking system; case pending in the Supreme Court filed by a borrower against the bank regarding cancellation of collateral auction; cases pending at Debt Recovery Tribunal against various defaulting borrowers; and case pending in the Supreme Court regarding banking offense related to misappropriation of funds from sundry debtors by founder/director of the bank.

4. Analysis Regarding Share Transactions of the Institution

• Shares of this institution are listed and traded on Nepal Stock Exchange. As market determines share price and transaction, the bank management remains neutral towards share price and trading. However, required information and notices under prevailing laws are provided to investors and relevant authorities.

• Maximum, minimum, closing price, and transaction volume of shares during the quarter are as follows:

Month Transaction Count Transaction Amount Rs Total Trading Days High Price Low Price Closing Price

Baisakh	३,००,६४२.००	३४,५९,५२,०२६.१०	२१	१,८३५.००	८९०.००	१२९३.००
Jestha	१,१०,००९.००	१०,०६,८९,०४६.४०	१९	१,५८९.१०	८५२.००	१०९८.००
Ashad	३,६२,०७७.००	२७,७६,७८,०६१.८०	२४	९१७.९०	६९३.१०	७९५.००

(source: www.nepalstock.com.np)

5. Problems and Challenges

a) Internal Problems and Challenges

1. Narrow interest spread due to high operating expenses relative to income.

2. Challenge in improving asset quality all at once due to higher non-performing assets in total loans.

3. Challenge to identify new investment sectors to expand business.

4. Low sources of non-interest income.

5. Challenge in competitive transactions due to lack of skilled human resources.

6. Operational risk management being expensive and challenging.

b) External Problems and Challenges

1. Increasing competition, risks, and challenges in the field of information and technology.

2. Business slowdown due to inability to boost market business confidence.

3. Challenges created by excess liquidity in the future.

4. Unruly activities such as threats, rumors, and propaganda in the financial sector.

5. Challenges including non-cooperation and difficulties in coordination with local bodies.

6. Strategy

Being aware of the above internal and external challenges, the bank studies potential risks, formulates strategies under Nepal Rastra Bank's unified directives, circulars issued from time to time, and institutional policies and procedures, takes necessary steps to maintain balanced interest rates by promoting low-cost sustainable deposits, remains conscious of minimizing operating expenses, enhances bank business and branch network while hiring suitable staff, provides training to improve efficiency and deliver quality service, and adopts appropriate policies to keep staff engaged and committed.

7. Corporate Governance

The bank complies with unified directives issued by Nepal Rastra Bank, while the Audit Committee reviews compliance with corporate governance / additionally based on NRB's periodic onsite inspections, internal and external auditors' reports, the Board of Directors remains committed to strengthening corporate governance.

8. Declaration of Chief Executive Officer on Accuracy and Truthfulness

I personally take responsibility for the truthfulness of the details and information contained in this report up to today's date. I also declare that to the best of my knowledge and belief, the information mentioned in this report is true, factual, and complete, and no details, notices, or information necessary for investors to make informed decisions have been concealed.