Disclosure under Capital Adequacy Framework 2007

As at Chaitra end 2070 of the Fiscal Year 2070/071 (Mid April of 2014)
Rs. in '000'

1 Capital structure and capital adequacy

Core Capital (Tier I)
a Paid up equity Share Cpaital
b Proposed Bonus Equity Shares
c
Irredeemable Non-cumulative preference shares
d Share Premium
e Statutory Gereral Reserves
f
Retained Earnings
g Un-audited current year cumulative profit
h Capital Redemption Reserve
i
Capital Adjustment Reserve
j
Dividend Equalization Reserve
k
Special Reserve
l
Defered Tax Reserve
m Capital Reserve (created for loan waived as per Nepal Govt. Direction)
n Other Free Reserves
Total Core Capital

Amount
3,965,524
90,552
1,820,705
(6,617,604)
384,038
380,383
7,486
22,246
93,520
259,736
6,063
412,647

Supplementary Capital (Tier II)

a Cumulative and/or Redeemable Preference Share
b Subordinated Term Debt
c
Hybrid Capital Instruments
d General loan loss provision
e Investment Adjustment Reserve
f
Assets Revaluation Reserve
g Exchange Equalization Reserve
h Other Reserves
Total Supplementary Capital

Amount
446,624
17,594
84,449
548,667

Details of Subordinated Term Debt:

Not Applicable

Deduction from Capital

The Bank holds net Investment in shares and debentures amounting to Rs. 82,727 thousand.

Total Capital Fund

Particulars
Core Capital (Tier 1) (after deduction of qualifing amount)
Supplementary Capital (Tier 2)
Total Capital Fund*

Amount
329,920
329,920
659,841

*Since Tier 2 Capital is greater than Tier 1 Capital, Tier 2 Capital up to the amount of Tier 1 Capital is considered for calculating Total Capital Fund.

Capital Adequacy Ratio:

0.88%

2 Risk weighted exposures for Credit, Market and Operational Risk

Risk Weighted Exposures
Risk Weighted Exposure for Credit Risk
Risk Weighted Exposure for Operational Risk
Risk Weighted Exposure for Market Risk
Total Risk Weighted Exposures
Supervisor's adjustment (addition)
1 % of Net Interest Income on market risk (due to poor assets-liabilities management)
3 % of Gross Income on Operational risk (due to weak operational risk management)
4 % of Risk Weighted Exposure (Supervisor's addition due to poor risk management)
Total Risk Weighted Exposures (after supervisor's adjustment)

Amount
65,590,074
4,092,204
1,409,409
71,091,687
25,254
945,640
2,843,667
74,906,248

Risk weighted exposures under each 11 categories of Credit Risk

S. N.
1
2
3
4
5
6
7
8
9
10
11

Categories
Claims on Government and Central Bank
Claims on Other Financial Entities
Claims on Banks
Claims on Domestic Corporates and Securities Firms
Claims on Regulatory Retail Portfolio
Claims secured by residential properties
Claims Secured by Commercial real estate
Past due claims
High Risk claims
Other Assets
Off Balance Sheet Items
Total

Risk Weighted
Exposure
1,161,990
3,704,473
48,637,023
8,563,017
3,523,572
65,590,074

Amount of Non Performing Assets (both Gross and Net)

Particulars
Bass B (Restructured)
Substandard
Doubtful
Bad
Total

Gross
72,313
242,320
139,140
1,604,162
2,057,935

Amount
Provision
9,039
60,580
69,570
1,604,162
1,743,351

Net
63,274
181,740
69,570
314,584

NPA Ratios
5.33%
0.86%

Gross NPA to Gross Advances

Net NPA to Net Advances

Movement in Non Performing Assets

Particulars
Non Performing Assets (Rs. in 000')
Non Performing Assets (%)

This Quarter
Previous Quarter Changes %
2,057,935
2,268,176
-10.22%
5.33%
5.83%
-0.50%

Write off of Loans and Interest Suspense in the Quarter

Particulars

Amount

Write off Loans

Write off of Interest Suspense

Movement in Loan Loss Provision and Interest Suspense:

Particulars
Loan Loss Provision
Interest Suspense

This Quarter
Previous Quarter
2,189,975
2,273,594
3,659,326
3,788,158

Details of Additional Loan Loss Provision

None

Segregation of Investment Portfolio

Particulars
Held for Trading
Held to Maturity
Available for sale
Total

Amount
19,681,275
82,727
19,764,002

Changes %
-3.8%
-3.4%