Annual Report English PDF

ANNUAL REPORT
2016/17
Ten Years
of Togetherness
FORWARD-LOOKING STATEMENTS
The Annual Report for the year 2016/17 presented hereby shows the
growth we made from the inception. This achievement is the result of
the support from all the stakeholders. Please have a look at our Bank,
the driving force, Management Team, products and services we offer,
our 2
present growth
S U N Rand
I S Ethe
B achievements.
ANK LIMITED
In 10 years, Sunrise Bank has completed
a phase of consolidation together with
clients, employess and shareholders. We
are now poised for taking off on a path of
innovation and growth to emerge as a leader
in Nepal's banking industry.
ANNUAL REPORT 2016/17

THE ANNUAL REPORT
Its motto "Rising to Serve" drives all
efforts Sunrise Bank to emerge as market
leader with a business that is founded on
strong business fundamentals supported
by state-of-art banking technology, and
a highly-driven staff whose skills are
continuously enhanced.
REPORT OBJECTIVES
This report is intended to provide information to our stakeholders as
well as other interested parties on how we performed in 2016/17. The
report is a reflection on the overall operation of the Bank and exhibits
the Bank’s direction to achieve its mission and vision.
4 SUNRISE BANK LIMITED

contents
ANNUAL STRATEGIC REPORT HUMAN RESOURCE
Overview 8 MANAGEMENT
REPORT Milestone 10 Human Resource 64
2016/17 Financial Highlights 14
Economic Review 16 PRODUCTS & SERVICES
Technology Driven 70
CORPORATE GOVERNANCE Schemes 71
Governance at a Glance 24 Corporate Banking 75
Board of Directors 26
Chairman's Statement 30 FINANCIAL STATEMENTS
CEO’s Perception 32 Directors Responsibility 84
Management Team 34 Auditor’s Report 93
Department Heads 38 Financial Statement 94
Corporate Governance 42 Disclosure 165
RISK REVIEW INVESTOR'S RELATIONSHIP

Board Level Committees 48 Shareholder’s Information 170
Risk Management 51 Disclose under Rule 26 178
CORPORATE SOCIAL BANK'S PERFORMANCE

RESPONSIBILITY Analysis 180
Social Responsibilty 58 Branch Network 188
CSR Activities 60 ATM Lists 192
STRATEGIC
REPORT
Sunrise Bank’s secret of continued growth
and success is its highly diversified and
well-balanced business model. It is now
ready to expand to reach new horizons.
S T R A T E G I C R E P O RT
An Overview
Sunrise Bank Limited, a leading financial institution, was established as the
23rd commercial bank in Nepal on 12 October 2007. Its corporate office is
located at the Gairidhara Crossing, in Kathmandu. Sunrise Bank is driven
by its motto "Rising to Serve" and offers innovative products and services
to all categories of clients, and also offers products that can contribute
towards the economic development needs of the country.
The Bank is continuously supervised by poised to expand into new markets. The Bank's
the Board of Directors who have extensive ever growing geographical coverage has enabled
knowledge and entrepreneurial experience. it to serve a spectrum of customer segments,
The Chairman of the Bank, Mr. Motilal Dugar including retail, middle market, small and medium
is a business leader with extensive interests enterprises, and large corporations. The Bank
in both industry and the services sector. The has been continuously upgrading its services
management team comprises of five members using state-of-art Core Banking technology, while
with Mr. Ratna Raj Bajracharya as CEO. This remaining vigilant on risks and risk management.
team of seasoned banking and management
professionals is dedicated towards establishing The Bank acquired NIDC Capital Markets
an institution determined to cater to the needs of Limited in fiscal year 2016/17 and began
all categories of clients. joint operations from 10 February 2017.
NCM Merchant Banking Limited, a subsidiary
Sunrise Bank’s continued growth and success is of the erstwhile NIDC Capital Markets Ltd.,
founded on a highly diversified and well-balanced has become a subsidiary of Sunrise Bank
business model. The Bank has made balanced after the acquisition. It now functions under
growth throughout its first decade and is now a new name - Sunrise Capital Limited.
VISION MISSION STRATEGY OBJECTIVES

You & Us. Together Establish Our strategies The overall objective of the bank is to contribute to
We Can Build. Sunrise Bank are long-term the Nation building and meeting the expectation
as a lead and our of its shareholders, depositors, customers and
bank in all commitment other stake holders. The Bank will put its concerted
places of towards efforts to realise its goal by leading the banking
our branch corporate sector in every front with:
locations and sustainability n Expand presence of the Bank within and outside
nationwide. is absolute. the country,
n Targeting under-served or potential services like
SMEs and retail businesses,
n Reshaped and restructured bank's infrastructure
and systems,
n Serviced by efficient and knowledgeable staffs
supported by automated procedures, and
n High degree of compliance and risk management.

STRATEGIC REPORT
CUSTOMER ORIENTATION
We at Sunrise Bank provide
value-added customized
products and serve customers
GORVERNANCE
through unparalleled service
delivery standards.
CORPORATE INTEGRITY AND
RISK REVIEW
CITIZENSHIP TRANSPARENCY
Sunrise Bank believes in Integrity and
being a responsible corporate transparency underlie
citizen. It gives back to every action and
underprivileged sections of decision taken by
society and also supports work Sunrise Bank.
CORPORATE RESPONSIBILITY
for social development. The
Bank abides to high standards
of corporate governance, CORE
which is vital for maintaining
financial discipline and also VALUES
protecting investor interests.
HUMAN RESOURCE
EMPLOYEE’S SHAREHOLDER’S
PROSPERITY SECURITY
Employees are invaluable assets and Shareholders have always
hence the institution believes in shared been a priority for the
prosperity. The Bank provides employees management and the
with career development support Bank's actions are directed
PRODUCTS & SERVICES

opportunities. The Bank believes in to not only secure their
growing with its staffs. This explains its investments but also to
responses to their needs - financial, social provide higher, maximum
and esteem. possible returns.
FINANCIAL STATEMENT
OPERATIONAL CODE OF
HIGHLIGHTS CONDUCT
The Bank remained a strong player n Remarkable growth in balance Commitment to the
in the market throughout 2016/2017 sheet with a good composition highest standards of
with acquisition and consolidation of capital and liquid assets. transparency, reliability INVESTOR'S RELATIONSHIP
that makes it stronger. The market n Diverse credit portfolio to and ethical business
indicators for fiscal year was minimize credit risk and conduct are well-
bolstered by, maximize returns. established guiding
n Good revenue generation despite n Surge in investment and sizable principles within the Bank.
of the cut throat competition in incomes from investments. These are articulated in
the market and liquidity crisis. n Integrated team efforts a comprehensive policy
n Prudent risk management from the ground level to top and a Code of Conduct
system to minimize financial and management, and is communicated to
BANK'S PERFROMANCE
operational risks and eliminate n Reinvention of products and and understood by all
losses. services to cater diverse needs employees.
of customers.
ANNUAL REPORT 2016/17 9

Ten Years
of Togetherness
The formative years for Sunrise Bank
are now over, we look forward the
next 10 years of growth together with
clients, employees and shareholders.
'07/08 '08/09 '09/10 '10/11 '11/12

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Inception of Completed Expanded Expanded Expanded

Sunrise Bank Ltd. biggest IPO of outreach to outreach to outreach to
on October 12, Commercial Bank 51 Branches 54 Branches 57 Branches
2007 (Ashwin 25, of NPR 375 mIllion with 47 ATMs with 47 ATMs with 49 ATMs
2064, Friday) Expanded
outreach to 26 Loan: Balance Sheet Deposit:
Paid-up Capital: Branches with 21 NPR 12.04 billion Size: NPR 18.75 billion
NPR 700 million ATMs NPR 15.85 billion
Deposit: Loan:
NPR 14.76 billion NPR 14.82 billion
Total Customers:
0.2 million
Paid-up Capital:
NPR 2.0150 billion

STRATEGIC REPORT
GORVERNANCE
RISK REVIEW
HUMAN RESOURCE
'12/13 '13/14 '14/15 '15/16 '16/17
PRODUCTS & SERVICES

YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10
Deposit: Expanded Expanded Launched First Achieved the

NPR 23.27 billion outreach to outreach to Branchless Banking from Paid-up Capital:
FINANCIAL STATEMENT
61 Branches 67 branches Kavre Mangaltar NPR 8 billion.
Loan: with 51 ATMs with 53 ATMs Acquired former NIDC
NPR 18.40 billion Acquired former Capital Markets Ltd.,
Introduced Launched first Narayani National and launched Sunrise
Balance Sheet Sunrise Micro extension counter Finance and started joint Capital Limited.
Size: Banking Services at B.P. Koirala operation.
NPR 26.12 billion Institute of Health Launched Third INVESTOR'S RELATIONSHIP
Sciences, Dharan After acquisition, extension counter at
Paid-up Capital: Malayasia, VLN Nepal
Launched NPR 4 billion, Pvt. Ltd. at Gairidhara
Surakshit Ghar Branches: 67, ATMs: 69
Karja tying up Deposit: NPR 50 billion Launched chip based
with Prime Life Loans and Advances: (EMV) cards. Inaugural
insurance. NPR 43 billion of Customer Service
Center (Call Center).
Launched second Current outreach – 76
BANK'S PERFROMANCE
extension counter at branches. Bank has

Chitwan Medical College, opened 5 branches in
Narayanghat Rural Municipalities.

Bank’s Performance:
Alignment with Strategies
Over the decade, Sunrise Bank has built a solid foundation to confront
the future. The Bank has a successful history, a distinctive culture and a
shared pride in performance, which is the foundation for its growth.
Across the Bank, its employees place great platforms that will take our business into
value on working together and share a genuine the future. It values the trust customers
desire to best serve customers. The Bank is have placed on it, which is the rationale for
confident that its strategy is sound and that investments in the right technology and
proper execution of the strategies can bring teams to protect our customers’ information
meaningful progress that is needed to create whilst also delivering faster and more reliable
long-term value for all stakeholders, including services. The Bank recognizes that customer-
customers. This is the secret of Sunrise Bank led innovation is crucial in the rapidly changing
that has assisted it to truly live up to its brand digital space. This explains its efforts to
proposition. continuously engage in developing customer
focused concepts and platforms that will be
A major force driving growth at Sunrise Bank introduced in the coming years.
is technology, which remains key to continued
progress. While integrating technology the Engaging stakeholders is another core
Bank continuously strives create a culture that component of the Bank's strategy
exemplifies service excellence, simplification implementation process. By developing
of the interfaces between customers and and maintaining meaningful relationships
the Bank, while creating secure and safe through stakeholder engagement, the
transactional platforms. Bank has been able to continuously
improve its relations with stakeholders
In 2016-17, the Bank successfully migrated and in building trust needed for
to state-of-art Core Banking Systems and expanding the business.
TABLE OF SECTORAL LENDING
SECTOR 2015/16 2016/17 GROWTH
Industry 7,768 9,509 22.4%

Trade 10,213 11,181 9.5%
Agriculture 3,626 3,721 2.6%
Others 22,142 27,329 23.4%
Total 43,749 51,739 18.3%

STRATEGIC REPORT GORVERNANCE RISK REVIEW CORPORATE RESPONSIBILITY HUMAN RESOURCE PRODUCTS & SERVICES FINANCIAL STATEMENT INVESTOR'S RELATIONSHIP BANK'S PERFROMANCE
13 ANNUAL REPORT 2016/17

Financial Highlights
TOTAL DEPOSITS (In NPR Million) TOTAL ASSETS/LIABILITIES (In NPR Million)
CAGR : 21.26% CAGR : 22.29%
61,013
51,650
33,487 37,389 58,739 71,456
14/15 15/16 16/17
14/15 15/16 16/17
TOTAL LOANS & ADVANCE (In NPR Million) TOTAL REVENUE (In NPR Million)
CAGR : 22.97% CAGR : 17.86%
2,863
51,739
43,749
2,059
27,392
1,493
14/15
15/16
14/15 15/16 16/17 16/17
TOTAL OPERATING COST (In NPR Million) NET PROFIT (In NPR Million)
CAGR : 12.7% CAGR : 30.43%
1,176
997 951
16/17
782 471
15/16
628
14/15
14/15 15/16 16/17

STRATEGIC REPORT
GORVERNANCE
TOTAL ASSETS/LIABILITIES
Compound Annual Growth Rate
(Last 5 years): 22.29% The year
2016/17 showed a remarkable
growth of NPR 12,717 million in total
RISK REVIEW
assets
TOTAL DEPOSITS
CAGR (Last 5 years): 21.26%
Our togetherness with the clients
helped us to increase the deposits
by NPR 9,363 million during the
review year of 2016/17.
Financial Review
HUMAN RESOURCE
TOTAL REVENUE
PRODUCTS & SERVICES

Our stakeholder’s contribution to
our revenue increased by
NPR 804 million during the review
year 2016/17. TOTAL LOANS & ADVANCE
During the year 2016/17, we
financed NPR 7,990 million more
FINANCIAL STATEMENT
in various sectors and helped to
build them up.
INVESTOR'S RELATIONSHIP
NET PROFIT
This year net profit showed a TOTAL OPERATING COST
significant increment by 23.62%. CAGR (Last 5 years): 12.7%
This is the result of increase in During the previous year with
revenue, cost control and decrease internal cost control mechanism
in non performing loan and effective management, the
increment in total operating
cost has been limited only to
BANK'S PERFROMANCE
NPR 216 million which includes

staff cost as well

Macroeconomic
(3.89)
96.11
14.78
2.88
(0.50)
7,000,000
6.00
126.00
2007/08
Outlook
-
3.65
311.00
6.78
104.61
0.07
12.66
0.51
21.00
24,436,880 22,366,500 20,150,000 20,150,000 20,150,000 12,500,000 12,500,000
2008/09
Estimates of Central Bureau

4.92
376.00
16.35
265.00
16.21
110.80
1.04
11.37
10.00
1.00
40.00
2009/10
of Statistics (CBS) show the

growth in the real GDP (at
producers' price) at 7.5% in
3.83
471.00
2.20
163.00
74.24
106.50
3.51
13.28
4.00
0.28
47.00
2010/11
2016/17 compared to 0.4% in the

preceding year. Similarly, the real
GDP at basic price is estimated
2011/12
3.54
459.00
5.52
145.00
26.28
106.76
3.52
11.78
5.26
0.52
49.00
to grow by 6.9% compared to a

growth of 0.01% in the previous
year. Good monsoon rains,
4.66
454.00
15.46
232.00
15.00
121.24
3.74
11.80
11.58
1.19
51.00
2012/13
improved power supply and

normal supply situation helped
-
accelerate growth from the low

4.45
449.00
11.03
510.00
46.22
120.48
4.94
11.49
0.83
53.00
2013/14
base of the preceding year. The

growth in real GDP at producers'
price of 7.5% in 2016/17 has been
2014/15
4.30
444.00
19.27
395.00
20.50
112.63
2.90
11.11
22.63
1.26
53.00
a record high since 1993/94.

Key Indicators - 10 Years
The record high growth was on account of

4.42
699.00
23.94
748.00
31.26
115.91
1.22
12.05
33.33
1.62
67.00
39,760,463
2015/16
a pick up in agricultural output by 5.3% and

non-agricultural sector by 7.7%. The service
sector was estimated to grow 6.9% compared
to a growth of 2.1% in the previous year.
4.49
956.00
16.76
396.00
23.63
117.15
1.37
14.47
15.00
1.61
70.00
70,181,047
2016/17
Increased tourists inflow, expansion of trade and

communication sector accounted for the rise in
service sector.
BASIS
NPR
NPR
NPR
NPR
No
No
No
%
%
The annual average consumer price inflation

moderated to 4.5% in 2016/17 from 9.9% in the
Price earning per share
Market Price per share
Non Performing Loan
previous year. The annual average inflation of

Net worth per share
Number of branches
2016/17 has been the lowest since 2004/05.

Number of shares
Earning Per share
Return on Assets
Number of staffs
The higher base price of the preceding year,

Interest spread
PARTICULARS
improved supply situation and lower global

Dividend
prices including that of India contributed to the

easing of inflation in the review year.
CAR

STRATEGIC REPORT
GORVERNANCE
Merchandise trade deficit widened 30.4% to the end of 2016/17. At the end of the previous
RISK REVIEW
Rs 917.06 billion in 2016/17. The export-import fiscal year, such balance was NPR 115.02 billion.
ratio declined to 7.4% in the review year from The outstanding foreign loan of the GoN
9.1% in the previous year. Total merchandise stood at NPR 413.66 billion in mid-July 2017.
trade deficit as percentage of GDP jumped The outstanding domestic debt of the GoN
to 35.3% in the review year from 31.3% of the increased from NPR 234.16 billion of mid July
previous year. 2016 to NPR 283.71 billion in mid July 2017.
The total government debt amounted to NPR
The y-o-y unit value export price index based 697.37 billion, which stood at 26.7% of GDP.
on customs data increased 10.4% while Likewise, the total debt servicing/revenue ratio
import price index increased 0.1% in 2016/17. stood at 10.9% in mid July 2017.
Consequently, the terms of trade (TOT) index
improved 9.1% compared to 22.2% in the Domestic credit expanded 19.4% in the review
previous year. year compared to a growth of 18.2% in the
HUMAN RESOURCE
previous year. Deposits at Banks and Financial
The workers' remittances increased 4.6% to Institutions (BFIs) increased by 14% in the
NPR 695.45 billion in the review year review year compared to an increase of 19.4%
compared to a growth of 7.7% in the previous in the previous year.
year. The ratio of workers' remittances to-GDP
declined to 26.8% in 2016/17 from 29.6% in The weighted average 91-day Treasury Bill
PRODUCTS & SERVICES

2015/16. The net transfer receipts increased rate increased to 0.71% in the 12 month of
9.5% to NPR 851.80 billion in the review year. 2016/17 from 0.05% a year ago. The weighted
Such receipts had increased 9.6% in the average inter-bank transaction rate among
previous year. commercial banks, which was 0.69% a year
ago, decreased to 0.64% in the review month.
The government revenue increased 26.4% to However, the weighted average inter-bank rate
NPR 609.17 billion in 2016/17. The revenue among other financial institutions increased to
collection is 107.7% of its budget target of 4.47% from 3.35% a year ago. As a result of the
FINANCIAL STATEMENT
NPR 565.90 billion. Government expenditure, merger and acquisition drive, the total number
on cash basis, increased 36.5% to NPR 793.91 of BFIs licensed by NRB came down to 149
billion in 2016/17 compared to an increase of in mid-July 2017 from 179 a year ago. In mid
14.2% to NPR 581.7 billion in 2015/16. Budget July 2017, the number of commercial banks
deficit on cash basis increased to NPR 125.61 stood at 28, development banks at 40, finance
billion from NPR 49.83 billion in 2015/16. The companies at 28 and microfinance institutions
ratio of budget deficit-to-GDP stood at 4.8% at 53. However, the branch network expanded INVESTOR'S RELATIONSHIP
in the review year. to 5,068 in mid-July 2017 from 4,272 a year

ago. In all 150 BFIs (including ‘D’ class) were
The GON resorted to gross domestic involved in mergers and acquisitions during
borrowing of NPR 88.34 billion in 2016/17. This the review period. Because of this the number
is 3.4% of GDP. Gross domestic borrowing of of companies listed at the NEPSE decreased
NPR 87.77 billion was mobilized in the previous to 208 in mid-July 2017 from 230 in mid-
year. The GoN repaid NPR 38.79 billion July 2016. Of listed companies, 165 are BFIs
domestic debt in 2016/17. The GoN maintained (including insurance companies).
cash balance of NPR 127.69 billion at NRB at
BANK'S PERFROMANCE

Financial frictions seen in recent months have Recurrent expenditure increased 37.6% to NPR
significantly improved. The gap between 501.62 billion compared to a growth of 8.8%
deposit and credit growth has narrowed. The in the preceding year. Capital expenditure
comfortable level of central bank liquidity has increased by 63.8% to NPR 189.46 billion
eased financial conditions. The upward trend compared to its growth of 42.8% in the
in market interest rates has been arrested. previous year. Financial expenditure increased
The increased level of capital, the introduction 1.3% to NPR 102.84 billion.
of fixed interest rate corridor in the recent
monetary policy statement and macro- The weighted average interest rate spread
prudential tools in place are the measures between deposit and lending rate of banks
aimed at making financial sector more resilient decreased to 5.2% in the review month from
and stable going forward. 5.6% a year ago. The average base rate of
commercial banks increased to 9.9% in the
Industrial sector saw a growth of 10.9% in review month from 6.5% a year ago.
2016/17 against a contraction of 6.3% in the
previous year. The service sector is estimated to The NEPSE index, on y-o-y basis, decreased
grow 6.9% compared to a growth of 2.1% in the 7.9% to 1,582.7 points in mid-July 2017 from
previous year. 1718.2 points in mid-July 2016. The stock market
capitalization, on y-o-y basis, decreased 1.8% to
The current account slipped into a deficit NPR 1856.8 billion in mid-July 2017. The ratio of
of NPR 10.13 billion in 2016/17 as against a market capitalization-to-GDP stood at 71.4% in
surplus of NPR 140.42 billion in the previous mid-July 2017.
year. The BOP recorded a surplus of
NPR 82.15 billion in the review year compared (Source: Nepal Rastra Bank)
to a surplus of NPR 188.95 billion in the
previous year.

STRATEGIC REPORT
GORVERNANCE
RISK REVIEW
GLOBAL
PERSPECTIVE
Global growth is projected at 3.5% in 2017 have compressed sharply in France, Italy, and
and 3.6% in 2018. Growth projections in the Spain. Equity prices in advanced economies
United States were lower than in April, primarily remain strong, signaling continued market
reflecting the assumption that fiscal policy optimism. Oil exporters provide an exception to
will be less expansionary than previously this pattern, in light of the weakening of prices
anticipated. Growth has been revised upwards since March.
for Japan, and the Euro area, where there
were positive changes in late 2016 and early As of end-June, the U.S. dollar has
HUMAN RESOURCE
2017. China’s growth projections have also depreciated by around 3½% in real
been revised upwards. Inflation in advanced effective terms since March, while the
economies remains subdued and generally Euro has strengthened on increased
below targets. confidence in the Euro recovery and a
decline in political risk. Over the same
Growth outturns in the first quarter of 2017 period, exchange rate changes across
PRODUCTS & SERVICES

were higher than the forecasts in large emerging market currencies have been
economies such as Brazil, China, and Mexico, relatively modest. Capital flows to
and in advanced economies including Canada, emerging economies have been resilient
France, Germany, Italy, and Spain. Specifically, in the first few months of 2017, with a
growth in global trade and industrial notable pickup in non-resident portfolio
production remained well above 2015–16 rates inflows.
despite retreating from the very strong pace
FINANCIAL STATEMENT
registered in late 2016 and early 2017. Emerging and developing economies are
projected to see a sustained pickup in activity,
Oil prices have receded. Headline inflation with growth rising from 4.3% in 2016 to 4.6% in
also generally softened as the impact of the 2017, and 4.8% in 2018. Growth prospects for
commodity price rebound of the second developing Asia are looking up, bolstered by a
half of 2016 faded, and remains at levels well revival in world trade and strong momentum
below the targets of central banks in advanced in China. The region is forecast to expand by
economies. Core inflation has remained stable. 5.9% in 2017 and 5.8% in 2018. Rebounds in
international food and fuel prices are gentler

Long-term bond yields in advanced economies, than expected. Inflation is likely to dip to 2.4%
rebounded in late June and early July. The in 2017, or 0.1 percentage points off the 2016
U.S. Federal Reserve raised short-term interest rate, and pick up to 2.9% in 2018.
rates in June. Bond spreads over Germany
BANK'S PERFROMANCE

CUSTOMER CENTRIC
BUSINESS MODEL
Sunrise Bank fully recognizes that today’s customers

have less and less time to visit its branches, even
though their needs are greater than ever. Modern
consumers are moving away from conventional
banking and are demanding more conveniences,
better service quality and technology-enabled ways
to access services 24/7.
Sunrise Bank has begun to transform its business

model to match this change. This required a rethink
of customer fundamentals and establishing stronger
customer ties. The Bank also communicates more
frequently with current and potential customers and
this has helped it to better understand their needs
for delivering products and services that match the
changing expectations and needs. The Bank believes
that every customer has the right to expect sound
and superior banking solutions, backed by the latest
technology and excellent customer service.
The Bank's goal is to create an immediate

rapport with the new clients and encourage
them to choose Sunrise Bank as their primary
bank. Meanwhile, the Bank's listening practices
have continued to help it to better understand
its customers’ needs and respond promptly to
their concerns.
Additional steps that the Bank will undertake

to remain on top of competition are creating a
learning culture that promises both individual
and organizational development, and promoting
innovation and maximum value creation for
customers.
This will require wider physical outreach and

diversification of distribution to take the Bank
closer to customers. It is also working towards
becoming a 'Bank with a Voice' (Toll free call center),
moderating its branch network and expanding ATM
coverage. The grievance handling system will also be
continuously improved to increase both efficiency
and effective responses to complaints. The Bank
will also spend considerable time and resources to
reinforce the skills of frontline staff and reinforce
call center operations to ensure effective service
delivery.


CORPORATE
GOVERNANCE
Sunrise Bank believes in sound corporate
governance as a key operational strategy to
beat competition. It has several units led by
the board to oversee governance and ensure
that its practices result in a bank that is agile,
secure and trusted by customers.
C O R P O R AT E G OV E R N A N C E
Governance at a Glance
Effective governance is at the core of all successful banks. At Sunrise Bank, there is a
Governance Unit comprising of heads of compliance, human resources and legal units
that is responsible for ensuring a banking platform that is both agile and secure. This
committee tackles governance issues and devises control measures for deviations
from agreed standards.
The Bank has a high level committee related responsibilities, and also after new
to ensure safeguards against money regulations are issued by the Nepal Rastra
laundering. The Money Laundering Bank (NRB). The compliance workshops
Prevention committee has two members and orientation sessions are mandatory for
from the Board of Directors and heads of staffs handling different banking operations
compliance and operation departments as to ensure there is timely reporting of
members. This committee meets as required deviations from accepted standards.
by issues at hand, and also every quarter to
discuss Anti-Money Laundering (AML) and Sound companies are made of staffs that
issues related to suspect capital movements, are satisfied with their jobs. The Bank's
and also discuss market trends related to governance systems extend to continuously
these. The team also makes compliance listening to grievances and forward issues
suggestions that are implemented across to management personnel responsible.
the different sections of the Bank. The Grievance Cell at the Bank resolves
outstanding issues. Customers at the
The Bank has provided trainings on AML Bank can also submit grievances and/or
and good governance to directors, top complaints that are handled promptly. In
management and staffs at the operational the past year there were 4 staff grievances
level. The trainings are routinely organized and 199 customer complaints that were
to make all staff aware about their AML- investigated and resolved amicably.
The Bank also has a system of keeping staff

records updated by requiring everyone to
fill out Know Your Employees (KYE) forms,
which includes information on both social
and financial status of the employees. The
directors at the Bank are also required to
make disclosure of their assets, networks
and engagements outside the company.
The Bank has upheld a zero tolerance

to lapses in governance and compliance
related matters, and this has remained a
strong deterrent for deviant behavior. The
Bank has also drafted a comprehensive
Anti-Money Laundering (AML), Combating

STRATEGIC REPORT
GORVERNANCE
Financing of Terrorism (CFT) and Know Your HIGHLIGHTS
Customer (KYC) policy, which specifies the
standards of accepted behavior, disclosures, and n There was a case of
RISK REVIEW
also protection for whistle-blowers. The Bank whistleblowing that was
investigated and took actions against 39 staff investigated and acted upon.
members in 2073-74. Action was also taken against
those responsible for the lapse.
Overall, the feedback system that the
management has put in place in the form of the n The Bank received 199 customer
Grievance Cell has enabled it to continuously complaints in FY 2073-74
monitor the pulse of both the staff and the and corrective actions were
customers, and that is vital to devise corrective recommended. Some of the
measures. Every branch of Sunrise Bank has a corrective actions have been
complaints and suggestion box for customers. completed while others are still
The content of these boxes are reviewed every underway.
month to ensure timely corrections.
HUMAN RESOURCE
GOVERNANCE
STRUCTURE
PRODUCTS & SERVICES

BOARD OF DIRECTORS
COMPANY SECRETARY INTERNAL AUDIT
FINANCIAL STATEMENT
RISK MANAGEMENT EMPLOYEE COMPENSATION AUDIT MONEY LAUNDERING
COMMITTEE & BENEFIT COMMITEE COMMITTEE PREVENTION COMMITTEE
CHIEF EXECUTIVE
OFFICER
CHIEF RISK EXECUTIVE

OFFICER MANAGEMENT
BANK'S PERFROMANCE
RISK MANAGEMENT COMPLIANCE BUSINESS UNITS/ OPERATION & SUPPORT

DEPARTMENT DEPARTMENT DEPARTMENT HEADS UNIT HEADS
AML/ CFT UNIT

Board of Directors
STRATEGIC REPORT
GORVERNANCE
RISK REVIEW
HUMAN RESOURCE
PRODUCTS & SERVICES
FINANCIAL STATEMENT
BANK'S PERFROMANCE
FROM LEFT TO RIGHT: Dr. Bhogendra K. Guragain, Director; Mr. Jyoti Kumar Begani, Public Director;
Mr. Deepak Nepal, Public Director; Mr. Moti Lal Dugar, Chairman; Mr. Om Krishna Joshi, Professional Director;
Mr. Malchand Dugar, Director; Er. Bachh Raj Tater, Director & Dr. Deepak Prasad Bhattarai, Public Director
Profile of Directors
1 2 3 4
Mr. Moti Lal Dr. Bhogendra Er. Bachh Raj Mr. Malchand
Dugar K. Guragain Tater Dugar
CHAIRMAN DIRECTOR DIRECTOR DIRECTOR
Mr. Motilal Dugar is a well known Dr. Bhogendra Guragain, Er. Bachh R. Tater is a Mr. Malchand Dugar comes
industrialist and a businessman a Tribhuvan University well-known businessman from one of Nepal's largest
who has been involved in graduate with an MBBS and a pioneer in private business families. He along
establishing and operating degree, also holds an M.Sc. hydropower development with his father – Late Mr.
manufacturing and service (Epidemiology) from in Nepal, Er. Tater chairs Tolaram Dugar (founder
industries for over 55 years. He the Erasmus University the Tater Group. A former Chairman of Sunrise
has played most important role Rotterdam, Netherlands. banker, Mr. Tater has Bank Limited, Gurans Life
in establishing the Sunrise Bank He has over 18 years of also been serving as the Insurance Company Limited
and has served as a director experience in civil work and Chairman of South Asia and TM Dugar Group)
since its inception. international leadership, Infrastructure Development has established various
and is a start-up director Pvt. Ltd., Ridi Khola successful industries in
Mr. Dugar is Chairman of the Bank. An extensive Hydropower Development Nepal.
of MV Dugar Group and traveler, Dr. Guragain has Company Ltd., and Vishal
under his leadership, the also worked as International Plastocab Industries As Chairman of the TM
group is developing 317 Program Advisor for Pvt. Ltd. He is also a Dugar Group, he heads
MW Hydropower emerging Medical Foundation, director of the Arun Valley following companies/
as biggest private sector London and as visiting Hydropower Development firms: Dugar Foods and
hydropower developer of Nepal. professor in more than a Company Ltd. As a civil Beverages Pvt Ltd., Advikk
Further he is also pioneer of dozen of universities in engineer, he had worked for Exim International Pvt
Automobile business in Nepal Europe and North America a year at the Department Ltd., Shrish Warehousing
having more than 47 years of (USA and Canada). He of Irrigation, Government Solutions Pvt Ltd., Pooja
experience and representing also served as an advisor of Nepal and was involved Warehousing Solutions Pvt
renowned companies like at the World Health for 24 years as Chief, Ltd., Amrit Pulses Industries,
Mahindra, John-Deere, Organization and has Construction Section, Shrish Cold Storage,
Royal Enfield, Piaggio, Leica, worked with various UN Agricultural Development Navkar International, Nepal
Minemaster, Kirloskar etc. agencies. Nepal's BOSS Bank. Sal Seed Oil Pvt Ltd., and
Besides, he is former Chairman magazine had voted him as Bikas Intercontinental, etc.
of Gurans Life Insurance Co.Ltd. Nepal’s top 50 personalities He is a former Director of
Mr. Dugar is also the President in 2004 and 2005. At Gurans Life Insurance Co.
of The Bhagawan Mahavir Jain present, he is executive Ltd. Mr Dugar has 45 years
Niketan and the Vice President chairman of Ngadi Group of experience in business
of the Nepal USA Chamber Power Ltd. and Chairman and has also served on
of Commerce and Veerayatan of Siuri Ngadi Power P. Ltd. the Board of Sunrise Bank
Nepal. Besides, he is owner of Shuvam Power Ltd. and Limited for several years.
biggest Cold Storage of Nepal Kathmandu Fun Valley P.
called Kohinoor Cold Storage Ltd. and a Director of Barun
Pvt.Ltd. Hydropower Com. Ltd.

STRATEGIC REPORT
GORVERNANCE
5 6 7 8
RISK REVIEW
Dr. Deepak Mr. Deepak Mr. Jyoti Kumar Mr. Om Krishna
Prasad Bhattarai Nepal Begani Joshi
PUBLIC DIRECTOR PUBLIC DIRECTOR PUBLIC DIRECTOR P ROF E SS IONAL DIRE CTO R
Dr. Deepak Bhattarai is a Mr. Deepak Nepal is a Mr. Jyoti Begani represents Mr. Om K. Joshi is an
founder member of Nepal representative of public the Bank’s board from the independent/ expert
Engineering College and is shareholders in the Bank’s public sector. Mr. Begani is director. Mr. Joshi had
HUMAN RESOURCE
also a visiting professor at board. He is a Diploma the proprietor of Sadasukhi been a director in erstwhile
the Institute of Engineering, Holder in Commerce Enterprises and is also Narayani National Finance
Tribhuvan University. He from Tribhuvan University involved actively in social Ltd. for more than 3 years
is a member of Academic of Nepal. Mr. Nepal has service. He served a term before being appointed
Council, Pokhara University involved in corporate as the Chairman of Nepal as a director to the Bank.
and also serves as an sector for last 35 years and Jain Council, Bhagwan Further, he had served for
PRODUCTS & SERVICES

advisor at Kist Medical also was a Board Director Mahabir Jain Niketan- over 9 years as a Managing
College and Tourism & in Gurans life insurance Kathmandu, Shree Jain Director to erstwhile
Hotel Management College. company Ltd. He served Shwetambar Terapanthi Narayani Finance Ltd. He
Dr. Bhattarai is a senior as a Board Director in Shabha-Kathmandu and has also served a term of 5
consultant at Construction Gurans Life Insurance Lions Club of Kathmandu. years as a Finance Director
Management Technologies Company Ltd. for more He has also served as the in Nepal Agriculture
Pvt. Ltd. Dr. Bhattarai, has than 6 years. He was secretary of the World Research Council and
published three books also an active Executive Hindu Federation. He is also worked for more than
FINANCIAL STATEMENT
on different aspects of Member in Nepal Foreign a Director at Gurans Life 26 years in Agriculture
engineering, and numerous Trade Association for Insurance Company Ltd. Development Bank Ltd. Mr.
articles in both national and four years. He has also Joshi who holds a Master
international journals. worked with Nepal Govt. of Commerce degree
as a chairman in Revenue from Tribhuvan University,
Committee of Nepal Nepal and a Bachelor of
Foreign Trade Association. Law degree from the same
university, had also served INVESTOR'S RELATIONSHIP
as a director of Sagarmatha
Insurance Company Ltd.
BANK'S PERFROMANCE

̕̕
The Bank has attained significant
growth and also remained committed
to society contributing towards many
tangible and intangible benefits for
deprived people in both the education
and health sectors.
STRATEGIC REPORT
C H A I R M A N ' S S TAT E M E N T
Building Resilience
GORVERNANCE
Dear Fellow Shareholders,
First of all, on behalf of the Board of Directors, I express my gratitude to
RISK REVIEW
you for your faith and support all these years. It is my privilege to write to
you as the Chairman of Sunrise Bank Limited and I feel honored to accept
the responsibility to chair the Board. I am also happy to report that we have
delivered robust financial performance and sound growth in both business
volume and client base in FY 2073-74.
Fiscal year 2073-74 was an outstanding profit and free reserves. It will not
HUMAN RESOURCE
year for us as we have reached the only help the Bank in meeting NRB’s
“NPR 1 billion” benchmark for profit for requirement within the NRB deadline,
the first time. We have earned a record but also provide attractive returns to
operating profit (before provision for shareholders.
possible losses) of NPR 1.86 billion and a
net profit of 1.17 billion -- a historical high! The Bank has attained significant
I assure you of similar performance also growth that is elaborated in this
PRODUCTS & SERVICES

in the coming years. Annual Report. It has also remained
committed to society and has
In the same period, the Bank has contributed towards many tangible
acquired N.I.D.C. Capital Markets and and intangible benefits to people
as result its subsidiary N.C.M. Merchant who have been deprived in both the
Banking Limited has become our education and health sectors.
subsidiary and has been operating under
FINANCIAL STATEMENT
the name of Sunrise Capital Limited. The Finally, I would like to congratulate all of
acquisition has helped us in improving us for completing a decade of successful
our competitiveness and has resulted in operations. Everyone -- shareholders,
enhanced capacity to provide financial customers, employees, directors and
services. Further, the Bank opened three executives both past and present --
branches and added 12 ATMs taking deserve a big round of applause! I would
our reach to 70 branches and 82 ATMs. also like to thank everyone at Sunrise INVESTOR'S RELATIONSHIP
We have prioritized the establishment Bank for the hard work they have put in
of additional branches, ATMs and to achieve what we have. There will be
branchless banking (BLB) units this year challenging circumstances in business
and remain committed to increase our and the operating environment but I
nationwide presence. firmly reiterate that we will hold ground
and will continue to move forward,
In the context of NRB’s direction always striving to achieve quality and
regarding minimum paid-up capital delivering satisfying results.
requirement of NPR 8 billion for “A” Class
BANK'S PERFROMANCE
banks by Ashadh-end 2074, I hereby Thank You

inform you that the Board has proposed Motilal Dugar
15% bonus shares out of current year’s Chairman

̕̕
Sunrise Bank has
successfully complied
with the regulators’
directives in increasing
the paid up capital
from NPR 3,000 million
to NPR 8,000 million
within 2 years.
STRATEGIC REPORT
C E O ' S P E RC E P T I O N
Accelerating Growth
GORVERNANCE
In the fiscal period 2016-17, the Nepali banking sector has undergone through
RISK REVIEW
two significant activities with long term impact. First, the year happens to be the
2nd (last) year for the Banks to satisfy NRB’s directives to increase the paid up
capital base to NPR 8,000 million. Sunrise Bank has successfully complied with
the regulators’ directives in increasing the paid up capital from NPR 3,000 million
to NPR 8,000 million within 2 years mainly through issuance of rights and stock
dividends. With the increased paid up capital base, the earnings of the Bank is
likely to face severe pressure in maintaining ROE.
Second, by the close of 2nd quarter of 2017, have to remain prepared for properly responding
HUMAN RESOURCE
the banking sector has witnessed a severe to the challenge. When internally generated
crunch in loanable fund positions due to slow resources are less likely to satisfy the increasing
growth in deposit (resources) base, that was demand, a work out for attracting foreign
not commensurate with the huge surge in capital will have to be explored and pushed.
credit demand. While government spending
has slowed down, the remittance receipts have ENTRY INTO MERCHANT
also declined, restricting public deposits. The BANKING ACTIVITIES
PRODUCTS & SERVICES

economy virtually turned into an import based During the year, the Bank acquired NIDC
business (squeezing the resources from the Capital Markets Limited. Along with this, we
market). A serious threat has emerged in the are proud to have NCM Merchant Banking Ltd.,
system resulting in a mismatch between the now renamed Sunrise Capital Limited, one of
assets and liability of the Banks. In an attempt the oldest merchant banking company, as our
to attract public deposits the Banks pushed subsidiary.
the deposit interest rates, both in Savings and
FINANCIAL STATEMENT
Term Deposits, to significantly higher level in THE NEW TECH PLATFORM
a very short span of time. As a result the Net Sunrise Bank has a great vision to lead the
Interest Income (NII), a prime parameter of a market in Fintech. Migration into new CBS in
bank’s performance, has narrowed significantly Finacle.10 software was completed during the
and eaten the earnings. year. We believe this change will be instrumental
in attaining our mission.
CHALLENGES AHEAD INVESTOR'S RELATIONSHIP
The country is undergoing a political OUR WORKFORCE

transition phase with the implementation of The Bank is proud to have a very productive
federal structure. Elections are over but the workforce and has been paying due attention
economic model has yet to be established and towards their training and career development.
practiced. It is for sure that this will boost local With the growth in business comes the
developmental activities pushing demands challenge to hire and retain the trained staffs.
for formal credit to a higher side. Freshly We understand the value of trained staffs and
generated demand for loans, particularly in the efforts in their capacity building will receive
SME category, witnessed the migration of small continuous attention as always.
BANK'S PERFROMANCE
businesses from informal to formal sector. In the

scenario, the resources crunch is likely to remain Ratna Raj Bajracharya
for quite a longer period. The banking sector will CEO

Management Team
STRATEGIC REPORT
FROM LEFT TO RIGHT
(Standing) (Sitting)
GORVERNANCE
Apachh Kumar Yadav Sarbendra Mishra Robin Nepal
Pritam Lal Shrestha Ishwar K. Pathak Ratna Raj Bajracharya
Hari Acharya Dileep Mainali Asha Rana Adhikary
RISK REVIEW
HUMAN RESOURCE
PRODUCTS & SERVICES
FINANCIAL STATEMENT
BANK'S PERFROMANCE
The Bio
1 2 3 4
Mr. Ratna Raj Ms. Asha Rana

Bajracharya Adhikary
CHIEF EXECUTIVE SENIOR DGM
OFFICER
Mr. Ratna Raj Bajracharya joined Ms. Asha Rana Adhikary Bank Management Course
Sunrise Bank Ltd. as Chief possesses more than 30 years (BMC) in Stockholm, Sweden
Executive Officer on May 2015. of banking experience. Her first in 1991, including its Follow-up
Just before joining the Bank, career started as an Accounting Asia Program in the Philippines
he had been working as Chief Assistant at Stanford University, in 1999.
Executive Officer of Global California, USA in the year
IME Bank Ltd., another Class 1985 and subsequently as Ms. Adhikary is a Gold Medalist,
“A” commercial bank, where a Joint Account Officer at First Class First in MBA and was
he worked for 4 years. He also Rastriya Banijya Bank Ltd., a recipient of the Mahendra
successfully completed his tenure Nepal from 1988 to 1993. Bidya Bhushan Gold Medal
as Chief Executive Officer in yet During this period, she had and Nepal Bank Limited Sardar
another Class “A” commercial also worked with ERNST and Gunjamansingh Gold Medal.
bank of the country, namely, Nepal YOUNG in 1990 under the She also secured First position
Credit and Commerce Bank Ltd. in aegis of Commercial Bank among the Girl candidates in
the past. He also worked at Nepal Problem Analysis and Strategy Nepal in the Certificate Level -
Bank Ltd., a government-private Study (CBPASS) and with Intermediate and had received
sector joint venture bank and BOOZlALLEN & HAMILTON in the Aishwarya Bidya Padak.
the oldest bank of Nepal, under 1992. Later, she worked from She was awarded with King
management contract, as the the position of Senior Officer to Birendra-Aishwarya Scholarship
Chief Financial Officer. He began Senior Manager at Himalayan for pursuing Bachelor in
his career with Nepal Rastra Bank, Bank Ltd. from December 1993 Commerce studies.
the central bank of Nepal, where to September 2007 before
he spent 20 years in different starting her career at Sunrise
capacities. Mr. Bajracharya has Bank Limited as Assistant
experience of over 40 years in the General Manager.
banking and financial sector of
Nepal. Ms. Adhikary has attended
several professional training
A senior Chartered Accountant, programs and has also
Mr. Bajracharya has also served as imparted several trainings. She
the president of Association of the had attended ‘Program for
Chartered Accountants of Nepal, Cross Cultural Management
president of Institute of Chartered (PCCM) in Tokyo, Japan
Accountants of Nepal, director of conducted by AOTS, Japan in
Securities Board of Nepal, etc. 2004. She had also attended

STRATEGIC REPORT
GORVERNANCE
5 6 7 8
RISK REVIEW
Mr. Apachh Mr. Robin Nepal Mr. Sarbendra
Kumar Yadav DGM Mishra
DGM AGM/CFO
Mr. Apachh Kumar Yadav served Mr. Robin Nepal started his Mr. Sarbendra Mishra is
HUMAN RESOURCE
Sunrise Bank Ltd. since July 2015. He career with Sunrise Bank Ltd. a seasoned professional
also served as an Assistant General in November 2009 as a Chief with more than 23 years of
Manager at Machhapuchhre Bank Manager. He also served as a banking/finance experience.
Ltd., Deputy Manager at Nepal Deputy Manager; Head-Risk He started his banking
SBI Bank Ltd. and Deputy Chief Management Department at career at Nabil Bank in the
Credit Officer at Nepal Bank Ltd. Himalayan Bank Ltd. Mr. Nepal 1990s and worked there
PRODUCTS & SERVICES

Mr. Yadav was also the Member has banking experience of for about 15 years in core
of ICC Management Team for the about 2 decades and served operation, trade finance,
restructuring of Nepal Bank Ltd. various senior management credit cards, corporate
under the Financial Sector Technical roles in corporate lending and credit and treasury. He
Assistance Project. He also served as risk management. He started joined Sunrise Bank in
an Accounting Consultant for "The his banking career at Nepal 2007, and in 2010 moved
Private Sector Support Program"- A Grindlays Bank Ltd. now is to Civil Bank as Chief
World Bank Project. He served as a Standard Chartered Bank Nepal Operating Officer. He has
FINANCIAL STATEMENT
Group Coordinator for the Special Ltd. He holds a Masters degree also undertaken various
Audit & Accounts Reconstruction in Business Administration. leadership roles. He has
Work in "Rastriya Banijya Bank rejoined Sunrise Bank as
Account Reconstruction Project". Mr. Nepal has attended various AGM/CFO. He is a former
He was also Business Process & professional trainings inside member of the Society of
Portfolio Management Specialist in and outside the country. Technical Analysts, London;
Agricultural Development Bank Ltd. He obtained training on and the Canadian Securities
Integrated Risk Management Institute. He is an active INVESTOR'S RELATIONSHIP
A well-known Chartered Accountant, from B.D.P. Consultants, Pune member of the Association
Mr. Yadav secured third position in and Centralization of Trade for Finance Professional
Bachelors in Commerce, Tribhuvan Finance from Habib Bank, (AFP), Bethesda, Maryland,
University and forth position Karachi. He attended seminar USA. He holds first class
in Intermediate in Commerce, in International banking, Master’s Degree in Business
Tribhuvan University. He has wide Commerzbank Frankfurt; with majors in Multinational
experience in audit of commercial program on Project Finance, Corporate Finance.
banks, finance companies, Reserve Bank of India among
insurance companies, hotels and other professional trainings.
manufacturing companies.
BANK'S PERFROMANCE

Department Heads

Department Corporate Governance

Heads Generally, corporate governance standards are highest at
commercial banks in Nepal. This is because banking is a highly
regulated sector and also because they operate in a very
competitive environment.
FROM LEFT TO RIGHT
In addition, because the industry is highly
Corporate and Guarantee Business Mr. Hari Prasad Acharya integrated globally, compliance is not only local,
& Transaction Banking Department
because banks also have to abide by the standard
Chief Tecnical Officer (CTO) Mr. Dileep Mainali of its correspondent banks and other international
partners. Sunrise Bank has been strictly following
Trade Finance Department Mr. Rajendra Pd. Joshi
the policies, guidelines and directives issued by
Human Resource Department Ms. Prabhavati Bista the central bank, while also developing its own
standards for complying to the requirements of
SME and Retail Banking Mr. Ganesh Regmi
correspondent banks. With state of art banking
Department and Guarantee
software, the Bank monitors and controls
Legal Department Mr. Keshab Prasad Subedi compliance requirements on a daily basis and this
has helped it grow steadily over the years while
IT/MIS Department Mr. Rajesh Kumar Manandhar (In Charge)
also enhancing the quality of its investments.
General Service Department Mr. Pritam Lal Shrestha
The Board of Directors provide overall direction
Cards & E-Banking Department Mr. Prakash Paudel
and oversight to the Bank's operations, aided by
Risk Management Department Ms. Nikky Basnet Board-level committees formed as required by
the Unified Directive, 2074. All Board and
Remittance Department Mr. Vivek Niroula committee meetings are held as required by the
Marketing Department Ms. Rabina Acharya regulator and all meeting records meet the
requirements of the Nepal Rastra Bank.
Branch Establishment Unit Mr. Dev Chandra Bhatt
Compliance Department Mr. Anup Koirala Sunrise Bank's core banking software is state of
art and the version used -- Finacle10 -- is the
Chief Risk Officer (CRO) Mr. Ishwar K Pathak newest and the most-trusted version used in the
/ Company Secretary
banking industry in Asia. The Bank not only uses
Credit Administration Department Mr. Rabindra Kc this throughout its network, but has also been
providing continuous training to its staff to ensure
Branch Operation Department Ms. Kanchan Joshi that there is steady supply of human resources
Deprived Sector Banking Department Mr. Dipen Man Singh Pradhan not just in its branches but also in the industry.
Loan Recovery Department Mr. Dhiraj Pradhan In just 10 years, Sunrise Bank has grown to about
Treasury & Correspondent Ms. Pragya Adhikari 1000 staffs at its 71 branches. The Bank has plans
Banking Department to add another 27 branches as it takes its services
deeper in areas unreached by commercial banks.
Finance & Planning Department/ Mr. Abinash Prabhakar The penetration of the Bank in small urban and
Performance Review
semi urban areas is also key to resource
Account Department Vijay Krishna Shrestha mobilization. Staff declarations and disclosures on

STRATEGIC REPORT
GORVERNANCE
their professional, personal life and assets
BOARD STRUCTURE
are kept updated on yearly basis.
The Bank has 9 directors in the board. This
Alongside the efforts to strengthen
RISK REVIEW
number will be reduced to 7, as per the
corporate governance, the Bank has also
provision made by the new Bank and
been working to establish a system to
Financial Institutions Act (BAFIA) 2073.
prevent money laundering. The AML
Currently, the board has one Independent
system can assist in tracking and
Director and 50% of the remaining
controlling undesirable/suspicious
directors come from the promoter and
transactions. They system can also assist
public groups. The promoter and public
the Bank in reporting such transactions to
directors are appointed for a term of four
regulatory bodies.
years through election whereas the
independent director is appointed by the
The Bank holds an Annual General Meeting
board for a term of four years.
every year to inform shareholders about
progress, discuss and agree on benefits to
shareholders, and to set goals for the
STAKEHOLDER'S
HUMAN RESOURCE
coming years. Its last general meeting was
held on 16 November 2017. RELATIONSHIP
The Bank prioritizes the management of
BUSINESS ETHICS stakeholder relationship. It has maintained
a fair and equitable treatment of both
AND COMPLIANCE
PRODUCTS & SERVICES

shareholders and customers while
maintaining a very cordial relationship with
Sunrise Bank adheres to the highest
regulators. The Bank has a subsidiary
banking standards when it comes to doing
company called Sunrise Capital Ltd., which
business. It has a policy of zero tolerance
is also the Share Registrar and Transfer
for non-compliance to the values of
Agent of the Bank, to provide services to
corporate governance. This it believes is its
the shareholders. The Bank has an excellent
path towards being one of Nepal's top 10
FINANCIAL STATEMENT
mechanism for collection and resolution of
banks in the next four years. It deals all
customer and shareholder grievances.
customers equally and fairly, and provides
Employees are treated as the human
equal opportunities for employment to
capital and the Bank has a core
people from all social groups, particularly
understanding that only satisfied
for women. The staffs are provided an
employees can boost productivity. There is
environment where they can continue
a separate cell in the Bank under a Senior
learning with support from the Bank in
General Manager to review and address INVESTOR'S RELATIONSHIP
some cases, and continuous training and
employee grievances.
capacity enhancement opportunities. The
Bank also has a policy of rewarding
high-performing staffs, and sanctioning
those who compromise corporate values in
the course of doing business.
BANK'S PERFROMANCE

INTERNAL CONTROL SHAREHOLDERS

INFORMATION
All banks in Nepal are required to know their
employees and maintain updated information The promoters of the Bank hold 51% of
on them. Sunrise Bank also has a Know Your the shares and public shareholders own
Employees (KYE) policy that is updated the remaining 49% shares of the company.
with information of staffs and their families. The company is listed in the Nepal Stock
Knowing people working at the Bank and their Exchange under the symbol SrBL. The
aspirations can allow management to support average share price for the past year was
them where needed to ensure that it remains NPR 562 and the earning per share last year
like a tightly knit family. The Bank also has a was NPR 16.76.
system of annual performance evaluations to
ensure that everyone has a personal goal to
meet, as these are steps towards meeting the
overall goal of becoming one of Nepal's top EMPLOYEES
10 banks. The Bank also carries out surprise
checks on in different departments and Sunrise Bank had 956 staff members in
branches to ensure timely compliance and July 2017. The staffing at Sunrise Bank
smooth operations. comprises of permanent employees, those on
probation, contractual employees and also
The Bank has zero tolerance to non- associates performing outsourced functions.
compliance and compromises made in the All staff members have been exposed to one
course of doing business. This policy has training or another for ensuring common
been put in place to ensure that the services understanding of values, in additional to
provided are of the highest quality. The AML instructions on specialized skills needed for
solution that the Bank has put in place has specific jobs.
now become fully operational, and is expected
to take the level of services provided to a
higher level of satisfaction of both customers
and the regulator. The Bank carries out
continuous reviews of SWIFT messages
and also does sanction screening of all the
applicants/beneficiaries and banks. This is
a fully technology-driven platform involving
cloud computing and one that is based on the
system used by the Bank.
Two cells at the Bank are working to update

all databases. The Data Update/Purification
unit has started operation with eight staffs.
The cell is updating data in the CBS, with
support from the respective branches and
Call Centre. Similarly, the KYC Cell is updating
the KYC status of the 14 branches that were
acquired from NNFL (Narayani National
Finance Limited) and one branch acquired
from NIDC Capital Market.


RISK
REVIEW
Risk review and mitigation is a top priority
at Sunrise Bank. A committee of Directors is
responsible for continuously assessing different
risks faced in banking to ensure that they are
restrained at manageable levels.
RISK REVIEW
Board Level Committee

The Board comprises of a AUDIT COMMITTEE A. Review the accounts and
financial statements of the
Chairman, four directors Bank and ascertain accuracy,
The Board of Directors has
from among promoters, established an Audit Committee
three public directors under a non-executive Director.
B. Review the internal financial
control and the risk
and one professional This committee reviews the Bank’s
management systems,
financial condition, its internal
director representing controls, and audit program, and
the promoter and public issues necessary guidelines to
C. Supervise and review the
internal audit of the company,
shareholders as per the the management upon detailed
discussion of the findings of the
provision of Company internal audit. The external as
D. Recommend names of
Act, 2063. well as internal auditors have
potential auditors for
appointment as auditor of
direct access to this Committee.
The Board represents and protects the company, remuneration,
The Board of Directors regularly
the right of members/investors. It and terms and conditions of
discusses the reports of the
interacts with the CEO periodically appointment and present the
auditors and the Committee. As
where the directors assess the same at the general meeting
per the policy and practice, the
overall direction and strategy of for ratification,
Chief Executive has not been
the Bank for establishing policy included as the member of the
based governance systems, and for E. Review and supervise the
Audit Committee.
ensuring that corporate governance conduct of the audit to ensure
standards prescribed by the compliance with standards and
The composition of the
regulatory authorities are met. The directives of competent bodies
committee is as follows:
CEO ensures that the daily banking pursuant to prevailing laws.
activities are carried in compliance
with applicable laws, directions of NAME DESIGNATION F. Formulate policies for the
regulatory bodies and principles of Bank for selection and
Dr. Deepak Coordinator appointment of auditor based
corporate governance.
P. Bhattarai, Director on the conduct, standard and
Dr. Bhogendra Member directives of the competent
As per the provision of Nepal
K. Guragain, Director body under the prevailing law,
Rastra Bank, there are four board
Mr. Malchand Member
level standing committees in the
Dugar, Director G. Prepare accounts related
Bank, viz.; The Audit Committee,
Mr. Sunir K. Dhungel, Member policies of the company and
The Risk Management Committee,
Partner, SAR Associates enforce, or cause to be enforce
The Employee Compensation
(Internal Auditor) the same,
and Benefit Committee, and the
Mr. Ishwar K. Pathak, Member
Money Laundering Prevention
Chief Risk Officer/ Secretary H. Prepare reports as required by
Committee. They are headed by
Company Secretary the regulatory body, and
one of the non-executive directors
and participated by non-executive
directors and senior officials of I. Perform tasks as prescribed
SCOPE OF THE COMMITTEE
the Bank. Apart from them, the by the Board of Directors
The committee's mandate
Bank may also have other ad-hoc in respect of the accounts,
includes:
board level committees formed as a financial management and
special purpose vehicle with given audit.
deadlines.

STRATEGIC REPORT
GORVERNANCE
RISK REVIEW
RISK MANAGEMENT A. Determining Statement of Risk Appetite
HUMAN RESOURCE
and reviewing and monitoring the risk
COMMITTEE profile of the Bank.
The Risk Management Committee has been B. Overseeing the internal capital adequacy
formed with an aim to assist the Board of assessment process,
Directors in its responsibility to oversee the
PRODUCTS & SERVICES

adequacy of the risk management process. C. Reviewing and monitoring capital levels
The Committee works to make sure that for consistency with Bank’s risk appetite,
the Bank possesses efficient and effective
risk management plan that covers all types D. Reviewing and approving the Bank’s
of risks. In addition, the Committee is also Credit Risk Management Framework,
responsible for setting, assessing, reducing,
monitoring and reporting risk levels for the E. Reviewing and approving key policies
FINANCIAL STATEMENT
attention of the Board of Directors. and associated risk concentration
limits supporting Bank’s Credit Risk
The composition of the committee is as Management Framework, including
follows: policies for the internal credit risk
grading system, managing large
exposures and industry concentration,
NAME DESIGNATION
F. Reviewing the approved limits and

Dr. Bhogendra K. Guragain, Director Coordinator
Dr. Deepak K. Bhattarai, Director Member conditions that apply to the credit
Mr. Apachh K. Yadav, DGM Member approval authority delegated to the
Mr. Robin K. Nepal, DGM Member Chief Executive Officer and any other
Mr. Ishwar K. Pathak, Member officers of the Bank.
Chief Risk Officer/ Com. Secretary Secretary
G. Reviewing the credit risk profile,
performance and management of Bank's
SCOPE OF THE COMMITTEE credit portfolio, including portfolio
BANK'S PERFROMANCE
The key responsibility of the Risk asset quality, portfolio concentrations,

Management Committee includes: provisioning levels, bad debt recovery
and internal risk grading system,

RISK REVIEW
H. Reviewing and approving the Bank’s Market The composition of the ECBC is as follows:
Risk Management Framework, Liquidity Risk
Management Framework and key policies NAME DESIGNATION
and limits supporting the framework,

Er. Bachh Raj Tater, Director Coordinator
Mr. Ratna Raj Bajracharya, CEO Member
I. Reviewing and monitoring the Bank's market
Ms. Prabhavati Bista, Member
risk performance and exposure against
Head - Human Resources Dept. Secretary
limits,
J. Overseeing and approving the internal SCOPE OF THE COMMITTEE

liquidity adequacy assessment process and The ECBC has the following responsibilities:
stress testing results, including approving
liquidity targets and limits, A. Assist the Board in preparing Compensation
Policy,
K. Reviewing the monitoring of the Bank's
liquidity position and requirements, B. Study and analyze compensation structure
regularly along with impact analysis due to
L. Reviewing and approving the Bank's changes in compensation in the industry
Operational Risk Management Framework and report to the Board of Directors,
and key operational risk policies, and
C. Recommend compensation increments
M. Reviewing and monitoring the performance of all staff members including the CEO to
of operational risk management and the Board along with proper basis of such
controls. increment based on the Compensation
Policy.
EMPLOYEE D. Develop staff job descriptions, targets/

objectives and performance evaluation
COMPENSATION AND criteria and review the performance
BENEFIT COMMITTEE appraisal process of staff members,
(ECBC)
E. Prepare policy and measures for staff
The ECBC was formed in order to develop and management activities such as recruitment,
look after the compensations and amenities of, selection, appointment, assignment, transfer,
and policies related to, the employees of the promotion, skill development, performance
Bank. The committee is involved in forming the evaluation, reward and punishment and
overall human resources strategy aligned with service/labor and provide it to Board,
the business strategy of the Bank.
F. Analyze/review staff rules and current staff
structure and prepare and recommend
succession plan to the Board for approval.

STRATEGIC REPORT
Risk Management Committee
GORVERNANCE
The Risk Management Committee (RMC) at the Bank aims to
RISK REVIEW
support the Board of Directors in ensuring that the overall risk
management process is appropriate. The Committee ensures
that the Bank possesses efficient and effective risk management
plan covering all types of risks. In addition, the Committee is
also responsible for setting, assessing, reducing, monitoring and
reporting risk levels for decision making by the Board of Directors.
The RMC monitors risk levels to provide Management Framework, including policies
recommendations to the Board on the Bank's for the internal credit risk grading system,
business risk strategy. It also monitors the managing large exposures and industry
alignment of the Bank's risk profile with risk concentration.
HUMAN RESOURCE
appetite as defined in the Board Statement of n Review the approved limits and conditions
Risk Appetite to ensure that an appropriate that apply to credit approval authority
level and quality of capital and liquidity is delegated to the Chief Executive Officer
maintained in line with the risks inherent in its and/or any other officers of the Bank.
activities. It also oversees the identification,
management, monitoring and reporting of MARKET RISK
PRODUCTS & SERVICES

risks inherent in the Bank's operations. Such n Review and approve the Bank's Liquidity
oversight covers but is not restricted to the Risk Management Framework
elements in the following paragraphs. n Review and approve key policies and limits
supporting the Market Risk Management
RISK APPETITE Framework.
n Seek Board approval on the Statement of n Review the monitoring of the Bank's market
Risk Appetite and review and monitor the risk performance and exposure against
FINANCIAL STATEMENT
risk profile of the Bank for consistence with limits.
Board Statement.
LIQUIDITY RISK
CAPITAL n Review and approve the Bank's Liquidity
n Oversee the internal capital adequacy Risk Management Framework.
assessment process and in doing so: n Review and approve key policies and limits
1. Review the outcomes of stress testing. supporting the Liquidity Risk Management
2. Set the target ranges against regulatory Framework.
capital requirements. n Review and approve the funding plan for the
n Review and monitor capital levels for Bank, and oversee management’s monitoring
consistency with the Bank's risk appetite. of that plan.
n Oversee and approve the internal liquidity
CREDIT RISK adequacy assessment process and stress
n Review and approve SrBL's Credit Risk testing results, including approving liquidity
Management Framework targets and limits.
n Review and approve key policies and n Review the monitoring of the Bank's
BANK'S PERFROMANCE
associated risk concentration limits Liquidity position and requirements.

supporting the Bank's Credit Risk

RISK REVIEW
OPERATIONAL RISK the business environment and its relevance

n Review and approve the Bank's Operational to the Bank's risk profile and appetite. The
Risk Management Framework. Committee also reviews the Charter at least
n Review the monitoring of the performance of once annually and recommends changes to the
operational risk management and controls. Board of Directors for approval.
n Review and approve key operational risk
policies. The Board of Directors determines membership
and coordinator of the RMC periodically. It
OTHER RESPONSIBILITIES OF RMC comprises 3-5 members, with the Audit
Other responsibilities of RMC including Committee Coordinator, head of operations and
informing and advising the Board of Directors resources mobilization departments as ex-officio
on adequacy of risk assessments, controls, members. The head resources mobilization is
mitigation and management systems for further the member security of the Committee. The
improving the risk management framework. RMC is required to meet at least four times each
It also advises the Board after regular reviews year, and more frequently if required. It can also
and monitoring of risk level in business invite staff and other experts to its meetings,
activities, risk taking capacity, risk mitigation, depending on the need.
management and development of strategies,
policy and procedures for ensuring prudent risk The composition of the Bank's Risk Management
management. Committee is as follows:
In addition, the RMC regularly notifies the Board NAME DESIGNATION

on risk management reports generated by the Dr. Bhogendra K. Guragain Coordinator
Bank with recommendations for risk assessment, Dr. Deepak P. Bhattarai Member
control and mitigation. It is the unit responsible Mr. Robin K. Nepal Member/DGM
for advising the Board on capital adequacy for Mr. Apachh K. Yadav Member/DGM
different class of risk assets under the Internal Mr. Ishwar K. Pathak Member Secy/CRO
Capital Adequacy Assesment Process (ICAAP)
and risk bearing capacity for supporting During 2016/17, 8 NPR 136,000 (after deduction
business risk strategies under risk management of TDS) was paid as fee to the members of the
frameworks. committee as allowances.
The RMC interprets and communicates the MEETINGS

Central Bank's directives and guidelines n The RMC meets at least four times annually or
for setting internal limits and also reviews more frequently if necessary.
the stress testing results and advises the n It may invitee any officer or employee of
Board. Its responsibility includes making the Bank, external legal counsel, the internal
recommendations to the Board on the quarterly auditor, the external auditor or any person
Asset and Liabilities Management Committee with relevant experience or expertise to its
(ALCO) decisions, and determination of meetings or for meeting its members.
asset composition, asset placement, income n The agenda and supporting documentation
generation capacity and position of asset is circulated to RMC members before each
quality. meeting.
n RMC may adopt rules considered appropriate
Risk management also involves a continuous for the conduct of its affairs under the
scanning of the external environment to monitor Bank's Article of Association, NRB directives
and report to the Board on the economic and and prevailing laws, provided that they are
business situation, and emerging opportunities consistent with the Charter (as amended from
and challenges. The responsibility is to assess time to time) or any resolution of the Board.

STRATEGIC REPORT
Risk Management
And Control Environment
GORVERNANCE
The Bank has a robust internal control mechanism for identifying,
RISK REVIEW
assessing and prioritizing risks to coordinate economic application
of resources to minimize, monitor and control the probability and/
or impact of unfortunate events, and for maximizing the realization
of opportunities. The risk management objective is to assure that
uncertainty does not deflect the achievement of business goals.
SrBL’s Risk Management Department (RMD) credit review assessment covers internal risk
has been performing as an independent risk- ratings, risk concentration, portfolio analysis
assessing unit under the regular supervision and large exposures. Following factors are
and guidance of Chief Risk Officer (CRO). The taken into consideration for reviewing credit
major focus of RMD has been to monitor and risk:
HUMAN RESOURCE
minimize different types of risks identified. a. Internal rating of borrowers based on SrBL's
The application of transparent, responsible, Internal Risk Grading System
accountable, and independent risk analysis b. Collateral coverage
system, both in operations and business c. Repayment capacity
functions and strengthening risk management, d. Net-worth assessment
is the strategic focus of the Bank. e. Past performance of the borrower with SrBL
PRODUCTS & SERVICES

and other banks
Major objectives of the Bank’s risk f. Single obligor limit
management functions include: g. Effect on capital adequacy
n To manage the process of formulation, h. Available Credit Risk Mitigants (CRM)
implementation and updating of Risk i. Multiple banking declarations
Policies and Guidelines j. Adverse remarks from auditor of borrower
n To regularly monitor fundamental risks on borrower’s financial statements.
FINANCIAL STATEMENT
associated with functional units and report k. Business risk of borrower, probability of
to senior management, and default on the basis of past performance
n To facilitate effective implementation of and related industry’s performance as a
different risk management functions whole, and
l. The Internal Risk Grading System was
The Bank uses several measures for minimizing implemented since September 2014. The
and managing risk, which are discussed below: Bank has adopted credit proposal routing
system introduced in September 2014. The INVESTOR'S RELATIONSHIP
CREDIT RISK system has been revised from time to time

Credit risk is the major risk that banks are as per the requirements of the credit risk
exposed to during the course of lending and management function.
credit underwriting. It is the probability that
a bank’s borrower or counter party will fail to OPERATIONAL RISK
meet its payment obligations in accordance Operational risk is the risk of loss resulting
with the terms of approval of credit. from inadequate or failed internal processes,
The Bank adopts different methodologies for people and systems or from external events. It
BANK'S PERFROMANCE
assessing credit risk involved in the exposure includes legal risk but excludes strategic and
to individual borrowers or counterparties as reputational risk.
well as at the portfolio level. At a minimum,

RISK REVIEW
The Bank maintains a Risk Register to manage MARKET RISK

the potential operational risk arising from Market risk refers to the risk to a bank
day-to-day activities. All identified and resulting from movements in market prices,
potential risks, their likelihood of occurrence, in particular, changes in interest rates, foreign
their impact on the Bank's risk appetite and exchange rates, and equity and commodity
overall scoring of the risk is maintained in the prices. It covers interest rate risk, foreign
Risk Register, which is monitored and reviewed exchange risk and price risk.
regularly. Following factors are considered for
assessing operational risk: A Interest Rate Risk
Interest rate risk is the exposure of the
a. Net interest income Bank's finances to adverse movements in
b. Commission and discount Income interest rates. Accepting this risk is a normal
c. Exchange fluctuation income part of banking and can be an important
D Overhead & staff expenses source of profitability and shareholder value.
e. Provisions However, excessive interest rate risk taking
f. Other operating income can pose a significant threat to a bank's
g. Addition/deduction in the interest suspense earnings and capital base.
during the period
h. Reconciliation of Nostro accounts B Foreign Exchange Risk
i. Risk arising from use of information Foreign exchange risk is the potential impact
technology of adverse currency rate movements on
j. Technical competence and integrity of the earnings and economic value. This involves
staffs settlement risk, which arises when the
k. Review of compliance with policies, Bank incurs financial losses due to foreign
procedures and methodologies issued by exchange positions taken in both the trading
external regulators like Nepal Rastra Bank, and banking books.
Inland Revenue Department
l. Review the risk profile, anticipate changes C Price Risk
and threats and concur on areas of highest Price risk is the risk that may cause a bank
priority and related mitigation strategy to experience loss due to unfavorable
m. Assure adequate resources are being movements in market prices. It arises from
assigned to mitigate risks as needed the volatility of positions taken in the four
n. Review and approve the development fundamental markets:
and implementation of operational risk n interest-sensitive debt securities,
methodologies and tools including n equities,
assessments and loss event databases n currencies, and
o. Review reports from various business n commodities
groups and units about their risk profiles
and mitigation programs Changes in the prices of equity instruments,
p. Monitor and ensure that appropriate ORM commodities and other instruments create
frameworks are in place a price risk and the potential for loss arising
q. Review the reports presented by the from the process of revaluing equity or
internal audit department (IAD) with investment positions.
respect to operational risk profile of the
Bank SrBL focuses on exchange risk management
r. Review of the monthly balancing system, for managing and computing the capital
and charge on market in accordance with
s. Approve policy-related mitigation plans. the capital framework provided by NRB.

STRATEGIC REPORT
GORVERNANCE
Interest rate and price risks are assessed at SrBL has a Board level committee to manage
regular intervals to strengthen market risk and monitor the AML-CFT risks apart from
management. Market risk is managed on the Compliance Department and AML-CFT unit
basis of the tolerance level set by the Board of that monitor the risk. Further, the Bank has
RISK REVIEW
Directors. also appointed unit heads (Branch Managers
and Department Heads) as compliance officers
a. SrBL also has an ALCO Committee of the respective units. They are responsible
that reviews the market risk at regular to ensure Money Laundering (ML)-Terrorism
intervals using internal processes such Financing (TF) compliance as well as regular
as GAP analysis, deposit mix, analysis of compliance of acts, directives, and polices/
government policies, and their impact on practices.
operations.
b. The Bank has formed separate Middle LIQUIDITY RISK
Office independent of Treasury function for Liquidity risk is the potential for loss arising
measurement, supervision and analysis of from either its inability to meet obligations due
risks related to treasury management. or to fund increases in assets without incurring
c. For reviewing the market risk, following unacceptable cost or losses.
HUMAN RESOURCE
factors are taken into consideration:
n Open position (Maximum – Minimum), The Bank, as per the approved guidelines from
n Pegged currency the Board, has been maintaining liquid asset
n Convertible currencies to deposit ratio and credit to deposit ratio that
n Cost of funds are monitored very closely. Further, liquidity
n Yield on investment & advances. profile in Form No. 5.1 is submitted quarterly
PRODUCTS & SERVICES

n Liabilities assets mix, and by Reporting Department of the Bank to
n Opportunity cost. NRB and this also serves as a liquidity risk
management tool.
COMPLIANCE RISK AND AML-CFT RISK
Compliance Risk is the risk resulting from non- OTHER RISKS
compliance with laws and regulations, lack Other risks such as strategic risks, reputational
of adequate documentation to demonstrate risks, etc. are being monitored by the Bank at
compliance and risk from failure to comply regular intervals.
FINANCIAL STATEMENT
with financial reporting standards, agreements
or regulatory requirements. The main
Compliance Risk components are generally
referred to as regulatory, financial reporting
and legal risk.
The compliance department regularly INVESTOR'S RELATIONSHIP
identifies the external compliance

requirements and submits optimized
responses. The Bank also obtains report of
assurance from internal/external auditor
that operations are complying with policies,
principles, standards, procedures and
methodologies issued by external regulators.
BANK'S PERFROMANCE

CORPORATE SOCIAL
RESPONSIBILITY
Sunrise Bank is a good corporate citizen
and believes in contributing towards
overall development of the society it
serves. It has given back to society at
every opportunity and will continue this
partnership for change.
C O R P O R AT E R E S P O N S I B I L I T Y
Corporate Social
Responsibility (CSR)
The Bank's social responsibility building a capable human resources pool that can
contribute towards overall national development.
initiatives are win-win
engagements. The initiatives not Another on going activity at the Bank that
only appeal to socially conscious engages people are public meetings organized
to explain the benefits of banking, and to also
consumers and employees who pass on information about its unique products
then seek the Bank's services, but that are designed to support small and medium
they also make an impact on the enterprises (SMEs), and personal banking.
lives of ordinary people. The Bank has another unique scheme, under which
it supports insurance of borrowers for homes,
Blood donation initiatives are led by branches
where the insurance company pays off the assured
where there is a shortage of supply. Other
loan amount in case of death of the borrower.
measures include providing walking canes to
This scheme not only provides protection to the
support visually impaired people and other
borrower throughout the loan tenure but also
support systems.
assures a capital return upon maturity of the loan.
The Bank's Terathum branch had organized a

The Bank's branches in different parts of Nepal
blood donation drive. The Bank also provided
organize orientation sessions on financial literacy,
seven walking canes (white) to the Fellowship
basic accounting and tax policy for existing and
Society Nepal (Association of visually impaired
prospective SME clients. Such orientations assist
people), and other supplies to the Nepal Disabled
them in compliance with government policies and
Association at Khagendra Nawa Jiwan Centre.
run their business without hassles. During the year,
the Bank carried out 40 financial literacy programs
The Bank also sponsored public awareness
through its branch offices across the country.
campaigns to make people aware of cancer and
provided financial support to the Jyapu Samaj
The Bank undertakes and supports philanthropic
Yala and the Dashrath Chand Memorial Trust. In
activities in terms of community engagement. The
addition to these activities in the past year the
activities include:
Bank carried out 40 financial literacy programs
for different audience groups. Two such programs
1. MASS MELAS- At these events, the Bank
were organized for Jain Mahila Mandal and
engages with customers by making them
Terapanth Mahila Mandal under the Bank's PINK
financially aware about Banking Products and
Project at Jain Bhawan, Kamalpokhari.
services, technology based products, teach them
how to use ATMs, mobile banking and internet
The Bank's CSR activities supported the
banking, online account opening, remittance
reconstruction of Shree Chandesheshwori Mai
services etc, the mass melas are carried out by
Temple located at Pim Bahal, Lalitpur, ward no- 21
every Inside and outside valley branches on
which was damaged by devastating earthquake of
quarterly basis.
12 Baisakh, 2072.
2. FINANCIAL LITERACY PROGRAM- The Bank

The Bank believes in building capacity of staff and
provides knowledge on basic accounting and tax
also of society. While staff training is a continuous
policy for existing and prospective SME clients
internal process, externally the Bank has provided
to enable them to cope with, and comply with
scholarships to Trihbuwan University students to
government policies so that they can sustain and
support their Master's level research. The support
run their business smoothly.
to higher education can contribute towards

STRATEGIC REPORT
GORVERNANCE
CORPORATE CSR
BUSINESS ETHICS POLICIES
RISK REVIEW
Trust and integrity are two foundations on Sunrise Bank is a good social citizen and is
which most banks are built. A high level of very clear on its obligations to society. The
trust can develop when customers perceive Bank promises to do what is right, to take
that a company is exhibiting unwavering a long-term view and support its clients,
commitment to ethical business practices. customers, and the communities where
This trust is essential for people to entrust a it operates. The Bank has always worked
Bank with their savings. Sunrise Bank if fully with and upheld fundamental values such
committed to run the company responsibly as honesty and sincerity for creating a
and to serve the long-term interests of our sustainable and valuable business that not only
customers, employees and communities it enables it to benefit while providing services
serves. to the people but also creates opportunities
for it to contribute towards the social and
HUMAN RESOURCE
The Bank has a transparent set of rules, economic development of the country.
practices and processes that keep the best
interests of the customers as guiding principle. The Bank's corporate social responsibility
The Bank is responsive and accountable for (CSR) activities are primarily aimed at working
its actions. It has made equitable and inclusive in collaboration with customers, shareholders,
growth and value to aspire for, abides by investors and employees to engage in
PRODUCTS & SERVICES

law and is committed to upholding rule of activities that can benefit communities. The
law. Simply said, these are values that drive range of activities it has supported under CSR
corporate governance at Sunrise Bank. include environmental protection, conservation
of Nepali culture, arts and history, supporting
These principles of corporate governance educational and health related activities
provide the Bank the framework within which among people from underprivileged groups,
it seeks to attain its objectives. The values providing financial and material support to
FINANCIAL STATEMENT
guide every sphere of management, from differently-abled people, and other activities
action plans and internal control measures that allow it to engage with communities.
to performance measurement and corporate
disclosures. These governance guideposts The CSR activities are founded on the notion
guide the Bank in setting and pursuing that helping strong communities can also
objectives in the context of the social, help the Bank to become stronger. This drive
regulatory and market environment where it is motivated by the belief that 'we are what
operates. High standards and adherence to our community is' and that it is our collective
the rules has assisted the Bank to weather future that would determine the future of
crisis and reduce the possibility of fraud and society.
scandals. It is this trust in the market that
has made the Sunrise brand strong player We work considering the provisions and conditions
defined under NRB Circular for CSR related activities.
in Nepal's highly competitive banking and
financial sector.
BANK'S PERFROMANCE

1 2
3 4
7 8
9 10
STRATEGIC REPORT
SUNRISE CSR Mayor of Patan District for which is for all Saving Account Tribhuwan University for
conducting trainings on Holders. thesis works.
ACTIVITIES soap manufacturing, orotory,
handicrafts, mask designing, 6. PINK Project: Conducting 9. Organizing Mass melas for
1. Distribution of 7 white
and stone carving to youths Banking Literacy Program making people aware about
canes to Fellowship Society
and other underprivileged for women empowerment cards, e-banking & Smart
Nepal (Association of Visually
group of Jyapu Samaj Yala. and awareness from different Banking by Kalanki Branch.
GORVERNANCE
Impaired People)
communities, organizations
4. Conducting Mass Mela by and business groups. 10. Handing over the insurance
2. Distribution of wheel chairs,
Jhumka Branch amount under the Bank’s
blankets and food Items to the
7. Official sponsorship in the scheme of 'Sunrise Surakshit
differently abled Individuals of
5. Handing over the cheque Annapurna Cycle Ride for Ghar Karja'. This scheme not
Khagendra New Life Centre,
amounting NPR 500,000 to Cancer Awareness only provides protection to
Jorpati.
the beneficiary of deceased the borrower throughout the
RISK REVIEW
account holder of Baniyatar 8. Providing financial loan tenure but also assures
3. Handing over cheque
Branch under “Group Personal assistance of NPR 30,000 capital returns upon the
of NPR 600,000 to Mr.
Accidental Insurance Facility” each to 6 MBS students from maturity of loan.
Chiri Babu Maharjan,
HUMAN RESOURCE
5
PRODUCTS & SERVICES

6
FINANCIAL STATEMENT
BANK'S PERFROMANCE

HUMAN
RESOURCE
MANAGEMENT
Sunrise Bank believes in the abilities of the
women and men of Nepal to help it attain
its goals. This is the philosophy behind the
continuous learning opportunities it offers
to staff in the organization.
H U M A N R E S O U RC E
MANAGEMENT
Human Resource
Overview
Any Organization is as good as the people that work there.
Professionally managed experienced workforce is critical to the
success of any enterprise. Sunrise Bank's most valuable assets are its
human resources, the operational leadership teams at the corporate,
divisional and branch levels, and its core management. The Bank has
excellent blend of banking professionals who have become the part
of the Bank from the industry from the date of its inception.
Sunrise Bank began operations with 125 The main focus of human resource managers
employees and now has a staff body of 977 in is retaining a team of high performing, skilled
the 10 years it has been in business. It has also and motivated staff committed to attain
grown from 6 branches to 76 branches in 30 organizational growth in accordance with the
districts of Nepal. overall mission and objective of the Bank.
Staff turnover is a major issue in Nepal's To ensure this Sunrise Bank defines the roles
banking sector but Sunrise Bank has managed and responsibilities of staffs and management
to ensure that its core team remains intact and provides employees an environment
through sound human resources interventions where they can be innovative, and perform at
such as employee capacity development the level needed to beat the competition.
opportunities and rewards and sanctions
based on performance appraisals. Human resource management will remain
a challenge at the Bank given the intense
The development of staff capacity to ensure competition in the sector. This has caused the
continued growth in business is the focus of Bank to invest in Information Technology to
the Bank's human resources strategy. It aims stream line workflows, and to attain a level of
to attain this goal by maintaining the right automation and digitalization of its processes
number and skilled staffs in different business and functions to match that expected from a
functions. 21st century bank.

STRATEGIC REPORT
GORVERNANCE
RISK REVIEW
CONTRIBUTION
HUMAN RESOURCE
TOWARDS HR
The HR Department has a five-year

strategic plan that seeks to support
PRODUCTS & SERVICES

the Bank’s overall growth strategy
by ensuring the availability of human
resources capable of supporting the
KEY HR INDICATORS
attainment of the larger goals. The
key objectives of the strategic plan are: TOTAL STAFF (Till Ashad End 2074)
n Standardize procedures for selecting

high performers within the industry 42
FINANCIAL STATEMENT
Contract
and to provide them opportunities to
develop within the organization. 87
Outsourcing
n Maintain good employee 97

relationships and instill Probation 730
belongingness to the institution. Permanent
Total Number of Staffs: 956 INVESTOR'S RELATIONSHIP
n Ensure equitable and market-based

compensation packages.
TOTAL TRAININGS (Till Ashad End 2074)
n Provide scope for career

NO. OF TRAINING PARTICIPANT
development, and
85 734
48 1773
n Provide in-house capacity
12 39
development support through
145 2,546
training, and transfer opportunities
BANK'S PERFROMANCE
to different operation and business Total Number of Trainings: 145

centers within the Bank. Beneficieries: 2,546

H U M A N R E S O U RC E
MANAGEMENT
HR Policies
Human resources define and shape the future of the Bank, which
is why the special attention is placed on recruitment where the efforts
are directed to get the best and the brightest the market can offer. The
HR department regularly conducts training and development to ensure
that the staffs are well equipped to perform at optimal levels at all time.
Some of the departmental functions are:
TRAINING AND DEVELOPMENT QUALITY WORK LIFE

Training and development are proven methods Healthy and safe workplaces offer staff the
to enhance staff quality and motivation. The HR confidence to perform at their best. Sunrise Bank
department offers staff learning opportunities cares for its staff and particularly their safety,
both in-house and external within Nepal and health and welfare. The main goal is to foster
overseas. Such exposures allow staff to sharpen a safe and healthy work environment that is
skills, learn new concepts and remain committed attained by complying to local laws and taking
to optimal performance. reasonable care about the health and safety of
employees. The Bank has medical and accidental
PERFORMANCE APPRAISAL insurance schemes for staff and other welfare and
The department carries out routine performance support systems are also covered by insurance.
management functions mainly through periodic The working hours are aligned with government
appraisal of staff functions. The appraisals are rules and the leave policy allows staff ample time
done both individually and also of work teams for family and friends, which is essential for a
and committees. good work-life balance.
TRANSFERS/ASSIGNMENTS GRIEVANCE HANDLING

The HR department has a transparent transfer The Bank has a mechanism to listen to grievances
and assignment policy that is designed to assist of staff where individual staff members can file
staff learning through exposure offered by job petitions. The petitions are reviewed regularly
rotations, transfers and assignments to various and are forward to appropriate authorities for
functions of the Bank. Regular transfers can decision making. Timely redress of grievances
contribute towards enhancing productivity can contribute towards building a cooperative
through exposure to different work environments workplace.
Also the Bank provide opportunity to staff to
serve in the areas of their interest to move from KNOW YOUR EMPLOYEE INITIATIVES
operations to credit or vice versa, and also to Sunrise Bank has an initiative to get to know its
work overseas as our remittance agents. employees because human errors can often be
major risks at banks and financial institutions.
SUCCESSION PLANNING Under this initiative all employees are required
Banks in Nepal are very competitive and to fill out forms declaring their assets and
succession planning allows companies to reduce relationships, which helps the HR department
staff turnovers, while also assisting them to understand them better and assist them to
develop future leaders. Succession planning become better bankers, while also assisting the
at Sunrise Bank not only provides staff with Bank to asses possible operational risks.
growth opportunities but also contributes to staff
retention and sustainable growth.

PRODUCTS
& SERVICES
Innovation drives the design and
delivery of bespoke products at Sunrise
Bank. Ease of access to banking
services, supported by strong back-end
infrastructure, is the foundation for all of
its products and services.
P R O D U C T S & S E RV I C E S
Technology
Driven
Sunrise Bank aspires to be a in a different seismic zone. The Bank has added number of features
leader in technology use in Bank also has complete business in its mobile banking applications.
Nepal's banking industry. It places continuity plan to help confirm The Bank has also increased the
technology at the heart of banking. that the recovery resources work payment channels that now includes
The Bank has adopted the strategy perfectly when the need arises. electricity bills.
of outsourcing its technology-based
products to ensure quick adoption CALL CENTER CARD SYSTEM
and enhanced security that meets The Bank has its own call center SrBL has been offering a variety
the international standards. It also service, the first in Nepal. This has of debit and credit cards with
maintains a strong Information made SrBL the Bank With Voice that enhanced security features. The
Technology (IT) team to serve it had aspired to be. It is used for Bank has a wide ATM network. The
as a backbone to support its aim handling transactional interactions, credit card services allow customers
of evolving as a fully digitized informational calls, and sales and to do transactions even with zero
enterprise. purchase related activities. It is the deposit balance.
primary stop for remote customer
SrBL places top priority to security interactions and also provides ONLINE ACCOUNT OPENING
of the customers as well as their a platform for cross-selling and The Bank has an online account
convenience. It has implemented up-selling financial products and opening facility. Now customers
EMV compliant cards, for securing services. can fill in the required information
customers during card transactions. through Bank’s website and open
BUSINESS PROCESS AUTOMATION desired saving account without
CORE BANKING SYSTEM Business Process Automation visiting a branch.
The Bank has upgraded the is a strategic move of the Bank
Core Banking Solutions (CBS) to intended to evaluate the possibility GUARANTEE VALIDATION
Finacle 10. CBS is the backbone of converting all internal processes Bank has started a service of
IT application of the Bank that to a digital environment. The Bank validating SrBL issued Bank
maintains the accounting and holds has acquired many applications and Guarantees through its website. This
customer information. Finacle is also considering implementing enables government agencies and
10 a world-class software with a workflow management, performance other principals to confirm that the
highly flexible infrastructure. It also management, and automatic Bank’s undertaking is not forged and
supports 24 hours banking. tracking systems. The Bank has hired remains valid.
additional resources to facilitate and
DATA CENTER expedite the digitization process. BRANCH-LESS BANKING
The Bank's core system is stored in SrBL has deployed a number of
a hosted cloud environment, which INTERNET BANKING branchless banking services that
has helped it to avoid compromise SrBL has a sophisticated take the Bank closer to its rural
of the standards of the data center. international internet banking customers and contribute towards
This data center is maintained system that can offer customers a integrating the rural economy with
with world-class standards with bank-less banking environment. It the rest of the country.
certifications, and meets all has enhanced security features with
compliance requirements. strong authentication to protect
customer credentials, passwords
DISASTER RECOVERY and information.
The Bank has a robust disaster
recovery site. It ensures continuous MOBILE BANKING
protection of data and customer Mobile phones are driving as the
information. This center is located future of personal banking. The

STRATEGIC REPORT
GORVERNANCE
Deposits
Sunrise Bank gives products cater to different customer offers customers the flexibility
RISK REVIEW
groups. The Pink Saving Account for managing their incomes and
utmost care to serving is designed to encourage women spending.
to the expectations of to save and become empowered
its clients. The Bank is financially. Similarly, the Sunrise n Sunrise Fat Savings
Disable Saving account aims to This scheme has been developed
fully aware about the
motivate differently-abled people to with an objective of increasing
best value to customers have Bank accounts, and the Senior deposit volume, customer base,
and their expectations Citizen Saving Account facilitates cross selling products and finally,
deposits by senior citizens. adding diversity to the Bank's
in terms of services product base.
provided and returns. Sunrise Bank has been providing
Therefore the Bank “Group Personal Accidental n Sunrise Exclusive Bachat Khata
Insurance Facility” and “SrBL Sunrise-Exclusive Bachat Khata is
has designed deposit Health Insurance Facility” to all the a special saving deposit product
HUMAN RESOURCE
schemes to match the Saving Deposit Account holders. that aims to cater to the needs of
requirements of different Under Bank’s scheme of “Group exclusive clients.
Personal Accidental Insurance
types of customers. Facility”, Insurance coverage in n Sunrise Bal Bachat Khata
saving accounts is provided with The product seeks to attract the
The Bank's schemes meet the
an aim to guarantee compensation children and encourage them to
PRODUCTS & SERVICES

requirements of international
for specified loss or death of save money as they grow up into
customers who can use online
the accountholders occur out of young adults.
account opening facilities and
accidents. The Insurance coverage
remittance services. Some schemes
amount shall be limited to 4 times of n Sunrise Senior Citizen Saving
are aimed entirely to reach un-
available balance in the customers’ Account
served sections of the populations
saving accounts or NPR 5 Lakh This account aims at facilitating
and complement its CSR schemes.
whichever is less. Under SrBL savings and providing services
These include the Sunrise Disable
FINANCIAL STATEMENT
Health Insurance Facility, the health to people over 50 years of age, a
Saving Account, a scheme for
insurance facility shall be up to the time when people want to ensure
people with disabilities. Sunrise
25% of weighted average deposit safety of their capital, assured
Bank also offers standard deposit
during last 365 days of any account returns and regular payouts.
schemes -- savings, fixed, call and
holder or the bill amount whichever
current.
is lower, with a maximum limitation n Sunrise Pink Bachat Account
of NPR 1 Lakh. This product targets women,
The different types of deposit
taking into account their unique
products offered by the Bank are

The other types of saving saving habit and aims to help
discussed below
opportunities offered by the Bank them to increase their access to
are: productive resources.
SAVING ACCOUNTS
n Sunrise Disable Account
Sunrise Bank's saving accounts aim
n Normal Savings The Sunrise Disable Account is
to encourage saving habits of the
Normal saving deposit is meant aimed at people with disabilities.
people because it believes that a
for individuals and households Apart from reasonable interest
number of small savings can result
who prefer saving their regular rates, the Bank also ensures that
in large deposits that the Bank can
BANK'S PERFROMANCE
earnings and use it when they account holders have sufficient

invest. The Bank accepts all kinds
need to. There is no limit in both staff support to ensure efficient
of deposits and provides customers
deposits and withdrawals and services.
good returns. The different savings

n Sunrise BLB Saving Account n Relief Saving Account

The BLB Saving Account is designed to Sunrise Bank Relief Saving Account
encourage the unbanked communities was launched to facilitate collection of
to start saving. This service is provided earthquake relief fund through banking
to people in small settlements through channel in the safest and convenient ways.
Branchless Banking services.
FIXED DEPOSITS
n Sunrise Payroll Saving Account The Bank's fixed deposit scheme encourages
The Payroll Saving Account is aimed at people to deposit idle funds for a period of
providing financial services to salaried time to obtain the best possible returns. The
personnel at different organizations. Using interest paid to such accounts is competitive
support from the Bank, clients using this and agreed at the time the account is opened.
service can directly deposit salaries and The interest rate for fixed deposits depends on
other staff payments to individual accounts. the volume of the deposit and maturity date.
The Bank has different fixed deposit schemes
n Sunrise Maha Bachat Khata for different types of customers.
Sunrise Maha Bachat Khata offers
competitive interest rates to customers who CALL ACCOUNTS
are interest-sensitive and also provides such Call accounts provide certain interest rates
customers priority to attractive features on deposits to companies, forms, instituitions,
that come along with the product. and individuals. It works like a savings account
where you are paid an interest, which depends
n Suryodaya Remit Bachat Khata on the rate on regular savings accounts and
Suryodaya Remit Bachat Khata has been could also come with some restrictions.
designed to solicit deposit accounts of
Nepalese working abroad and to also assist
them to send money home to their families.

STRATEGIC REPORT
Retail Banking
GORVERNANCE
SrBL has been lending to individual customers, for consumption as
RISK REVIEW
well as business/productive purposes for diversifying its portfolio,
minimizing risk and broadening coverage. Retail loans comprise of
around 40% of the loan portfolio. The Bank offers comprehensive
retail products that are continuously enhanced to match customer
needs.
HOME LOAN EDUCATION LOAN

The Bank provides Home Loan to individuals The education loan product has been
to fulfill their financial requirement for devised to assist students who aspire to
acquiring/ constructing and repairing pursue higher/technical and professional
residential property. education in Nepal and abroad.
HUMAN RESOURCE
SUNRISE SURAKSHIT GHAR KARJA MARGIN LENDING
It is a unique home loan product where This product allows individuals, firms or
the loan is tied up with endowment life companies to borrow money without hassles
insurance policy of the borrower. This against pledge of shares of companies listed
scheme not only provides life insurance in the “A” category by the Nepal Stock
PRODUCTS & SERVICES

protection to the borrower throughout the Exchange (NEPSE).
loan tenure but also results in capital returns
in the form of bonus upon the maturity SIGNATURE LOAN
of the loan from insurance company. The This is a personal loan that SrBL has been
procedures for this loan were revised in extending to professionals on a non-
2073/74 to make it easier for customers to revolving basis. The loan up to NPR 1.5
understand the product and its benefits. million may be provided without a fixed
FINANCIAL STATEMENT
asset collateral.
HIRE PURCHASE LOAN
The Bank has been extending Hire Purchase CREDIT CARD
Loans for the purchase of new vehicles both The Bank offers VISA credit cards to
for consumer and commercial purposes, and customers for secure withdrawals, purchase
equipment. and online payment round the clock.
SAJILO KARJA/PERSONAL LOAN LOAN AGAINST FIXED DEPOSIT RECEIPT INVESTOR'S RELATIONSHIP
SrBL has been financing Sajilo Karja or easy This loan is disbursed against Fixed Deposit
personal loans to individuals to cover their Receipt at SrBL where borrowers can get
financial needs easily on fully collateralized up to 90% of the fixed deposit amount as
basis. credit.
BANK'S PERFROMANCE

Remittance
Remittance has become a major contributor to Nepal's economic
development. The financial flows generated by Nepali youth going
abroad by way of remittance are substantial. Official data estimate that
around 1.7 million Nepalis are working in 40 countries, excluding India.
An equal number of Nepalis are estimated to be working in India.
Financial institutions and Money Transfer PARTIAL BANKING FACILITY FROM ABROAD
companies have helped in bringing remittances n Opening Suryodaya Remit Account
from these workers through formal channels to n Providing mobile banking / Internet banking
contribute to the increase in Foreign Exchange n Solicitation of fixed deposits
Reserves at the Central Bank. However, it is n SrBL Visa Cards country wise
estimated that only around 40% of Nepali migrant n Issuance of Account Mandate & Debit
workers use formal channels to send money Authority
home. n Solicitation of loan customers and obtaining
required legal documents
According to data of the Department of Foreign
Employment, more than 550,000 people left SUNRISE CAPITAL SERVICE FROM ABROAD
Nepal in search of work in FY 2073/74. Similarly, n Opening of DMAT Account
central bank data show that Nepal received n Providing DMAT Check Book and ASBA Forms
NPR 680 billion in remittances in FY 2073/74 (if share issuer is Sunrise Capital)
compared to NRP 665 billion during the same n C-ASBA application receiving and processing
period in the previous year.
The Bank has been working on a One Step
Bank has launched a web-based online Remittance Solution through arrangements with
remittance product 'Suryodaya Remit' and has all major remittance companies and banks that
more than 6,000 payout agents, and 76 of its handle remittances. It has arrangements with IME,
own branches for disbursing payments. Sunrise Prabhu, Himal Remit, City Express, I Pay Reliable,
Bank currently has mechanisms in USA, UK, Italy, Samsara Remit, CG Remit, Best Remit, JME
Australia, Israel, Malaysia, Qatar, Bahrain, Oman, Remit, Western Union, MoneyGram, etc. to make
Kuwait, UAE, Japan, Hong Kong, Korea and India remittance payments efficient.
for facilitating its remittance business.
The Bank's recent arrangements for channeling
The Bank has also been serving people wanting remittances from South Korea and India have
to send domestic remittances through its been welcomed by Nepali migrant workers
branches. Using the Bank's network customers in those countries. The Bank has also made
can send and receive money from more than arrangements to facilitate remittances from Hong
4,500 locations nationwide. Kong, where a large number of Nepalis reside.
The remittance related services provided by the SrBL has entered an agreement with IDBI
Bank are listed below: bank with head offices in Mumbai. Under the
agreement Nepalese working in India can send
ONLINE REMITTANCE remittances to their Sunrise Bank accounts from
n Remittance payment against identification any of the 1800 IDBI bank branches in different
n SrBL Account credit remittances Indian cities.
n Other bank account credit remittances

STRATEGIC REPORT
Corporate
Banking
GORVERNANCE
Sunrise Bank Ltd.
RISK REVIEW
offers various financing
The CBD looks after portfolio of various requirements such as pre-
and banking services corporate and mid-market businesses and post-shipment loans, documents
for corporations and provides them with project negotiation/documentary bill purchase,
and infrastructure financing. It also etc. The Bank also provides export
and infrastructure
processes requests for large credit re-financing.
projects. The Corporate proposals. There are various credit
Banking Department facilities under the CBD aimed mainly The Bank's import credit offers
at the market of credit exposure of financing for international trade
(CBD) meets the more than NPR 40 million (both funded transactions through letter of credit,
funding requirements and non-funded) either to a party or an telegraphic transfers, demand drafts,
obligor group. The department is also Delivery against Payment (DAP) and
and also provides on the lookout for avenues of project, Delivery against Advance (DAA). The
advisory services
HUMAN RESOURCE
infrastructural and consortium lending. Bank finances imports in the form of
Trust Receipt up to a percentage of the
for improving the The Bank offers fixed term loans import document value as decided by
financial performance for financing existing or new the management. Repayment of such
projects. The facility is also loans are generally linked with the cash
and compliance by available for financing plant, conversion cycle of the goods imported
clients. Corporate machinery and equipment, or as decided by the management.
PRODUCTS & SERVICES

and land and buildings. The
banking covers
repayment tenure is aligned with We coordinate with other financial
an extensive area: the project duration to enable institutions and participate as Lead
investing in projects, clients to meet the financial Bank or a Joint/Co-Lead Bank to
obligations from project cash provide consortium loans for projects
meeting working flow. with large funding requirements.
capital requirements, These loans can be both fixed term
The Bank also finances working capital and working capital loans. Corporate
facilitating or financing
FINANCIAL STATEMENT
and cash management requirements clients can avail this loan for the
exports or imports, or through overdrafts. It finances establishment, capacity addition,
working capital (stock & receivables) up-gradation of existing facilitates,
other products to meet requirements on flexible repayment and also for acquisition/ takeover of
different requirements terms. The Bank also provides short existing facilities.
term pledge loans by pledging stocks
of businesses. The Bank of supplies, where the Bank supervises Import Letter of Credit (foreign and
wants to work and the stock while the client can settle Local) facilities is offered by the Bank INVESTOR'S RELATIONSHIP
the short term pledge loan on pro rata based on procurement contracts/
grow with its corporate
basis as the stock is sold. proforma invoices. It also provides
clients by serving as a export letter of credit to support the
strong financial partner. Demand loans help corporate international sales of exporters.
customers to build up stocks and
The corporate lending receivables to desired levels, against Bank guarantees issued by the
schemes not only meet which the loan is disbursed. The period Bank not only facilitate the bidding
of repayment for this product is the requirements for various contracts
the requirements of duration agreed with the borrower and but also helps clients to ensure the
the domestic corporate
BANK'S PERFROMANCE
what is justifiable based the business performance of the related party

activities. in terms of execution of contract
sector but also that of obligations (supplies and/or assigned
global corporations. Similarly, export financing supports job/services).

Microfinance
Alongside corporate financing and in accordance with our long-term
strategy to shift from large credit towards consumers and small businesses,
Sunrise Bank has been continuously innovating to come up with products
to match different needs. This has helped us remain competitive in the
banking industry where there is intense competition for small business
lending. In order to tap into emerging business opportunities, the Bank has
designed and launched several business loan products that cater to the
needs of the rural population.
Our strength in this segment Sunrise Bank Limited has devised two types
comes from our branches, of approaches to extend support to the
particularly those located deprived sector: deprived sector wholesale
outside Kathmandu Valley as lending and individual deprived sector lending.
these can take banking services Under wholesale lending we provide credit to
to doorsteps of small rural microfinance institutions (D Class Bank) and co-
borrowers. Most microfinance operatives that in turn provide capital to individual
institutions and cooperatives are rural borrowers for productive activities. The Bank
located outside Kathmandu Valley has also designed and rolled out the “SrBL Laghu
and this has provided the Bank Byabsaya Karja or small loans that come under
an unique opportunity to expand deprived sector lending. The main purpose of this
its Deprived Sector Banking credit is to provide financial solutions to small
Department (DSB) and branches borrowers and businesses to create fixed assets
to support rural growth. and gradually grow into sizeable enterprises.

STRATEGIC REPORT
GORVERNANCE
RISK REVIEW
SME
HUMAN RESOURCE
SrBL has been continuously striving towards providing better
service to its customers. Small and Medium Enterprises (SMEs)
are an important segment for lending that is now emerging as a
very profitable area. It is also an important lending portfolio of
PRODUCTS & SERVICES

the Bank.
Under funded facilities SrBL provides include Letter of Credit (LC) and bank
term loan and working capital loan. Term guarantee. The Bank guarantees not only
loan is provided to cover fixed assets facilitate bidding requirements of various
financing (land and building), financing contracts but also help to ensure the
for capital items (CapEx), construction performance of the related party in terms
FINANCIAL STATEMENT
equipment, and civil construction of execution of contractual obligations. It
works, etc. for maximum period of 10 also provides surety of return of advances
years, repayable on EMI or EQI basis. mobilized for performance of any given
The repayment schedule such loans is contract.
customized.
Apart from providing financial services,
Working capital facilities include SrBL also conducts orientations on INVESTOR'S RELATIONSHIP
overdraft facility and demand loan general accounting and taxation for small
for a maximum tenure of one year. and mid-sized businesses across the
This is provided to finance stock and county to enhance their understanding
receivable requirements and to help of taxation and to help them improve
businesses avoid working capital bookkeeping. The SME Banking
shortages for smooth operations. Department deals with credit exposure
of below NPR 40.00 million (both funded
SrBL also provides non-funded facilities and non-funded) either in a party or in
to customers. The non-funded facilities obligor group.
BANK'S PERFROMANCE

Branch Less
Banking ASBA
Branchless Banking (BLB) is a system, which enables Applications Supported by Blocked
banks and financial institutions to provide banking Amount (ASBA) is an application that
services through hand held devices known as allows authorization to your bank to block
Points of Sale /Tablets with the help of a Business the application money in the account. This
Correspondent. This can help banks and financial account can then be used for subscribing
institutions to spread their coverage without the need to an issue of shares. The ASBA facilitates
to set up a bank branch. In this modality of banking, blocking of the amount the investor wants
commercial outlets such as small grocery shops, to invest in shares until the transaction is
medical shops, etc. can act in some capacity to provide complete. Following the allotment of shares,
basic banking services on behalf of banks and financial the Bank debits only the part of money
institutions. Branchless Banking is a significantly from the account needed to pay for the
cheaper alternative to conventional branch-based number of shares that have been allotted
banking and also allows financial institutions to offer and unblocks the funds that remain in the
financial services outside the Bank premises by using investor's account. The applicable fees are
delivery channels such as retails agents, mobile phone, regulated by the Securities Board of Nepal
etc. to substantially increase the delivery of financial (SEBON) and are contained in its guidelines
services to unbanked communities. on the issue of securities.

STRATEGIC REPORT
Mobile
Banking
GORVERNANCE
Mobile banking services provided by campaigns. It is also a useful channel
Sunrise Bank allows its customers to to share information with clients and
RISK REVIEW
conduct transactions remotely using shareholders. Sunrise Smart Banking is
a mobile device such as a smartphone easy to use, interactive and offers easy
or a tablet. It uses application software navigation between the different features
commonly known as an App, provided offered to customers.
by the Bank and this is a service where
customers have their Bank on their Sunrise Smart Banking is available
fingertips everyday. for both Android and IOS platforms
and supports both the SMS and
Mobile banking reduces the cost of GPRS channels giving customers the
transactions by reducing the need for option to use either one depending
customers to visit a bank branch for non- upon the availability of network and
cash withdrawals and deposits. internet access.
HUMAN RESOURCE
Sunrise Smart Banking is a unified Mobile banking is real time and interactive
digital banking solution that empowers but requires customers to login to use the
customers with the services of mobile services. A personal identification number
banking and digital payments while (PIN) is required for transactions. These
providing a multimedia rich and cost- features have been included to ensure that
effective environment for the Bank to customer accounts are secure. The PIN is
carry out instant marketing/promotional also required for all SMS transactions.
PRODUCTS & SERVICES

FINANCIAL STATEMENT
BANK'S PERFROMANCE


STRATEGIC REPORT
GORVERNANCE
Demat
Account Services
RISK REVIEW
The term Demat stands for transfers during transactions. For
dematerialization or the conversion using this facility, an investor has to
of paper share certificates and other open an account with the DP that
securities into electronic records is authorized to operate Demat
that are credited in the Demat accounts. These DP then functions
account maintained at the Depository as an intermediary between the
Participant (DP). The DP could be a investors and the company. Shares
bank or financial institution, including and securities are transferred digitally
companies providing brokerage to Demat accounts, upon proper
services. This helps shareholders to authorization by the shareholder and
eliminate the need to safe-keep and after the transactions are completed.
handle paper securities. A depository Sunrise Bank has been providing the
HUMAN RESOURCE
participant functions like a bank, it Demat Services through its branches
holds shares for investors in the form as well as through its subsidiary
of electronic records and facilitates company, Sunrise Capital Ltd.
PRODUCTS & SERVICES

Lower
Transaction
Hassle Free Costs
FINANCIAL STATEMENT
DEMAT
No Worries ACCOUNT Easy
About Trasfer of
Misplacing
Securities
Physical Share
Certificates INVESTOR'S RELATIONSHIP
Share
Splits &
Bonus Shares
Automatically
Credited
To Account
BANK'S PERFROMANCE

FINANCIAL
STATEMENTS
Despite operating in a highly competitive
market, Sunrise Bank has grown
consistently every year. Its wide network
across the country now provides the
foundation to do better and grow faster.
F I N A N C I A L S TAT E M E N T S
Director's Report
Respected Shareholders,
On behalf of the Board of Directors, I would like to welcome all of you to the 10th
Annual General Meeting of Sunrise Bank Ltd. We are delighted to present you the
Bank’s financial position, achievements and future prospects today. Since its inception,
the Bank has been able to attain continuous, balanced growth through innovation,
adoption of high-tech solutions and development of innovative financial products. We
take your permission to present the Bank’s achievement in the FY 2073-74.
This report is prepared in conformity with the Banks and Financial Institutions Act
(BAFIA) 2073, Company Act 2063 and the Nepal Rastra Bank (NRB) Directives.
REVIEW OF BANK’S OPERATION FOR FISCAL YEAR 2016-17

A. KEY FINANCIAL HIGHLIGHTS
Amount in Million
CAPITAL AND LIABILITY 2073/74 2072/73 2071/72 2070/71 2069/70
1. SHARE CAPITAL 8,081 5,301 2,973 2,237 2,237

2. RESERVES AND FUNDS 1,386 1,023 375 461 214
3. DEBENTURES & BONDS - - - - -
4. BORROWINGS - - - - -
5. DEPOSIT LIABILITIES 61,013 51,650 33,487 26,617 23,271
6. BILLS PAYABLE 17 20 9 12 16
7. PROPOSED DIVIDEND - - 28 - 12
8. INCOME TAX LIABILITIES (NET) - - - - -
9. OTHER LIABILITIES 958 745 517 335 380
TOTAL CAPITAL AND LIABILITY 71,456 58,739 37,389 29,661 26,129
ASSETS 2073/74 2072/73 2071/72 2070/71 2069/70
1. CASH BALANCE 1,473 1,168 868 863 607

2. BALANCE WITH NEPAL RASTRA BANK 7,496 3,809 1,891 4,366 3,758
3. BALANCE WITH BANKS/
FINANCIAL INSTITUTIONS 588 1,605 300 698 325
4. MONEY AT CALL AND SHORT NOTICE - - - 113 680
5. INVESTMENTS 9,554 8,351 7,260 3,055 2,454
6. LOANS, ADVANCES &
BILLS PURCHASED (NET) 50,677 42,869 26,380 19,938 17,731
7. FIXED ASSETS (NET) 534 436 310 292 313
8. NON-BANKING ASSETS (NET) - - - - -
9. OTHER ASSETS 1,133 502 381 336 263
TOTAL ASSETS 71,456 58,739 37,389 29,661 26,129

STRATEGIC REPORT
GORVERNANCE
RISK REVIEW
Amount in Million
PARTICULARS 2073/74 2072/73 2071/72 2070/71 2069/70
1. INTEREST INCOME 5,306 3,096 2,403 2,424 2,240
2. INTEREST EXPENSES 3,113 1,592 1,296 1,329 1,251
NET INTEREST INCOME 2,193 1,504 1,106 1,095 989
3. COMMISSION & DISCOUNT 210 161 119 104 95
4. OTHER OPERATING INCOMES 330 279 187 141 125
5. EXCHANGE FLUCTUATION INCOME 130 115 80 63 51
TOTAL OPERATING INCOME 2,863 2,059 1,493 1,404 1,259
6. STAFF EXPENSES 451 356 272 264 218
7. OTHER OPERATING EXPENSES 546 426 356 361 331
HUMAN RESOURCE
8. EXCHANGE FLUCTUATION LOSS - - - - -
OPERATING PROFIT BEFORE PROVISION 1,866 1,277 865 779 711
9. PROVISION FOR POSSIBLE LOSSES 282 322 459 466 368
OPERATING PROFIT 1,584 955 406 313 342
10. NON - OPERATING INCOME/EXPENSES 32 1 3 2 4
11. LOAN LOSS PROVISION WRITTEN BACK 280 556 417 94 209
PRODUCTS & SERVICES

PROFIT FROM REGULAR ACTIVITIES 1,896 1,513 826 409 555
12. INCOME/EXPENSE FROM
EXTRA-ORDINARY ACTIVITIES (86) (3) (92) (15) (52)
PROFIT FROM ALL ACTIVITIES 1,811 1,510 734 394 504
13. PROVISION FOR STAFF BONUS 165 137 67 36 46
14. PROVISION FOR TAX EXPENSE 470 421 196 112 146
FINANCIAL STATEMENT
CURRENT YEARS 446 421 189 124 149
PREVIOUS YEARS 1 6 2 - 1
DEFERRED TAX 22 (6) 5 (12) (4)
NET PROFIT/(LOSS) 1,176 951 471 247 312
TOTAL SHARE CAPITAL TOTAL ASSETS TOTAL PROFIT/LOSS

(Amount in Million) (Amount in Million) (Amount in Million)
8,801 71,456 1,176
58,739 951
5,301
37,389 471
2,973
BANK'S PERFROMANCE
2,237 2,237 26,129 29,661 312

247
69/70 70/71 71/72 72/73 73/74 69/70 70/71 71/72 72/73 73/74 69/70 70/71 71/72 72/73 73/74

B. KEY FINANCIAL HIGHLIGHTS has gone towards upgrading technology

The Bank now has 76 full-fledged and training human resources. This is
branches, 3 extension counters, and 20 because we believe that only state-of-art
branch-less banking outposts. The national technology can help a bank to grow in this
network covers all major business centers day and age.
in Nepal. In the international front we have
an extensive network of correspondent D. REMITTANCES
banking counter parties in all major global Sunrise Bank Ltd. has been providing
financial centers. remittance services since its inception
through its web-based remittance product
In the past decade, the Bank has been named “SURYODAYA REMIT”. It now
able to set up and manage a wide network has over 4,500 payout agents, in addition
of branches across the country. It has 76 to its 76 branches across the country to
branches that serve customers at almost facilitate the disbursement of remittances
every business centre. received from around the world. Sunrise
Bank maintains a presence in USA, UK,
The Bank has a strategy of opening Italy, Australia, Israel, Malaysia, Qatar,
branches not only at the urban centers Bahrain, Oman, Kuwait, UAE, Japan, Korea
but also in the rural municipalities and India for tapping into the remittance
spread across the country. The NRB business. Besides, the Bank has also
has already granted it approval for been serving people wanting to send
opening 19 branches at the different rural remittances within the country through
municipalities. The Bank has already the branch network. Customers using the
initiated the preliminary tasks for opening service to send and receive money can
these 19 and 8 other branches within FY use more than 4,500 locations nationwide,
2074/75. without hassles.
C. ATM NETWORK E. MOBILE FINANCIAL SERVICES

The Bank offers a variety of debit and The mobile phone has been evolving
credit cards to customers with enhanced into an intimate platform that brings
security features. All cards of Sunrise together many technological possibilities.
Bank are EMV compliant that reduces the It is personal and therefore suited for
possibility of fraud, and compromise of banking operations. The Bank has added
customer information, to almost nil. The a number of features in its mobile banking
Bank has a wide network of ATM terminals application. The payment channels have
and all of these are being made ready been increased and customers can now
for chip security and fraud deterrence. use it to directly pay their electricity bills
SrBL has 87 ATMs across the country and more features are in the process of
and customers can also benefit from the being added. This can make banking with
common ATM network of NEPS member Sunrise Bank a seamless experience for its
banks. customers.
In addition, the Bank has revamped the Sunrise Bank's mobile banking platform
overall technology platform to enhance 'Sunrise Smart Banking' is an unified
efficiency, augment security, and facilitate digital banking solution that empowers
client capabilities. In retail baking, the customers with banking services on their
Bank has launched online account opening fingertips. It allows banking and digital
services and also offers clients innovative payments in multimedia rich interface for
payment options. Significant investment customers, while also providing a cost-

STRATEGIC REPORT
GORVERNANCE
effective means for the Bank for carrying multiple ways for customers to
out stakeholder relations and marketing/ connect with the Bank and the Bank
promotional campaigns. believes it can play a crucial role
in increasing customer satisfaction
RISK REVIEW
Sunrise Smart Banking is currently and improving the overall customer
available for Android and IOS applications experience. The Bank has been
and supports both the short messaging receiving a very positive feedback
services (SMS) and GPRS giving and appreciation from customers
customers the option to use either one and stakeholders for this service.
depending on network availability and
internet access. 2. Business Process Automation:
The Bank now has a definite
F. ACTIVITIES OF THE roadmap to move to a fully digitized
BANKS SUBSIDIARIES environment. Sunrise Bank intends
By acquiring the NIDC Capital Markets to use digitization not only for
Ltd., the Bank also acquired its merchant- delivering services to customers
banking subsidiary the then NCM but to transition to a fully digitized
HUMAN RESOURCE
Merchant Banking Limited. This merchant- banking environment. Business
banking subsidiary now operates with a Process Automation is one of the
new name: Sunrise Capital Ltd. It is a full- key strategic moves of the Bank
fledged investment banking company that where it is continuously evaluating
has been carrying out following activities: the possibility of taking all of its
1. Issue Management internal processes to the fully digital
PRODUCTS & SERVICES

2. RTS platform. SrBL has acquired many
3. Underwriting, and applications, including software, for
4. Financial advisory human resource management, assets
management, Know Your Customer
It also has plans to launch the following (KYC) and anti-money laundering
products/services: (AML), document management,
1. Portfolio Management Services inventory management, conference
FINANCIAL STATEMENT
(Private banking/Asset Mgmt.) video calls, etc. It is also considering
2. Mutual Funds the implementation of workflow
management, performance
G. NEW PRODUCTS/SERVICES management, automatic tracking
1. Call Center: For the first time in system and other systems in the
Nepal, Sunrise Bank has started coming days to attain complete
its own call center and has now digitization of business processes. It
become the Bank With a Voice. The also has hired human resources to INVESTOR'S RELATIONSHIP
call center has been very crucial for facilitate and expedite the process of
handling transactional interactions, digitation.
informational calls, and for
addressing complex issues, including 3. Internet Banking: Sunrise Bank
sales and purchase-related activities. has implemented a sophisticated
The call center is the first point Internet banking system at par
of contact for remote customer with international standards
interactions. It also provides to offer customers a bank-less
BANK'S PERFROMANCE
opportunities for cross-selling and banking environment. It has

up-selling financial products and enhanced security features with
services. It is designed to deliver strong authentication mechanisms

that guarantee the protection of Exchange. This reversed overtime and

customer's credentials, passwords Pound reemerged as a resurgent currency.
and information.
Series of elections across Europe
4. Online Account Opening: The Bank returned mixed trends and resulting
has started online account opening policies of populism and protectionism,
facility through its website, which is and that in the United States of America
one of many initiatives undertaken to resulted in the electon of Donald Trump,
transform the way a customer does a businessman, as its 45th President.
banking. Customers can now fill in all Election in The Netherlands, France,
the required information through the Austria and Germany witnessed a rise
Bank’s website and open the desired of strong conservative voices in many
account without the need to visit a parliaments.
branch.
The fastest growing economic engine
5. Guarantee Validation: SrBL has also of the People's Republic of China began
started the service of validating to cool off in 2016. China faced two
Sunrise Bank issued bank guarantees problems a slowdown of growth at
through its website. This enables home and accusations by the United
government offices and other States of currency manipulation.
principals to confirm that the Bank’s China managed to balance its position
undertakings are not forged are through deft policies and also by
valid. This has reinforced its reliability playing a vital role in supporting the
and trust. international community in maintaining
peace in the North Korean peninsula.
6. Branch-less Banking: Sunrise Bank The demonetization in India under the
has a number of branchless banking leadership of Prime Minister Narendra
outposts that provide services to Modi was another unprecedented event.
people living in remote areas of India's demonetization of large bills also
the country. This service has not resulted in panic in Nepal that shares
only provided people with banking an open border with India. The use of
services but has also connected Indian currency denominations in border
them with the national economic trade resulted in the demonetized
mainstream. denominations reaching Nepal. Nepal's
request for exchanging Indian currency
IMPACT OF NATIONAL AND in Nepal at the time of demonetization
INTERNATIONAL EVENTS ON THE remained unsettled.
BANK’S BUSINESS
There were a number of events in the In the currency markets, the Greenback
international arena during the fiscal year continued to depreciate against other
that affected the global economy. The major global currencies. Commodities
decisions by voters in Great Britain to exit were range bound and energy prices
the European Union (Brexit) was one of remained low throughout the year.
dominant geopolitical event that created
waves and ripples throughout the global For the past 15 years there has been
economy. The net effect of Brexit was the steady growth in the balance sheets
weakening of the Sterling Pound, sliding of bank and financial institutions. The
commercial real estate prices in London, growth has been fuelled by broad
and a bearish spell at the London Stock money supply derived from remittance

STRATEGIC REPORT
GORVERNANCE
inflows. Remittance inflows that have CURRENT FISCAL YEAR’S
grown almost every year began slowing PERFORMANCE REVIEW AND
down in the second quarter of the fiscal PLAN OF ACTION
year 2016-17. Meantime the trade deficit
RISK REVIEW
has continued to widen resulting in a (Q1 – 2075/75) NPR in Millions
balance of payments deficit. Government Paid-up Capital 8,153

expenditure, particularly the capital Deposits 63,615
budget has largely remained under spent. Loans & Advances 54,492
But revenue collection remained at a Net Interest Income 514
record high and remained unspent in the Operating profit
treasury accounts. The slow spending, Before Provision 401
slowdown in remittances and a widening Provision for Possible Loss 157
trade gap led to a decrease in money Operating profit 245
supply and a slowdown in bank deposits. Net Profit/Loss 204
Commercial banks faced shortages of The Bank attained decent growth in

deposits starting with the second quarter business volume during the first quarter of
HUMAN RESOURCE
of last fiscal year. A follow-on public 2017/18. Total deposits have increased to
offer (FPO) of shares by a life insurance NPR 63.61 billion and loans to NPR 54.49
company was one major event that billion. Sunrise Bank has already attained
pushed up the deposit interest rates. the statutory target of having a minimum
Following this, banks began soliciting NPR 8 billion as paid up capital. Despite
bulk corporate deposits at higher rates the negative macroeconomic indicators,
PRODUCTS & SERVICES

pushing rates for one year fixed deposits the Bank has continued to attain the
to go above 12.00% per annum. Besides planned growth targets for 2017/18. The
macroeconomic factors such as the trade anticipated profitability targets were
and current account deficits, slower capital unmet in the first quarter due to festival
expenditure by government, and slowing season towards the end of the quarter that
rate of remittance inflows also contributed slowed down the collection of interests.
to deceleration of deposit expansion. Payments were recovered during the
FINANCIAL STATEMENT
The resources at banks (deposit growth) subsequent quarter and the Bank is
had slowed down but the continued to confident to be able to deliver both robust
aggressively expand loans and advances business growth and a decent profit
at levels well above the available deposits volume at the end of the fiscal year.
in the market.
CUSTOMER RELATIONS AND
There was also shift in the market with RISK MANAGEMENT
customers converting their savings The Bank has had a steady growth of INVESTOR'S RELATIONSHIP
accounts into fixed deposits pushing the customers. The customer base increased
cost of funds upwards. Lending rates from about 325,000 in July 2017 to cross
also increased but the Banks could not 363,000 in five months. Both the number
go higher than certain levels owing to of accounts and deposits has been
the stiff competition. This led to general growing satisfactorily since mid July.
fall in interest spread and the net interest
income of the banking industry as a whole. The Bank has always always been guided
by the principles of customer satisfaction,
BANK'S PERFROMANCE
and customer-in-priority. It was the

pioneer in launching customized products

and high quality services in both loans expenses in training and capacity building,
and deposits. Further, the Bank has now which the Bank has adhered to fully.
adopted the principle of moving beyond
customer satisfaction towards "customer CORPORATE GOVERNANCE
delight". The Bank has fully adhered to The Board of Directors and management
the KYC norms and AML principles, and of SrBL are committed to high level
international best practices. It has a full- of corporate governance across the
fledged Compliance Department at the organization. All members of the Board
corporate level and a Compliance Officer have fully complied with the directives
at each branch. Further, the Compliance issued by the Nepal Rastra Bank
Department has a separate AML section pertaining to corporate governance and
to keep close watch on money laundering the associated code of conduct. The Bank
and terrorist financing risks. In order has an Audit Committee as well as a Risk
to look after the risks associated with Management Committee to look after
banking, the Bank has appointed a Chief the audit and risk related issues. Further,
Risk Officer who has been working the Bank also has a Money Laundering
towards building a risk management Prevention Committee to continuously
culture in the Bank alongside the monitors money laundering and terrorism
identification, measuring and mitigation financing related issues. SrBL believes that
of risks related to credit, operations, regular disclosures promote transparency,
market, foreign exchange, liquidity and which in turn fosters corporate good
reputation risks, etc. The Bank has been governance.
very aggressive in capacity building of
employees by supporting trainings and CONTRIBUTION TO REVENUE
workshops to enhance their skills on using The Bank has paid NPR 596.8 million as
the tools required for risk assessment and various taxes to Government of Nepal,
aversion. which includes NPR 447.4 million as
corporate tax, NPR 128.4 million as
HUMAN RESOURCES interest tax on deposits, NPR 34.7 million
The Bank has a workforce of about 956 as employee income tax, and NPR 0.65
employees, which is a growth from 699 million as house rent tax. The Bank also
in 2016/17. The Bank believes that its pays VAT on procurements of goods and
success rests on the performance of its services.
employees and has been prioritizing
the maintenance of a well-trained and COMMITTEES
qualified workforce through capacity The Bank has formed various board-level
development interventions at all levels. The committees for implementing, controlling
capacity development interventions focus and monitoring the policy decisions.
on developing a workforce of dedicated These include the Audit Committee, Risk
and professional staff with qualities Management Committee, and Human
such as honesty, integrity, professional Resources Management Committee.
capability, creativity, and cooperation. More recently, the Bank has formed
Because staff capacity building is directly Money (Assets) Laundering Prevention
related to employee productivity and Committee, which is coordinated by a
customer delight, the Bank has been non-executive director. Each committee
sending employees to attend national and has a specific Terms of Reference. The
international training programs. Nepal members of the committees comprise
Rastra Bank has directed all banks to of non-executive directors and senior
spend at least 3% of the total employee executives. Besides there also are several

STRATEGIC REPORT
GORVERNANCE
other management-level committees: of 9 members in the board, in line with
The CEO heads the Management BAFIA 2063, which the Bank proposes
Committee, with senior executives as to reduce to 7. After the amendment of
members. Other committees include memorandum of association and article
RISK REVIEW
the Assets Liability Committee, Human of association, there will be the provision
Resources Management Committee, and of 7 directors (3 each from promoter and
Procurement Committee. public groups and 1 independent director).
FINANCIAL STATEMENT APPOINTMENT OF THE AUDITOR
The Bank has presented the financial M/s P. L. Shrestha and Company, Chartered
statements including balance sheet Accountants was appointed as the auditor
as on 31 Asar 2074 B.S., profit and of the Bank for fiscal year 2073/74 BS
loss statement of fiscal year 2073/74, by last year’s Annual General Meeting
cash flow statement, related annexure under the recommendations of the Audit
and consolidated financial statements Committee. The same company has been
including that of its subsidiary Sunrise recommended by the Audit Committee as
Capital Ltd. to the general meeting for auditor for the fiscal year 2074/75 BS for
HUMAN RESOURCE
approval. approval of the general meeting.
The Bank is fully committed to abide by Finally, we would like to express our
the instructions of Nepal Rastra Bank sincere gratitude towards all who have
provided at the time of AGM clearance as directly or indirectly worked towards
well as during the audit. the betterment of the Bank and who
PRODUCTS & SERVICES

have provided their valuable comments
DIVIDEND and suggestions for improvement of its
The board of the Bank has approved product and services as well as services
15% dividend as bonus shares to its delivery. We would also like to thank
shareholders. In the last fiscal year, our valued customers, shareholders,
the Bank had provided 33.33% bonus Government of Nepal, Ministry of Finance,
shares to shareholders followed by an Nepal Rastra Bank, Securities Board of
FINANCIAL STATEMENT
opportunity to purchase 30% right shares. Nepal, Office of the Company Registrar,
With the approval of 15% bonus shares, Nepal Stock Exchange Ltd., and Bank’s
the paid-up capital of Sunrise Bank have tireless employees. We will continuously
reached NPR 8,8081 million. This will fulfill strive to improve the service standards
the regulatory requirement of minimum of SrBL and provide better services
paid up capital of NPR 8,000 million. to customers and higher returns to
The Bank is looking forward to providing shareholders.
attractive dividends to its shareholders INVESTOR'S RELATIONSHIP
also in the coming years. Thank you!
CHANGE IN BOARD COMPOSITION Dr. Deepak P. Bhattarai

AND ELECTION Director (Public)
After the enactment of BAFIA 2073, the
board of a bank or financial institution Motilal Dugar
can have only 5 to 7 members. The article Chairman
of association of the Bank had provision
BANK'S PERFROMANCE

Compliance Financial statements of the

Bank have been prepared and
the presentation formats have
financial institutions are required
to comply with Nepal Financial
Reporting Standards (NFRS)
Statement been drawn as prescribed in

the unified directives issued
by Nepal Rastra Bank, and
as issued by the Institute of
Chartered Accountants of
Nepal (ICAN), subject to NRB
the statements are presented regulations. The Bank has
in compliance with those prepared the NFRS-complied
provisions. financial statement till 2015-16
and in process of doing the
Nepal Rastra Bank has issued same for other periods. SrBL
a notice on “NFRS Migration is fully equipped to prepare
Guidelines to Banks & Financial the NFRS complied financial
Institutions” stating that licensed statement for the coming years.
Performance
Review
Interest income increased by of 71.41% during 2016-
17. Interest expenses have also significantly grown
by 95.57% during 2016-17 and non-interest income
increased by 45.8%. Fees & Commission have increased
by 20.7% while the staff & Operating Expenses have
increased by 27.6%.
MID JULY INCREMENT
PARTICULARS 2017 2016 AMOUNT PERCENT
Interest Income 5,306 3,096 2,211 71.4%

Interest Expenses 3,113 1,592 1,521 95.6%
Net Interest Income 2,193 1,504 689 45.8%
Fees & Commission 670 555 115 20.7%
Staff & Operating Expenses 997 782 216 27.6%

Consolidated
Balance Sheet As on 31st Ashad 2074 (15th July 2017)
CAPITAL & LIABILITY CURRENT YEAR NPR PREVIOUS YEAR NPR
1. Share Capital 8,081,481,551 5,301,395,141

2. Reserves and Funds 1,420,192,003 1,022,951,246
3. Non Controlling Interest 30,803,639 -
4. Debentures & Bonds - -
5. Borrowings - -
6. Deposit Liabilities 60,895,145,083 51,650,280,064
7. Bills Payable 37,877,932 19,516,359
8. Proposed Dividend - -
9. Income Tax Liabilities (Net) - -
10. Other Liabilities 1,092,995,816 744,743,563
Total Capital & Liablities 71,558,496,024 58,738,886,373
ASSETS CURRENT YEAR NPR PREVIOUS YEAR NPR
1. Cash Balance 1,473,431,130 1,167,577,937

2. Balance with Nepal Rastra Bank 7,496,218,790 3,809,454,948
3. Balance with Banks/Financial Institutions 686,675,667 1,604,813,241
4. Money at Call and Short Notice - -
5. Investments 9,544,405,525 8,350,529,612
6. Loans, Advances & Bills Purchased (Net) 50,677,244,085 42,868,709,294
7. Fixed Assets (Net) 538,320,423 435,533,216
8. Non-Banking Assets (Net) - -
9. Other Assets 1,142,200,404 502,268,125
Total Assets 71,558,496,024 58,738,886,373
Moti Lal Dugar Malchand Dugar Jyoti Kumar Begani Ratna Raj Bajracharya As per our report of even date
CHAIRMAN DIRECTOR DIRECTOR CHIEF EXECUTIVE OFFICER
Dr. Bhogendra Guragain Dr. Dipak Psd Bhattarai Om Krishna Joshi Apachh K Yadav
DIRECTOR DIRECTOR DIRECTOR DEPUTY GENERAL MANAGER
CA Rajesh Poudel, Partner

Er. Bachchharaj Tater Dipak Nepal Purna Bahadur Thapa
P.L. Shrestha & Co.,
DIRECTOR DIRECTOR OFFICER-FINANCE Chartered Accountants
PLACE: Kathmandu
DATE: 14th September, 2017

STRATEGIC REPORT
Consolidated
GORVERNANCE
For the Period Ended 1st Shrawan 2073 to 31st Ashad 2074
Profit & Loss Account (16th July 2016 to 15th July 2017)
PARTICULARS CURRENT YEAR (NPR) PREVIOUS YEAR (NPR)
1. Interest Income 5,320,411,008 3,095,549,037
RISK REVIEW
2. Interest Expenses 3,112,274,466 1,591,976,978
Net Interest Income 2,208,136,542 1,503,572,059
3. Commission & Discount 215,372,463 160,773,142
4. Other Operating Incomes 330,716,039 279,039,438
5. Exchange Fluctuation Income 130,139,854 115,336,186
Total Operating Income 2,884,364,898 2,058,720,825
6. Staff Expenses 454,922,187 355,632,989
7. Other Operating Expenses 550,623,995 425,981,970
8. Exchange Fluctuation Loss - -
Operating Profit Before Provision for Possible Loss 1,878,818,716 1,277,105,866
9. Provision for Possible Losses 281,591,121 321,717,943
Operating Profit 1,597,227,595 955,387,923
HUMAN RESOURCE
10. Non - Operating Income/Expenses 44,703,239 1,316,594
11. Loan Loss Provision Written Back 279,723,927 556,405,345
Profit from Regular Activities 1,921,654,761 1,513,109,862
12. Income/Expense from Extra-Ordinary Activities (85,528,466) (3,230,164)
Profit from All Activities 1,836,126,295 1,509,879,698
13. Provision for Staff Bonus 166,988,971 137,261,791
PRODUCTS & SERVICES

14. Provision for Tax Expense 475,826,417 421,239,431
Current Years 452,210,407 420,824,512
Previous Years 1,211,911 6,167,382
Deferred Tax 22,404,099 (5,752,463)
15. Non Controlling Profit 3,690,466 -
Net Profit/(Loss) 1,189,620,441 951,378,476
FINANCIAL STATEMENT
Dr. Bhogendra Guragain Dr. Dipak Psd Bhattarai Om Krishna Joshi Apachh K Yadav INVESTOR'S RELATIONSHIP

PLACE: Kathmandu
BANK'S PERFROMANCE

Consolidated
Cash Flow Statement
(16th July 2016 to 15th July 2017)
PARTICULARS CURRENT YEAR NPR PREVIOUS YEAR NPR
(A) Cash Flow from Operating Activities 1,952,792,298 1,657,415,897

1. Cash Receipts 5,890,569,094 3,621,479,142
1.1 Interest Income 5,206,271,669 3,079,048,682
1.2 Commission and Discount Income 219,617,595 160,773,142
1.3 Exchange Gain 122,992,399 96,906,806
1.4 Recovery of Loan Written off - 5,630,227
1.5 Other Income 341,687,431 279,120,285
2. Cash Payments (4,727,263,158) (2,751,756,173)
2.1 Interest Expenses (3,058,375,265) (1,618,635,699)
2.2 Staff Expenses (615,315,530) (414,538,168)
2.3 Office Operating Expenses (479,969,243) (362,429,126)
2.4 Payment of Income Tax (573,603,120) (356,153,180)
2.5 Other Expenses - -
Cash Flow Before Working Capital Activities 1,163,305,936 869,722,969
Decrease/(Increase) in Current Asset from Operating Activities (7,830,101,813) (10,419,017,761)
1. Decrease/(Increase) in Money at Call and Short Notice - -
2. Decrease/(Increase) in Other Short Term Investments (182,337,079) (582,351,035)
3. Decrease/(Increase) in Loans, Advances and Bills Purchased (7,321,641,879) (9,512,493,256)
4. Decrease/(Increase) in Other Assets (326,122,855) (324,173,470)
Increase/(Decrease) in Current Liabilities from Operating Activities 8,619,588,175 11,206,710,689
1. Increase /(Decrease) in Deposit/Liabilities 8,460,849,716 10,910,697,045
2. Increase /(Decrease) in Certificate of Deposits - -
3. Increase /(Decrease) in Short Term Borrowings - -
4. Increase /(Decrease) in Other Liabilities 158,738,459 296,013,644
(B) Cash Flow from Investing Activities (1,174,570,936) (103,060,834)
1. Decrease/(Increase) in Long Term Investments (984,712,085) (39,791,769)
2. Decrease/(Increase) in Fixed Assets including Software/ NBA (244,147,797) (64,504,812)
3. Interest Income from Long Term Investments - -
4. Dividend Income 23,606,228 351,500
5. Others 30,682,718 884,247
(C) Cash Flow from Financial Activities 1,536,950,034 513,510,677
1. Increase /(Decrease) in Long Term Borrowings (Bond, Debentures) - -
2. Increase /(Decrease) in Paid up Share Capital/Reserves 1,564,892,700 542,297,616
3. Increase /(Decrease) in Other Liabilities (27,942,666) (28,786,939)
4. Increase/(Decrease) in Refinance facilities from Nepal Rastra Bank - -
(D) Income/Loss from exchange rate fluctuations of Cash and Bank Balances 7,147,455 18,429,380
(E) Cash & Cash Equivalent from Acquired Entity 517,493,765 1,437,443,537
(F) Net Cash Flow from all activities of the Current Year 2,839,812,616 2,086,295,120
(G) Opening Cash and Bank Balances 6,816,512,970 3,058,107,469
(H) Closing Cash and Bank Balances 9,656,325,586 6,581,846,126
* Money at Call of NIDC is considered as the Cash & Cash Equivalent, although not cosidered by the NIDC.
* Similar adjustment made of Previous Year balances. Previous Year Balances have been restated.

PLACE: Kathmandu


STRATEGIC REPORT
Balance Sheet As on 31st Ashad 2074 (15th July 2017)
CAPITAL & LIABILITY SCHEDULE CURRENT YEAR NPR PREVIOUS YEAR NPR
GORVERNANCE
1. Share Capital 4.1 8,081,481,551 5,301,395,141
2. Reserves and Funds 4.2 1,385,816,754 1,022,951,246
3. Debentures & Bonds 4.3 - -
4. Borrowings 4.4 - -
5. Deposit Liabilities 4.5 61,013,263,534 51,650,280,064
RISK REVIEW
6. Bills Payable 4.6 17,204,029 19,516,359
8. Income Tax Liabilities (Net) - -
9. Other Liabilities 4.7 957,920,226 744,743,563
Total Capital & Liability 71,455,686,094 58,738,886,373
ASSETS SCHEDULE CURRENT YEAR NPR PREVIOUS YEAR NPR
1. Cash Balance 4.8 1,473,431,130 1,167,577,937

2. Balance with Nepal Rastra Bank 4.9 7,496,218,748 3,809,454,948
3. Balance with Banks/Financial Institutions 4.10 587,528,410 1,604,813,241
4. Money at Call and Short Notice 4.11 - -
HUMAN RESOURCE
5. Investments 4.12 9,553,575,293 8,350,529,612
6. Loans, Advances & Bills Purchased (Net) 4.13 50,677,244,085 42,868,709,294
7. Fixed Assets (Net) 4.14 534,388,880 435,533,216
8. Non-Banking Assets (Net) 4.15 - -
9. Other Assets 4.16 1,133,299,548 502,268,125
Total Assests 71,455,686,094 58,738,886,373
PRODUCTS & SERVICES

Schedules 4.1 to 4.17 form integral part of Balance Sheet
Contingent Liabilities Schedule 4.17

Directors’ Declaration Schedule 4.29
Statement of Capital Adequacy Table Schedule 4.30 (A)
FINANCIAL STATEMENT
Statement of Risk Weighted Exposure for Credit Risk Schedule 4.30 (B)
Statement of Eligible Credit Risk Mitigants Schedule 4.30 (C)
Statement of Risk Weighted Exposure for Operational Risk Schedule 4.30 (D)
Statement of Risk Weighted Exposure for Market Risk Schedule 4.30 (E)
Principal Indicators Schedule 4.31
Significant Accounting Policies Schedule 4.32
Notes to Accounts Schedule 4.33 INVESTOR'S RELATIONSHIP

BANK'S PERFROMANCE
PLACE: Kathmandu

Profit & Loss Account (16th July 2016 to 15th July 2017)
PARTICULARS SCHEDULE CURRENT YEAR (NPR) PREVIOUS YEAR (NPR)
1. Interest Income 4.18 5,306,155,662 3,095,549,037

2. Interest Expenses 4.19 3,113,432,728 1,591,976,978
Net Interest Income 2,192,722,934 1,503,572,059
3. Commission & Discount 4.20 210,471,287 160,773,142
4. Other Operating Income 4.21 329,557,777 279,039,438
5. Exchange Fluctuation Income 4.22 130,139,854 115,336,186
Total Operating Income 2,862,891,852 2,058,720,825
6. Staff Expenses 4.23 451,219,630 355,632,989
7. Other Operating Expense 4.24 545,928,292 425,981,970
8. Exchange Fluctuation Loss 4.22 - -
Operating Profit Before Provision for Possible Loss 1,865,743,930 1,277,105,866
9. Provision for Possible Losses 4.25 281,591,121 321,717,943
Operating Profit 1,584,152,808 955,387,923
10. Non - Operating Income/Expense 4.26 32,221,951 1,316,594
11. Loan Loss Provision Written Back 4.27 279,723,927 556,405,345
Profit from Regular Activities 1,896,098,687 1,513,109,862
12. Income(Expense) from Extra-Ordinary Activities 4.28 (85,528,466) (3,230,164)
Profit from All Activities 1,810,570,221 1,509,879,698
14. Provision for Tax Expense 469,884,196 421,239,431
Current Years 446,223,791 420,824,512
Previous Years 1,211,911 6,167,382
Deferred Tax 22,448,494 (5,752,463)
Net Profit/(Loss) 1,176,088,732 951,378,476

PLACE: Kathmandu

STRATEGIC REPORT
Profit & Loss
Appropriation
Account
GORVERNANCE
Income
RISK REVIEW
1. Accumulated Profit upto Previous Year 15,996,590 3,284,735
2. Current Year’s Profit 1,176,088,732 951,378,476
3. Adjustments of Round off - (175)
4. Profit Transfer From Merger 24,484,654 208,817,892
5. Transfer from Share Premium A/C - 189,034,539
6. Transfer from Capital Reserve A/C 81,747,540 184,513,659
7. Transfer from Free Reserve 32,787,497
Total 1,331,105,013 1,537,029,126
Expenses
1. Accumulated Loss upto Previous Year - -
2. Current Year’s Loss - -
3. General Reserve Fund 235,217,747 190,275,696
4. Contingent Reserve - -
HUMAN RESOURCE
5. Institution Development Fund - -
6. Dividend Equalization Fund - -
7. Employees’ Related Fund - -
9. Proposed Bonus Share 1,063,376,850 1,325,348,800
PRODUCTS & SERVICES

10. Special Reserve Fund - -
11. Exchange Fluctuation Fund 1,786,864 4,607,345
12. Capital Redemption Reserve Fund - -
13. Capital Adjustment Fund - -
14. Investment Adjustment Reserve 5,262,489 800,695
15. Deferred Tax Reserve - -
16. Corporate Social Responsibility Fund 11,760,887 -
FINANCIAL STATEMENT
Total 1,317,404,837 1,521,032,536
16. Accumulated Profit/(Loss) 13,700,176 15,996,590
Dr. Bhogendra Guragain Dr. Dipak Psd Bhattarai Om Krishna Joshi Apachh K Yadav INVESTOR'S RELATIONSHIP

PLACE: Kathmandu
BANK'S PERFROMANCE

Cash Flow Statement For the Period Ended 1st Shrawan 2073 to 31st Ashad 2074
(A) Cash Flow from Operating Activities 2,070,481,389 1,657,415,897

1. Cash Receipts 5,875,574,224 3,621,479,142
1.1 Interest Income 5,212,096,120 3,079,048,682
1.2 Commission and Discount Income 210,471,287 160,773,142
1.3 Exchange Gain 122,992,399 96,906,806
1.4 Recovery of Loan Written off - 5,630,227
1.5 Other Income 330,014,418 279,120,285
2. Cash Payments (4,711,047,084) (2,751,756,173)
2.1 Interest Expenses (3,064,199,716) (1,618,635,699)
2.2 Staff Expenses (612,878,403) (414,538,168)
2.3 Office Operating Expenses (466,964,513) (362,429,126)
2.4 Payment of Income Tax (567,004,452) (356,153,180)
2.5 Other Expenses - -
Cash Flow Before Working Capital Activities 1,164,527,140 869,722,969
Decrease/(Increase) in Current Asset from Operating Activities (7,832,538,176) (10,419,017,761)
1. Decrease/(Increase) in Money at Call and Short Notice - -
2. Decrease/(Increase) in Other Short Term Investments (182,337,079) (582,351,035)
3. Decrease/(Increase) in Loans, Advances and Bills Purchased (7,321,641,879) (9,512,493,256)
4. Decrease/(Increase) in Other Assets (328,559,218) (324,173,470)
Increase/(Decrease) in Current Liabilities from Operating Activities 8,738,492,425 11,206,710,689
1. Increase /(Decrease) in Deposit/Liabilities 8,578,968,167 10,910,697,045
2. Increase /(Decrease) in Certificate of Deposits - -
3. Increase /(Decrease) in Short Term Borrowings - -
4. Increase /(Decrease) in Other Liabilities 159,524,258 296,013,644
(B) Cash Flow from Investing Activities (1,184,740,482) (103,060,834)
1. Decrease/(Increase) in Long Term Investments (1,008,283,085) (39,791,769)
2. Decrease/(Increase) in Fixed Assets including Software/ NBA (208,222,707) (64,504,812)
3. Interest Income from Long Term Investments - -
4. Dividend Income 1,082,592 351,500
5. Others 30,682,718 884,247
(C) Cash Flow from Financial Activities 1,564,950,034 513,510,677
1. Increase /(Decrease) in Long Term Borrowings (Bond, Debentures) - -
2. Increase /(Decrease) in Paid up Share Capital/Reserves 1,564,892,700 542,297,616
3. Increase /(Decrease) in Other Liabilities 57,334 (28,786,939)
4. Increase/(Decrease) in Refinance facilities from Nepal Rastra Bank - -
(D) Income/Loss from exchange rate fluctuations of Cash and Bank Balances 7,147,455 18,429,380
(E) Cash & Cash Equivalent from Acquired Entity 517,493,765 1,437,443,537
(F) Net Cash Flow from all activities of the Current Year 2,457,838,396 2,086,295,120
(G) Opening Cash and Bank Balances 6,581,846,126 3,058,107,469
(H) Closing Cash and Bank Balances 9,557,178,287 6,581,846,126
* Money at Call of NIDC is considered as the Cash & Cash Equivalent, although not cosidered by the NIDC.
* Similar adjustment made of Previous Year balances. Previous Year Balances have been restated.

PLACE: Kathmandu

For the Period Ended 1st Shrawan 2073to 31st Ashad 2074
Statement Of Change In Equity (16th July 2016 to 15th July 2017)
PARTICULARS SHARE CAPITAL ACCUMULATED GENERAL CAPITAL EXCHANGE INVESTMENT OTHER FREE TOTAL
PROFIT & LOSS RESERVES RESERVES FLUCUATION ADJUSTMENT RESERVE AMOUNT
ACCOUNT FUND FUND FUND
Opening Balance as at 1st Shrawan 2073 5,301,395,141 15,996,590 774,260,314 - 21,181,584 197,478,864 14,033,894 6,324,346,387
Adjustments - - - - - - -
Restated Balance as at 1st Shrawan 2073 5,301,395,141 15,996,590 774,260,314 - 21,181,584 197,478,864 14,033,894 6,324,346,387
Adjustments For the year 2,780,086,410 (2,296,414) 383,265,563 - 1,786,864 (47,349,017) 27,458,512 3,142,951,918
Net Profit/(Loss) for the year - 1,176,088,732 - - - - - 1,176,088,732
Effect of Acquisition of NIDC Capital Markets 151,816,860 24,484,654 148,047,816 81,747,540 - 44,164 48,485,122 454,626,156
Transfer to General Reserve - (235,217,747) 235,217,747 - - - - -
Proposed Dividend - - - - - - - -
Exchange Fluctuation Fund - (1,786,864) - - 1,786,864 - - -
Investment Adjustment Reserve - (5,262,489) - - - 5,262,489 -
Reversal of Investment Adjustment Reserve
based on market value (52,655,670) (52,655,670)
Corporate Social Responsibility Fund (11,760,887) 11,760,887 -
Deferred Tax Reserve - 32,787,497 - - - - (32,787,497) -
Transfer to Profit & Loss Account - 81,747,540 - (81,747,540) - - - -
Issue of Right Shares 1,564,892,700 - - - - - - 1,564,892,700
Issue of Bonus Shares 1,063,376,850 (1,063,376,850) - - - - - -
Share Premium - - - - - - -
Other Free Reserve - - - - - - - -
Closing Balance as at 31st Ashad 2074 8,081,481,551 13,700,176 1,157,525,877 - 22,968,448 150,129,847 41,492,406 9,467,298,305

PLACE: Kathmandu

103
BANK'S PERFROMANCE INVESTOR'S RELATIONSHIP FINANCIAL STATEMENT PRODUCTS & SERVICES HUMAN RESOURCE CORPORATE RESPONSIBILITY RISK REVIEW GORVERNANCE STRATEGIC REPORT
Shareholders Holding 0.5%
Or More of the Share Capital As on 31st Ashad 2074 (15th July 2017)
NAME OF THE SHAREHOLDER NO OF SHARES HELD PERCENTAGE
1. Moti Lal Dugar 4,208,655 6.00
2. Malchand Dugar 3,381,113 4.82
3. Srawan Kumar Goyal 2,915,208 4.15
4. Kailash Chandra Goyal 2,914,000 4.15
5. Vivek Dugar 2,282,240 3.25
6. Surendra Dugar 2,017,793 2.88
7. Bachha Raj Tater 1,746,328 2.49
8. Nidhi Dugar 1,224,216 1.74
9. Pooja Dugar 1,199,973 1.71
10. Shradha Dugar 1,179,617 1.68
11. Saurav Tater 1,164,219 1.66
12. Vishal Tater 1,164,219 1.66
13. Vivek Tater 1,164,219 1.66
14. Srinivas Sarda 1,164,218 1.66
15. Saroj Dugar 912,689 1.30
16. Pawan Kumar Sharada 830,555 1.18
17. Radheshyam Sharada 830,555 1.18
18. Shiva Ratan Sharda 830,554 1.18
19. Bhogendra Kumar Guragain 794,803 1.13
20. Shailendra Guragain 677,700 0.97
21. Chanda Kumari Begani 640,319 0.91
22. Salt Trading Corporation Ltd. 639,875 0.91
23. Ram Krishna Manandhar 604,189 0.86
24. Jamuna Paudyal 551,694 0.79
25. Sushila Ghimire 545,643 0.78
26. Jyoti Kumar Begani 523,897 0.75
27. Karmachari Sanchaya Kosh 493,214 0.70
28. Uma Sharma Bhattarai 489,292 0.70
29. Niranjan Lal Khetan 424,481 0.60
30. Nirmala Devi Goyal 422,094 0.60
31. Rastriya Beema Sasthan 405,790 0.58
32. Manisha Dugar 370,701 0.53
33. Lobsang Tenzing Nepali 360,266 0.51
Total 39,074,329 55.68

STRATEGIC REPORT
GORVERNANCE
Share Capital As on 31st Ashad 2074 (15th July 2017) Schedule 4.1
RISK REVIEW
1. Share Capital
1.1 Authorised Capital 10,000,000,000 5,000,000,000
a) 100,000,000 Ordinary Shares of NPR 100 each 10,000,000,000 5,000,000,000
(Previous year 50,000,000 Ordinary shares of NPR 100 each)
1.2 Issued Capital 7,089,175,700 3,976,049,741
1.3 Paid Up Capital 7,018,104,701 3,976,046,341
1.4 Proposed Bonus Share 1,063,376,850 1,325,348,800
1.5 Call in Advance - -
HUMAN RESOURCE
Total 8,081,481,551 5,301,395,141
Share Ownership
PRODUCTS & SERVICES

PARTICULARS CURRENT YEAR PREVIOUS YEAR
AMOUNT (NPR) % AMOUNT (NPR) %
A. Local Ownership 7,018,104,701 100% 3,976,046,341 100%

1.1 Government of Nepal
1.2 “A” Class Licensed Institutions
FINANCIAL STATEMENT
1.3 Other Licensed Institutions
1.4 Other Institutions
1.5 General Public 3,402,770,940 48% 1,948,264,373 49%
1.6 Others (Promoters) 3,615,333,761 52% 2,027,781,968 51%
B. Foreign Ownership
Total 7,018,104,701 3,976,046,341
BANK'S PERFROMANCE

Reserves & Surplus As on 31st Ashad 2074 (15th July 2017) Schedule 4.2
1. General Reserve Fund 1,157,525,877 774,260,314

2. Capital Reserve Fund - -
a Share Premium - -
b Capital Reserve Fund - -
3. Capital Redemption Reserve - -
4. Capital Adjustment Fund - -
5. Other Reserves & Funds 191,622,253 211,512,758
5.1. Contingent Reserve - -
5.2. Institution Development Fund - -
5.3. Dividend Equalisation Fund - -
5.4. Special Reserve Fund - -
5.5. Assets Revaluation Reserve - -
5.6. Deferred Tax Reserve - -
5.7. Other Free Reserves 29,731,519 14,033,894
5.8. Investment Adjustment Reserve 150,129,847 197,478,864
5.9. Corporate Social Responsibility Fund 11,760,887 -
6. Accumulated Profit/Loss 13,700,176 15,996,590
7. Exchange Fluctuation Fund 22,968,448 21,181,584
Total Reserves & Surplus 1,385,816,754 1,022,951,246
Debentures & Bonds As on 31st Ashad 2074 (15th July 2017) Schedule 4.3
1. ….. % Debentures of NPR…. each - -

( Issued on……….with maturity on……..……)
(Outstanding balance of Redemption Reserve till date NPR……)
2. ….. % Bonds of NPR…. each - -
( Issued on….. …….with maturity on……….…)
(Outstanding balance of Redemption Reserve till date NPR……)
3. ……………… - -
Total Debentures & Bond - -
Borrowings As on 31st Ashad 2074 (15th July 2017) Schedule 4.4
A. Domestic
1. Government of Nepal
2. Nepal Rastra Bank - -
3. Repo Obligations
4. Inter-bank and Financial Institutions -
5. Other Financial Institutions
6. Others - -
Total - -
B. Foreign
1. Banks - -
2. Others - -
Total - -
Total Borrowings - -

STRATEGIC REPORT
Deposit Liability
GORVERNANCE
As on 31st Ashad 2074 (15th July 2017) Schedule 4.5
1. Non - Interest Bearing Accounts
RISK REVIEW
A. Current Deposits 2,298,644,101 1,947,479,420
1. Local Currency 2,150,782,985 1,823,969,501
1.1 Government Of Nepal -
1.2 “A” Class Licensed Institutions 224,241,223 151,262,761
1.3 Other Licensed Financial Institutions 217,507,895 22,462,302
1.4 Other Organized Institutions 1,445,332,127 1,400,583,708
1.5 Individuals 261,904,191 243,617,165
1.6 Others 1,797,549 6,043,565
2. Foreign Currency 147,861,116 123,509,919
2.1 Government Of Nepal -
2.2 “A” Class Licensed Institutions -
2.3 Other Licensed Financial Institutions -
HUMAN RESOURCE
2.4 Other Organized Institutions 147,861,116 122,826,466
2.5 Individuals - 683,453
2.6 Others -
B. Margin Deposits 824,762,283 584,806,417
1. Employees’ Guarantee -
2. Guarantee Margin 369,330,286 305,226,364
PRODUCTS & SERVICES

3. Margin On Letter Of Credit 427,748,057 218,651,291
4. Others Margins 27,683,940 60,928,762
C. Other Deposits 28,007,228 -
1. Local Currency 28,007,228 -
1.1 Financial Institutions - -
1.2 Other Organized Institutions 28,007,228 -
1.3 Individuals - -
FINANCIAL STATEMENT
2. Foreign Currency - -
2.1 Financial Institutions - -
2.2 Other Organized Institutions - -
2.3 Individuals - -
Total Non-Interest Bearing Account 3,151,413,612 2,532,285,837
BANK'S PERFROMANCE

Deposit Liability As on 31st Ashad 2074 (15th July 2017) Schedule 4.5
2. Interest Bearing Accounts

A. Savings Deposits 16,420,613,125 17,495,072,355
1. Local Currency 16,341,189,382 17,439,255,748
1.1 Organized Institutions 37,937,456 331,266,919
1.2 Individuals 16,302,968,046 17,107,884,720
1.3 Others 283,880 104,109
2.1 Institutions 4,278 -
2.2 Individuals 79,419,465 55,816,607
2.3 Others - -
B. Fixed Deposits 35,877,881,467 25,843,113,484
1. Local Currency 34,483,290,785 24,832,184,026
1.1 Organized Institutions 22,363,367,630 19,553,187,331
1.2 Individuals 12,119,923,155 5,278,996,695
1.3 Others - -
2. Foreign Currency 1,394,590,682 1,010,929,458
2.1 Institutions 1,393,559,182 1,009,858,958
2.2 Individuals 1,031,500 1,070,500
2.3 Others - -
C. Call Deposits 5,563,355,330 5,779,808,388
1. Local Currency 5,450,595,206 5,710,461,184
1.1 “A” Class Licensed Institutions - -
1.2 Other Licensed Institutions 3,054,329,552 1,339,606,749
1.3 Other Organized Institutions 2,204,866,097 4,173,270,179
1.4 Individuals 178,536,100 184,480,939
1.5 Others 12,863,457 13,103,317
1.1 “A” Class Licensed Institutions - -
1.2 Other Licensed Institutions - -
1.3 Other Organized Institutions 111,887,172 68,438,885
1.4 Individuals 872,952 908,319
1.5 Others - -
D. Certificate Of Deposits - -
1. Organized Institutions - -
2. Individuals - -
3. Others - -
Total Interest Bearing Accounts 57,861,849,922 49,117,994,227
Total Deposits 61,013,263,534 51,650,280,064

STRATEGIC REPORT
Bills Payable
GORVERNANCE
As on 31st Ashad 2074(15th July 2017) Schedule 4.6
1. Local Currency 13,672,163 17,878,870
RISK REVIEW
Total Bills Payable 17,204,029 19,516,359
Other Liabilities As on 31st Ashad 2074 (15th July 2017) Schedule 4.7
1. Pension/Gratuity Fund 33,367,535 26,289,642

2. Employees’ Provident Fund - -
3. Employees’ Welfare Fund - -
HUMAN RESOURCE
5. Interest Payable on Deposits 153,710,115 104,477,103
6. Interest Payable on Borrowing - -
7. Unearned Discount and Commission 103,700,388 56,927,171
8. Sundry Creditors 138,128,218 21,734,245
9. Branch Adjustment Account - -
PRODUCTS & SERVICES

10. Deferred Tax Liability - -
11. Unpaid Dividend 44,509,037 44,451,703
12. Others 314,068,144 316,287,537
a. Audit Fees Payable 1,115,000 1,113,050
b. TDS Payable 81,898,058 49,276,835
c. Retention Money 11,146,385 4,994,669
FINANCIAL STATEMENT
d. Others 219,908,701 260,902,983
Total Other Liablity 957,920,226 744,743,563
Cash Balance As on 31st Ashad 2074 (15th July 2017) Schedule 4.8 INVESTOR'S RELATIONSHIP
1. Local Currency (Including Coins) 1,461,267,808 1,158,436,911

Total Cash Balance 1,473,431,130 1,167,577,937
BANK'S PERFROMANCE

Balance With
Nepal Rastra Bank As on 31st Ashad 2074 (15th July 2017) Schedule 4.9
PARTICULARS LOCAL CURRENCY FOREIGN CURRENCY IN NPR CURRENT YEAR PREVIOUS YEAR
INR OTHER TOTAL NPR NPR NPR
1. Nepal Rastra Bank 7,432,255,596 - 63,963,152 63,963,152 7,496,218,748 3,809,454,948

a. Current Account 7,432,255,596 - 63,963,152 63,963,152 7,496,218,748 3,809,454,948
b. Other Account - - - - - -
* Conformation as per balance statement is NPR 7,503,439,578.79 the difference has been reconciled.
Balance With Other Banks

& Financial Instituitions As on 31st Ashad 2074 (15th July 2017) Schedule 4.10
PARTICULARS LOCAL CURRENCY FOREIGN CURRENCY IN NPR CURRENT YEAR PREVIOUS YEAR
INR OTHER TOTAL NPR NPR NPR
1. Local Banks 226,824,870 - 43,830,817 43,830,817 270,655,687 1,169,684,251

a. Current Account 226,824,870 - 43,830,817 43,830,817 270,655,687 1,169,684,251
b. Other Account - - -
2. Foreign Banks - 217,602,616 99,270,107 316,872,723 316,872,723 435,128,990
a. Current Account - 217,602,616 99,270,107 316,872,723 316,872,723 435,128,990
b. Other Account - -
Total 226,824,870 217,602,616 143,100,924 360,703,540 587,528,410 1,604,813,241
* Conformation as per balance statement is NPR 1,683,186,884 the difference has been reconciled.
Money At Call &

Short Notice As on 31st Ashad 2074 (15th July 2017) Schedule 4.11
1. Local Currency - -
2. Foreign Currency - -
Total Cash Balnce - -

STRATEGIC REPORT
Investments
GORVERNANCE
PURPOSE
PARTICULARS TRADING OTHERS CURRENT YEAR PREVIOUS YEAR
NPR NPR NPR NPR
RISK REVIEW
1. Nepal Government’s Treasury bills - 1,368,215,700 1,368,215,700 680,928,998
2. Nepal Government’s Savings Bonds - - - -
3. Nepal Government’s Development Bonds - 4,013,800,000 4,013,800,000 3,114,625,000
4. Nepal Rastra Bank Bonds - - - 1,630,350,000
5. Foreign Securities - 103,150,000 103,150,000 -
6. Local Licenced Institutions - - - -
7. Foreign Banks - 3,351,058,099 3,351,058,099 2,612,082,722
8. Corporate Shares - 426,191,714 426,191,714 312,649,126
9. Corporate Bonds & Debentures - - - -
10. Other Investments - 293,275,000 293,275,000 -
Total Investment - 9,555,690,513 9,555,690,513 8,350,635,846
Less : Provision - 2,115,220 2,115,220 106,234
HUMAN RESOURCE
Net Investment 9,553,575,293 9,553,575,293 8,350,529,612
Investment In Shares,
Debentures & Bonds
PRODUCTS & SERVICES

As on 31st Ashad 2074 (15th July 2017) Schedule 4.12 (A(
PARTICULARS COST PRICE MARKET PRICE PROVISION BOOK VALUE

CURRENT PREVIOUS
1. Investment in Shares 299,167,092 267,694,358 2,115,220 426,191,714 312,649,126
FINANCIAL STATEMENT
Gurans Life Insurance Company 19,858,400 107,708,332 - 107,708,332 121,250,388
Birat Shoe Ltd. 1,142,820 Not Listed 1,142,820 1,142,820
Bottler’s Nepal Terai Ltd. 64,590 2,488,765 - 2,488,765
Butwal Spinning Mill 3,200 Not Listed 3,200 3,200
Credit Information Centre 202,500 Not Listed - 202,500 202,500
Credit Information Centre 27,000 Not Listed - 27,000
Golbal IME Samunnat Yojana-I 42,719,280 43,530,946 - 43,530,946 51,547,931
Gorakhkali Rubber Udhyog Limited 106,234 Not Listed 106,234 106,234 106,234
Hydroelectricity Investment and
Development Company Ltd 11,633,600 22,918,192 - 22,918,192 68,976,900
NMB Hybrid Fund 12,619,210 12,543,495 75,715 12,543,495
Jyoti Spinning Mill 57,409 Not Listed 57,409 57,409
Laxmi Equity Fund 58,495,870 Not Listed - 58,495,870
Lumbini General Insurance Company limited 2,408,767 2,408,767 - 2,408,767 2,408,767
Nabil Balance Fund 686,210 1,351,834 - 1,351,834 1,509,662
BANK'S PERFROMANCE
Nabil Equity Fund 5,632,510 5,632,510 - 5,632,510

National Banking Training Institute 1,200,000 Not Listed - 1,200,000 1,200,000
Neco Insurance Co. Ltd. 60,363 1,032,012 - 1,032,012

PARTICULARS COST PRICE MARKET PRICE PROVISION BOOK VALUE
CURRENT PREVIOUS
NECO INSURANCE RIGHT SHARE 105,300 1,032,993 - 1,032,993

Necon Air Ltd. 179,842 Not Listed 179,842 179,842
Nepal Clearing House 100,000 Not Listed - 100,000
Nepal Clearing House Limited 2,500,000 Not Listed - 2,500,000 2,500,000
Nepal Clearing House Limited 351,500 Not Listed - 351,500 351,500
Nepal Electronic Payment System Limited 15,000,000 Not Listed - 15,000,000 15,000,000
Nepal Insurance Company Limited 88,518 962,390 - 962,390 817,022
Nepal Life Insurance Com. (NLIC) 2,480,925 4,674,048 - 4,674,048
Nepal Stock Exchange Limited 5,000 Not Listed - 5,000 5,000
Nepal Stock Exchange Ltd. 5,000 Not Listed - 5,000
NIBL Pragati Fund 10,274,070 10,274,070 - 10,274,070
NIBL Sambriddhi Fund 1,738,900 2,060,597 - 2,060,597 2,305,781
NLG Insurance Company 58,932 691,268 - 691,268 838,530
NLG Insurance Company Ltd. 182,600 4,939,110 - 4,939,110
NMB Sulav Investment Fund-1 1,400,005 1,751,375 - 1,751,375 2,038,408
Prabhu Insurance Company Limited 461,575 6,767,520 - 6,767,520 5,784,000
Rural Microfinance Development Centre Ltd 1,642 10,075 - 10,075 16,332
Sagarmatha Insurance Company Limited
(Promoter Shares) 4,386,000 4,386,000 - 4,386,000 4,386,000
Shree Ram Sugar Mill 50,000 Not Listed 50,000 50,000
Siddhartha Equity Oriented Scheme 23,590,970 27,978,890 - 27,978,890 30,904,171
Subarna Pharmaceuticals Limited 500,000 Not Listed 500,000 500,000 500,000
SUNRISE CAPITAL 78,570,981 Not Listed - 78,570,981
Taragoan Hotel Ltd. 58,768 148,770 - 148,770
United Insurane Co. Ltd. 158,600 2,402,400 - 2,402,400
2. Investment in Debentures & Bonds
2.1. ……………………………………………………..
2.2. ……………………………………………………..
2.3. ……………………………………………………..
Total Investments 299,167,092 267,694,358 2,115,220 426,191,714 312,649,126
3. Provision for Loss
3.1. Upto Previous Year 2,115,220 106,234
3.2. Adjustment This Year
Total Provision - - - 2,115,220 106,234
Net Balance 299,167,092 267,694,358 - 424,076,493 312,542,892

STRATEGIC REPORT
Investments
GORVERNANCE
(Held For Trading) As on 31 st
Ashad 2074 (15th July 2017) Schedule 4.12.1
PARTICULARS COST PRICE MARKET VALUE (NPR) ADJUSTMENT FUND

CURRENT YEAR PREVIOUS YEAR CURRENT YEAR PREVIOUS YEAR
RISK REVIEW
1. Government of Nepal - Treasury bills
2. Government of Nepal - Savings Bonds
3. Government of Nepal - Development Bonds
4. Nepal Rastra Bank Bonds
5. Foreign Securities
6. Shares of Local Licensed Institutions
7. Bonds & Debentures of Local LicensedInstitutions
8. Shares,Bonds & Debenture of Organized Institutions
9. Placement
10. Inter bank Lending
11. Other Investments
Total Investment Held For Trading
HUMAN RESOURCE
Investments
PRODUCTS & SERVICES

(Held Till Maturity) As on 31st Ashad 2074 (15th July 2017) Schedule 4.12.2

1. Government of Nepal - Treasury bills 1,368,215,700

2. Government of Nepal - Savings Bonds -
FINANCIAL STATEMENT
3. Government of Nepal - Development Bonds 4,013,800,000
5. Foreign Securities 103,150,000
7. Bonds & Debentures of Local Licensed Institutions
8. Shares,Bonds & Debenture of Organized Institutions
9. Placement 3,351,058,099
10. Other Investment 293,275,000

Total Investment Held Till Maturity 9,129,498,799 - - - -
BANK'S PERFROMANCE

Investments
(Available For Sale) As on 31st Ashad 2074 (15th July 2017) Schedule 4.12.3

1. Government of Nepal - Treasury bills -

2. Government of Nepal - Savings Bonds
3. Government of Nepal - Development Bonds -
5. Foreign Securities
7. Bonds & Debentures of Local Licensed Institutions
8.Shares,Bonds & Debenture of Organized Institutions 299,167,092 267,694,358 294,358,892 150,129,847 197,478,864
-Listed 140,669,736 267,694,358 294,358,892 132,378,510 181,973,864
-Unlisted 158,497,356 Not Listed Not Listed 17,751,337 15,505,000
9. Placement
10. Inter bank Lending
11. Other Investment
Total Investment Available for Sale 299,167,092 267,694,358 294,358,892 150,129,847 197,478,864

Classification Of Loans, Advances
And Bills Purchase And Provision As on 31st Ashad 2074 (15th July 2017) Schedule 4.13
LOANS & ADVANCES

DOMESTIC FOREIGN TOTAL LOANS BILLS CURRENT (NPR) PREVIOUS (NPR)
PARTICULARS DEPRIVED OTHERS & ADVANCES PURCHASE
INSURED UNINSURED INSURED UNINSURED
1. Performing Loan - 2,798,750,205 - 48,147,845,004 9,115,436 50,955,710,645 74,435,059 51,030,145,704 43,215,282,604

A. Pass loans - 2,795,460,118 - 46,815,360,439 6,415,930 49,617,236,487 74,435,059 49,691,671,546 42,257,786,522
B. Watch List - 3,290,087 - 1,332,484,565 2,699,506 1,338,474,158 - 1,338,474,158 957,496,082
2. Non Performing Loan - 14,150,238 - 695,089,862 - 709,240,100 - 709,240,100 533,845,694
2.1 Restructured/ Re-scheduled - - - - - - - - -
2.1 Sub Standard - 1,274,381 - 62,220,822 - 63,495,203 - 63,495,203 35,665,055
2.2 Doubtful - 1,749,577 - 324,885,240 - 326,634,817 - 326,634,817 175,111,219
2.3 Loss - 11,126,280 - 307,983,800 - 319,110,080 - 319,110,080 323,069,420
Total Loans (A) - 2,812,900,443 - 48,842,934,866 9,115,436 51,664,950,745 74,435,059 51,739,385,804 43,749,128,298
3. Loan Loss Provision
3.1 Pass Loans - 27,954,602 - 468,153,605 64,160 496,172,367 744,351 496,916,718 422,577,866
3.2 Watch-List - 164,505 - 66,624,229 134,976 66,923,710 - 66,923,710 38,299,844
3.3. Restructured/ Re-scheduled Loan - - - - - - - - -
3.4 Sub Standard - 318,596 - 15,555,206 - 15,873,802 - 15,873,802 8,916,264
3.5 Doubtful - 874,789 - 162,442,620 - 163,317,409 - 163,317,409 87,555,610
3.6 Loss - 11,126,280 - 307,983,800 - 319,110,080 - 319,110,080 323,069,420
Total Provisions (B) - 40,438,772 - 1,020,759,460 199,136 1,061,397,368 744,351 1,062,141,719 880,419,004
4. Provision upto Previous year - - - -
4.1 Pass Loans - 18,754,900 - 403,039,632 125,656 421,920,188 657,679 422,577,867 237,715,196
4.2 Watch-List 92,776 - 38,207,069 - 38,299,845 - 38,299,845 56,528,771
4.3. Restructured/ Re-scheduled Loan - - - - - - - - -
4.4 Sub Standard - 297,754 - 8,618,509 - 8,916,263 - 8,916,263 5,856,409
4.5 Doubtful - - - 87,555,610 - 87,555,610 - 87,555,610 58,800,394
4.6 Loss - 9,987,495 - 313,081,925 - 323,069,420 - 323,069,420 653,068,816
Extra Provision - - - - - - - -
Total Provision upto Previous Year (C) - 29,132,925 - 850,502,745 125,656 879,761,326 657,679 880,419,005 1,011,969,586
Addition From Acquired Entity - - - 107,383,906 - 107,383,906 - 107,383,906 98,879,132
Write back during the year - - - 196,624,456 34,501 196,658,957 - 196,658,957 466,766,494

Additional Provision during the year - 11,305,847 - 259,497,265 107,981 270,911,093 86,672 270,997,765 236,336,780
Net Change for this year - 11,305,847 - 62,872,809 73,480 74,252,136 86,672 74,338,808 (230,429,714)
115
Net Loan (A-B) - 2,772,461,671 - 47,822,175,406 8,916,300 50,603,553,377 43,634,018 50,677,244,085 42,868,709,294
Securities For
Loans, Advance
& Bills Purchase As on 31st Ashad 2074 (15th July 2017) Schedule 4.13 (A)
(A) Secured 51,730,919,192 43,749,128,298

1. Collateral of Movable/Immovable Assets 47,843,396,177 39,725,385,062
2. Guarantee of Local Licensed Institutions - -
3. Guarantee of Government of Nepal - -
4. Guarantee of Internationally Rated Banks - -
5. Export Documents - -
6. Fixed Deposit Receipts 523,967,480 247,871,048
(a) Own FDR 523,967,480 247,871,048
(b) FDR of other Banks - -
7. Government Bonds - -
8 Counter Guarantees - -
9 Personal Guarantee 42,358,741 32,596,432
10. Other Securities 3,321,196,794 3,743,275,756
(B) Unsecured 8,466,612 -
Total Loans, Advance & Bills Purchase 51,739,385,804 43,749,128,298

Fixed Assets As on 31st Ashad 2074 (15th July 2017) Schedule 4.14
PARTICULARS ASSETS (NPR) CURRENT YEAR PREVIOUS YEAR

BUILDING VEHICLE MACHINERY OFFICE EQUIPMENT OTHERS NPR NPR
1. Cost (Price)
a. Previous year’s balance 20,766,819 143,712,525 - 334,935,114 35,945,733 535,360,191 460,281,560
b. Additions this year - 33,894,534 - 77,209,145 2,972,082 114,075,761 66,642,976
c. Revaluation/Written back this year - - - - - - -
d. This Year Sold - (20,363,393) - (6,839,777) (2,748,232) (29,951,402) (38,111,478)
e. This year written off - - - - - - -
f. Addition from the Acquired Entity 6,111,943 3,464,886 - 1,234,335 658,460 11,469,624 101,721,831
Total Cost (a+b+c+d+e+f) 26,878,762 160,708,552 - 406,538,817 36,828,043 630,954,174 590,534,889
2. Depreciation
a. Upto previous year 40,732,097 - 196,419,265 21,481,488 258,632,850 247,048,261
b. For this year 1,165,673 17,600,632 - 26,513,626 2,249,852 47,529,783 35,208,021
c. Depreciation on revaluation/written back - -
d. Depreciation Adjustment/Written off - (11,645,761) - (4,479,533) (2,054,773) (18,180,067) (23,623,433)
e. From Acquired Entity - - - - - - 54,723,443
Total Depreciation 1,165,673 46,686,967 - 218,453,359 21,676,567 287,982,566 313,356,292
3. Written Down Value (1-2) 25,713,089 114,021,585 - 188,085,458 15,151,476 342,971,608 277,178,597
4. Land 90,283,399 90,283,399 60,008,399
5. Capital Construction( Capital WIP)
6. Leasehold Assets (net of amortisation) 101,133,873 101,133,873 98,346,220
Total (3+4+5+6) 534,388,880 435,533,216

117
118
Non-Banking Assets As on 31st Ashad 2074 (15th July 2017) Schedule 4.15
SUNRISE BANK LIMITED

NAME & ADDRESS OF BORROWER DATE OF ASSUMING NBA GROSS LESS: PROVISION NET NBA PREVIOUS YEAR(NPR)
NBA (NPR) % NPR NPR GROSS NET
ANNAPURNA MULTI IND P.LTD

(Ramkot-6, Kathmandu) 2014.11.06 - 100% - - 9,000,000 -
KASIKA COLLECTION CENTRE
(Madhumalla-5, Morang/Bayarban-9, Morang) 2015.07.16 6,126,746 100% 6,126,746 6,126,746 -
Nepal Pragati Nirman Sewa (Chitwan) - 100% - - 30,200,000 -
Nepal Pragati Nirman Sewa (Jhapa) 2016.07.12 9,442,739 100% 9,442,739 - 25,683,645
Fashion Check 2016.06.15 27,498,096 100% 27,498,096 - 27,498,096 -
Hem Bahadur Khadka 2016.07.14 1,999,423 100% 1,999,423 - 1,999,423 -
Amar Adharsha Ma VI (Sinamangal) 2002.12.16 3,399,739 100% 3,399,739 - 3,399,739 -
Royal Saree Enterprises 2016.12.05 6,648,767 100% 6,648,767 - - -
Himalayan Housing 2013.03.11 40,920,000 100% 40,920,000 - - -
Rajani KC 2013.03.11 33,008,235 100% 33,008,235 - - -
Athiti Party Venue 2013.03.11 20,880,000 100% 20,880,000 - - -
Shiva Shakti Imporium 2015.07.15 5,707,072 100% 5,707,072 - - -
Arun Traders 1998.07.03 2,731,543 100% 2,731,543 - - -
Nawaraj Bhadari 2014.09.01 1,558,500 100% 1,558,500 - - -
Himaliya Suit House 2015.07.04 1,527,637 100% 1,527,637 - - -
Total NBA 161,448,497 - 161,448,497 - 103,907,648 -
STRATEGIC REPORT
Other Assets As on 31st Ashad 2074 (15th July 2017) Schedule 4.16
GORVERNANCE
1. Stock of Stationery 37,292,843 24,282,198

2. Income Receivable on Investments 47,805,551 35,722,635
RISK REVIEW
3. Accrued Interest on Loans (Net off Suspense) 81,976,626 -
Accrued Interest on Loans 638,158,870 399,007,243
Less: Interest Suspense (556,182,244) (399,007,243)
4. Commision Receivable - -
5. Sundry Debtors 48,346,240 74,453,968
6. Staff Loans and Advances 323,299,436 235,593,817
Staff Loans 297,017,224 220,168,455
Staff Advances 26,282,212 15,425,362
7. Prepayments 35,613,903 15,074,987
8. Cash-in-Transit - -
Cash in Transit NPR - -
Fund in Transit IRs - -
HUMAN RESOURCE
9. Other Transit Items ( including cheques) - -
Clg items O/W NPR - -
Clg items O/W FCY - -
10. Drafts Paid Without Notice - -
11. Expenses to be Written off 62,422,158 5,892,829
12. Branch Adjustment Accounts - 155,081
PRODUCTS & SERVICES

13. Deferred Tax Asset 29,731,519 17,190,231
14. Others 466,811,272 93,902,379
a. Advance Income Tax (Net Off) 164,593,723 27,774,490
b. Others 302,217,549 66,127,889
Total Other Assets 1,133,299,548 502,268,125
FINANCIAL STATEMENT
Other Assets
(Additional Statement) As on 31st Ashad 2074 (15th July 2017) Schedule 4.16 (A)
PARTICULARS THIS YEAR NPR PREVIOUS YEAR

UPTO 1 YEAR 1 TO 3 YEARS ABOVE 3 YEARS TOTAL NPR
1. Accrued Interest on Loans 444,719,301 165,844,990 27,594,579 638,158,870 399,007,243

2. Draft Paid without Notice
3. Branch Adjustment Account - - - - 155,081
4. Local/Foreign Agency Account
Total 444,719,301 165,844,990 27,594,579 638,158,870 399,162,324
BANK'S PERFROMANCE

Contingent Liabilities As on 31st Ashad 2074 (15th July 2017) Schedule 4.17
1. Claims on Bank but not Accepted by the Bank - -

2. Letters of Credit (Full Amount) 2,391,740,248 2,509,971,149
a. Letter of Credit With Maturity Less than 6 Months 2,391,740,248 2,509,971,149
b. Letter of Credit With Maturity More than 6 Months - -
3. Rediscounted Bills -
4. Unmatured Guarantees/Bonds 9,179,212,750 5,455,715,259
a. Bid Bonds 2,930,850,942 1,191,857,119
b. Performance Bonds 6,233,994,045 4,248,947,145
c. Other Guarantee/Bonds 14,367,763 14,910,995
5. Unpaid Shares in Investment -
6. Forward Exchange Contract Liabilities 2,166,150,000 2,174,597,282
7. Bills under Collection 77,333,142 612,226,357
8. Acceptances and Endorsements 519,127,176 677,617,999
9. Underwriting Commitments
10. Irrevocable Loan Commitments 10,255,318,679 5,746,474,773
11. Guarantees issued against Counter Guarantee of In’lly Rated Foreign Banks
12. Advance Payment Guarantees 4,798,076,324 2,785,924,266
13. Financial Guarantees
14. Contingent Liabilities on Income Tax 12,518,295 15,377,566
15. Unpaid Guarantee Claims 2,750,000 -
Total Contingent Liablities 29,402,226,614 19,977,904,651

STRATEGIC REPORT
For the Period Ended 1st Shrawan 2073 to
Interest Income 31st Ashad 2074 (16th July 2016 to 15th July 2017) Schedule 4.18
GORVERNANCE
A. On Loans, Advances and Overdrafts 5,093,716,323 2,979,259,601

1. Loans & Advacnes 3,563,408,543 2,152,660,174
RISK REVIEW
2. Overdrafts 1,530,307,780 826,599,427
B. On Investment 201,650,913 106,681,258
1. Nepal Government Securities 159,023,285 96,236,701
a. Treasury Bills 13,476,525 7,774,605
b. Development Bonds 142,187,219 68,165,272
c. National Savings Certificates 590,261 258,501
d. Reverse Repo & Deposit Collection 2,769,280 20,038,323
2. Foregin Securities 2,201,768 -
a. Foreign Bonds 2,201,768
b. ………………
3. Nepal Rastra Bank Bonds 9,662,379 -
HUMAN RESOURCE
5. Interest on Interbank Placements 30,763,481 10,444,557
a. Bank/ Financial Institutions 30,763,481 10,444,557
b. Other Institutions - -
C. On Agency Balances 177,833 510,115
1. Local Banks/Financial Institutions - -
2. Foreign Banks 177,833 510,115
PRODUCTS & SERVICES

D. Money at Call and Short Notice 33,201 77,645
1. Local Banks/Financial Institutions 33,201 77,645
2. Foreign Banks - -
E. On Others 10,577,392 9,020,418
1. Local Banks/Financial Institutions - -
2. Foreign Banks - -
FINANCIAL STATEMENT
3. Others 10,577,392 9,020,418
Total Interest Income 5,306,155,662 3,095,549,037
BANK'S PERFROMANCE

Interest Expenses 31st Ashad 2074 (16th July 2016 to 15th July 2017) Schedule 4.19
A. On Deposit Liablity 3,110,863,617 1,590,152,434

1. Fixed Deposits 2,241,802,945 1,102,076,355
1.1 Local Currency 2,223,858,659 1,085,562,836
1.2 Foreign Currency 17,944,286 16,513,519
2. Savings Deposits 561,451,169 322,960,519
2.1 Local Currency 560,716,096 322,339,601
2.2 Foreign Currency 735,073 620,918
3. Call Deposits 307,609,503 165,115,560
3.1 Local Currency 305,868,761 163,170,245
3.2 Foreign Currency 1,740,742 1,945,315
4. Certificate Of Deposits
B. On Borrowings 2,569,111 1,824,544
2. Loan From Nepal Rastra Bank - -
3. Inter Bank Borrowings 2,569,111 1,824,544
4. Other Organized Institutions - -
5. Other Loans - -
C. On Others - -
Total Interest Expenses 3,113,432,728 1,591,976,978
Commission For the Period Ended 1st Shrawan 2073 to

& Discount 31st Ashad 2074 (16th July 2016 to 15th July 2017) Schedule 4.20
A. Bills Purchased And Discounted 2,048,092 523,848

1. Local - 523,848
2. Foreign 2,048,092 -
B. Commission 173,883,712 138,253,202
1. Letters Of Credit 41,138,574 24,820,215
2. Guarantees 124,530,733 101,455,701
3. Collection Fees - 4,119,665
4. Remittance Fees 7,990,499 7,857,621
5. Credit Cards 223,906 -
6. Share Underwriting /Issues - -
7. Government Transactions - -
8. Agency Commission - -
9. Exchange Fee - -
C. Others 34,539,483 21,996,092
Total Commission & Discount 210,471,287 160,773,142

STRATEGIC REPORT
Other
For the Period Ended 1st Shrawan 2073 to 31st Ashad
Operating Income 2074 (16th July 2016 to 15th July 2017) Schedule 4.21
GORVERNANCE
1. Rental on Safe Deposit Lockers 5,475,155 5,698,509

2. Issue and Renewal of Credit Cards 126,000 -
3. Issue and Renewal of ATM Cards 90,038,782 98,586,342
RISK REVIEW
4. Telex/ T. T. 9,654,251 5,511,665
5. Service Charges 220,821,969 163,357,359
6. Renewal Fees - -
7. Others 3,441,620 5,885,563
Total Other Operating Income 329,557,777 279,039,438
Exchange
Fluctuation Income
31st Ashad 2074 (16th July 2016 to 15th July 2017) Schedule 4.22

HUMAN RESOURCE
A. Revaluation Gain 7,147,455 18,429,380

B. Trading Gain (Except exchange fees) 122,992,399 96,906,806
Total Forex Income 130,139,854 115,336,186
PRODUCTS & SERVICES

Staff Expenses For the Period Ended 1st Shrawan 2073 to 31st Ashad Schedule 4.23
2074 (16th July 2016 to 15th July 2017)
FINANCIAL STATEMENT

1. Salary 212,402,817 168,343,455

2. Allowances 182,875,636 148,430,442
3. Contribution to Provident Fund 17,223,215 13,506,795
4. Training Expenses 12,504,528 7,097,790
5. Uniform 7,661,400 - INVESTOR'S RELATIONSHIP
6. Medical - -
7. Insurance 6,629,710 5,622,810
8. Pension and Gratuity Expenses 3,678,686 8,359,900
9. Others 8,243,638 4,271,797
Total staff Expense 451,219,630 355,632,989
BANK'S PERFROMANCE

Office
Overhead Expenses

PARTICULARS CURRENT YEAR (NPR) PREVIOUS YEAR NPR
1. House Rent 71,934,632 60,839,612

2. Electricity and Water 17,899,950 11,537,421
3. Repairs and Maintenance 27,484,183 14,280,172
a. Building 1,025,632 2,160,964
b. Vehicles 1,259,958 1,064,609
c. Others 25,198,593 11,054,599
4. Insurance 24,678,560 18,840,201
5. Postage, Telex, Telephone, Fax 15,828,742 8,913,222
6. Office Equipment, Furniture & Repairs 19,854,886 13,894,644
7. Travelling Allowance and Expenses 17,066,228 7,445,062
8. Printing and Stationery 23,548,053 16,928,805
9. Books and Periodicals 56,765 172,970
10. Advertisements 27,933,792 20,358,526
11. Legal Fees 1,406,805 1,195,570
12. Donations - -
13. Expenses Relating to Board of Directors 3,011,626 3,131,786
a. Meeting Fees 2,004,000 2,514,000
b. Other Expenses 1,007,626 617,786
14. Annual General Meeting Expenses 2,051,337 1,343,066
15. Expenses Relating to Audit 1,930,000 1,412,500
a. Audit Fees 1,130,000 1,130,000
b. Other Expenses 800,000 282,500
16. Fund Transfer Expense - -
17. Depreciation on Fixed Assets 47,529,783 35,208,020
18. Amortization of Preliminary Expenses - -
19. Share Issue Expenses - -
20. Professional Fees 6,645,228 8,746,356
21. Entertainment 696,866 937,998
22. Amortization Expenses 31,937,338 28,344,824
23. Security Expenses 57,057,651 43,504,856
24. Credit Guarantee Premium - -
25. Commission and Discount 15,423,640 11,541,341
26. Others Expenses 131,952,227 117,405,018
a. Registration Fees 4,169,990 2,194,084
b. Expense for Capital Items 1,194,133 708,220
c. ATM and Card Related Expenses 62,945,241 69,280,603
d. Lease Rental Expenses 12,822,875 10,277,548
e. Subscription Fees 5,267,128 2,643,751
f. Fuel 11,756,703 12,719,871
g. Others 33,796,157 19,580,941
Total Office Overhead Expenses 545,928,292 425,981,970

STRATEGIC REPORT
Provision For the Period Ended 1st Shrawan 2073 to 31st Ashad 2074
For Possible Loss (16th July 2016 to 15th July 2017) Schedule 4.25
GORVERNANCE
1. Increase in Loan Loss Provision 270,997,765 236,336,780

2. Increase in Provision for Loss on Investment 575,715 -
3. Provision for Non Banking Assets 9,623,831 85,381,163
RISK REVIEW
4. Provision for Other Assets 393,810 -
Total Provision For Possible Loss 281,591,121 321,717,943
Non Operating Income
1. Profit (Loss) on Sale of Investments 13,435,964 -

2. Profit (Loss) on Sale of Assets 456,641 80,847
3. Dividend 1,082,592 351,500
HUMAN RESOURCE
4. Subsidies Received from Nepal Rastra Bank - -
5. Others 17,246,754 884,247
Total Non Operating Income 32,221,951 1,316,594
PRODUCTS & SERVICES

Provision Write Back
2074 (16th July 2016 to 15th July 2017) Schedule 4.27
1. Loan Loss Provision Written Back 196,658,957 466,766,494

2. Provision against Non Banking Assets Written Back 83,064,970 89,638,851
FINANCIAL STATEMENT
3. Provision against Investment Written Back - -
4. Provision against Other Assets Written Back - -
Total Provision Write Back 279,723,927 556,405,345
Extra-Ordinary

Income/(Loss) 2074 (16th July 2016 to 15th July 2017)

Schedule 4.28
1. Recovery of Loan Written off - 5,630,227

2. Voluntary Retirement Scheme Expenses - -
3. Loan Write Offs { Refer Schedule 4.28 (Ka)} (85,025,124) (8,860,391)
BANK'S PERFROMANCE
4. Other Expense/Income - -
5. Write off of Expenes to be Written off (503,342) -
Total Extra Ordinary Income (85,528,466) (3,230,164)

126
Details Of Loan Write Off 2074 (16th July 2016 to 15th July 2017) Schedule 4.28ka

CUSTOMER LOAN TYPE AMOUNT TYPE BASIS OF LOAN INITATION MADE FOR RECOVERY BY REMARKS
OF VALUATION APPROVED
SECURITY
Dineshwor Bhakta Personal Loan 177,412.12 Land Engineer Chief Executive 35 days public notice published on 2069-08-12, FAC had been transfred to NBA value
Shrestha (W.C) Officer (NCML)* 35 days auction notice published on 2070-08-14, NPR 17,06,250.00 on 2071-05-11 and
15 days auction notice on 2071-02-26 and 7 days sold through auction notice of
auction notice published on 2071-04-7 2072-08-26

Harishova Shrestha Personal Loan 478,997.34 Land Engineer Chief Executive 35 days public notice published on 2069-08-12, FAC had been transfred to NBA value
(W.C) Officer (NCML) 35 days auction notice published on 2070-08-14, NPR 17,06,250.00 on 2071-05-11 and
Prakash Bhakta Shrestha Personal Loan 877,290.39 Land Engineer Chief Executive 35 days public notice published on 2069-08-12, FAC had been transfred to NBA value
(W.C) Officer (NCML) 35 days auction notice published on 2070-08-14, NPR 15,75,000.00 on 2071-05-11 and
Bishwo Ram Khati Personal Loan 1,404,125.03 Land Engineer Chief Executive 35 days public notice published on 2069-05-30, FAC had been transfred to NBA value
(W.C) Officer (NCML) 35 days public notice republished on 2070- NPR 26,66,000.00 on 2071-05-12 and
03-09, 35 days auction notice published on sold through auction notice of
2070-07-28 , 15 days auction notice published on 2072-05-3
2070-09-07 .
Krishna Kumar Nepal Personal Loan 1,405,931.51 Land Engineer Chief Executive 35 days public notice published on 2069-05-30, FAC had been transfred to NBA value
03-09, 35 days auction notice published on sold through auction notice of
2070-07-28 , 15 days auction notice published on 2072-05-3
2070-09-07 .
Nawa Raj Bhandari Personal Loan 748,691.14 Land Engineer Chief Executive 35 days public notice published on 2069-05-30, FAC had been transfred to NBA value
03-09, 35 days auction notice published on sold only lot no 5120 and 5126 through
2070-07-28 , 15 days auction notice published on auction notice of 2073-03-02
2070-09-07 .
Gokul Khulal Hire Purchase 1,293,147.09 vehicle Vendor Quo- Chief Executive 35 days auction notice on 2070-08-10, 35 days Ba.8 cha 3956 Maruti Astar Zxi car
tation Officer (NCML) auction notice on 2071-04-09, 15 days auction auction sold to Rubin Gopal Jha
notic on 2071-06-28 through auction notice of 2071-06-28
(tender value 5,25,000.00)
Ram Bd. Khadka Hire Purchase 477,945.08 vehicle Cube Interna- Chief Executive 35 days public notice on 2070-11-12, 35 days Na. 3 Kha 68 Eicher bus auction sold
tional Pvt. Ltd Officer (NCML) auction notice on 2071-01-17, 15 days auction to Santosh Panjiyar through auction
(Eicher dealer) notice on 2071-05-17 notice of 2071-05-17 (tender value
145000.00)
Man Kumar Dahal Hire Purchase 740,800.53 vehicle Cube Interna- Chief Executive 35 days public notice on 2070-10-24, 35 days Na. 3 Kha 75 Eicher bus auction sold to
tional Pvt. Ltd Officer (NCML) auction notice on 2070-11-22, 15 days auction Nabindra Bikram Shah through auction
(Eicher dealer) notice on 2071-02-08 notice of 2071-02-08 (tender value
310,000.00)
Contd... Details Of Loan Write Of

CUSTOMER LOAN TYPE AMOUNT TYPE BASIS OF LOAN INITATION MADE FOR RECOVERY BY
OF VALUATION APPROVED REMARKS
SECURITY
Madhav Dhital Hire Purchase 539,834.01 vehicle Vendor Chief Executive 35 days public notice on 2066-11-04, 35 days Na. 3 Kha 69 Eicher bus auction sold
Quotation Officer (NCML) auction notice on 2070-11-22, 15 days auction to Harihar Nath Yogi through auction
notice on 2071-02-23 notice of 2071-02-23 (tender value
4,10,000.00)
Tara Devi Shakya Hire Purchase 1,462,042.83 vehicle Vendor Chief Executive 35 days public notice on 2069-06-12,35 days Na. 3 Kha, 80 Eicher bus auction sold
Quotation Officer (NCML) auction notice on 2070-06-17, 15 days auction to Binod Roy through auction notice of
notice on 2070-09-23, 2070-09-17 (tender value 1,47,000.00)
Uddhav Pd. Timlsina Hire Purchase 1,979,920.81 vehicle Cube Interna- Chief Executive 35 days public notice on 2069-06-12,35 days Na. 3 Kha, 66 Eicher bus auction sold
tional Pvt. Ltd Officer (NCML) auction notice on 2070-06-17, 15 days auction to Dilli Raj Chhetri through auction
(Eicher dealer) notice on 2070-09-23, notice of 2070-09-17 (tender value
70,000.00)
Rajesh Kumar Manandhar Personal Loan 2,763,160.49 Land Engineer Chief Executive 35days Public notice on 2069-02-07 , 35 Auction FAC had been transfred to NBA value
(W.C) Officer (NCML) Notice on 2071-03-26 , 15 days auction notice on NPR 30,37,000.00 on 2072-12-24 and
2071-05-08 sold through auction notice of 2073-
11-22
Three N Traders Personal Loan 2,124,372.98 Land Engineer Chief Executive 35 days notice public notice published on FAC sold through auction notice 2071-
(W.C) Officer (NCML) 2069-02-12, 35 days auction notice published 09-08 to Radha Ghale, Tender value
on 2070-07-22, 7 auction notice published on 26,00,000.00
2070-08-21,15 days auction notice published on
2071-09-08
Bimala Gautam Hire Purchase 0.05 vehicle Vendor Chief Executive loan settled by client
Quotation Officer (NCML)
Bidur Dhital Hire Purchase 613,315.97 vehicle Vendor Chief Executive 35 days auction notice on 2071-05-21,15 days Tripper ba. 2 Kha. 8883 auction sold
Quotation Officer (NCML) auction notice on 2071-08-04 & 2072-02-09 through notice of 2072-02-09 to Bibek
shrestha (Tender value N 10,17,777.00)
Ratna Kumar Gautam-Hire Hire Purchase 2,039,588.58 vehicle Vendor Chief Executive 35 days auction notice on 2071-05-21,15 days Tripper ba. 2 Kha. 8881 auction sold
Purchase Quotation Officer (NCML) auction notice on 2071-08-04 & 2072-02-09 through notice of 2072-02-09 to
Bibek shrestha (Tender value NPR
10,17,777.00)
Hotel Stupa Personal Loan 9,425.00 Land Engineer Chief Executive Notice published bill payment after loan
(W.C) Officer (NCML) settlement by client
Nanu Maya Joshi Personal Loan 8,009,888.88 Land Engineer Chief Executive 35 days public notice published on 2069-02-12,35 FAC had been transfred to NBA value
(W.C) Officer (NCML) days action notice published on 2070-05-14,15 NPR37,70,000.00 on 2072-03-13 and
days auction notice published on 2070-08-08, sold through auction notice of
072-12-22
Surya Trade (Rishav Personal Loan 3,617,758.93 Land Engineer Chief Executive 35 days public notice on 2069-08-12 & 2070-05- FAC sold through auction notice
Shrestha) (W.C) Officer (NCML) 20, 35 days auction notice on 2070-05-20, 7 days 2072-02-26 to Bhim Lal Maharjan ,
auction notice on 2071-04-07, 7 days auction Tender value 55,00,000.00
notice on 2072-02-26
Shiva Shakti Emporium Personal Loan 2,000.00 Land Engineer Chief Executive Blacklisting charges after NBA Booking

(W.C) Officer (NCML)
127
128
CUSTOMER LOAN TYPE AMOUNT TYPE BASIS OF LOAN INITATION MADE FOR RECOVERY BY
OF VALUATION APPROVED REMARKS
SECURITY
Samriddhi Nepal Personal Loan 21,665,081.84 Land Engineer CEO, Loan 35 days public notice published on 2068-09-29, FAC had been transfred to NBA value
International Pvt. Ltd. (W.C) Committee,and 35 days auction notice published on 2069-09- NPR 2,78,62,000.00 and sold
BOD (NCML) 29, 15 days action notice on 2069-11-12, 7 days
auction notice published on 2072-03-03,
NB Hosiyeri Personal Loan 2,378,035.81 Land Engineer Chief Executive 35 days notice public notice published on FAC had been transfred to NBA value

(W.C) Officer (NCML) 2067-06-08, 35 days auction notice published NPR 5,12,000.00 on 2072-06-06 and
on 2067-06-08, 15 auction notice published on sold
2071-11-07,7 days auction notice published on
2072-04-18 & 2072-05-09
Rami Gautam Personal Loan 23,784,177.92 Land Engineer Chief Executive 35 days public notice published on 2068-12-14, 35 FAC sold through auction notice of
(W.C) Officer (NCML) days auction notice published on 2069-02-19 ,15 2072-04-27 to Januki Khatri Tender
days auction notice published on 2069-12-01, 35 value 1,28,00,000.00
days auction notice 2072-04-27
Parbati Khatri Personal Loan 1,292,652.75 Land Engineer Chief Executive 35 days public notice2069-06-12, 35 days auction Na. 3 Kha, 81 Eicher bus auction sold
(W.C) Officer (NCML) notice on 2070-05-31, 15 days auction notice on to Yugal Kishor Mahato through
2070-09-23, 2071-10-05, 2071-02-08, auction notice of 2072-04-18 (tender
2071-08-04, 2071-11-05, 2072-02-19, 7 days value 65,000.00)
auction notice on 2072-04-18
Ram Jamuna Enterprises Personal Loan 5,139,527.20 Land Engineer CEO, Loan 35 days public notice published on 2069-02-12,35 FAC had been transfred to NBA value
(W.C) Committee,and days action notice published on 2069-04-13,15 NPR 61,20,000.00 and sold through
BOD (NCML) days auction notice published on 2070-08-08 auction notice of 072-12-22
* NCML refers ‘NIDC Capital Markets Ltd’

* Loans & advances in Chronic Status carried forwarded from NIDC Capital Markets Ltd NPR 58,025,124 are written off after assessing their recovery condition.
Statement Of Loans & Advances Extended To Directors/Chief
Executive/Promoters/Employees And Shareholders Holding
More Than 1 Percent Shares As on 31st Ashad 2074 (15th July 2017) Schedule 4.29
The Statement of amount include under total amount of Bills purchases & Discounted , Loans, Advances and Overdraft, provided to Directors, Chief Executives, Promoters,
Employees, Shareholders holding more than 1% shares and to the individual member of their undivided family or against the guarantee of such persons or to the Organisation or
Companies in which such individuals are managing agent are as follows.
LAST YEAR BALANCE THIS YEAR RECOVERY THIS YEAR DISBURSHMENT THIS YEAR BALANCE
NAME PRINCIPAL INTEREST PRINCIPAL INTEREST PRINCIPAL PRINCIPAL INTEREST
NPR NPR NPR NPR NPR NPR NPR
(A) Directors - - - - - - -
1
2
3
(B) Chief Executive - - - - - - -
1
2
3
(C) Promoters - - - - - - -
1
2
3
(D) Employees - - - - - - -
1
2
3
(E) Shareholders holding more than 1% Shares - - - - - -
1
2
3
.

129
Capital ( After Adjustment of 3% in Operational Risk & 3% onTotal RWE)
Adequacy Table As on 31st Ashad 2074 (15th July 2017) Schedule 4.30 (A)
Amount in Thousand
1.1 Risk Weighted Exposure

a. Risk Weighted Exposure for Credit Risk 62,878,374 49,868,023
b. Risk Weighted Exposure for Operational Risk 2,552,530 2,198,900
c. Risk Weighted Exposure for Market Risk 81,250 174,330
Adjustments under Pillar II
ALM policies & practices are not satisfactory, add 1% of net interest income to RWE 15,036 11,063
Add :% of the total deposits due to insufficient Liquid Assets - -
3% additional risk weight for Operational Risk 619,811 447,570
3% adjustment on Total RWE 1,965,365 1,567,238
Total Risk Weighted Exposures (After Bank’s adjustments of Pillar II) 68,112,366 54,267,124
1.2 Capital
Core Capital (Tier 1) 9,117,774 6,041,887
a. Paid up Equity Share Capital 7,018,105 3,976,046
b. Irredeemable Non-cumulative preference shares - -
c. Share Premium - -
d. Proposed Bonus Equity Shares 1,063,377 1,325,349
e. Statutory General Reserves 1,157,526 774,260
f. Retained Earnings 13,700 15,997
g. Un-audited current year cumulative profit - -
h. Capital Redemption Reserve - -
i. Capital Adjustment Reserve - -
j. Dividend Equalization Reserves - -
k. Other Free Reserve 29,732 14,034
l . Less: Goodwill - -
m. Less: Fictitious Assets (3,890) -
n. Less: Deferred Tax Assets (29,732) (17,190)
o. Less: Investment in equity in licensed Financial Institutions - -
p. Less: Investment in equity of institutions with financial interests (98,429) (19,858)
q. Less: Investment in equity of institutions in excess of limits - (1,000)
r. Less: Investments arising out of underwriting commitments - -
s. Less: Reciprocal crossholdings - -
t. Less: Other Deductions (32,615) (25,751)
Adjustments under Pillar II
Less: Shortfall in Provision (6.4 a 1) - -
Less: Loans & Facilities extended to Related Parties & Restricted lending (6.4 a 2) - -
Supplementary Capital (Tier 2) 736,938 499,859
a. Cumulative and/or Redeemable Preference Share
b. Subordinated Term Debt
c. Hybrid Capital Instruments
d. General loan loss provision 563,840 460,878
e. Exchange Equalization Reserve 22,968 21,182
f. Investment Adjustment Reserve 150,130 17,799
g. Assets Revaluation Reserve
h. Other Reserves
Total Capital Fund 9,854,712 6,541,746
1.3 Capital Adequacy Ratios
Tier 1 Capital to Total Risk Weighted Exposures (After Bank’s adjustments of Pillar II) 13.39% 11.13%
Tier 1 and Tier 2 Capital to Total Risk Weighted Exposures(After Bank’s 14.47% 12.05%
adjustments of Pillar II)

Risk Weighted Exposure
For Credit Risk As on 31st Ashad 2074 (15th July 2017) Schedule 4.30(B)
Amount in Thousand
CURRENT YEAR PREVIOUS YEAR

PARTICULARS GROSS BOOK SPECIFIC ELIGIBLE NET VALUE RISK WEIGHT RISK WEIGHT NET RISK WEIGHTED
VALUE (A) PROVISION (B) CRM (D) (A-B-C) (E) EXPOSURE (D *E) VALUE EXPOSURE
A. Balance Sheet Exposure

Cash Balance 1,473,431 - - 1,473,431 0% - 1,167,578 -
Balance With Nepal Rastra Bank 7,496,219 - - 7,496,219 0% - 3,809,455 -
Gold 2,083 - - 2,083 0% - 1,952 -
Investment in Nepalese Government Securities 5,675,291 - - 5,675,291 0% - 3,795,554 -
All Claims on Government of Nepal 94,525 - - 94,525 0% - 90,614 -
Investment in Nepal Rastra Bank securities - - - - 0% - 1,630,350 -
All claims on Nepal Rastra Bank - - - - 0% - - -
Claims on Foreign Government and Central Bank (ECA 0-1) - - 0% - - -
Claims on Foreign Government and Central Bank (ECA -2) - - - 20% - - -
Claims on Foreign Government and Central Bank(ECA -3) - - - 50% - - -
Claims on Foreign Government and Central Bank(ECA-4-6) - - - 100% - - -
Claims on Foreign Government and Central Bank(ECA -7) - - - 150% - - -
Claims On BIS, IMF, ECB, EC and on Multilateral
Development Banks (MDB’s) recognized by the framework - - 0% - - -
Claims on Other Multilateral Development Banks - - - 100% - - -
Claims on Public Sector Entity (ECA 0-1) - - - 20% - - -
Claims on Public Sector Entity (ECA 2) - - - 50% - - -
Claims on Public Sector Entity (ECA 3-6) - - - 100% - - -
Claims on Public Sector Entity (ECA 7) - - - 150% - - -
Claims on domestic banks that meet capital adequacy
requirements 446,045 - 446,045 20% 89,209 1,141,775 228,355
Claims on domestic banks that do not meet capital
adequacy requirements - - - 100% - 27,909 27,909
Claims on foreign bank (ECA Rating 0-1) 2,328,056 - 2,328,056 20% 465,611 1,920,898 384,180
Claims on foreign bank (ECA Rating 2) 1,058,013 - 1,058,013 50% 529,006 1,044,738 522,369
Claims on foreign bank (ECA Rating 3-6) - - - 100% - - -
Claims on foreign bank (ECA Rating 7) - - - 150% - - -

Contd... Risk Weighted Exposure For Credit Risk
131
132
Claims on foreign bank incorporated in SAARC region

operating with a buffer of 1% above their respective
regulatory capital requirement 209,618 - 209,618 20% 41,924 81,576 16,315

Claims on Domestic Corporates 21,163,768 97,097 21,066,671 100% 21,066,671 23,459,387 23,459,387
Claims on Foreign Corporates (ECA 0-1) - - - 20% - - -
Claims on Foreign Corporates (ECA-2) - - - 50% - - -
Claims on Foreign Corporates (ECA 3-6) - - - 100% - - -
Claims on Foreign Corporates (ECA 7) - - - 150% - - -
Regulatory Retail Portfolio (Not Overdue) 16,588,263 31 765,465 15,822,767 75% 11,867,075 8,138,899 6,104,174
Claims fulfilling all criterion of regulatory retail
except granularity - - - - 100% - - -
Claims secured by residential properties 6,584,442 - - 6,584,442 60% 3,950,665 5,480,459 3,288,275
Claims not fully secured by residential properties - - - - 150% - - -
Claims secured by residential properties (Overdue) 60,730 3,384 - 57,346 100% 57,346 24,187 24,187
Claims secured by Commercial real estate 2,924,880 - - 2,924,880 100% 2,924,880 2,509,100 2,509,100
Past due claims (except for claim secured by
residential properties) 893,981 494,797 - 399,184 150% 598,776 152,760 229,139
High Risk claims (Venture capital, private equity
investments, personal loans and credit card receivables) 3,428,795 4 - 3,428,791 150% 5,143,187 2,811,630 4,217,445
Investments in equity and other capital instruments of
institutions listed in the stock exchange 139,743 - 139,743 100% 139,743 94,927 94,927
institutions not listed in the stock exchange 160,999 - 160,999 150% 241,499 18,653 27,979
Staff Loan secured by residential property 231,877 231,877 60% 139,126 159,835 95,901
Interest receivable/claim on government securities 38,616 38,616 0% - 35,723 -
Cash in transit and other cash items in the process of
collection - - - 20% - - -
Other Assets 2,530,285 1,315,680 - 1,214,605 100% 1,214,605 813,760 813,760
Total 73,529,659 1,813,896 862,563 70,853,201 48,469,323 58,411,717 42,043,402


B. Off Balance Sheet Exposure

Revocable Commitments - - 0% - - -
Bills Under Collection 77,333 77,333 0% - 612,226 -
Forward Exchange Contract Liabilities 2,166,150 - 2,166,150 10% 216,615 2,174,597 217,460
LC Commitments With Original Maturity Up to
6 months (domestic counterparty) 2,391,740 391,069 2,000,671 20% 400,134 2,291,320 458,264
foreign counterparty (ECA Rating 0-1) - 20% - - -
foreign counterparty (ECA Rating- 2) - 50% - - -
foreign counterparty (ECA Rating-7) - 150% - - -
LC Commitments With Original Maturity Over
6 months (domestic counterparty) - 50% - - -
“ Bid Bond, Performance Bond and Counter guarantee
(domestic counter party) “ 9,179,213 265,540 8,913,673 50% 4,456,837 5,256,419 2,628,210
foreign counterparty (ECA Rating -7) - 150% - - -
Underwriting commitments - 50% - - -
Lending of Bank’s Securities or Posting of
Securities as collateral - 100% - - -
Repurchase Agreements, Assets sale with recourse
(including repo/ reverse repo) - 100% - - -
Advance Payment Guarantee 4,798,076 103,790 4,694,286 100% 4,694,286 2,711,142 2,711,142
Financial Guarantee - 100% - - -
Acceptances and Endorsements 519,127 - 519,127 100% 519,127 644,872 644,872
Unpaid portion of Partly paid shares and Securities - 100% - - -
Irrevocable Credit commitments (Short term) 3,412,084 - 3,412,084 20% 682,417 5,746,475 1,149,295

Irrevocable Credit commitments (long term) 6,843,235 - 6,843,235 50% 3,421,617 - -
133
134


Other Contingent Liabilities 12,518 - 12,518 100% 12,518 15,378 15,378
Unpaid Guarantee Claims 2,750 2,750 200% 5,500 - -
Total 29,402,226 - 760,399 28,641,826 14,409,051 19,452,429 7,824,621
Total RWE for credit Risk (A) +(B) 102,931,885 1,813,896 1,622,962 99,495,027 62,878,374 77,864,146 49,868,023
Adjustments under Pillar II - -
Add: 10% of the loan and facilities in
excess of Single Obligor Limits(6.4 a 3) - - - - - - -
Add: 1% of the contract(sale) value in case of
the sale of credit with recourse (6.4 a 4) - - - - - -
Total RWE for credit Risk (After Bank’s
adjustments of Pillar II) 102,931,885 1,813,896 1,622,962 99,495,027 62,878,374 77,864,146 49,868,023
Eligible Credit Risk Mitigants As on 31st Ashad 2074 (15th July 2017) Schedule 4.30C
Amount in NPR Thousand
DEPOSITS DEPOSITS GOVT.& G’TEE OF SEC/G’TEE G’TEE OF G’TEE OF SEC/G’TEE

CREDIT EXPOSURES WITH BANK WITH OTHER GOLD NRB GOVT. OF OF OTHER DOMESTIC MDBS OF FOREIGN TOTAL
BANKS/FI SECURITIES NEPAL SOVEREIGNS BANKS BANKS
(a) (b) (c) (d) (e) (f) (g) (h) (i)

Balance Sheet Exposures -
Cash Balance -
Balance with Nepal Rastra Bank -
Gold -
Investment in Nepalese Government Securities -
All Claims on Government of Nepal -
Investment in Nepal Rastra Bank securities -
All claims on Nepal Rastra Bank -
Claims on Foreign Government Securities (ECA 0-1) -
Claims on Foreign Government Securities (ECA -2) - - - - - - - - - -
Claims on Foreign Government Securities (ECA-4-6) - - - - - - - - - -
Claims On BIS, IMF, ECB, EC and on Multilateral Development
Banks (MDB’s) recognized by the framework - - - - - - - - - -
Claims on Other Multilateral Development Banks - - - - - - - - - -
Claims on Public Sector Entity (ECA 0-1) - - - - - - - - - -
Claims on Public Sector Entity (ECA 2) - - - - - - - - - -
Claims on Public Sector Entity (ECA 3-6) - - - - - - - - - -
Claims on Public Sector Entity (ECA -7) - - - - - - - - - -
Claims on domestic banks that meet capital
adequacy requirements - - - - - - - - - -
Claims on domestic banks that do not meet capital
adequacy requirements - - - - - - - - - -
Claims on foreign bank (ECA Rating 0-1) - - - - - - - - - -
Claims on foreign bank (ECA Rating 2) - - - - - - - - - -
Claims on foreign bank (ECA Rating 3-6) - - - - - - - - - -
Claims on foreign bank (ECA Rating- 7) - - - - - - - - - -

135
Contd... ELIGIBLE CREDIT RISK MITIGANTS
136
regulatory capital requirement - - - - - - - - - -

Claims on Domestic Corporates 39,967 - - - - - - - - 39,967
Claims on Foreign Corporates (ECA 0-1) - - - - - - - - - -
Claims on Foreign Corporates (ECA 2) - - - - - - - - - -
Claims on Foreign Corporates (ECA 3-6) - - - - - - - - - -

Claims on Foreign Corporates (ECA -7) - - - - - - - - - -
Regulatory Retail Portfolio (Not Overdue) 35,010 - 389,825 - - - - - - 424,835
Regulatory Retail Portfolio (Overdue) - - - - - - - - - -
Claims fulfilling all criterion of regulatory retail
except granularity - - - - - - - - - -
Claims secured by residential properties - - - - - - - - - -
Claims no fully secured by residential properties - - - - - - - - - -
Claims secured by residential properties (Overdue) - - - - - - - - - -
Claims secured by Commercial real estate - - - - - - - - - -
Past due claims
(except for claim secured by residential properties) -
High Risk claims (Venture capital, private equity
investments, personal loans and credit card receivables) 19,500 - 133 - - - - - - 19,633
institutions not listed in the stock exchange - - - - - - - - - -
institutions listed in the stock exchange - - - - - - - - - -
Other Assets (as per attachment) -
Total (A) 94,477 - 389,958 - - - - - - 484,435
Off Balance Sheet Exposures
Revocable Commitments -
Bills Under Collection -
Forward Exchange Contract Liabilities -
LC Commitments With Original Maturity Up to 6 months
(domestic counterparty) 94,016 94,016
foreign counterparty (ECA Rating 0-1) -
foreign counterparty (ECA Rating-2) -


foreign counterparty (ECA Rating- 7) -

LC Commitments With Original Maturity Over 6 months
(domestic counterparty) -
foreign counterparty (ECA Rating 2) -
foreign counterparty (ECA Rating -7) -
Bid Bond, Performance Bond and Counter guarantee
(domestic counter party) 175,162 175,162
foreign counterparty (ECA Rating -2) -
foreign counterparty (ECA Rating 3-6 ) -
foreign counterparty (ECA Rating- 7) -
Underwriting commitments -
Lending of Bank’s Securities or Posting of Securities
as collateral -
Repurchase Agreements, Assets sale with recourse
(including repo/ reverse repo) -
Advance Payment Guarantee 12,243 12,243
Financial Guarantee -
Acceptances and Endorsements 7,228 7,228
Unpaid portion of Partly paid shares and Securities -
Irrevocable Credit commitments (Short term) -
Irrevocable Credit commitments (long term) -
regulatory capital requirement -
Other Contingent Liabilities -
Total (B) 288,649 - - - 0% - - - - 288,649
Grand Total (C=A+B) 383,126 - 389,958 - 0% - - - - 773,084

137
For Operation Risk As on 31st Ashad 2074 (15th July 2017) Schedule 4.30 (D)
Amount in Thousand
PARTICULARS FY 2070/71 FY 2071/72 FY 2072/73 FOR PREVIOUS YEAR
Net Interest Income 1,095,134 1,106,300 1,503,572

Commission and Discount Income 104,093 119,378 160,773
Other Operating Income 141,288 187,273 279,039
Exchange Fluctuation Income 63,213 80,316 115,336
Additional/Deduction in Interest Suspense during the period 143,391 (1,367) 7,316
Gross income (a) 1,547,120 1,491,900 2,066,036 -
Alfa (b) 15% 15% 15% 15%
Fixed Percentage of Gross Income [c=(a×b)] 232,068 223,785 309,906 -
Capital Requirement for operational risk (d) (average of c) 255,253 219,890
Risk Weight (reciprocal of capital requirement of 10%) in times (e) 10 10
Equivalent Risk Weight Exposure [f=(d×e)] 2,552,530 2,198,900
PILLAR-II ADJUSTMENTS
If Gross Income for all the last three years is negative(6.4 a 8) - -
Total Credit and Investment (net of Specific Provision) - -
Capital Requirement for operational risk (5%) - -
Risk Weight (reciprocal of capital requirement of 10%) in times - -
Equivalent Risk Weight Exposure [g] - -
Equivalent Risk Weight Exposure [h=f+g)] 2,552,530 2,198,900

STRATEGIC REPORT
GORVERNANCE
For Market Risk As on 31st Ashad 2074 (15th July 2017) Schedule 4.30 (E)
Amount in Thousand
ASHADH END 2074 PREVIOUS YEAR

CURRENCY OPEN POSITION RATE OPEN POSITION RELEVANT OPEN RELEVANT OPEN
RISK REVIEW
(FCY) (LCY) POSITION POSITION
INR 78,414.61 1.6008 125,522 125,522 339,371

USD 273.15 103.1500 28,175 28,175 3,052
GBP 8.55 134.6329 1,151 1,151 149
EUR 10.77 117.8964 1,270 1,270 825
THB 12.54 2.9987 38 38 115
CHF 1.00 106.8042 107 107 226
AUD 10.83 80.4887 871 871 719
CAD 4.16 81.4136 339 339 434
SGD 0.05 75.0953 4 4 9
JPY 2,248.48 0.9129 2,053 2,053 869
HKD 0.98 13.1354 13 13 20
HUMAN RESOURCE
DKK 129.94 15.7307 2,044 2,044 621
SEK - 12.3446 - - 0
SAR 10.44 27.1512 283 283 804
QAR 1.07 27.6877 29 29 138
AED 4.78 27.7137 133 133 300
MYR 8.76 23.8328 209 209 426
PRODUCTS & SERVICES

KRW - 0.0889 - - 103
CNY 2.05 15.0627 31 31 45
KWD 0.63 340.2519 213 213 430
BHD - 273.2549 - - 1
Total Open Position (A) 162,485 348,657
Fixed Percentage (B) 5% 5%
FINANCIAL STATEMENT
Capital Charge For Market Risk [C=(Axb)] 8,125 17,433
Risk Weight (Reciprocal Of Capital Requirement Of 10%) In Times (D) 10 10
Equivalent Risk Weight Exposure[E=(Cxd)] 81,250 174,330
BANK'S PERFROMANCE

Principal
Indicators 2074 (16th July 2016 to 15th July 2017) Schedule 4.31
UNIT FY 2068/69 FY 2069/70 FY 2070/71 FY 2071/72 FY 2072/73 FY 2073/74

INDICATORS (2010/11) (2011/12) (2012/13) (2013/14) (2014/15) (2015/16)
Net Profit/ Gross Income Percent 5.10 12.41 9.03 16.88 26.06 19.68
Earnings Per Share NPR 5.52 15.46 11.03 19.27 23.93 16.76
Market Value Per Share NPR 145.00 232.00 510.00 395.00 748.00 396.00
Average Price NPR 145.00 212.48 402.00 400.00 665.00 562.00
Price Earning Ratio Ratio 26.28 15.00 46.22 20.50 31.26 23.63
Dividend (including bonus) on Share Capital (%) Percent 5.26 11.58 0.00 22.63 33.33 15.00
Cash Dividend on Share Capital (%) Percent 5.26 0.58 0.00 1.13 0.00 0.00
Interest Income/ Loans and Advances (%) Percent 13.03 12.17 11.55 8.77 7.08 10.26
Staff Expenses/ Total Operating Expenses (%) Percent 40.97 39.71 42.26 43.27 45.50 45.25
Interest Expenses/ Total Deposits & Borrowings (%) Percent 7.51 5.38 4.99 3.87 3.08 5.10
Exchange Gain/ Total Income (%) Percent 1.78 2.01 2.52 2.94 4.13 3.56
Staff Bonus/ Total Staff Expenses (%) Percent 8.11 21.02 13.58 24.53 38.60 36.48
Net Profit/Total Loans & Advances (%) Percent 0.75 1.69 1.18 1.72 2.17 2.27
Net Profit/ Total Assets (%) Percent 0.52 1.19 0.83 1.26 1.62 1.65
Total Loans & Advances/ Total Deposits (%) Percent 79.01 79.08 81.84 83.92 86.82 87.28
Total Operating Expenses/ Total Assets (%) Percent 2.23 2.10 2.11 1.68 1.33 1.40
Capital Adequacy (On Risk Weighted Assets)
a. Core Capital Percent 11.01 10.96 10.63 10.11 11.13 13.39
b. Supplementary Capital Percent 0.77 0.84 0.86 1.00 0.92 1.08
c. Total Capital Fund Percent 11.78 11.80 11.49 11.11 12.05 14.47
Liquidity (%) Percent 32.40 33.51 34.03 30.70 28.31 30.62
Non-Performing Loan/ Total Loans & Advances (%) Percent 3.52 3.74 4.94 2.90 1.22 1.37
Weighted Average Interest Rate Spread Percent 3.54 4.66 4.45 4.60 4.60 4.49
Book Net Worth (Per Share) NPR 106.76 121.24 120.48 112.63 115.91 117.15
Number of Shares Nos. 20,150,000 20,150,000 22,366,500 24,436,880 39,760,463 70,181,047
Number of Staff Nos. 459 454 449 444 691 956
Number of Branches Nos. 47 49 51 53 67 70

STRATEGIC REPORT
GORVERNANCE
SIGNIFICANT
ACCOUNTING POLICIES Schedule 4.32
RISK REVIEW
1. GENERAL INFORMATION Ltd. has automatically become The subsidiary company is engaged in
Sunrise Bank Limited (“The Bank”) is subsidiary of Sunrise Bank Limited the business of Merchant Banking.
a limited liability company domiciled with 78.57% shareholding. Subsequent
in Nepal. The address of its registered to acquisition its name has been 6. STATEMENT OF COMPLIANCE
office is at Gairidhara Crossing, changed to Sunrise Capital Limited. The financial statements have been
Kathmandu, Nepal. The Bank is The books of account of the prepared in accordance Generally
licensed by Nepal Rastra Bank-‘NRB’ subsidiary have been consolidated as Accepted Accounting Principles
the Central Bank of Nepal, to carry out is warranted. (“GAAP”), Bank and Financial
the commercial banking business in Institutions Act 2074 (“BAFIA”) and
Nepal as “A” class licensed financial 3. APPROVAL OF FINANCIAL other requirement of NRB Directives.
institution. The Bank is listed in Nepal STATEMENT
Stock Exchange Limited. The financial The accompanied financial statement 7. BASIS OF PREPARATION
statements contained in this report for fiscal year 2073-74 (2016-17) The financial statements are
HUMAN RESOURCE
have been approved for publication by has been approved by the Board presented in Nepalese Rupees (NPR),
the Board of Directors and NRB. of Directors in its meeting dated rounded off to the nearest rupee.
14th September 2017 and further Financial Statements are prepared
During the year, the Bank has acquired approved by NRB on 11th October on the historical cost convention. The
NIDC Capital Markets Limited. The 2017 for publishing for the purpose of preparation of financial statements has
shareholders of NIDC Capital Markets presenting before the Shareholders’ been in compliance with Local GAAP
PRODUCTS & SERVICES

Limited were issued 65 Shares of Annual General Meeting. and prevailing banking practice. The
Sunrise Bank Limited for every 100 financial statements are not NFRS
Shares of NIDC Capital Markets 4. SUMMARY OF SIGNIFICANT compliant. However, for the purpose,
Limited held. The acquisition was ACCOUNTING POLICIES as directed by NRB, the Bank has
endorsed by Special General Meeting The principal accounting policies initiated conversion of the earlier
held on 25th Poush 2073 (9th January applied in the preparation and financial statements, which is yet to be
2017), followed by the approval presentation of these financial completed.
FINANCIAL STATEMENT
of the Nepal Rastra Bank on 13th statements are stated herein
Magh 2073 (26th January 2017). The below. The said policies have been The preparation of financial statements
joint operation started along with consistently applied throughout also requires management to
integration of books of accounts from the period of presentation, unless exercise judgment and discretion in
28th Magh 2073 (10th February 2017). otherwise stated. the process of applying the Bank’s
accounting policies. The Bank follows
The details of consolidated of books 5. PRINCIPAL ACTIVITIES accrual system of accounting for the
have been illustrated in notes to The Bank is engaged in the business preparation of financial statements
account note number 32. of commercial banking and other unless otherwise stated. All the
financial services including trade formats of the financial statements are
2. SUBSIDIARY COMPANY finance, remittance and other activities prepared and presented in accordance
NCM Merchant Banking Ltd., a as permitted for the commercial with the NRB Directives.
company established under the banks under the Bank and Financial
Companies Act of Nepal and running Institutions Act 2073 (“BAFIA”). These 8. INTEREST INCOME RECOGNITION
the merchant banking business, is the activities are being performed since n As per Directive of Nepal Rastra
subsidiary of erstwhile NIDC Capital the beginning in compliance with Bank, bank has adopted policy of
BANK'S PERFROMANCE
Markets Ltd., which has been acquired the statutory requirements as well as recognizing interest income on
by Sunrise Bank Limited. With the the directives issued by Nepal Rastra loans and advances on cash receipt
acquisition, NCM Merchant Banking Bank. basis. Interest income on loans and

advances accrued till mid july 2017 different foreign currencies is 16. LOAN WRITE OFF & RECOVERY
and realized in cash within 15 days accounted for on a daily basis and The Bank has the policy to write off
of the end of fiscal year has been shown as “Revaluation Gain/ (Loss)”. the bad loans in accordance with its
recognized as interest income, as As required by the section 45 of “Loan write off by laws” prepared as
permitted by NRB directives. Interest BAFIA, 25% of such revaluation per the directive of and under the
accrued on long-term project loans gain during the accounting year approval of Nepal Rastra Bank. Loan
during the construction period as is transferred to “Exchange write off expenses and recoveries
per initial approved terms of the Fluctuation Reserve” through Profit made from such written off loans in
credit and as per the approval and Loss Appropriation Account. the subsequent period are recognized
of Nepal Rastra Bank, have been into income/(loss) as “Profit/(loss)
recognized as income by capitalizing 12. INTEREST EXPENSES from extraordinary activities” and
into the principal loan amount. Interest expenses on deposit liabilities exhibited in Schedule 4.28 of the
and borrowings from other banks/ financial statement.
n Interest income on Investments and financial institutions are accounted for
placements are accounted for on on accrual basis. Interest Suspense of the written
accrual basis. off loan is removed from the book
and separately recorded for future
9. COMMISSION& FEE INCOME 13. LOANS & ADVANCE INCLUDING reference/recovery.
All the commission incomes are BILLS PURCHASE
accounted for on cash basis. However, Loans & advances and Bills purchased 17. INVESTMENTS
commission exceeding NPR 50,000 includes overdrafts, term loans, The investments held by the Bank
on Letter of credit and guarantees working capital loans, consumer comprise of the following categories
with a maturity exceeding one loans, loans disbursed as deprived and are presented in Schedule 4.12 of
year from the date of transactions sector lending and other loans the financial statement.
is recognized over the tenure of extended to the customers as per
transactions. the Bank’s policy. All credit exposures 17.1. Held for Trading:
are subject to regular review and These are the marketable investment
10. DIVIDEND INCOME are graded according to the level of with the primary intention of resale
Dividend income on investment in credit risk and are classified as per over a short period of the time. These
equity shares of other companies is NRB Directives. Loans and advances, investments are initially measured at
recognized when the right to receive overdrafts and bills purchased are cost and subsequently recognized
dividend is established. shown net of provisions. at the market value. Gains or losses
arising from trading/revaluation are
11. EXCHANGE FLUCTUATION 14. STAFF LOANS & ADVANCES recognized in Profit & Loss Account
INCOME Loans and advances extended to staff (Income Statement).
n Foreign currency assets and in accordance with the Staff Rules of
liabilities are translated into NPR the Bank are shown under the Other 17.2. Held to Maturity:
at the mid-rate between buying Assets. These investments are primarily
and selling rates of the Bank on the intended to hold until the maturity
Balance Sheet date. 15. LOAN LOSS PROVISION and are stated at cost and carried
Provision for possible loan losses at these values in the Balance Sheet
n Income realized from the differences has been provided to cover the risks until the maturity. Any impairment
between buying and selling rates of inherent in the Bank’s loan portfolio. losses arising in such investments
foreign exchange and income from Provision for possible losses on loans, are provisioned and charged to the
trading of gold is accounted for on advances and bills purchased are Profit and Loss Account (Income
a daily basis and shown as “Trading made ranging from 1% to 100% in Statement).
Gain”. accordance with the classification of
such risk assets as per the directives 17.3. Available for Sale
n Gains/Losses arising due to issued by Nepal Rastra Bank and also These are the investments held with
fluctuation in exchange rates of the Bank’s own risk assessment. the primary intention to recover value

STRATEGIC REPORT
GORVERNANCE
of investments through sale rather than Any subsequent cost incurred for the For simplicity, depreciation is charged
continuing to hold. These investments fixed assets is recognized as an asset from the next month it is made
are initially measured at cost and if it meets the recognition criteria. The available for use. Depreciation of an
subsequently recognized at market cost that does not qualify as an asset asset ceases when it is derecognized at
RISK REVIEW
value, such investments are marked is charged off in the Income Statement the time of its disposal.
to market on annual basis any gains as repair and maintenance.
there in are transferred to investment Depreciation on following assets is
adjustment reserve. While assessing The carrying amount of an asset is charged to Profit and Loss Account
the market value, consideration is derecognized at the time of disposal on Diminishing Balance method at the
given to the transaction activities in or when no future economic benefits rate estimated which are determined
the stock exchange and conservative are expected to flow from its use or on the basis of the estimated useful life
approach is adopted in order to avoid disposal. The gain or loss rising from and the prevailing Income Tax Law.
overstatement of the equity position. de-recognition of an item of fixed
Accordingly, those investments assets is included in profit or loss when
ASSETS RATE
which are not actively traded at the the item is derecognized.
stock market are carried at cost and Furniture & Fixture 15%
amount equivalent to at least 2% of The carrying amount of the fixed Computer & Acessories 20%
HUMAN RESOURCE
such investments are earmarked on assets is the amount at which an Office Equipments 15%
Investment Adjustment Reserve from asset is recognized after deducting Vehicles 15%
the retained earnings in line with the any accumulated depreciation and
requirement of NRB. accumulated impairment losses. Leasehold assets (improvements) are
amortized over the period of lease
18. FIXED ASSETS Non-consumable items having life using Straight Line Method.
PRODUCTS & SERVICES

Fixed Assets are tangible items that more than one year and/or costing
are held for use in the production or less than NPR 5,000 are expensed off Cost of software licenses and are
supply of services, for rental to others, during the year of purchase. amortized over a period of useful life
or for administrative purposes and are of the software, estimated as 5 years
expected to use during more than one The Bank consistently adopts cost from the date of acquisition.
financial year. model for entire class of its fixed
assets. 20. STATIONERY STOCK
FINANCIAL STATEMENT
Cost of an item of fixed assets is Stationery stocks are inventories in
recognized as an asset, if and only if, 19. DEPRECIATION ON FIXED the form of materials or supplies held
it is probable that future economic ASSETS by the Bank to be consumed while
benefits associated with the item will Depreciation is the systematic rendering the services. The Bank does
flow to the entity and the cost of the allocation of depreciable amount of an not hold any item of the inventory
item can be measured reliably. The cost asset over its useful life. that is in the state which is not readily
of an item of fixed assets comprises usable (i.e. raw material or semi-
of purchase prices including taxes, Each part of an item of fixed assets finished) for rendering the services or INVESTOR'S RELATIONSHIP
custom duties and any costs that of the Bank which is identifiable that for the selling purposes.
is directly attributable to bring the separately is depreciated separately.
asset to the location and condition The depreciation charge for each The stationeries are written down
that is necessary for it to be capable period is recognized in profit or loss on an item by item basis, when the
or operating in the manner intended unless it is included in the carrying inventories are damaged or have
by the management. Costs incurred amount of another asset. become wholly or partially obsolete
for dismantling / removal and for that affects the effective use while
restoration of site are recognized as a Depreciation of an asset begins when rendering services.
part of the new item of the fixed assets. it is available for use, i.e. when it is in
BANK'S PERFROMANCE
Cost of an item of an asset includes the location and condition necessary Stationeries are recorded at actual
cost of an asset under construction for it to be capable of operating in the cost basis and charged to revenue at
and work-in-progress. manner intendedby the management. the time of its consumption.

21. NON BANKING ASSETS (NBA) 26. BASIS OF INTEREST as of the date and the balance after
Non-Banking assets are the assets COMPUTATION appropriating for staﬀ bonus and
obtained as a security for loans and Interest Expenses on deposits/ tax, has been transferred to retained
advances that are subsequently taken borrowings and interest income on earnings.
over by the Bank in the course of loan/investment in local currency are
loan recovery. Non-Banking Assets computed on the basis of 365 days Fixed Assets of acquired institution
are valued at lower of total receivable in a year. Interest on foreign currency have been accounted for at book
against the loan amount (principal and investment is computed on the basis value; i.e. net of depreciation.
interest) or fair market value of the of 365 days a year for GBP and 360
assets acquired. Provisions for NBA days for the USD, EUR & JPY. A brief financial statement (B/S and
are made in full in accordance with the P/L Account) of the NIDC as of 27th
NRB Directives. 27. DEFERRED TAXES Magh 2073 (09th February 2017) is
Deferred taxes are accounted using provided in Schedule 4.33.
22. PROVIDENT FUND & GRATUITY the asset and liability method as The shareholders of then NIDC have
The Bank has retirement benefit per Accounting Standard-9 (NAS- been issued fully paid up shares of
namely provident fund and gratuity. 9), “Accounting for Income Taxes”. bank calculated as per the purchase
Provision for gratuity has been Deferred tax assets and liabilities price at NPR 65/share. The surplus
determined as per the staff service are recognized for the future tax (NPR 81.75million) arising on account
rules of the Bank talking into consequences attributable to of the application of the above
consideration the proportion of temporary differences between the agreement has been routed through
service period completed by each financial statement carrying amounts Capital Reserve Account.
eligible employee. Similarly, periodic of existing assets and liabilities, and
contribution to the provident fund has their respective tax bases. Deferred 29. PROVISIONS, CONTINGENT
been expensed off. Provident fund tax assets and liabilities are measured LIABLITIES & CONTINGENT ASSETS
amount is being deposited with an using tax rates expected to apply to The Bank creates a provision when
approved retirement fund entity on taxable income in the years in which there is a present obligation arising as
monthly basis. Accumulated gratuity those temporary differences are a result of past events that probably
is accounted and exhibited under expected to be recovered or settled requires an outflow of resources and
Schedule 4.7 (Other Liabilities). based on the laws that have been a reliable estimate can be made of
enacted or subsequently enacted by the amount of obligation. A disclosure
23. STAFF LEAVE ENCASHMENT the reporting date. for a contingent liability is made
Bank has the policy to book leave when there is a possible obligation
encashment expenses on accrual 28. CONSOLIDATION OF ACCOUNTS or a present obligation that may, but
basis. Staff Leave encashment liability OF ACQUIRED ENTITY probably will not, require an outflow
covers accumulated leave of all the The financial statements of NIDC of resources. When there is a possible
eligible staffs. Capital Markets Limited (NIDC) obligation or a present obligation
immediately before the date of in respect of which the likelihood
24. STAFF BONUS acquisition 27th Magh 2073 (February of outflow of resources is remote,
As required under Bonus Act, 2030, 9, 2017) have been prepared and no provision or disclosure is made.
Staff Bonus has been provided at audited separately. The Assets and Contingent assets are not recognized
10% of net profit before tax (but after liabilities as appearing in its audited in the financial statements. However,
bonus). balance sheet have been consolidated contingent assets are assessed
at the book value into the books continually and if it is virtually certain
25. INCOME TAXES of the Bank as on the date of that an economic benefit will arise,
Provision for income tax has been acquisition(28thMagh 2073 (February the asset and related income are
made on the basis of the Income Tax 10, 2017). Proﬁt & Loss Account of that recognized in the period in which the
Act 2058 and amendments thereon. entity has been prepared separately change occurs.

STRATEGIC REPORT
GORVERNANCE
NOTES TO ACCOUNT Schedule 4.33
1. PAID-UP CAPITAL set for completion by the end of Asoj the close of the fiscal year comes
Nepal Rastra Bank (the central 2074 (mid October 2017). Successful to NPR 267,694,358.As required
RISK REVIEW
bank) has issued a policy directives auctioning of these shares will further under Nepal Rastra Bank directives,
requiring “A” class commercial banks add to the paid up capital of the Bank the Bank has created Investment
to enhance their paid up capital base by NPR 71,074,300. Adjustment Reserve at 2% of
to a minimum of NPR 8,000 million The Paid up Capital of the Bank has the market value of investment
by the end of FY 2073-74 (2016-17). been subscribed by promoters and portfolio.
As of Ashad end 2074 (mid july 2017), general public in the proportion of
the Paid-up Capital of the Bank stood 51.10 : 48.90 respectively. n Bank has not provided for
at NPR 7,018 million. The Bank has Investment Adjustment Reserve on
proposed 15% stock dividend (bonus 2. STATUTORY GENERAL RESERVE the following investments, although
shares) by utilizing available retained A sum of NPR 235,217,747 (PY being categorized as “Available for
earnings and capital reserve. Upon 190,275,696) being 20% of the Profit Sale” since exempted by the NRB.
issuance of such shares, the paid up after Tax has been appropriated Nepal Clearing House Limited
capital of the Bank would surpass the to Statutory General Reserve as (NCHL)
HUMAN RESOURCE
NPR 8,000 million requirement set by required under Section 44 of the NPR 2.85million
Nepal Rastra Bank. Banks and Financial Institution Act, National Banking Institute (NBI)
2073 (“BAFIA”). General reserve of NPR 1.20 million
Changes in share capital of NPR 148,047,816 in the books of NIDC Credit Information Center Ltd
banks during the fiscal year as on the date of acquisition has (CICL)
2073/74(2016/17) are as follows; been capitalized accordingly. After NPR 0.20 million
PRODUCTS & SERVICES

the transfers the Statutory General
Reserve of the Bank as at the end of n Similarly, 100% reserve has been
PARTICULARS AMOUNT (NPR) the fiscal year stood at created on investments in Nepal
NPR 1,157,525,877. Electronic Payment System and
Paid Up Capital as of Nepal Stock Exchangewhich are
01-04-2073 5,301,395,141 3. INVESTMENT ADJUSTMENT not listed in stock exchange even
Add: From Acquisition of RESERVE after one year from the date of
The Bank has established a separate investment.
FINANCIAL STATEMENT
NIDC Capita Markets Ltd 151,816,860
Add:Additional Investment Adjustment Reserve
30% Right Shares 1,564,892,700 account as required under the Nepal n Sunrise Capital Ltd (then NCM
Paid up Capital As Of 31-03-2074 Rastra Bank directives. During the Merchant Banking Ltd) was
before bonus shares issue 7,018,104,701 year an additional amount of subsidiary of then NIDC Capital
NPR 5,262,489 has been appropriated markets limited, which has
from Profit and Loss Appropriation automatically become subsidiary
Subsequent to acquisition of NIDC Account to the Investment of the Bank after acquisition of INVESTOR'S RELATIONSHIP
Capital markets Ltd., the Bank Adjustment Reserve Account. NIDC Capital markets limited on
has issued 30% right share to the 28th Magh 2073 (i.e. 10th February
existing shareholders. Out of the As at the close of the financial year, 2017). The investment of the Bank
total shares floated for subscription, the account has balance of in the share capital of the subsidiary
710,743 shares, (72,612 shares in NPR 150,129,847. is NPR 78,570,000, including
Promoters category and 638,131 Following are the explanations as to fresh rights issued during the year
shares ingeneral public category) such transferring policy: amounting to NPR 23,571,000. Since
remained unsubscribed. The Bank the investment period has not yet
has published auction notice for sale n The Bank has investment in various elapsed the grace period of one
BANK'S PERFROMANCE
of such unsubscribed shares on 12th companies’ listed shares amounting, year, the Investment Adjustment
September 2017. Auction process of at cost price, to NPR 140,669,736 Reserve has been created by only
those unsubscribed shares has been the market value of these shares at 2% amounting NPR 1,571,420.

n Investments in shares of Gorakhali
PARTICULARS AMOUNT (NPR)
Tyres, Birat Shoe, Butwal Spinning
Mill, Jyoti Spinning Mill, Necon Air, Opening Balance of free reserve (Previously Deferred Tax Reserve) 14,033,894
Shreeram Sugar Mill and Subarna Add: Balance Carried forwarded from NIDC Capital Limited 48,485,122
Pharmaceuticals have been fully Less: Transfer to profit and loss appropriation (32,787,497)
provisioned since considered as A. Balance of Other Free Reserve (Previously Deferred Tax Reserve) 29,731,519
not in operation and hence no Investment Adjustment Reserve Opening 197,478,864
Investment Adjustment Reserve Add: Appropriation of this year to Investment Adjustment reserve 5,262,489
has been created for those Less: Reversal of Investment Adjustment on
investments Account of market value movement. (52,655,670)
B. Balance Investment adjustment reserve 150,129,847
Account wise details of individual C. Corporate Social Responsibility Fund (From FY 2073/74) 11,760,887
companies’ shares have been Total Other Reserves & Fund (A+B+C) 191,622,253
provided in Schedule 4.12.
4. EXCHANGE FLUCTUATION FUND 6. CORPORATE SOCIAL RESPONSIBILITY FUND

Sum of NPR 1,786,864 (Previous Year As per provision of clause 16 of NRB Directive 6 bank has allocated one percent
NPR 4,607,345) being 25% of of total profit NPR 11,760,887 through profit and loss appropriation and separately
the exchange fluctuation gain presented as Corporate Social Responsibility Fund under reserves and surplus.
earned during the year from The fund allocated will be used for meeting obligation under corporate social
other than Indian currency has responsibility activities of bank in coming fiscal year.
been appropriated to Exchange
Fluctuation Fund as required 7. STAFF HOUSING FUND
under Section 45 of the Banks As the Bank has provision for extending housing loans to the eligible staffs, a
and Financial Institution Act, 2073 separate staff housing fund has not been created as prescribed by the Labour Act,
(“BAFIA”). After the transfer the 2048.
balance in the fund balance stood at
NPR 22,968,448. 8. ACCUMULATED PROFIT & LOSS ACCOUNT
Net Profit is retained after appropriation to all other reserves as per the regulatory
5. OTHER RESERVES & FUNDS requirements. Such profit is free for distribution. As on the balance sheet date, the
Other Reserves and Fund amount reserves stood as below:
NPR 191,622,253 includes the reserve
created as deferred tax reserve in
previous year, investment adjustment
reserve including amount transferred
Accumulated Profit& Loss Account at beginning of year 15,996,590
from the merged institution NIDC
Profit Earned During The Year 1,176,088,732
Capital Markets Limited and
Adjustment of the Share Capital -
investment adjustment reserve.
Profit of the Acquired Entity 24,484,654
Transferred from Capital Reserves & Share Premium 81,747,540
The details of the free reserve as of
Transfer of excess free reserve over deferred tax assets 32,787,497
Ashad end 2074 stands as below.
Total Profit Available for Appropriation 1,331,105,013
Less: Appropriations
Transferred to General Reserve 235,217,747
Transferred to Exchange Fluctuation Fund 1,786,864
Transferred to Investment Adjustment Reserve 5,262,489
Proposed Bonus Shares (@15%) 1,063,376,850
Transferred to Corporate Social Responsibility Fund 11,760,887
Total Appropriation 1,317,404,837
Balance in Accumulated Profit & Loss 13,700,176

STRATEGIC REPORT
GORVERNANCE
9. CHANGE IN DEPOSITS Investment of NPR 7,518,160 as of
The details of changes in deposits Ashad end 2074 against gratuity
areas follows: liability maintained by former Narayani
National Finance Limited is netted
RISK REVIEW
TYPE OF DEPOSIT CURRENT YEAR PREVIOUS YEAR CHANGE with gratuity provision balance.
(NPR)* (NPR) AMOUNT PERCENTAGE
12. LEAVE ENCASHMENT FUND

Local Currency 59,278,627,869 50,390,676,876 8,887,950,993 18% Bank has accumulated balance of
- Non-Interest Bearing 3,003,552,496 2,408,775,918 594,776,578 25% NPR 52,254,882 towards liability for
- Interest Bearing 56,275,075,373 47,981,900,958 8,293,174,415 17% leave encashment of the eligible staffs.
Foreign Currency 1,734,635,665 1,259,603,188 475,032,477 38% A sum of NPR 13,129,961 has been
- Non-Interest Bearing 147,861,116 123,509,919 24,351,197 20% added during the year. Apart from this,
- Interest Bearing 1,586,774,549 1,136,093,269 450,681,280 40% financials of NIDC shows the leave
Total Deposits 61,013,263,534 51,650,280,064 9,362,983,470 18% encashment liability of NPR 1,584,060
which has been transferred from the
* Includes transfer from the acquired institution (NIDC).
acquired institution in the books of
accounts of bank.
HUMAN RESOURCE
10. INCOME TAX LIABILITIES 13. UNCLAIMED DIVIDEND
Provision for the taxation has been made on the basis of Income Tax Act, 2058 and The Bank has NPR 44,509,037 as
amendments thereto. Any difference in the actual tax liability determined during unclaimed dividend as of Balance
the course of Income Tax Assessment will be adjusted in the year of assessment. Sheet date. The year wise breakup of
the dividend is as follows:
PRODUCTS & SERVICES

A sum of NPR 446,223,791 has been set aside this year (PY NPR 420,824,512) for
the purpose.
FINANCIAL YEAR UNCLAIMED DIVIDEND
11. GRATUITY FUND 053-054 570

Bank has been provisioning the gratuity liability at the end of every fiscal year for 054-055 475
the eligiblestaffs as per the Staff Service Rules. Gratuity provision of bank as of 055-056 125,913
Ashad end 2074 (mid july 2017) stands at NPR 33,367,535. Detail of movement 056-057 93,353
FINANCIAL STATEMENT
for gratuity provision balance during the fiscal year 2073/74 (2016/17) is given as 057-058 150,599
below; 058-059 7,429
059-060 339
060-061 501
PARTICULARS AMOUNT (NPR) 061-062 1,241
062-063 1,887
SrBL Gratuity Liability as of Ashad end 2073 26,289,642 063-064 13,504
Gratuity Provision (Along with equivalent Investment) Carried from acquired 064-065 177,622
065-066 633,685
entity Narayani National Finance 11,009,182
066-067 9,291,628
Total Opening Balance of staff gratuity provision as of Ashad end 2073 37,298,824
067-068 6,817,103
Add: Additional Provision during the fiscal year 1,830,417
068-069 12,388,358
Add: Provision from Acquired Institution 6,342,878
069-070 4,036,932
Less: Paid from provision during the fiscal year (4,586,422)
070-071 7,076,497
Total Gratuity Provision Balance 40,885,696 071-072 3,691,400
Less:Balance of Investment against gratuity liability at Citizen Investment Trust Total 44,509,037
after payment (Carried forward from Narayani National Finance) (7,518,161)
Net Provision Balance (Annex 4.7) 33,367,535
BANK'S PERFROMANCE
Note: The figures are inclusive of unpaid

dividends from both the acquired
institutions viz., Narayani National Finance
Ltd and NIDC Capital Markets Ltd.

14. OTHER LIABILITIES arising from trading/revaluation are investment adjustment reserve and
Those liabilities which are not shown recognized in Profit & Loss Account losses are recognized in profit and loss
separately under the individual (Income Statement). account.Gains or losseson disposal of
headings of Schedule 4.7 have such investments are recognized in
been classified under this head. As of balance sheet date the Bank Profit and Loss accounts.
NPR 314,068,144 is the outstanding has no investment primarily held for
balance under this head as on fiscal trading purpose. The investments details have been
year end. Expenses payable, Provision listed in Schedule 12(A) of the
of Expenses, retention money and b. Held Till Maturity Financials Statement.
other Sundries are placed under this These investments are primarily
heads. This also include withhold taxes intended to hold until the maturity 17. LOANS & ADVANCES
collected on behalf of other parties and are stated at cost and carried The total Loans and Advances stood
which was subsequently paid. at these values in the Balance Sheet at NPR 51,739 million as on balance
until the maturity. Any impairment sheet date.Out of total loans and
15. CONTINGENT INCOME TAX losses arising in such investments advances, 1.37% of the loan has been
Till the balance sheet date, the Bank’s are provisioned and charged to the classified as non-performing loans.
corporate tax liability up to income Profit and Loss Account (Income The required provisioning has been
year 2065-66 has been cleared by the Statement). made as per the NRB directives.
tax authority through “Tax Settlement
Commission”.Further, reassessment The details of the investment held to Non-performing loan and advance
from Large Tax Payer Office (LTPO) maturity as of Ashad end 2074 has amounting NPR 45,048,142 of former
has been completed up to income been as follows: NIDC Capital Markets Limited was
year 2069-70. Similarly, in regards of
the merged institutions, assessment
INVESTMENT COST PRICE IMPAIREMENT NET INVESTMENT
up to FY 2069-70 has been completed
(NPR) CURRENT YEAR PREVIOUS YEAR
for Narayani National Finance Limited (NPR) (NPR)
and assessment up to FY 2068-69
has been completed in case of NIDC
Treasury Bills 1,368,215,700 - 1,368,215,700 680,928,998
Capital Markets Limited.However,
- 91 Days 1,027,815,650 - 1,027,815,650 -
the Bank has contested against the
- 182 Days - - - 198,695,650
upward revision in tax liability as
- 362/364 Days 340,400,050 - 340,400,050 482,233,348
issued by LTPO in their reassessment
NRB Deposit Collection 293,275,000 - 293,275,000 -
order of fiscal year 2066/67, 2067/68
NRB Bonds - - - 1,630,350,000
and 2068/69 in revenue tribunal. Total
Development Bond 4,013,800,000 - 4,013,800,000 3,114,625,000
contested amount of NPR 12.52 million
Foreign Securities 103,150,000 103,150,000 -
that include additional tax, interest
Reverse Repo - - - -
surcharges and penalty, in respect of
Placements 3,351,058,099 - 3,351,058,099 2,612,082,722
these three income years has been
TOTAL 9,129,498,799 - 9,129,498,799 8,037,986,720
recognized as Contingent Liability and
presented in Schedule 4.17 of Financial
Statements. c. Available for Sale
These are the investments held with erroneously presented as Non-Banking
16. INVESTMENTS the primary intention to recover Assets in their Audited Financial
a. Held for Trading value of investments through sale Statement dated 27th Magh 2073
These are the marketable investment rather than continuing to hold. These (February 9, 2017). For the preparation
with the primary intention of resale investments are initially measured at of this Financial Statement those
over a short period of the time. These cost and subsequently recognized at balances are brought down as loans
investments are initially measured at market value, such investments are and those loans been written off
cost and subsequently recognized marked to market on annual basis considering non-performing loans and
at the market value. Gains or losses any gains there in are transferred to advances on the financial statement.

STRATEGIC REPORT
GORVERNANCE
18. STATIONERY STOCK under Schedule 4.16 “Other Assets”
The details of inventories of the Bank has been as follows:
presented in Schedule 4.16 (Other
Assets) are the stationary of the PARTICULARS CURRENT PREVIOUS
RISK REVIEW
YEAR (NPR) YEAR (NPR)
printing and stationery, ATM Card
Stock and gift items that has been Staff Home Loan Facilities 219,423,327 159,835,444
leftover which was initially proposed Staff Vehicle Loan 23,064,318 17,555,858
to be provided to the child whose Bal Staff Contingency Loan 54,529,579 42,777,154
Bachat account to be opened with the
Staff Advance 26,282,212 15,425,362
Bank. Total Staff Loans & Advances 323,299,436 235,593,817
19. INTEREST RECEIVABLE ON

LOANS 22. PREPAYMENTS
As at balance sheet date, the Bank’s The details of prepayments presented in
total accrued interest (receivable) Schedule 4.16 “Other Assets” is as follows:
on loan stood at NPR 638,158,870 as
presented in the financial statements
PARTICULARS CURRENT PREVIOUS
HUMAN RESOURCE
under Schedule 4.16 (Other Assets). YEAR (NPR) YEAR (NPR)
These comprise of interest on loans,
advances and bills purchased that Insurance Premium Pre Paid 3,786,376 3,256,613
have accrued but not yet realized in Rent paid on Advance 4,754,510 3,426,339
cash as at balance sheet date. The Fees paid on Advance 6,052,452 926,671
portion of interest that has not yet Others Prepaid (AMC of ATM, NEPS, Software etc) 21,020,565 7,465,364
Total Prepayments 35,613,903 15,074,987
PRODUCTS & SERVICES

fallen due stood at NPR 109,261,252
while those that are under overdue
status stood at NPR 528,897,618.
These interests are suspended for 23. EXPENSES TO BE WRITTEN OFF
recognition.However, the amount This includes the un-amortized amount of software.The
of NPR 81,976,626 which have been detail of the same presented in Schedule 4.16 has been
collected subsequently up to 15th of as follows:
FINANCIAL STATEMENT
Shrawan 2074 (July 30, 2017) have
been recognized as permitted under
NRB directives YEAR (NPR) YEAR (NPR)
20. INCOME RECEIVABLE ON Core Banking Software 47,197,587 496,382
INVESTMENTS Other Software 11,336,383 5,396,447

Premium on Development Bonds 3,888,188 -
The details of inventories of the Bank
Total 62422158 5,892,829
presented in Schedule 4.16 (Other INVESTOR'S RELATIONSHIP
Assets) have been as follows:
21. STAFF LOANS & ADVANCES 24. DEFERRED TAX ASSETS

Staffs are eligible for the different With reference to Nepal Accounting Standard-9 “Accounting
loans and advance facilities as per the for Income Taxes”, an amount of NPR 29,731,519 has been
Staff Service Rule. The facilities include created as Deferred Tax Assets as on Balance Sheet date. The
home loan, vehicle loan, contingency vehicles purchased under “Own Your Vehicle Scheme” haven’t
loan and regular advances. Such been considered as the taxable assets and the depreciation
advances are settled within the time of the said assets is considered as permanent difference.
BANK'S PERFROMANCE
limit framed by the financial rules of Accordingly, the depreciation on the said assets hasn’t
the Bank. The detail of staff loans affected the Deferred Tax Calculation. Details of Deferred Tax
presented in financial statements assets are as follows:

In view of the already announced
PARTICULARS TAX BASE LEDGER BASE DIFFERENCE
(NPR) (NPR) (NPR) DTA/DTL
auctioning of unsubscribed rights
shares (refer Note to Accounts 1
Provision for Gratuity - 33,367,535 33,367,535 DTA above) amounting to NPR 71,074,300
Provision for Leave Encashment - 52,254,882 52,254,882 DTA which is scheduled for allotment
Deferred loss of NIDC capital 12,981,306 - 12,981,306 DTA before the date of book closure for
Fixed Assets 435,974,025 439,360,875 (3,386,850) DTL
AGM, the dividend will also become
payable on such shares as well.
Premium on Foreign Bond - 3,888,188 3,888,188 DTA
Accordingly, a total amount of
Total Temporary Differences 99,105,061
NPR 1,063,376,850 being 15% on
Deferred Tax Assets of Srbl 29,731,519
expanded share capital included above
*DTL refers to Deferred Tax Liabilities & DTA refers to Deferred Tax Assets has been appropriated.
The Bonus share has been proposed

using NPR 81,747,540 booked under
25. ADVANCE INCOME TAX 28. INCOME FROM NON Capital Reserve, NPR 32,787,497 from
As per the requirement of Section DELEVERABLE FORWARD (NDF) Free Reserve and NPR 948,841,813
94 Income Tax Act, 2058, bank The Bank has recognized premium on from distributable Profit of the Bank
has paid its income tax liability in NDF transaction as foreign exchange available as of Ashad end 2074.
installments as advance. The advance income. During the current fiscal year
tax has been netted off with the actual bank has net earning against the NDF The proposed Stock Dividend has
liability provided for the current year. proprietary transactions amounting been shown under Share Capital in the
Advance tax balance as on Ashad end NPR 47.36 million. The exposure is Balance sheet as required under NRB
2074 stands NPR 164,593,723 which within the threshold ceiling prescribed prescribed format.
includes advance tax NPR 17,926,690 by Nepal Rastra Bank.
transferred from acquired entity NIDC Under Section 47A of Income Tax
Capital markets limited. 29. EMPLOYEE TRAINING EXPENSES Act, 2058, subsequent to a merger/
Unified NRB Directives requires banks acquisition, dividend tax is exempted
26. INTEREST INCOME ON LOAN & and financial institution to incur up to 2 years in the hands of the then
ADVANCES expenses of at least 3% of total staff existing shareholders. Accordingly no
Interest income on loans and advance expenses of immediate past year on withholding dividend tax has been
incudes Interest capitalization on long staff training and development. Bank accounted for on the proposed bonus
term loans during the year has complied with the provision of shares (stock dividend). However,
NPR 37,451,456 which has been NRB Directives by incurring expenses dividend tax is applicable in the hands
recognized as interest incomeafter of 3.53% of total employee expenses. of shareholders who have purchased
obtaining approval from NRB. shares subsequent to the date of
Details have been given as under. acquisition/merger. Arrangement will
27. INTEREST SPREAD be made to collect applicable tax from
NRB directives requires the Bank to PARTICULARS AMOUNT (NPR)
such ineligible shareholders at the time
maintain the interest spread between of issuance of bonus shares.
average interest yield of loan &
investment with interest expenses paid Total Employee Expenses as of 31. TRANSACTION WITH RELATED
on deposits/borrowings within 5%. Fiscal Year 2072/73 355,632,989 PARTIES
The average spread maintained by the Total Staff Expenses of Fiscal Year 2073/74 n Transaction with Board of Director:
Bank iswithin the limit prescribed by Eligible as per NRB Directives 12,565,066 During the year bank has expensed
NRB, as given below; Percentage of Staff Training Expenses NPR 2,004,000 on board meeting
(Calculated as per NRB Directives) 3.53%
fees and NPR 760,000 for
committee meeting fees to directors.
YEAR % YEAR % 30. DIVIDEND n Transaction with key Management
The Board of Directors has Personnel: Bank has provided salary,
Average Yield on Loans, recommended 15% bonus shares allowances and other benefits as
Advances & Investments 10.12% 8.67%% (stock dividend) for the fiscal year. below to key personnel during the
Average Cost of Deposits 5.63% 4.25% This is subject to approval by the fiscal year 2073/74, which includes
Net Interest Spread 4.49% 4.42% Shareholders’ Annual General Meeting. management team of Chief Manager
and above.

STRATEGIC REPORT
GORVERNANCE
Bank has provided home loan, vehicle ASSETS BALANCE
facility, fuel, insurance and tax as per
Salary, allowances and the staff policy of bank in addition to 1. Cash Balance 1,717,870
Leave Encashment 30,772,504.68 above benefits. 2. Balance with
Provided Fund Contribution 1,773,281.97 Nepal Rastra Bank 185,134,027
n Transaction with Subsidiary
RISK REVIEW
3. Balance with Banks/Financial
Bonus 6,600,942.96
Company: Bank has held investment Institutions 2,400,065
Welfare 5,342,193.85
of 78.58% in sunrise capital hence 4. Money at Call and
Insurance 288,518.35
sunrise bank is holding company Short Notice 328,241,803
Total 44,777,441.81
of the Sunrise Capital. Details of 5. Investments 65,656,902
Equity based payments No transaction with sunrise capital till 6. Loans, Advances &
Other retirement benefits No the end of Ashad end is as follows. Bills Purchased (Net) 646,256,845
7. Fixed Assets (Net) 41,744,624
8. Non-Banking Assets (Net) -
DETAILS OF TRANSACTION AMOUNT (NPR) REMARKS
9. Other Assets 54,763,078
Share held 78,570,000 Bank has investment is 785,700 shares Total Assets 1,325,915,214
investment in sunrise capital limited including

right shares of 235,710 invested during the fiscal
Profit & Loss Account of NIDC Capital
year 2073/74.
Markets Limited For period ended
HUMAN RESOURCE
Deposit liabilities 118,118,451 Deposit of Sunrise Bank includes maintained by
01-04-2072 to 27-10-2073
Sunrise Capital.
(July 16, 2016 to Feb 9, 2017)
Interest Expenses 5,824,451 Interest Expenses paid to sunrise capital
pre-merger NPR 1,102,336 and post-merger
PARTICULARS NPR
NPR 4,722,115.
Non-Operating Income 1,650,000 Rent Received from Sunrise Capital 1. Interest Income 61,292,695
Share Registrar fee 860,403 Fee Paid to Sunrise Capital as Registrar to
PRODUCTS & SERVICES

2. Interest Expenses 30,843,215
Shares Net Interest Income 30,449,480
Other Liability 2,241,528 Payable to Sunrise Capital against CDS, 3. Commission & Discount 6,851
Dematerialization, Registrar to Shares and 4. Other Operating Incomes 3,103,933
Bonus Shares 5. Exchange Fluctuation Income -
Total Operating Income 33,560,264
Sunrise bank has deputed 10 staffs 32. ADDITION FROM THE 6. Staff Expenses 8,198,529
at Sunrise Capital, regarding salary ACQUISITION
FINANCIAL STATEMENT
7. Other Operating Expenses 8,006,117
and benefits to them salary and The Balance Sheet and Profit & Loss 8. Exchange Fluctuation Loss -
benefits is paid as per the decision Account of the NIDC Capital Markets
Operating Profit Before
of Sunrise Capital only. In case of Ltd on Acquisition date (09-02-2017)
Provision for Possible Loss 17,355,618
“lower” emoluments than those 27-10-2073 is as follows:
9. Provision for Possible Losses 3,605,433
prevailing in Sunrise Bank as per
Operating Profit 13,750,185
their positions, the shortfall is made Balance Sheet of NIDC Capital Markets
good by the Bank. Similarly, as 10. Non - Operating
Limited As of 27-10-2073 (February 09,
a staff member of Sunrise Bank, Income/Expenses 23,376,991
2017)
any facility which is not offered by 11. Loan Loss Provision

Sunrise Capital e.g., vehicle loan, CAPITAL & LIABLITY BALANCE Written Back 29,074,515
are provided through the parent Profit from Regular Activities 66,201,691
company. 1. Share Capital 233,564,400 12. Income/Expense from Extra-Ordinary
2. Reserves and Funds 221,061,755
Activities (1,967,240)
n Bank has invested NPR 19.86 3. Debentures & Bonds -
Profit from All Activities 64,234,451
million in the shares of Gurans Life 4. Borrowings -
13. Provision for Staff Bonus 5,839,496
Insurance Ltd (208,334 shares 5. Deposit Liabilities 784,015,303
14. Provision for Tax Expense 20,742,765
of NPR 100 each which includes 6. Bills Payable -
BANK'S PERFROMANCE
7. Proposed Dividend - Current Year 2,804,608

9,750 bonus shares received in
8. Income Tax Liabilities (Net) - Previous Year 4,442,817
FY 2069/70). Bank hasn’t earned
income from such investments 9. Other Liabilities 87,273,756 Deferred Tax 13,495,340
and hasn’t invested any additional Total Capital & Liablities 1,325,915,214 Net Profit/(Loss) 37,652,190
amount during the year.
33. STATEMENT OF LIQUIDITY RISK ANALYSIS
The classification of the assets and liability for the purpose of Liquidity stands as:
Amount in Thousand
PARTICULARS 1-90 DAYS 91-180 DAYS 181-270 DAYS 271-365 DAYS OVER 1 YEAR TOTAL AMOUNT
1
Cash Balance 1,473 1,473
2 Balance With Banks & Fis 7,723 7,723
3 Investment In Foreign Banks 361 361
4
Call Money -
5 Government Securities 464 345 4,867 5,675
6 Nepal Rastra Bank Bonds -
7 Inter Bank & FI Lending 2,552 387 309 103 3,351
8 Loans & Advances 12,146 7,077 5,064 5,597 21,856 51,739
9
Interest Receivable 686 686
10
Reverse Repo -
11 Receivables From Other Institutions
Under Commitment -
12 Payment To Be Made For Facilities
Under S.no 20,21 & 22 5,204 271 - 57 14,011 19,542
13 Others 0 0 0 17 3,037 3,055
Total Assets (A) 30,607 8,079 5,374 5,774 43,771 93,605
Liabilities
14 Current Deposits 2,742 409 3,151
15 Saving Deposits 9,090 12,894 21,984
16 Fixed Deposits 9,917 7,188 6,744 4,977 7,053 35,878
17
Debentures -
18
Borrowings: - - - - - -
(A) Call/Short Notice -
(B) Inter-Bank/Financial Institutions -
(C) Refinance -
(D) Others -
19 Other Liabilities And Provisions 3,051 22 164 279 246 3,762
(A) Sundry Creditors 3 3
(B) Bills Payable 13 13
(C) Interest Payable 150 150
(D) Provisions 558 22 164 279 246 1,269
(E) Others 2,328 2,328
20 Payable To Other Institutions Under Commitment -
21 Unutilized Approved Facilities 3,412 3,412
22 Letter Of Credit/Guarantee (Net Of Margin) 5,821 2,598 1,497 1,677 4,537 16,130
23
Repo -
24 Payment To Be Made For Facilities Under S.no 11 -
25 Others 9,287 9,287
Total Liabilities (B) 34,033 9,807 8,405 6,933 34,427 93,605
Net Financial Assets (A-B) (3,426) (1,728) (3,031) (1,159) 9,344 -
Cumulative Net Financial Assets (3,426) (5,154) (8,185) (9,344) - -

STRATEGIC REPORT
GORVERNANCE
34. FIXED ASSETS REGROUPING
Fixed Assets carried from former Narayani National Finance Limited has
been incorporated into financial statement for the fiscal year 2073/74 at
written down value. Group of fixed assets has been re-classified as below to
RISK REVIEW
match with fixed assets categorization of Sunrise Bank under Schedule-14.
PARTICULARS AMOUNT (NPR) REMARKS
Office Equipment 2,606,984 Transferred from FA other
Vehicle 6,790 Transferred from FA other
Other Fixed Assets (3,065,030) Transferred to Office, Equipment,
lease hold and Vehicle
Lease Hold Assets 451,256 Transferred from other Fixed Assets
Total NIL
HUMAN RESOURCE
35. PREVIOUS YEAR FIGURES the balances transferred from NIDC
Previous period’s figures are re- on acquisition. Current Year Cash
grouped or re-arranged wherever Flow Statement figures include the
necessary to facilitate comparison balances transferred from NIDC on 27-
with current year’s figures. Previous 10-2073, which has been considered
PRODUCTS & SERVICES

year figures represent the Sunrise for calculation of increase/decrease
Bank only. Previous year’s figure of in the respective head. Fixed Assets
NIDC, the acquired institution, has cash flow statement of NIDC Capital
not been incorporated on financial Markets Limited has been regrouped
statement. The current Assets/ as per categorization of Sunrise Bank
Liabilities figures are adjusted with Limited for presentation.
FINANCIAL STATEMENT
BANK'S PERFROMANCE

BASEL DISCLOSURES
36. CAPITAL STRUCTURE & CAPITAL ADEQUACY OF THE BANK
i. Core Capital
The core capital of the Bank with its detailed breakdown is detailed below:
PARTICULARS AMOUNT (IN NPR 000)
a. Paid up capital 7,018,105

b. Share Premium / Capital Reserve -
c. Proposed Bonus Shares 1,063,377
d. Statutory General Reserve 1,157,526
e. Retained Earnings 13,700
f. Un-audited Current Year Cumulative Profit -
g. Other Free Reserves 29,732
h. Less: Deferred Tax Assets (29,732)
i. Less : Other Deductions (134,934)
Core (Tier-1 ) Capital 9,117,774
ii. Supplementary Capital

The supplementary capital of the Bank with its detailed breakdown is detailed
below:
a. General Loan Loss Provision 563,840

b. Exchange Equalization Reserve 22,968
c. Invetment Adjustment Reserve 150,130
Supplementary ( Tier-2 ) Capital 736,938
iii. Details of Subordinated Term Debts

Bank doesn’t have any subordinated term debts.
iv. Deductions from Capital

n Deferred Tax Assets of NPR 29.73 million.
n Investment made in Gurans Life Insurance Company Limited of NPR 19.86 million
(i.e. related party) and investment in sunrise capital NPR 78.57 million.
n NPR 32.61 million for land and building not in use by bank that includes land
purchased at Bharatpur, Chitwan not brought to use NPR 25.75 million and
proportionate WDV of buildings not used by bank and rented out to other parties
NPR 6.86 million.
n Fictitious Assets of NPR 3.89 million.
v. Total Qualifying Capital

The total capital of the Bank stands as:
a. Core Capital 9,117,774

b. Suplementary 736,938
Total Capital 9,854,712

STRATEGIC REPORT
GORVERNANCE
vi. Capital Adequacy of the Bank
The capital adequacy of the Bank has been detailed below:
PARTICULARS PERCENTAGE
RISK REVIEW
a. Core Capital Adequancy Ratio 13.39%
b. Supplementary Capital Adequacy ratio 1.08%
Capital Adequacy Ration 14.47%
vii. Summary of the Bank’s internal approach to assess the adequacy of its capital
to support current and future activities, if applicable:
Bank’s current paid up capital amounts to NPR 7.018 billion, including 48.59% shares
of general public. The Bank complies with the licensing condition of NRB which has
also helped the Bank to have a steady and strong capital position. The Bank has the
plan of increasing the capital to NPR 8 billion by the end of Ashad 2074 to comply
with NRB directives. The overall strategy of the Bank has been formulated with the
special consideration to the capital adequacy requirement according to BASEL- II &
HUMAN RESOURCE
BASEL-III.
viii. Summary of the terms, conditions and main features of all capital instruments,
especially in case of subordinated term debts including hybrid capital
instruments.
Bank does not have any other capital instruments except fully paid equity shares as
qualifying capital.
PRODUCTS & SERVICES

37. RISK EXPOSURES
a. Risk Weighted Exposures
All material risks faced by the Bank have been addressed in the capital assessment
process. However, bank has developed a process to estimate risks with reasonable
certainties. All the three risks that have direct impact on the capital adequacy level
have been managed in a structured manner with clear roles and responsibilities. In
FINANCIAL STATEMENT
order to makes a comprehensive assessment of risks, the process has, at minimum,
addressed the forms of risks covered below:
PARTICULARS RISK (IN NPR 000)
a. Risk Weighted Exposure for Credit Risk 628,783,74

b. Risk Weighted Exposure for Operatuinal Risk 2,552,530
c. Risk Weighted Exposure for Market Risk 81,250
Rwa Before Pillar 2 adjustment 65,512,154
All risks, including credit, operational and market risks are identified, escalated,
monitored and mitigated to the satisfaction of the risk type owner. The risk type
owner is responsible for ensuring that all the risks are adequately identified,
escalated, monitored and mitigated. The Bank has an adequate system in place
for monitoring and reporting risk exposures and assessing how the changing risk
profile affects the need for capital. The senior management and board of directors
BANK'S PERFROMANCE
on a regular basis receive the report regarding the risk profile of the Bank and
its capital needs. All the material risks are identified, measured, monitored and
reported by the respective risk type owner.

b. Credit Risk under 11 Categories
The Credit Risks under the 11 categories as per the Capital Adequacy Framework,
2015 and Basel –III has been detailed below:
Risk Classification Net Book Value Risk

(In NPR 000) (In NPR 000)
a. Claims on Govt. and Central Bank 14,780,165 -

b. Laims on other Financial Entities - -
c. Claims on banks 4,041,731 1,125,750
d. Claims on Corporate and securities firm 21,066,671 21,066,671
e. Claims on Regulatory Retail Portfolio 15,822,767 11,867,075
f. Claims secured by residential Properties 6,873,665 4,147,137
g. Claim secured by Commercial Real state 2,924,880 2,924,880
h. Past due Claim 399,184 598,776
i. High Risk Claims 37,29,533 5,524,429
j. Other Asset 1,214,605 1,214,605
k. Off balance sheet items 28,641,826 14,409,051
Total 99,495,027 62,878,374
c. Total Risk Weighted Exposure Calculation Table

The detailed calculation of RWA is listed below:
PARTICULARS RISK (IN NPR 000)
a. Risk Weighted Exposure for credit risk 62,878,374

b. Risk Weighted Exposure for Operational Risk 2,552,530
c. Risk Weighted Exposure for Market Risk 81,250
d. Adjustment under Pillar II -
e. Add: 1% of the NII to RWA for ALM Policy and Practice 15,036
f. 3% additional risk weight for operational Risk 619,811
g. 3%adjustment on total RWE 1,965,365
Total Risk Weighted Exposure 68,112,366
38. DETAIL OF NON PERFORMING LOANS

During the year the non-performing loans increased by 0.15%. The detail of the
loans has been classified below:
Particulars Gross Value Net Value

(In NPR 000) (In NPR 000)
Restructured Loans - -
Sub-Standard Loans 63,495 47,621
Sub-Standard Loans 326,635 163,317
Doubtful Loans 319,110 -
Total NPA 709,240 210,939

STRATEGIC REPORT
GORVERNANCE
39. RATIO OF NON PERFORMING LOANS 45. RISK MANAGEMENT FUNCTION
a. Summary of the Bank’s internal
PARTICULARS PERCENTAGE approach to assess the adequacy
of its capital to support all the
RISK REVIEW
Gross NPA 1.37% risks in business and achieve better
Net NPA 0.41% risk management techniques in
monitoring and managing risks
40. MOVEMENT OF NON-PERFORMING ASSETS (GROSS) i. Board and senior management
During the year Non-Performing Accounts (NPA)increased by 32.85%. oversight
Bank management is responsible for
PARTICULARS NPA (NPR 000) understanding the nature and level
of risk being taken by the Bank and
Current Year 709,240 how this risk relates to adequate
Previous Year 533,846 capital levels. It is also responsible
Charge 175,394 for ensuring that the form and
Change% 32.85% sophistication of the risk management
HUMAN RESOURCE
processes is commensurate with the
complexity of its operations. A sound
41. WRITE OFF OF LOANS & INTEREST EXPENSES risk management process, thus, is the
During the year loan amounting NPR 85,025,124 carried forwarded from NIDC foundation for an effective assessment
capital markets ltd were written off.Details are presented under Annex 4.28A. of the adequacy of a bank’s capital
position. The decisions made by the
42. MOVEMENT OF LOAN LOSS PROVISION AND INTEREST SUSPENSE
PRODUCTS & SERVICES

management are regularly reviewed
As per NRB Directives, all interest accruals on loans and advances, irrespective by the BOD.
of loan category, are transferred to interest suspense account until the interest
accrued and due is realized in cash. Details of Interest Suspense Movement are as ii. Sound capital assessment
follows: Another crucial component of an
effective ICAAP is the assessment of
PARTICULARS AMOUNT (NPR 000) capital. In order to be able to make a
sound capital assessment, the Bank
FINANCIAL STATEMENT
Movement of Loan Loss Provision 181,723 has, at minimum, have the following:
Movement of interest Suspense 157,175 n Policies and procedures designed
to ensure that the Bank identifies,
measures, and reports all material
43. DETAILS OF ADDITIONAL LOAN LOSS PROVISIONS: risks;
Bank has not made any additional Loan Loss Provision during the year. n A process that relates capital to the
level of risk; INVESTOR'S RELATIONSHIP
44. SEGREGATION OF INVESTMENT PORTFOLIO INTO HELD FOR TRADING, n A process that states capital
HELD TO MATURITY AND AVAILABLE FOR SALE CATEGORY: adequacy goals with respect to
risk, taking account of the Bank’s
INVESTMENT AMOUNT (NPR 000) strategic focus and business plan;
and
Held For Trading - n A process of internal control reviews
Held Till Maturity 9,129,499 and audits to ensure the integrity of
Available For Sale 424,076 the overall management process.
Total Investment 9,553,575
BANK'S PERFROMANCE
iii. Comprehensive assessment of

risks
All material risks faced by the Bank

have been addressed in the capital basis. Exception and MIS reports are capital needs. All the material risks are
assessment process Nepal Rastra generated by the system on a ‘Live” identified, measured, monitored and
Bank recognizes that not all risks can basis, where account activity can be reported by the respective risk type
be measured precisely. However, bank monitored as and when they occur. owner.
has developed a process to estimate General Authority schedule is in place
risks with reasonable certainties. All to delegate authority to staff across all v. Internal Control Review
the three risks that have direct impact levels. Independent Internal Audit has The internal control structure of the
on the capital adequacy level have been appointed to carry out review Bank is essential for sound capital
been managed in a structured manner of internal controls and compliance. assessment process. Effective control
with clear roles and responsibilities. Transactions in all levels are handled of the capital assessment process
In order to make a comprehensive under dual supervision and control. includes an independent review and
assessment of risks, the process Output in all transactions is checked involvement of both internal as well as
should, at minimum, address the forms by a higher authority level. Disaster external audits wherever appropriate.
of risks covered below. Recovery Server is in place to ensure The Bank is committed conduct the
full restoration of Bank’s data. regular review of its risk management
Credit Risk process to ensure its integrity,
The Bank’s Credit Policy Guidelines Other Risk accuracy, and reasonableness. The
has adopted a Credit Risk In addition to credit, credit effectiveness of the Bank’s internal
Management philosophy that involves concentration, operational and market control system is reviewed regularly
a continual measurement. risk the Bank identifies, assess and by the Board, its committees,
monitors other risks such as strategic Management and Internal Audit.
Market Risk risk and reputational risks at regular
The Bank has in place Assets Liability interval. The Internal Audit monitors
Management (ALM) Policy, and Assets compliance with policies and
Liability Management Committee iv. Monitoring standards and the effectiveness of
(ALCO) , which monitors risks arising Monitoring and reporting of all risks, internal control structures across the
from changes in exchange rates in including credit, operational and Bank through its program of business/
foreign currencies; liquidity profile market risks are identified, escalated, unit audits. The Internal Audit function
of assets and liabilities, investment monitored and mitigated to the is focused on the areas of greatest
activities of the Bank etc. satisfaction of the risk type owner. risk as determined by a risk-based
The risk type owner is responsible assessment methodology. Internal
Operational Risk for ensuring that all the risks are Audit reports regularly to the Audit
The Bank has developed and adequately identified, escalated, Committee. The findings of all adverse
implemented various manuals, monitored and mitigated. The Bank audits are reported to the Chief
operating procedures and guidelines has an adequate system in place Executive Officer and Business Heads
for monitoring and controlling for monitoring and reporting risk for immediate corrective actions.
Operational Risks in the Bank; a exposures and assessing how the
number of procedure guidelines changing risk profile affects the need b. Types of eligible credit risk
and manuals are in process of for capital. The senior management mitigants used and the benefits
development. and board of directors on a regular availed under CRM
basis receive the report regarding Following are the eligible credit risk
Most significant steps adopted by the the risk profile of the Bank and its mitigants used by the Bank:
Bank for handling Operational Risks
are as follows:
CREDIT RISK MITIGANTS AMOUNT (NPR 000)
Independent reconciliation
department accustomed to 1. Deposit with Bank 383,126
conducting daily reconciliation 2. Deposits with other banks/FI -
of all agency accounts and Inter- 3. Gold 389,958
Branch accounts. Transaction Stack 4. Govt. & NRB Securities -
System is in place on amount limit Total Credit Risk Mitigants 773,084

Statement Of Loans And Advances
Extended To Promotor/Group Of
Promotors Against Promoters Shares
SHARE OWNERSHIP LOAN DETAILS

PROMOTER/GROUP OF PROMOTERS NOS PERCENTAGE OF NAME OF BANK /FINANCIAL INSTITUTION LOAN AMOUNT NO OF SHARES REMARKS
TOTAL PAID UP
CAPITAL
ANITA GOEL 116,014 0.17% NMB Bank 13,462,550 116,014 NMB Bank
BHUSHAN GURAGAIN 166,032 0.24% PRABHU BANK LIMITED 15,128,261 166,032 PRABHU BANK LIMITED
GYANENDRA SHARMA 195,741 0.28% CENTURY COMMERCIAL BANK 18,840,071 195,741 CENTURY COMMERCIAL BANK
HARI PRASAD 81,556 0.12% JYOTI BIKASH BANK 20,983,543 81,556 JYOTI BIKASH BANK
JAMUNA POUDYAL CENTURY COMMERCIAL BANK 10,000,000 231,222 CENTURY COMMERCIAL BANK
JAMUNA POUDYAL 308,295 0.44% NIC ASIA Bank Ltd. 10,042,600 33,471 NIC ASIA Bank Ltd.
Kailash Goyal 1,877,165 2.67% Himalayan Bank Ltd. 160,000,000 938,537 Himalayan Bank Ltd.
KISHOR BANSKOTA 14,750 0.02% MANJUSHREE FINANCIAL 1,341,000 11,063 MANJUSHREE FINANCIAL
LOBSANG NEPALI 255,199 0.36% ICFC FINANCE LIMITED 60,294,600 186,955 ICFC FINANCE LIMITED
MADAN JOSHI 50,416 0.07% NABIL BANK LIMITED 9,792,000 50,264 NABIL BANK LIMITED
Niranjan Khetan 326,235 0.46% CENTURY COMMERCIAL BANK 41,000,000 196,437 CENTURY COMMERCIAL BANK
NIRMAL PRADHAN 56,598 0.08% SIDDHARTHA BANK LIMITED 12,152,000 42,449 SIDDHARTHA BANK LIMITED
PAWAN KUMAR SARDA 209,718 0.30% Machhapuchchhre Bank Limited 10,000,000 100,000 Machhapuchchhre Bank Limited
PRAMOD KHETAN NMB BANK 195,546 73,360 NMB BANK
PRAMOD KHETAN 203,897 0.44% BANK OF KATHMANDU LTD 392,300,000 81,478 BANK OF KATHMANDU LTD
PRAMOD KHETAN CENTURY COMMERCIAL BANK 1,032 27,156 CENTURY COMMERCIAL BANK
PUSPA SHRESTHA 21,945 0.03% PRABHU BANK LIMITED 3,291,800 21,944 PRABHU BANK LIMITED
SAURAV GURAGAIN 165,431 0.24% PRABHU BANK LIMITED 15,072,005 165,431 PRABHU BANK LIMITED
Shrikrishna Giri 38,452 0.05% CENTURY COMMERCIAL BANK 4,703,367 38,452 CENTURY COMMERCIAL BANK
SHYAM KHETAN 122,337 0.17% NEPAL BANGLADESH BANK LIMITED 20,920 122,337 NEPAL BANGLADESH BANK LIMITED
SRINIVAS SARDA 529,561 0.75% Machhapuchchhre Bank Limited 25,000,000 250,000 Machhapuchchhre Bank Limited
Subhash Khetan 32,396 0.05% Nepal Bangladesh Bank Ltd. 2,779,900 23,129 Nepal Bangladesh Bank Ltd.
SUBHASH KHETAN 13,526 0.02% NEPAL BANGLADESH BANK LIMITED 1,014,500 10,145 NEPAL BANGLADESH BANK LIMITED
Sukunda Pradhan 107,050 0.15% EVEREST BANK LIMITED 7,178,000 30,000 EVEREST BANK LIMITED

Total 4,892,314 - 834,593,695 3,193,173
159
160
Comparision Of Unaudited &
Audited Financial Statements As of FY 2073/74 (2016/17) Schedule 4.35
Amount in NPR Thousand
PARTICULARS AS PER UNAUDITED AS PER AUDITED VARIANCE

FINANCIAL STATEMENTS FINANCIAL STATEMENTS IN AMOUNT IN PERCENTAGE REASON OF VARIANCE

1. Total Capital & Liabilities (1.1 to 1.7) 72,993,747 72,679,274 (314,473) -0.43%
1.1 Paid-up Capital 7,017,698 8,081,482 1,063,784 15.16% Due to proposed bonus share & Adjustment of

applied right share, after reconciliation
1.2 Reserves and Surplus 2,315,074 1,385,817 (929,257) -40.14% Due to proposal of stock dividend, creation of
investment adjustment reserve and change in
change in figure of profit & loss
1.3 Debenture and Bond - - -
1.4 Borrowings - - -
1.5 Deposits (a+b) 61,013,264 61,013,264 - 0.00%
a. Domestic Currency 59,278,628 59,278,628 - 0.00%
b. Foreign Currency 1,734,636 1,734,636 - 0.00%
1.6 Income Tax Liabilities 465,742 - (465,742) -100% Advance tax adjustment
1.7 Other Liabilities 2,181,969 2,198,711 16,742 0.77% Re-classification of other assets & Liabilities,
2. Total Assets (2.1 To 2.7) 72,993,747 72,679,274 (314,473) -0.43%
2.1 Cash & Bank Balance 9,556,959 9,557,178 219 0.00% Adjustment of pending Income on bank
reconciliation
2.2 Money at call and short Notice - - -
2.3 Investments 9,428,701 9,553,575 124,874 1.32% Creation of Investment adjustment reserve for
appreciation of market price than cost,
reclassification of advance for investment to
other assets
2.4 Loans & Advances (a+b+c+d+e+f) (Gross) 51,730,919 51,739,385 8,466 0.02% Reclassification of Credit Card facility amount
to Loan
a. Real Estate Loan 3,703,270 3,703,270 - 0.00%
1. Residential Real Estate Loan
(Except Personal Home Loan upto NPR 10 mil) 609,721 609,721 - 0.00%
2. Business Complex & Residential Apartment
Construction Loan 1,024,272 1,024,272 - 0.00%
3. Income generating Commercial Complex Loan - - -
4. Other Real Estate Loan
(Including Land Purchase & Plotting) 2,069,277 2,069,277 - 0.00%
Contd... Comparision Of Unaudited & Audited Financial Statements



b. Personal Home Loan of NPR 10 mil or less 6,703,096 6,703,096 - 0.00%

c. Margin Type Loan 2,469,807 2,469,807 - 0.00%
d. Term Loan 6,002,252 6,002,252 - 0.00%
e. Overdraft Loan / TR Loan / WC Loan 19,186,384 19,186,384 - 0.00%
f. Others 13,666,110 13,674,576 8,466 0.06% Reclassification of credit card receivable balance
from other Assets to Loans
2.5 Fixed Assets 534,389 534,389 - 0.00%
2.6 Non Banking Assets (Net) 161,448 161,448 -
2.7 Other Assets 1,581,331 1,133,300 (448,031) -28.33% Re-classification of other assets & Liabilities
3. Profit & Loss Account
3.1 Interest Income 5,306,151 5,306,156 5 0.00% Adjustment of income as per bank
reconciliation
3.2 Interest Expense 3,113,433 3,113,433 - 0.00%
A. Net Interest Income (3.1-3.2) 2,192,718 2,192,723 5 0.00%
3.3 Fees Commission and Discount 210,414 210,471 57 0.03% Commission Income of LC booked and
reclassfication of Rental Income to
Non-Operating Income
3.4 Other Operating Income 329,558 329,558 - 0.00%
3.5 Foreign Exchange Gain/Loss (Net) 130,140 130,140 - 0.00%
B. Total Operating Income (A+3.3+3.4+3.5) 2,862,830 2,862,892 62 0.00% Adjustments of above
3.6 Staff Expenses 451,220 451,220 - 0.00%
3.7 Other Operating Expenses 546,751 545,928 (823) -0.15% Adjustment of expenses as per actual bill and
prepaid for next year
C. Operating profit Before Provision (B-3.6-3.7) 1,864,859 1,865,744 885 0.05%
3.8 Provision for Possible Loss 271,515 281,591 10,076 3.71% Increase in Provision of Loan Loss, Investment
and other assets
D Operating profit (C-3.8) 1,593,344 1,584,153 (9,191) -0.58%
3.9 Non Operating Income/Expenses (Net) 30,811 32,222 1,411 4.58% Rental Income reclassified
3.10 Write Back of Provision for Possible Loss 194,699 279,724 85,025 43.67% Loan from acquired NIDC written off &
Provision written back
E Profit From Regular Activities (D+3.9+3.10) 1,818,854 1,896,099 77,245 4.25%
3.11 Extraordinary Income/Expenses (Net) - (85,528) (85,528) Loan from acquired NIDC written off &

Software of acquired institution written off
161
162

F . Profit Before Bonus and Taxes (E+3.11) 1,818,854 1,810,571 (8,283) -0.46%
3.12 Provision For Staff Bonus 165,350 164,597 (753) -0.46% Effect of Above
3.13 Provision For Tax 484,509 469,884 (14,625) -3.02% Changes in provsion for Income Tax , Expenses
provisioned for assessment order received
from LTPO & Effect of Above

G Net Profit/Loss (F-3.12 -3.13) 1,168,995 1,176,090 7,095 0.61% Adjustment of Deferred Tax and above issues
4. Ratios
4.1 Capital Fund to RWA 15.20% 14.47% -0.73% Classification of Risk Weighted Assets on
Long term loan commitments Increasse in
investment adjustment reserve and changes in
net profit
4.2 Non Performing Loan (NPL) to Total Loan 1.37% 1.37% 0.00% n
4.3 Total Loan Loss Provision to total NPL 148.33% 149.76% 1.43% Increase in LLP
4.4 Cost of Funds 6.00% 6.00% 0.00%
4.5 CD Ratio (Calculated as per NRB Directives) 75.54% 75.65% 0.11% Reclassification of Credit card to loans
4.6 Base Rate 11.19% 11.19% 0.00%
4.7 Interest Spread (as per NRB Circular) 4.27% 4.27% 0.00%
Additional Information (Optional)
Average Yield (Local Currency) 10.01% 10.01% 0.00%
Return on Equity 12.53% 12.51% -0.02% Changes in net profit due to change in income
tax provision and other effects of above
adjustments
Return on Assets 1.60% 1.61% 0.01% Changes in net profit due to change in income
tax provision and other effects of above
adjustments

Consolidated Unaudited Schedule 4.36
Financial Statement As on 31st Ashad 2074 (15th July 2017) Amount in NPR Thousand
PARTICULARS THIS QUARTER ENDED PREVIOUS QUARTER ENDED CORRESPONDING PREVIOUS

GROUP BANK GROUP BANK YEAR QUARTER ENDED
1 Total Capital & Liabilities (1.1 to 1.7) 73,145,837 72,993,747 68,234,362 67,925,187 59,543,533
1.1 Paid-up Capital 7,017,698 7,017,698 5,453,212 5,453,212 5,301,396
1.2 Reserves and Surplus 2,337,663 2,315,074 2,035,151 2,008,434 843,271
1.3 Debenture and Bond - - - -
1.4 Borrowings - - - -
1.5 Deposits (a+b) 60,936,564 61,013,264 57,779,907 58,062,457 51,650,280
a. Domestic Currency 59,201,928 59,278,628 56,299,213 56,581,763 50,390,677
b. Foreign Currency 1,734,636 1,734,636 1,480,694 1,480,694 1,259,603
1.6 Income Tax Liabilities 472,341 465,742 370,786 367,684 -
1.7 Other Liabilities 2,353,982 2,181,969 2,573,019 2,033,400 1,748,586
1.8 Non Controlling Interest 27,589 - 22,287 - -
2 Total Assets (2.1 to 2.7) 73,145,837 72,993,747 68,234,362 67,925,187 59,543,533
2.1 Cash & Bank Balance 9,697,525 9,556,959 7,337,394 7,188,945 6,581,846
2.2 Money at call and short Notice - - - - -
2.3 Investments 9,419,532 9,428,701 7,720,517 7,764,404 8,172,424
2.4 Loans & Advances (a+b+c+d+e+f) 51,730,919 51,730,919 50,866,104 50,866,104 43,749,129
a. Real Estate Loan 3,703,270 3,703,270 3,276,977 3,276,977 2,961,750
1. Residential Real Estate Loan(Except Personal Home Loan upto NPR 10 mil) 609,721 609,721 624,600 624,600 654,204
2. Business Complex & Residential Apartment Construction Loan 1,024,272 1,024,272 1,034,904 1,034,904 897,444
3. Income generating Commercial Complex Loan - - - - -
4. Other Real Estate Loan (Including Land Purchase & Plotting) 2,069,277 2,069,277 1,617,473 1,617,473 1,410,102
b. Personal Home Loan of NPR. 10 mil or less 6,703,096 6,703,096 6,369,691 6,369,691 5,473,487
c. Margin Type Loan 2,469,807 2,469,807 2,282,140 2,282,140 1,747,744
d. Term Loan 6,002,252 6,002,252 4,967,955 4,967,955 3,807,518
e. Overdraft Loan / TR Loan / WC Loan 19,186,384 19,186,384 20,025,580 20,025,580 19,519,871
f. Others 13,666,110 13,666,110 13,943,761 13,943,761 10,238,759
2.5 Fixed Assets 538,321 534,389 551,403 547,376 435,533
2.6 Non Banking Assets (Net) 161,448 161,448 206,583 206,583 103,908
2.7 Other Assets 1,598,092 1,581,331 1,552,361 1,351,775 500,693
3 PROFIT & LOSS ACCOUNT UPTO THIS QUARTER UPTO PREVIOUS QUARTER UPTO CORRESPONDING
YEAR PREVIOUS QUARTER
3.1 Interest Income 5,323,149 5,306,151 3,620,648 3,608,833 3,095,549

3.2 Interest Expense 3,107,907 3,113,433 1,993,220 1,994,924 1,591,977
A Net Interest Income (3.1-3.2) 2,215,242 2,192,718 1,627,428 1,613,909 1,503,572
163
Contd... Consolidated Unaudited Financial Statement
Contd... Consolidated Unaudited Financial Statement Amount in NPR Thousand
164
PARTICULARS THIS QUARTER ENDED PREVIOUS QUARTER ENDED CORRESPONDING PREVIOUS
GROUP BANK GROUP BANK YEAR QUARTER ENDED
3.3 Fees Commission and Discount 218,176 210,414 145,474 144,749 160,773
3.4 Other Operating Income 330,942 329,558 266,154 255,841 279,039
3.5 Foreign Exchange Gain/Loss (Net) 130,140 130,140 97,737 97,737 115,336
B Total Operating Income (A+3.3+3.4+3.5) 2,894,500 2,862,830 2,136,793 2,112,236 2,058,720
3.6 Staff Expenses 458,956 451,220 327,716 322,048 355,633
3.7 Other Operating Expenses 555,006 546,751 364,192 359,224 425,982

C Operating profit Before Provision (B-3.6-3.7) 1,880,538 1,864,859 1,444,885 1,430,964 1,277,105
3.8 Provision for Possible Loss 271,515 271,515 236,440 236,440 321,718
D Operating profit (C-3.8) 1,609,023 1,593,344 1,208,445 1,194,524 955,387
3.9 Non Operating Income/Expenses (Net) 44,134 30,811 23,741 24,016 1,317
3.10 Write Back of Provision for Possible Loss 194,699 194,699 129,636 129,636 556,404
E Profit From Regular Activities (D+3.9+3.10) 1,847,856 1,818,854 1,361,822 1,348,176 1,513,108
3.11 Extraordinary Income/Expenses (Net) - - - - (3,230)
F Profit Before Bonus and Taxes (E+3.11) 1,847,856 1,818,854 1,361,822 1,348,176 1,509,878
3.12 Provision For Staff Bonus 167,987 165,350 123,802 122,561 137,262
3.13 Provision For Tax 491,063 484,509 370,786 367,684 421,239
G Net Profit/Loss (F-3.12 -3.13) 1,188,806 1,168,995 867,234 857,931 951,377
3.14 Share of Non Controlling Interest on Profit of Subsidiary 4,245 - 1,994 - -
H Final Net Profit/Loss (G-3.13) 1,184,561 1,168,995 865,240 857,931 951,377
4 RATIOS FOR THIS QUARTER FOR PREVIOUS QUARTER FOR CORRESPONDING
PREVIOUS YEAR QUARTER
4.1 Capital Fund to RWA 15.23% 15.20% 12.89% 12.88% 12.05%
4.2 Non Performing Loan (NPL) to Total Loan 1.37% 1.37% 1.50% 1.50% 1.22%
4.3 Total Loan Loss Provision to total NPL 148.33% 148.33% 136.45% 136.45% 164.92%
4.4 Cost of Funds (YTD) 6.00% 6.00% 5.22% 5.22% 4.52%
4.5 CD Ratio (Calculated as per NRB Directives) 75.54% 75.54% 79.62% 79.62% 77.52%
4.6 Base Rate 11.19% 11.19% 9.47% 9.47% 6.86%
4.7 Interest Spread (as per NRB Circular) 4.27% 4.27% 4.43% 4.43% 4.42%
Additional Information (Optional)
Average Yield (YTD) 10.01% 10.01% 9.33% 9.33% 8.67%
Return on Equity 12.71% 12.53% 15.44% 15.33% 15.48%
Return on Assets 1.63% 1.60% 1.69% 1.68% 1.62%
* Group Includes Sunrise Capital Limited. All Intercompany balances have been ommitted.
* Loans & NBA are presented on gross and provisioning are presented in Other Liablities.
* Figures may change subject to instructions, if any, from Statutory/Regulatories authorities.
* Above Financial Statements are prepared as per NRB directives & prevalling banking practice. The financials are not fully NFRS compliant. * Interest Income recov-
ered upto 15-04-2074 has been recoginsied as per NRB Regulation.
STRATEGIC REPORT
DISCLOSURE OF INFORMATION UNDER
SECTION 109 (4) OF COMPANIES ACT 2006
GORVERNANCE
1. An overview of the business during 8. The amount recommended for the Those transactions that are
the Previous Year: distribution as dividend: allowed for a “A” class licensed
Incorporated in the respective The board has recommended institution like collection
segments of annual report. paying 15% bonus share amounting of deposits, advancing
RISK REVIEW
NPR 1,063,376,850 to the loans, international financial
2. Transaction affected by national shareholders from the profit and transactions, electronic
and international circumstances: reserves of fiscal year 2016/17. transactions, remittance services
Incorporated in the respective and other banking activities has
segments of annual report. 9. Information on shares forfeited if been performed by the Bank.
any during the year: b. Sunrise Capital Limited:
3. Achievements of the current year No shares were forfeited during the Transactions related to
as of the date of preparation of the year. merchant banking like public
report and opinion of the Board of issue, investment management,
Directors on future actions: 10. Transactions between the Bank security guarantee and
Incorporated in the respective and its subsidiary company and depository participant services.
segments of annual report. progress made in the business:
The progress in the Bank’s 12. Information furnished to the Bank
4. Industrial or Professional relations transaction has been included in by its basic shareholders during
of the Bank: the Director’s Report. Consolidated the previous fiscal year:
HUMAN RESOURCE
Bank has maintained a cordial financial statements including No such information has been
and professional relation with consolidated balance sheet, furnished by its basic shareholders
its stakeholders, customers and consolidated profit and loss during the review period.
regulators. account and consolidated cash
flow statement of its’ subsidiary 13. Particulars of the ownership of
5. Changes made in the composition company, Sunrise Capital Ltd., also shares taken up by the Directors
PRODUCTS & SERVICES

of Board of Directors and reasons reflects the true and fair position of and office bearers of the
thereof: its parent and subsidiary company. company during the previous
Incorporated in the respective year and information received
segments of annual report. 11. Main transactions carried out by the Bank from them about
by the Bank and its subsidiary their involvement, if any, in the
6. Main factors affecting the company during the fiscal year transactions of the shares of the
business: and any important change in the Bank :
a. Stiff and cutthroat competition business of the company during Directors and office bearers, except
FINANCIAL STATEMENT
among its competitors. the period: provided below have not involved
b. Instable political situation and a. Sunrise Bank Limited: in the share transaction of the Bank.
lack of investible fund in the
economy due to less expenditure
S.N Position Name Share Category No of shares Total
from the government level.
c. Increased cost of fund etc. 1 Chairman Motilal Dugar Promotor 3,066,306 4,208,655
Public 1,142,349
7. Response by Board of Directors 2 Director Malchand Dugar Promotor 2,316,284 3,381,112 INVESTOR'S RELATIONSHIP
on the remarks given in the audit Public 1,064,828
report, if any: 3 Director Er. Bachha Raj tater Promotor 1,277,790 1,746,327
Besides the normal remarks on Public 468,537
the banking transactions, there 4 Director Dr. Bhogendra Promotor 579,072 794,802
weren’t any other remarks given Guragain Public 215,730
in the audit report on FY 2016/17. 5 Director Jyoti Kumar Begani Promotor 381,695 523,896
The remarks have come into notice Public 142,201
of the Board of Directors and 6 Director Dr. Deepak Prasad Promotor - 5,902
arrangements have been made to Bhattarai Public 5,902
take corrective actions so that such 7 Director Deepak Nepal Promotor - 4,115
BANK'S PERFROMANCE
mistake does not repeat in future. Public 4,115

8 Independent Om Krishna Joshi Promotor - 13,601
Director Public 13,601

14. Particulars of information PARTICULARS AMOUNT
20.Remuneration, allowances
furnished by any Director or any and facilities to the Directors,
of his close relatives about his Staff Expenses 451,219,630 Managing Director, Executive Chief
personal interest in any agreement Other Operating Expenses 545,928,292 and other office bearers:
connected with the company a) The Directors were paid NPR
signed during the previous fiscal 18. A list of members of the Audit 2,004,000 as meeting allowances
year: Committee; remunerations, after deduction of tax at source
There is no such information allowances and facilities provided according to the Income Tax Act.
furnished by the directors and any to the members; particulars of b) The details of the salary, allowances
of their close relatives. functions discharged by the and facilities paid to the Chief
committee and suggestions, if any, Executive Officer and other
15. Buy back of own shares: offered by the committee: managerial level staffs is as follows:
The Bank has not purchased its Audit committee of the Bank is
own shares in the year under comprised of following members: DESIGNATION SALARY AND
review. ALLOWANCES(‘000)
a) Dr. Deepak Prasad Coordinator

16. Whether or not there is an internal Bhattarai Chief Executive Officer 13,320
control system and if there is any b) Mr. Malchand Member Managerial level staffs 109,891
such system, details thereof: Dugar

a. To run smoothly and to operate day c) Dr. Bhogendra Member Chief Executive Officer of the Bank
to day business bank has devised Guragain is provided vehicle facility as well.
financial policy, employee bye laws, d) LDSA Associates Member Besides, as per the prevalent Bonus
Loan write off policy, credit policy e) Mr. Ishwar Kumar Member Act, CEO is eligible for Bonus from
and other different polices on need Pathak Secretary the profits of the Bank.
basis.
b. To control and monitor the Excluding the employee member 21. Dividends yet to be collected by
activities of the Bank different of the committee other members the shareholders:
committees like Risk Management of the committee are paid NPR As of 15th July 2015, dividends yet
Committee, Audit Committee and 10,000/- per meeting. During the to be collected by the shareholders
Human Resource Management previous year audit committee were NPR 44,509,037. Details of
Committee under the membership meeting was held 8 times and the collectible dividends have been
of various directors has been members were paid NPR 190,000/- presented in point no. 13 of Notes
formulated. as meeting fees. From the review of to Accounts.
c. Audit Committee analyzes the the internal audit report, necessary
financial position, internal control suggestions are provided through 22. Details of property purchased or
and risk management of the Bank the Board meeting. Similarly, the sold as per clause 141:
on regular basis. The committee external audit report and annual During the previous year Sunrise
also provides recommendation financial reports are presented to Bank Limited acquired NIDC
and suggestions on the internal the Board after being reviewed. Capital Markets Ltd. by issuing
and external audit reports and 65 per shares against their
comments of NRB supervision. 19. Payments due, if any, to the shares having face value of 100
company from any director, as a subsidiary company holding
17. Particulars of the total managing director, executive 78.57% shares with effect from 10th
management expenses of the chief or basic shareholder of February, 2017.
previous financial year: the company or any of their
Total management expenses of the close relatives, or from any firm,
previous financial year have been company or corporate body in
detailed as below: which he is involved:
No such amount is due for
payment.

STRATEGIC REPORT
GORVERNANCE
23. Details of transactions between associated companies as per clause 175.
n Transaction with Subsidiary Company:
Bank has held investment of 78.58% in sunrise capital hence sunrise bank is
holding company of the Sunrise Capital. Details of transaction with sunrise
RISK REVIEW
capital till the end of Ashad end is as follows.
Details of Transaction Amount (NPR) Remarks
Share held 78,570,000 Bank has investment is 785,700 shares investment in
sunrise capital limited including right shares of 235,710
invested during the fiscal year 2073/74.
Deposit liabilities 118,118,451 Deposit of Sunrise Bank includes maintained by
Sunrise Capital.
Interest Expenses 5,824,451 Interest Expenses paid to sunrise capital pre-merger
NPR 1,102,336 and post-merger NPR 4,722,115.
Non-Operating Income 1,650,000 Rent Received from Sunrise Capital
Share Registrar fee 860,403 Fee Paid to Sunrise Capital as Registrar To Shares
HUMAN RESOURCE
Other Liability 2,241,528 Payable to Sunrise Capital against CDS, Dematerialization,
Registrar to Shares and Bonus Shares
Sunrise bank has deputed 10 staffs at Sunrise Capital, regarding salary and
benefits to them salary and benefits is paid as per the decision of Sunrise
PRODUCTS & SERVICES

Capital only. In case of “lower” emoluments than those prevailing in Sunrise Bank
as per their positions, the shortfall is made good by the Bank. Similarly, as a staff
member of Sunrise Bank, any facility which is not offered by Sunrise Capital e.g.,
vehicle loan, are provided through the parent company.
n Bank has invested NPR 19.86 million in the shares of Gurans Life Insurance Ltd
(208,334 shares of NPR 100 each which includes 9,750 bonus shares received
FINANCIAL STATEMENT
in FY 2069/70). Bank hasn’t earned income from such investments and hasn’t
invested any additional amount during the year.
24.Any other matter to be mentioned in the Board of Directors report under

Companies Act 2063 and other prevalent laws:
All such related matters has been incorporated in the respective segments of
the annual report.
BANK'S PERFROMANCE

INVESTOR'S
RELATIONSHIP
The Bank maintains regular communication
with shareholders as it believes in sharing
the efforts in business for producing the
highest possible returns.
I N V E S TO R ' S R E L AT I O N S H I P
Shareholders Enquiries
And Communication
COMMUNICATION INQUIRIES
All the relevant information to Any enquiries related to the shareholders
shareholders, customers and general of Sunrise Bank on the share register
public is communicated through print viz., maintenance of shareholder’s
media (national daily) and electronically record, share transfer including domestic
through Bank’s official website http:// transfer in case of death of a shareholder,
wwww.sunrisebank.com.np . The detailed replacement of lost share certificates,
information on AGM, including ordinary pledge of shares, dividend warrants/
and special agendas to be discussed at bonus shares declared and ratified by
the meeting is published in national daily the AGM, payment against dividend/
newspapers 21 days before the AGM. lost warrant, opening of Demat Account,
Similarly, interim financial highlights dematerialization of shares should be
are published within the stipulated sent at the address given below:
deadline of 30 days as prescribed
by the Securities Board of Nepal. Sunrise Capital Limited Ltd.
These statements along with Basel II Kamalpokhari, Kathmandu,
Disclosures as prescribed by Point 7.4(b) PO Box 12055
of Capital Adequacy Framework 2007
(updated July 2008) under Directive 1 of TEL: 01-4428550 / 01-4428660
NRB Unified Directives are posted in the EMAIL: info@sunrisecapital.com.np
Bank’s official website
TREASURY BILL DEVELOPMENT

Bank has made of NPR BOND
1368 million in Treasury Investment of NPR 4014
bill constitutes 14.1% of in Development bond
Portfolio constitutes 42% of Portfolio
OTHER FOREIGN BANK

INVESTMENTS
Other investments INVESTMENT NPR 3351 have been
invested in placement
constitute 3.1% which PORTFOLIO in foreign bank which
amounts to NPR 293 million constitutes 35.1% of
Portfolio
FOREIGN CORPORATE
SECURITY SHARES
Investment of NPR 103 in 4.5% of total investment
Foreign Securities constitutes amounting to NPR 426 million
1.1% of Portfolio has been invested in corporate
shares

STRATEGIC REPORT
Information About
GORVERNANCE
Annual General Meeting
RISK REVIEW
The 10th Annual General Meeting (AGM) of the Bank as held on 18th
December 2017 at 11:00 hours at Amrit Bhog Catering, Kalikasthan,
Kathmandu, Nepal. Following agendas were discussed at the meeting.
ORDINARY RESOLUTION A. To amend/ revise/add in Memorandum
and Article of Association to align with the
Bank and Financial Institution Act, 2073;
1. To approve Directors’ Report 2016/17
B. To increase the issued and paid up capital
(2073/74)
in the Memorandum of Association of the
2. To approve Balance Sheet as of 15th July
Bank.
2017, Profit and Loss Account and Cash
4. To provide authority to the Board of Directors
Flow Statement for the year ended there at,
HUMAN RESOURCE
or the official designated by Board of
together with Auditor’s Report,
Directors to act in case Regulating Authorities
3. To approve the consolidated books of
(For e.g. Company’s Registrar, Nepal Rastra
accounts i.e. including books of accounts of
Bank) provide any suggestion to amend/
Bank’s subsidiary Sunrise Capital Limited for
revise/ addition/ deletion in the amendment
the F.Y. 2016/17 (2073/74),
of Memorandum of Association and Article of
4. To appoint the Auditor, as per Section 111 of
Association passed.
PRODUCTS & SERVICES

Companies Act, 2063, for the Fiscal Year
5. To sanction the expense of NPR 144,500
2016/17 (2073/74) and to fix the auditor’s
incurred to purchase a laptop provided to
remuneration (Pursuant to Sec. 60(2) of the
Independent Director as provided to other
Banks & Financial Institutions Act, 2063; the
directors in order to read the notices and
present Auditor PL Shrestha & Co. can be
documents communicated through email
reappointed), and
that are to be discussed in the Board Meeting
5. To elect the three representatives from “A”
and to provide such facilities to upcoming
FINANCIAL STATEMENT
Class Shareholders in the Board of Directors.
directors.
6. To approve the expense of NPR 1,396,409.42
while providing financial assistance to fulfill
SPECIAL the corporate social responsibility during
RESOLUTION FY 2073-74 where the limit as section 105
subsection 1 of clause c of Company’s Act
1. To approve issue of Bonus shares at the rate 2063 was crossed, and to bear the expense INVESTOR'S RELATIONSHIP
of 15% amounting to NPR 1,063,376,850 of 1% of a particular financial year profit as

(including unsubscribed 710,743 shares corporate responsibility as per the circular
auctioned and allocated) from the profit of issued by Nepal Rastra Bank.
F.Y. 2016/17, for increasing issued and paid up 7. Having provision in section 13 of Memorandum
capital to NPR 6,183,540,480/- as proposed of Association rule 51 that any amendment
by Board of Directors; made in General Meeting shall be effective
2. To approve to increase in the issued and paid only after archiving, along with the proposal in
up capital to the extent of abovementioned amendment in number of Board of Directors
bonus share, as per the amended rule since the proposal for
BANK'S PERFROMANCE
3. To approve amendment/ revision/addition in election of Board of Directors from “A” Class

Memorandum and Article of Association as Shareholders has been approved to approve
per following matters: the same.

Taxation on Dividends
And Shares
CASH AND BONUS
DIVIDENDS
The tax on dividend received by the earned from the resident company is not
shareholders is subject to withholding subject to tax at the time of its distribution
tax at the rate of 5% pursuant to Section as per Section 54(3). Capitalization of
88(2) of the Income Tax Act 2002. The tax profits is deemed as distribution under
is final withholding tax as per Section 92(1) Section 53(1) (b) of the Act and hence,
(a) of the Act and need not require further issuance of bonus shares by the Bank from
assessment while filing annual tax return the profits earned (excluding dividend
under Section 96. However, the dividend received) is subject to withholding tax at
distributed by the Bank from the dividend the rate of 5% under Section 88(2).
CAPITAL GAINS ON
DISPOSAL OF SHARES
Pursuant to clause (a) of Section 95A (2) acquiring the shares with the amount that
of the Income Tax Act, 2002 (amended is received at the time of its disposal. The
by Finance Ordinance 2013), the gain on amount of disposal in case the Sunrise
disposal of shares listed in the Securities Bank’s shares are sold through stock
Board of Nepal computed as per Section exchange shall be the net amount received
37 of the Act is subject to withholding tax from the buyer less brokerage and other
at the rate of 5%, in case, the beneficiary of costs incurred during the transaction.
the gain is resident natural person and at The costs incurred for the shares by
the rate of 10%, in case of any other person the way of an acquisition through stock
other than resident natural person. Shares exchange shall be the amount paid to the
of Sunrise Bank are listed both in the beneficiary plus all costs attributable to
Securities Board of Nepal and Nepal Stock the acquisition. Further, the costs incurred
Exchange Ltd. for the purpose of public for the shares by the way of transfer from
trading and therefore the gain on disposal the deceased person shall be the market
of Bank’s shares is subject to withholding value prevailing immediately before the
tax in accordance to clause (a) of Section death of the transferor. The tax being
95A (2). Gain or loss arising from disposal withheld on the gains arising from disposal
of shares under Section 37 of the Act of shares is an advance tax and the tax
shall be the amount that is determined credit is available at the time of filing
by reducing the amount incurred while annual tax returns.

STRATEGIC REPORT
GORVERNANCE
Value Added
Statement
RISK REVIEW
VALUE ADDED
Amount in Million
PARTICULARS 2017 2016

Interest & Other Operating Income 5,976 3,651
Cost of Services (3,577) (1,953)
Value Added By Banking Services 2,399 1,698
Non Banking Income 32 190**
Provision Against Non Performing Assets (87) 231
NNFL Profit & Loss Account 209
HUMAN RESOURCE
Value Added 2,344 2,329
* It includes the share premium income of NPR 189 million
DISTRIBUTION
PRODUCTS & SERVICES

To employees
Remuneration, provident funds and other benefits 616 493
To government
Income tax 470 421
FINANCIAL STATEMENT
To providers of capital
Interest on borrowings 3 2
Dividend to shareholders 1,063 1,325
Total 1,066 1,327
To expansion and growth

Depreciation & amortisations 79 64
Capital/Retained earnings/Reserves 113 24
Total 192 87
Total Value Added 2,344 2,329

BANK'S PERFROMANCE

DISCLOSURE RELATED TO SUB RULE (2) OF

RULE 26 OF SECURITIES REGISTRATION AND
ISSUANCE REGULATION, 2073
1. Report of Board of Directors: The details in reference to the website of Nepal Stock Exchange are given in
Included in the Annual Report table below:
under respective heading.
Particulars 1stQtr 2ndQtr 3rdQtr 4thQtr
2. Auditor’s Report: Maximum Price (NPR) 1,024 640 605 596

Included in the Annual Report Minimum Price (NPR) 620 442 392 363
under respective heading. Final Price (NPR) 639 492 570 396
No. of Transactions 2,359,670 478,503 1,076,988 1,214,072
3. Audited Financial Statements: Total Trading Days 55 57 59 57
Included in the Annual Report
under respective heading.
6. Problems and Challenges
4. Details relating to Legal Actions: Increasing competition among banks, challenge of increasing paid up capital,
a. Law Suits filed by/against the increasing inflation rate or decreasing area of investment are major challenges
Bank during the review period. faced but with the help of internal control mechanism, better strategies,
No law suits except business diversified business, better service standards, employees’ ability enhancement,
cases related to loans and loan we are able to cope up with the controllable problems and challenges.
recovery.
b. Law Suits filed by/against the 7. Corporate Governance:
promoters/ directors involving The Bank has adopted strong policies for maintaining corporate governance.
charge of regulatory violations In regards to corporate governance, bank is fully compliant with the directions
or criminal offenses of Nepal Rastra Bank, Banks and Financial Institution Act 2073 and Securities
No such cases filed. Exchange Act 2063 and is committed to comply in the days to come.
c. Cases filed against any
promoters/directors for 8. Statement of difference between prospectus and audited financial statement
financial fraud. by 20% or more
No such Information has been During previous year the Bank had issued prospectus for 30% right share and
received. the following differences were identified in the following categories:

5. Analysis of share transaction and a. Balance Sheet
progress of Organized Institution:
a. Management view on share
transactions of the Bank on Nepal Capital & Liablity Current Year Projected Difference Reasons For
Financials Difference
Stock Exchange
As the share price determination Share Capital 8,081,482 8,152,552 -0.87%
and share transaction are carried Reserves and Funds 1,385,817 1,338,205 3.56%
through open market operations at Debentures & Bonds - - 0.00%
Nepal Stock Exchange under the Borrowings - - 0.00%
supervision of Securities Board of Deposit Liabilities 61,013,264 60,000,000 1.69%
Nepal, the management is neutral Bills Payable 17,204 23,000 -25.20% arised during the regular
on the matter. course of business
activities of the Bank.
b. Maximum, minimum and closing Proposed Dividend - - 0.00%
share price of organized institution Income Tax Liabilities(Net) - - 0.00%
including total transacted number Other Liabilities 957,920 827,000 15.83%
of shares and transacted days TOTAL CAPITAL
during the year & LIABLITIES 71,455,686 70,340,757 1.59%

STRATEGIC REPORT
GORVERNANCE
Assets Current Year Projected Difference Reasons For Difference
Financials
Cash Balance 1,473,431 1,200,000 22.79% arised due to collection of deposit as a course
of regular business activity.
Balance with Nepal Rastra Bank 7,496,219 4,122,000 81.86% Difference arised as a regular course of
RISK REVIEW
Balance with Banks/ business activity
Financial Institutions 587,528 1,690,000 -65.24%
Money at Call and Short Notice - - 0.00%
Investments 9,553,575 10,764,658 -11.25%
Loans, Advances & Bills
Purchased (Net) 50,677,244 50,958,100 -0.55%
Fixed Assets (Net) 534,389 1,005,000 -46.83% Proposed plan of buying land for the Bank
was not materialized during the year
Non-Banking Assets (Net) - - 0.00%
Other Assets 1,133,300 601,000 88.57% Due to assets acquired during the acquisition
of NIDC Capital Markets and regular course of
business
TOTAL ASSETS 71,455,686 70,340,757 1.59%
HUMAN RESOURCE
b. Profit & Loss A/c
Particulars Current Year Projected Difference Reasons For Difference

Financials
Interest Income 5,306,156 5,101,406 4.01%

Interest Expenses 3,113,433 2,729,120 14.08%
Net Interest Income 2,192,723 2,372,286 -7.57%
PRODUCTS & SERVICES

Commission & Discount 210,471 186,749 12.70%
Other Operating Incomes 329,558 324,123 1.68%
Exchange Fluctuation Income 130,140 137,006 -5.01%
Total Operating Income 2,862,892 3,020,164 -5.21%
Staff Expenses 451,220 466,731 -3.32%
Other Operating Expenses 545,928 633,393 -13.81%
Exchange Fluctuation Loss - - 0.00%
Operating Profit Before
FINANCIAL STATEMENT
Provision for Possible Loss 1,865,744 1,920,040 -2.83%
Provision for Possible Losses 281,591 209,897 34.16% Customer wise provision and due to addition
in provision on some of the files lead to
difference in loan loss provision.
Operating Profit 1,584,153 1,710,143 -7.37%
Non-Operating Income/Expenses 32,222 27,000 19.34%
Loan Loss Provision Written 279,724 180,000 55.40% Due to better recovery mechanism loss loans
Back were recovered effectively. INVESTOR'S RELATIONSHIP
Profit from Regular Activities 1,896,099 1,917,143 -1.10%

Income/Expense from (85,528) - 100.00% Due to write off of loans acquired from NIDC
Extra-Ordinary Activities Capital Markets
Profit from All Activities 1,810,570 1,917,143 -5.56%
Provision for Staff Bonus 164,597 174,286 -5.56%
Provision for Tax Expense 469,884 522,857 -10.13%
Current Years 446,224 522,857 -14.66%
Previous Years 1,212 - -100.00% Due to additional tax assessment by the large
tax payers office for previous years
BANK'S PERFROMANCE
Deferred Tax 22,448 - -100.00% Due to creation of deferred tax expenses on

the assets and liabilities after the acquisition
of NIDC Capital Markets
NET PROFIT/(LOSS) 1,176,089 1,220,000 -3.60%

9. Details of special events or circumstances

a. Amendment in the bye laws of the organized institution
Due to acquisition of NIDC Capital Markets Ltd, issued and paid up capital of
the Bank has changed.
b. Changes in BOD/senior management of the organized institution

i. New appointment in the Board
Name: Mr. Om Krishna Joshi
Date of Appointment: 2073/08/30
ii. Resignation from the Board

Name: Mr. Ram Krishna Manandhar
Date of resignation: 2074/01/28
iii. One of the members of management team, Mr. Arun Parajuli holding
the position of Chief Manager has abstained from his service.
c. Declaration of dividend and change in share composition

n Capital of the Bank has increased with declaration of 33.33% bonus shares
vide 9th AGM of the Bank held on 7th Kartik 2073 for fiscal year 2072/73.
n During the previous year Sunrise Bank Limited acquired NIDC Capital
Markets Ltd. by issuing 65 per shares against their shares having
face value of 100.
n 30% right shares have been issued as decided by the 9th AGM of the
bank held on 7th Kartik 2073.

BANK'S
PERFORMANCE
Over the past five years, SrBL has
multiplied its value from NPR 3 billion to
NPR 21 billion - a 700% increase in terms
of market capitalization.
BANK'S PERFORMANCE
Horizontal & Vertical Analysis

Acquisition of Narayani 17, respectively. Loans & advances have
increased by 62.5% and 18.21% during 2015-
National Finance made 16 & 2016-17, respectively.
significant effect on financial
position and performance Increased loans and advances during 2015-
16 had lucrative effect on interest income
during 2015-16 that grew by 71.41% during 2016-17 while the
growth was 28.84% during 2015-16. Interest
Share capital has increased by 78.34%
expenses also grew significantly, by 95.57%
during 2015-16 with the acquisition of
during 2016-17 whereas it had grown by
Narayani National Finance and issue of 1:3
22.8% during 2015-16. Non-interest income
bonus shares whereas it had increased by
increased by 43.46% and 20.72% during
52.44% during 2016-17 after the declaration
2015-16 and 2016-17, respectively, and
of 15% bonus shares. With the surge in
operating profit after provision increased
profit by 102.05%, reserve and surplus
by 105.83% and 19.91%, respectively during
have increased by 172.56%. Deposits
the same period. The net profit increased
have increased by 54.24% and 18.13%
by 102.05% and 23.62% during 2015-16 and
during 2015-16 & 2016-17, respectively.
2016-17, respectively.
Similarly, investments have increased by
15.02% and 14.41% during 2015-16 & 2016-
CAPITAL & LIABILITIES ASSETS

CAPITAL & LIABILITIES ASSETS
1.74% 87.93% 0.82%

Reserve Deposits Balancewith BFIs 13.37%
& Surplus Investments
10.49%
Balance with NRB
9.03%
Share 2016 2016
Capital 2.06%
Cash Balance
1.27% 1.59%
Other
Liabilities
Other Assets 70.92%
Loans, Advances
0.03% Bills Payable 0.75% Fixed Assets & Bills Purchased
0.82%
Balancewith BFIs
1.94% 85.39%
Reserve Deposits 13.37%
10.49% Investments
& Surplus Balance with NRB
11.31% 2.06%
Share Cash Balance 2017
Capital 2017
1.34% 1.59%
Other Other Assets 70.92%
Liabilities Loans, Advances
0.02% Bills Payable 0.75% Fixed Assets & Bills Purchased

STRATEGIC REPORT
Interim Financial Position
GORVERNANCE
STATEMENT OF FINANCIAL POSITION
RISK REVIEW
NPR. In Million
PARTICULARS Q1 2073-74 Q2 2073-74 Q3 2073-74 Q4 2073-74
CAPITAL & LIABILITIES

Paid-up Capital 5,301 5,301 5,453 7,018
Reserves and Surplus 1,096 1,453 2,008 2,315
Debenture and Bond - - - -
Borrowings - - - -
Deposits 54,083 57,300 58,062 61,013
a. Domestic Currency 52,712 55,734 56,582 59,279
b. Foreign Currency 1,371 1,566 1,481 1,735
Income Tax Liabilities 108 261 368 466
Other Liabilities 1,867 1,629 2,033 2,182
HUMAN RESOURCE
Total 62,456 65,945 67,925 72,994
ASSETS
Cash & Bank Balance 6,259 6,077 7,189 9,557
Money at call and short Notice - - - -
Investments 7,989 9,211 7,764 9,429
Loans & Advances 46,451 49,224 50,866 51,731
PRODUCTS & SERVICES

Real Estate Loan 2,878 3,051 3,277 3,703
Personal Home Loan 5,762 6,163 6,370 6,703
Margin Type Loan 2,029 2,299 2,282 2,470
Term Loan 4,400 4,643 4,968 6,002
Overdraft Loan / TR Loan / WC Loan 20,510 20,417 20,026 19,186
Others 10,873 12,652 13,944 13,666
FINANCIAL STATEMENT
Fixed Assets (net) 447 466 547 534
Non Banking Assets 80 79 207 161
Other Assets 1,229 888 1,352 1,581
Total 62,456 65,945 67,925 72,994
Total Balance sheet size increased by 15.29% and 21.43% in Q2 2073-74 and INVESTOR'S RELATIONSHIP
5.59%, 3% and 7.46% in Q2 2073-74, Q3 Q4 2073-74, respectively, and decreased

2073-74 and Q4 2073-74, respectively, by 15.71% in Q3 2073-74 in comparison
compared to the immediately preceding to the immediately preceding quarter.
quarter. Deposits have increased by Similarly, Loans & Advances increased by
5.95%, 1.33% and 5.08% in Q2 2073-74, 5.97%, 3.34% and 1.7% in Q2 2073-74, Q3
Q3 2073-74 and Q4 2073-74, respectively, 2073-74 and Q4 2073-74, respectively,
compared to the immediately preceding compared to the immediately preceding
quarter. Investments have increased by quarter.
BANK'S PERFROMANCE

BANK'S PERFORMANCE
STATEMENT OF FINANCIAL PERFORMANCE NPR. In Million
PARTICULARS Q1 2073-74 Q2 2073-74 Q3 2073-74 Q4 2073-74 TOTAL
Interest Income 1,060 1,194 1,355 1,697 5,306

Interest Expense 544 607 844 1,119 3,113
Net Interest Income 516 588 511 579 2,193
Fees Commission and Discount 41 51 53 66 210
Other Operating Income 89 94 73 74 330
Foreign Exchange Gain/Loss (Net) 34 34 30 32 130
Total Operating Income 680 766 667 751 2,863
Staff Expenses 112 96 114 129 451
Other Operating Expenses 111 115 133 188 547
Operating profit Before Provision 457 555 419 434 1,865
Provision for Possible Loss 152 40 45 35 272
Operating profit 305 516 374 399 1,593
Non Operating Income/Expenses 20 4 (0.2) 7 31
Write Back of Provision 72 41 16 65 195
Profit From Regular Activities 398 560 390 471 1,819
Extraordinary Income/Expenses - - - - -
Profit Before Bonus & Taxes 398 560 390 471 1,819
Provision For Staff Bonus 36 51 35 43 165
Provision For Tax 108 153 106 117 485
Net Profit/Loss 253 357 248 311 1,169
Interest income increased by 13%, 13% by 13% in Q3 2073-74 due to increased

and 25% in Q2 2073-74, Q3 2073-74 and interest expense of 39%. Operating
Q4 2073-74, respectively, compared cost including staff costs decreased by
to the immediately preceding quarter. 5.5% in Q2 2073-74 and increased by
Net interest income increased by 14% 17.5% and 27.91% in Q3 2073-74 and Q4
and 25% in Q2 2073-74 and Q4 2073- 2073-74, respectively, compared to the
74, respectively, whereas it declined immediately preceding quarter.

STRATEGIC REPORT
GORVERNANCE
Year on Year Progress 5 Years Balance Sheet
CAPITAL AND LIABILITY 2073/74 2072/73 2071/72 2070/71 2069/70
RISK REVIEW
1. Share Capital 8,081 5,301 2,973 2,237 2,237
2. Reserves and Funds 1,386 1,023 375 461 214
3. Debentures & Bonds - - - - -
4. Borrowings - - - - -
5. Deposit Liabilities 61,013 51,650 33,487 26,617 23,271
6. Bills Payable 17 20 9 12 16
7. Proposed Dividend - - 28 - 12
8. Income Tax Liabilities (Net) - - - - -
9. Other Liabilities 958 745 517 335 380
Total Capital and Liability 71,456 58,739 37,389 29,661 26,129
HUMAN RESOURCE
ASSETS 2073/74 2072/73 2071/72 2070/71 2069/70
1. Cash Balance 1,473 1,168 868 863 607

2. Balance with Nepal Rastra Bank 7,496 3,809 1,891 4,366 3,758
3. Balance with Banks/Financial Institutions 588 1,605 300 698 325
4. Money at Call and Short Notice - - - 113 680
PRODUCTS & SERVICES

5. Investments 9,554 8,351 7,260 3,055 2,454
6. Loans, Advances & Bills Purchased 50,677 42,869 26,380 19,938 17,731
7. Fixed Assets (Net) 534 436 310 292 313
8. Non-Banking Assets (Net) - - - - -
9. Other Assets 1,133 502 381 336 263
Total Assets 71,456 58,739 37,389 29,661 26,129
FINANCIAL STATEMENT
BANK'S PERFROMANCE

BANK'S PERFORMANCE
Year on Year Progress 5 year Profit & Loss Statement
PARTICULARS 2073/74 2072/73 2071/72 2070/71 2069/70
1. Interest Income 5,306 3,096 2,403 2,424 2,240

2. Interest Expenses 3,113 1,592 1,296 1,329 1,251
Net Interest Income 2,193 1,504 1,106 1,095 989
3. Commission & Discount 210 161 119 104 95
4. Other Operating Incomes 330 279 187 141 125
5. Exchange Fluctuation Income 130 115 80 63 51
Total Operating Income 2,863 2,059 1,493 1,404 1,259
6. Staff Expenses 451 356 272 264 218
7. Other Operating Expenses 546 426 356 361 331
8. Exchange Fluctuation Loss - - - - -
Operating Profit Before Provision for Possible Loss 1,866 1,277 865 779 711
9. Provision for Possible Losses 282 322 459 466 368
Operating Profit 1,584 955 406 313 342
10. Non - Operating Income/Expenses 32 1 3 2 4
11. Loan Loss Provision Written Back 280 556 417 94 209
Profit from Regular Activities 1,896 1,513 826 409 555
12. Income/Expense from Extra-Ordinary Activities (86) (3) (92) (15) (52)
Profit from All Activities 1,811 1,510 734 394 504
13. Provision for Staff Bonus 165 137 67 36 46
14. Provision for Tax Expense 470 421 196 112 146
Current Years 446 421 189 124 149
Previous Years 1 6 2 - 1
Deferred Tax 22 (6) 5 (12) (4)
NET PROFIT/(LOSS) 1,176 951 471 247 312

STRATEGIC REPORT
GORVERNANCE
Ratio Highlights of 2016/17
RISK REVIEW
TOTAL DEPOSITS TOTAL LOAN NET PROFIT NET INTEREST. INCOME
(in million) (in million) (in million) (in million)
61,013
1,176
51,739
2,193
51,650
43,749
1,504
951
18% 18% 24% 46%
2016 2017 2016 2017 2016 2017 2016 2017
NON INTEREST & FX INCOME STAFF & OPERATING EXPENSES LOAN LOSS PROVN. LOSS W/O
(in million) (in million) (in million) (in million)
997
556
670
322
555
782
280
HUMAN RESOURCE
282
21% 28% -12% -50%
2016 2017 2016 2017 2016 2017 2016 2017
GOVT. TAXES INTEREST SPREAD NPL TO TOTAL LOANS DIVIDEND DECLARATION

(in million) (in %) (in million) (in million)
PRODUCTS & SERVICES

4.49
447
33%
1.37%
1.22%
15%
4.42
427
5% 0.07% 0.15% -18.33%

2016 2017 2016 2017 2016 2017 2016 2017
FINANCIAL STATEMENT
CAPITAL ADEQUACY RATIO EPS CLOSING SHARE PRICE NO OF EMPLOYEES
(in %) (in NPR) (in NPR) (in number)
956
14.47
748
23.94
396
12.05
699
16.76
2.42% -7.18 -352 257 INVESTOR'S RELATIONSHIP
2016 2017 2016 2017 2016 2017 2016 2017
NO. OF BRANCHES NO OF ATMS NO OF DEPOSIT A/CS

(in number) (in number) (in number)
70
82
363000
67
71
335000
BANK'S PERFROMANCE
3 11 8.36%
2016 2017 2016 2017 2016 2017

BANK'S PERFORMANCE
Remmitance Network International

Sunrise Bank has extended remittance business throughout Middle East and other Nepalese workers destinations.
Remittance department has been continuously seeking and soliciting new avenues for remittance business. Detailed
international remittance network is mentioned below :
COUNTRY PARTNER BANK / REMITTANCE COMPANY
Oman Al Jadeed Exchange

Modern Exchange
Asia Express Exchange
Qatar Habib Qatar International Exchange
Al Zaman Exchange
Al Jazeera Exchange
UAE Al Ahalia Exchange
Progoti Exchange
GCC Exchange
Al Ansari Exchange
Noor Ahalia Exchange
Kuwait Bahrain Exchange Company
Bahrain Bex Money Bahrain Express Exchange
Israel WIC Worldcom Finance
Italy / Europe National Exchange
UK Netfox LTD
NEC Money Transfer
India IDBI Bank
South Korea Industrial Bank of Korea
KB Kookmin Bank
USA Trans Fast Remittance
Japan Easylink Remittance
Hong Kong ……………………..
Malaysia ……………………..
Others Western Union
Moneygram
Remittance Network Domestic

Arrangement with Remittance Companies within Nepal for payment of both International and Domestic Remittances.
IME Prabhu Himal City Samsara Reliable CG Money SDBL

Money Remit Express Money Remit Transfer Trust
Transfer Transfer Remit

STRATEGIC REPORT
Correspondent Network and
Correspondent Banking Service
GORVERNANCE
The Bank maintains a full-fledged helping the free flow of information as and
Correspondent Banking Department when required. The Correspondent Banking
RISK REVIEW
under its Treasury and Correspondent Department is in constant communication
Banking Department located in Head with all our international correspondent
Office, Gairidhara, Kathmandu, Nepal. The banks, SWIFT department, Trade Finance
department is dedicated to provide prompt departments, and all the branches.
service to all the units of the Bank relating to Maintaining such good relationship is the key
international payments, inward remittance, to providing seamless service as it allows
letter of credit advising, settlements and for better responsiveness and flexibility in
all other correspondent banking related meeting the needs of clients.
issues for smooth functioning of the Bank’s
department and branches. We have a comprehensive network of
Correspondent Banks. Our customers
For reliable transfer of funds and prompt can benefit from our international reach,
service to its customers, The Bank has relationship-based approach with high level
HUMAN RESOURCE
maintained nostro accounts with 19 of expertise, and our wide range of global
banks for different currencies. It also has correspondent banking service.
Relationship Management Application
(RMA) arrangement with more than 35 Further, customers can remit funds from their
banks that enables communication between account to any of our Correspondent Banks
various financial institutions via SWIFT thus mentioned below.
PRODUCTS & SERVICES

Standard settlement instructions (ssi) of sunrise bank limited (swift: SRBLNPKA)
CURRENCY CORRESPONDENT COUNTRY CITY SWIFT/BIC

BANK
1. AUD Westpac Banking Corporation Australia Sydney WPACAU2S
FINANCIAL STATEMENT
2. DKK Danske Bank A/S Denmark Copenhagen DABADKKK
3. EUR Standard Chartered Bank Germany Frankfurt am Main SCBLDEFX
4. EUR MashreqBank PSC Great Britain London MSHQGB2L
5. GBP MashreqBank PSC Great Britain London MSHQGB2L
6. GBP Standard Chartered Bank Great Britain London SCBLGB2L
7. INR Axis Bank Ltd India Mumbai AXISINBB004
8. INR HDFC Bank Ltd India Mumbai HDFCINBB INVESTOR'S RELATIONSHIP
9. INR Mashreq Bank PSC India Mumbai MSHQINBB
10. INR Standard Chartered Bank India Mumbai SCBLINBB
11. INR IDFC Bank Limited India Mumbai IDFBINBB
12. INR IDBI Bank Limited India Mumbai IBKLINBB
13. INR Bank of America India Mumbai BOFAIN4X
14. JPY Standard Chartered Bank Japan Tokyo SCBLJPJT
15. USD K B Kookmin Bank South Korea Seoul CZNBKRSE
16. USD Habib American Bank United States New York HANYUS33
BANK'S PERFROMANCE
17. USD Industrial Bank of Korea South Korea Seoul IBKOKRSE

18. USD MashreqBank PSC United States New York MSHQUS33
19. USD Standard Chartered Bank United States New York SCBLUS33

Our Branch Network
INSIDE VALLEY
CORPORATE HEAD OFFICE BUDHANILKANTHA BRANCH GOTHATAR BRANCH

Sunrise Plaza, Gairidhara, BM: Ms. Neema Pradhan BM: Neeraj Charan Amatya
Kathmandu Metropolitian City-2, Kathmandu Narayanthan Chowk-4, Pepsi Cola Town Planning, Gothatar. Kathmandu
TEL.: 977-01-4004560, 4004562, 4004563, Budhanilkantha, Kathmandu TEL.: 977-01-4992706
4004564 TEL.: 977-01-4378275 E-MAIL: GOTHATAR-TEAM@sunrisebank.com.np
FAX.: 01-4422475 E-MAIL: neeraj.amatya@sunrisebank.com.np
SWIFT: SRBLNPKA BUDDHANILKANTHA-TEAM@sunrisebank.com.np
E-MAIL: info@sunrisebank.com.np neema.pradhan@sunrisebank.com.np JYATHA BRANCH
BM: Mr. Kedar Singh
ATTARKHEL BRANCH CHABAHIL BRANCH Jyatha-30, Kathmandu
BM: Mr. Prabhat Nepal BM: Mr. Lokendra Sharma TEL.: 977-01-4260654
Attarkhel, Jorpati -7, Kathmandu Gopikrishna Saraswatinagar-7, E-MAIL: JYATHA-TEAM@sunrisebank.com.np
TEL.: 977-01-4913704 Kathmandu Metropolitan City kedar.singh@sunrisebank.com.np
E-MAIL: ATTARKHEL-TEAM@sunrisebank.com.np TEL.: 977-01-4822766, 4822466
prabhat.nepal@sunrisebank.com.np E-MAIL: CHABAHIL-TEAM@sunrisebank.com.np KALANKI BRANCH
lokendra.sharma@sunrisebank.com.np BM: Mr. Ramsharan Bhattarai
BANIYATAR BRANCH Kalanki-14, Kathmandu
BM: Ms. Uma Shrestha GABAHAL BRANCH TEL.: 977-01-5234795, 5234796
Tokha-8, Baniyatar BM: Mr. Pujan Joshi E-MAIL:
TEL.: 977-01-5158066 Gabahal-18, Lalitpur KALANKIBRANCH-TEAM@sunrisebank.com.np
E-MAIL: BANIYATAR-TEAM@sunrisebank.com.np TEL.: 977-01-5005014, 5005015 ramsharan.bhattarai@sunrisebank.com.np
uma.shrestha@sunrisebank.com.np E-MAIL: GABAHAL-TEAM@sunrisebank.com.np
pujan.joshi@sunrisebank.com.np KALIKASTHAN BRANCH
BHAISEPATI BRANCH BM: Ms. Somi Malla
BM: Mr. Kamal Babu Simkhada GAIRIDHARA BRANCH (Main Branch) Kalikasthan-29, Kathmandu
Karyabinayak Municipality-1, BM: Mr. Vivek Kumar Niraula TEL.: 977-01-4422554, 4422555
Khokana Dobato, Lalitpur Sunrise Plaza, Gairidhara Crossing, Kathmandu E-MAIL: KALIKASTHAN-TEAM@sunrisebank.com.np
TEL.: 977-01-5592930, 5592931 TEL.: 977-1-4004560, 4004564 somi.malla@sunrisebank.com.np
E-MAIL: BHAISEPATI-TEAM@sunrisebank.com.np FAX.: 977-1-4422475
kamal.simkhada@sunrisebank.com.np E-MAIL: MainBranchStaff@sunrisebank.com.np KALIMATI BRANCH
vivek.niraula@sunrisebank.com.np BM: Mr. Deepak Raj Joshi
BHAKTAPUR BRANCH Salt Trading Corportation-13,
BM: Mr. Bhim Narayan Shrestha GAUSHALA BRANCH Kalimati, Kathmandu
Sukuldhoka-5, Bhaktapur Municipality BM: Mr. Kamal Bahadur Adhikari TEL.: 977-01-4278694, 4278709, 4278717
TEL.: 977-01-6619240, 6619241, 6619242 Pashupati Vision Complex, Pingalasthan, E-MAIL: KALIMATI-BRANCH@sunrisebank.com.np
E-MAIL: BHAKTAPUR-TEAM@sunrisebank.com. np Gaushala, Kathmandu, Nepal deepak.joshi@sunrisebank.com.np
bhim.shrestha@sunrisebank.com.np TEL.: 977-01-4113667, 4113668
E-MAIL: GAUSHALA-TEAM@sunrisebank.com.np KAMALPOKHARI BRANCH
BOUDDHA BRANCH kamal.adhikari@sunrisebank.com.np BM: Mr. Dipak Pandit
BM: Mr. Nirish Raj Upadhyay Kamalpokhari street, Kamalpokhari, Kathmandu
Bouddha-6, Kathmandu GONGABU BRANCH TEL.: 977-01-4421652, 4423219, 4425343
TEL.: 977-01-4916395 BM: Ms. Panna Wagle E-MAIL:
E-MAIL: BOUDDHA-TEAM@sunrisebank.com.np Gongabu-26, Kathmandu KAMALPOKHARI-TEAM@sunrisebank.com.np
nirish.upadhyay@sunrisebank.com.np TEL.: 977-01-4388505, 4388506 dipak.pandit@sunrisebank.com.np
E-MAIL: GONGABU-TEAM@sunrisebank.com.np
panna.wagle@sunrisebank.com.np

KHUSIBU BRANCH PHARPING BRANCH
BM: Mr. Anil Maharjan BM: Mr. Govinda Maharjan
Khusibu - 17, Kathmandu Daskhinkali-05,Kathmandu
TEL.: 977-01-4382950, 4382952 TEL.: 977-01-4710685, 4710943
E-MAIL: KHUSIBU-TEAM@sunrisebank.com.np E-MAIL: PHARPING-TEAM@sunrisebank.com.np
anil.maharjan@sunrisebank.com.np govinda.maharjan@sunrisebank.com.np
LAGANKHEL BRANCH PUTALISADAK BRANCH

BM: Narendra Dev Adhikari BM: Mr. Bishnu Prasad Uprety
Lagankhel-12, Lalitpur Radhakuti Arcade-29, Putalisadak, Kathmandu
TEL.: 977-015526178, 5553480 TEL.: 977-01-4010595, 4421662
E-MAIL: LAGANKHEL-TEAM@sunrisebank.com.np E-MAIL: PUTALISADAK-TEAM@sunrisebank.com.np
narendradev.adhikari@sunrisebank.com.np bishnu.uprety@sunrisebank.com.np
LUVU BRANCH SANEPA BRANCH

BM: Mr. Bidur Pant BM: Ms. Rima Rajbanshi
Mahalaxmi Muicipality-8, Tallo Chautara, Luvu. Lalitpur Municipality-2, Sanepa, Lalitpur
TEL.: 977-01-5580361, 5580461 TEL.: 977-01-5542897, 5542898
E-MAIL: LUVU-TEAM@sunrisebank.com.np E-MAIL: SANEPA-BRANCH@sunrisebank.com.np
bidur.pant@sunrisebank.com.np rima.rajbanshi@sunrisebank.com.np
MAHARAJGUNJ BRANCH SHANKHAMUL BRANCH

BM: Ms. Tara Bhandari BM: Ms. Rachana Shrestha
Narayangopal chowk, chakrapath Shankhamul Chowk-34, Kathmandu
Opposite of Bhatbhateni Supermarket TEL.: 977-01-4783996
TEL.: 977-01-4720346, 4721352, 4721385 E-MAIL: SANKHAMUL-TEAM@sunrisebank.com.np
E-MAIL: rachana.shrestha@sunrisebank.com.np
MAHARAJGUNJ-TEAM@sunrisebank.com.np
tara.bhandari@sunrisebank.com.np SITAPAILA BRANCH
BM: Ms. Bijaya Poudel
NEW ROAD BRANCH Sitapaila 4, Nagarjun Municipality
BM: Mr. Sujan Paudel TEL.: 977-01-4034996, 4034997
Khichhapokhari-22, New Road, Kathmandu E-MAIL: SITAPAILA-TEAM@sunrisebank.com.np
TEL.: 977-01-4239470, 4239471, 4239472, bijaya.poudel@sunrisebank.com.np
4233545, 4225055
E-MAIL: newroadoperations@sunrisebank.com.np TAUKHEL BRANCH
sujan.paudel@sunrisebank.com.np BM: Mr. Upendra Bir Bajracharya
Taukhel 3, Godawari Municipality, Lalitpur
NEW ROAD BRANCH (2) TEL.: 977-01-5560574, 5560635, 6224821
BM: Ms. Sabina Shrestha E-MAIL: TAUKHEL-TEAM@sunrisebank.com.np
Pako, Newroad upendra.bajracharya@sunrisebank.com.np
TEL.: 977-01-4222750, 4228380
E-MAIL: NEWROAD2-TEAM@sunrisebank.com.np TINKUNE BRANCH
sabina.shrestha2@sunrisebank.com.np BM: Mr. Gyanendra Dutta
Neupane Tower-35, Tinkune, Kathmandu
TEL.: 977-01-4111554, 4111929, 4111854
E-MAIL: Tinkune-Team@sunrisebank.com.np
gyanendra.dutta@sunrisebank.com.np

OUTSIDE VALLEY
AURAHI BINDABASINI BRANCH BUTWAL BRANCH

BM: Mr. Sandip Kumar Karna BM: Mr. Karan Shrestha BM: Mr. Rajendra Ghimire
Deuri Bazar-2, Aurahi Gaupalika, Dhanusha Bahuarwabhatha-2, Bindabasini Gaupalika Butwal Sub Metropolitian-9, Milanchowk
TEL.: 977-041-620055 TEL.: 977-9755001213 TEL.: 977-071-551572, 551573
E-MAIL: AURAHI-TEAM@sunrisebank.com.np E-MAIL: BINDABASINI-TEAM@sunrisebank.com.np E-MAIL: BUTWAL-TEAM@sunrisebank.com.np
sandip.karna@sunrisebank.com.np karan.shrestha@sunrisebank.com.np rajendra.ghimire@sunrisebank.com.np
BARDIBAS BRANCH BIRATCHOWK BRANCH DADELDHURA BRANCH

BM: Mr. Dipesh Dhakal BM: Mr. Sanjog Rajbhandari BM: Mr. Birkha Bohara
Bardibas -1, Mahottari Birat Chowk, SundarHaraincha-10, Morang. Bagbazar-5, Amargadhi Municipality
TEL.: 977-044-550563, 550564 TEL.: 977-021-546102, 546430 TEL.: 977-096-420723, 420724
E-MAIL: BARDIBAS-TEAM@sunrisebank.com.np E-MAIL: BIRATCHOWK-TEAM@sunrisebank.com.np E-MAIL:
dipesh.dhakal@sunrisebank.com.np sanjog.rajbhandari@sunrisebank.com.np DADELDHURA-TEAM@sunrisebank.com.np
birkha.bohara@sunrisebnak.com.np
BAMTIBHANDAR BIRATNAGAR BRANCH
BM: Mr. Saphal Acharya BM: Mr. Suman Bhattarai DAMAK BRANCH
Umakunda-2, Bamtibhandar Hanumandas Road-8, Biratnagar Metropolitan City BM: Mr. Guru Raj Regmi
TEL.: 977-9741428893 TEL.: 977-021-440695/96, 521262, 530384 Damak Chowk, Jhapa
E-MAIL: E-MAIL: BIRATNAGAR-TEAM@sunrisebank.com.np TEL.: 977-023-582360, 582361
BAMTIBHANDAR-TEAM@sunrisebank.com.np suman.bhattarai@sunrisebank.com.np E-MAIL: DAMK-TEAM@sunrisebank.com.np
saphal.acharya@sunrisebank.com.np guru.regmi@sunrisebank.com.np
BIRENDRANAGAR BRANCH
BESISAHAR BRANCH BM: Mr. Praveen Adhikari DAMAULI BRANCH
BM: Mr. Yadav Raj Upadhyay Biredranagar municipality-6, Hulak line Surkhet BM: Mr. Deepak Sharma
Jhyang Khola-8, Besisahar Municipality TEL.: 977-083-523490, 523825 Vyas-03 Neemchowk Damauli Tanahun
TEL.: 977-066-520129 E-MAIL: TEL.: 977-065-561800
E-MAIL: BESISAHAR-TEAM@sunrisebank.com.np BIRENDRANAGAR-TEAM@sunrisebank.com.np E-MAIL: DAMAULI-BRANCH@sunrisebank.com.np
yadav.upadhyay@sunrisebank.com.np praveen.adhikari@sunrisebank.com.np deepak.sharma@sunrisebank.com.np
BHADRAPUR BRANCH BIRGUNJ BRANCH DARCHULA BRANCH

BM: Mr. Visan Niroula BM: Mr. Nitesh Khadgi BM: Mr. Rakesh Singh Budhathoki
Bhadrapur Municipality-5, Bhadrapur Bazar Adarshanagar-7, Birgunj Ghat Bazar-5, Khalanga, Darchula
TEL.: 977-023-520132, 520133 TEL.: 977-051-524784, 524785 TEL.: 977-093-420123
E-MAIL: BHADRAPUR-TEAM@sunrisebank.com.np E-MAIL: BIRGUNJ-TEAM@sunrisebank.com.np E-MAIL: DARCHULA-TEAM@sunrisebank.com.np
visan.niroula@sunrisebank.com.np nitesh.khadgi@sunrisebank.com.np rakesh.budhathoki@sunrisebank.com.np
BHAIRAHAWA BRANCH BIRTAMOD BRANCH DEURALI BRANCH

BM: Mr. Anil Bajracharya BM: Mr. Suman Dahal BM: Mr. Sunil Pant
Siddharthanagar Nagarpalika-5, Bank Road, Mukti Chowk-7, Birtamod Rupa Rural Municipality, ward no-5, Kaski
Bhairahawa, Rupendehi TEL.: 977-023-541069 TEL.: 977-061-620845
TEL.: 977-071-520703, 520706, 520373 E-MAIL: BIRTAMODE-BRANCH@sunrisebank.com.np E-MAIL: DEURALI-TEAM@sunrisebank.com.np
E-MAIL: BHAIRAHAWA-TEAM@sunrisebank.com.np suman.dahal@sunrisebank.com.np sunil.pant@sunrisebank.com.np
anil.bajracharya@sunrisebank.com.np
BUDHABARE BRANCH DHANGADI BRANCH
BHARATPUR BRANCH BM: MR. Tej Bahadur Thapa Magar BM: Mr. Dharam Kumar Bista
BM: Mr. Achyuit Shrestha Buddha Shanti-3, Budhabare, Jhapa Ratopool-2, Dhangadi
Hakim Chowk-2, Bharatpur, Chitwan TEL.: 977-023-555478 TEL.: 977-091-524850, 523897
TEL.: 977-056-533261 E-MAIL: BUDHABARE-TEAM@sunrisebank.com.np E-MAIL: DHANGADI-TEAM@sunrisebank.com.np
E-MAIL: BHARATPUR-TEAM@sunrisebank.com.np tej.thapamagar@sunrisebank.com.np dharam.bista@sunrisebank.com.np
achyuit.shrestha@sunrisebank.com.np

DHARAN BRANCH GUTHICHAUR MAHENDRANAGAR BRANCH
BM: Mr. Surya Bahadur Balampaki BM: Mr. Jeevan K.C BM: Mr. Yogesh Kumar Bhatta
Mahendrapath-5, Dharan Sub-Metropolitan City, Guthichaur-5, Jumla Bhimdutt Municipality-4, Special Line,
Sunsari TEL.: 9758005524 Mahendranagar, Kanchanpur
TEL.: 977-025-532841 E-MAIL: GUTHICHAUR-TEAM@sunrisebank.com.np TEL.: 977-099-520850, 520898
E-MAIL: DHARAN-TEAM@sunrisebank.com.np jeevan.kc@sunrisebank.com.np E-MAIL:
surya.balampaki@sunrisebank.com.np MAHENDRANAGAR-TEAM@sunrisebank.com.np
HETAUDA BRANCH yogesh.bhatta@sunrisebank.com.np
DUHABI BRANCH BM: Mr. Sudarshan Khatiwada
BM: Mr. Pramod Hari Pokhrel Kantirajpath - 3, Hetauda, Makwanpur MAIWAKHOLA BRANCH
Main Road-3, Duhabi, Sunsari TEL.: 977-057-522731, 575921 BM: Mr. Sujal Shrestha
TEL.: 977-025-541486, 541488 E-MAIL: HETAUDA-TEAM@sunrisebank.com.np Maiwakhola-3, Sanghu, Taplejung
E-MAIL: DUHABI-TEAM@sunrisebank.com.np sudarshan.khatiwada@sunrisebank.com.np TEL.: 977-021-696488
pramod.pokharel@sunrisebank.com.np E-MAIL: MAIWAKHOLA-TEAM@sunrisebank.com.np
ILLAM BRANCH sujal.shrestha@sunrisebank.com.np
DUMRE BRANCH BM: Mr. Madan Timsina
BM: Mr. Laxman Bhattarai Ashok Complex, Nikunja Path-7, Illam Municipality NARAINAPUR BRANCH
Dumre-1, Bandipur Municipality, Dumre TEL.: 977-027-521720, 521717 BM: Mr. Khadak Pd. Devkota
TEL.: 977-065-580355, 580356 E-MAIL: ILAM-BRANCH@sunrisebank.com.np Narainapur Gaupalika ward no 4,Banke
E-MAIL: DUMRE-TEAM@sunrisebank.com.np madan.timsina@sunrisebank.com.np TEL.: 977-081-695056
laxman.bhattarai@sunrisebank.com.np E-MAIL: NARAINAPUR-TEAM@sunrisebank.com.np
ITAHARI BRANCH khadak.devkota@sunrisebank.com.np
DURGA BHAGWATI BM: Mr. Yadav Khatiwada
BM: Mr. Sikindra Ray Yadav Itahari-6, Purba Line, Itahari Sub-Metropolitan NARAYANGHAT BRANCH
Ganga Pipra-1, Durga Bhagawati Gaupalika TEL.: 977-025-586924, 587622 BM: Mr. Prakash Kasti
TEL.: 977-055-400049 E-MAIL: ITAHARI-TEAM@sunrisebank.com.np Bharatpur -3, Loinschowk Chitwan
E-MAIL: yadav.khatiwada@sunrisebank.com.np TEL.: 977-056-570230, 570313
DURGABHAGWATI-TEAM@sunrisebank.com.np E-MAIL:
sikindraray.yadav@sunrisebank.com.np JHUMKA BRANCH NARAYANGHAT-TEAM@sunrisebank.com.np
BM: Mr. Nabin Kumar Jha prakash.kasti@sunrisebank.com.np
GAIGHAT BRANCH Ramdhuni-1,Sunsari
BM: Mr. Sanjay Kumar Karna TEL.: 977-025-562353, 562653 NEPALGUNJ BRANCH
Gaighat-4 “KHA” E-MAIL: JHUMKA-TEAM@sunrisebank.com.np BM: Mr. Dipak Khanal
TEL.: 977-035-420778, 420779, 420780 nabin.jha@sunrisebank.com.np Surkhet Road-26,
E-MAIL: GAIGHAT-TEAM@sunrisebank.com.np Near Puspa Lal Chowk, Nepalgunj
sanjay.karna@sunrisebank.com.np KAKARVITTA BRANCH TEL.: 977-081-522484, 523319
BM: Mr. Kumar Khadka E-MAIL: NEPALGUNJ-TEAM@sunrisebank.com.np
GAUR BRANCH Shanti Path-10, Kakarvitta dipak.khanal@sunrisebank.com.np
BM: Mr. Bipat Chaudhary TEL.: 977-023-562083
Purnewa-4, Gaur Municipality, Gaur E-MAIL: KAKARVITTA-TEAM@sunrisebank.com.np PANAUTI BRANCH
TEL.: 055-521413/14 kumar.khadka@sunrisebank.com.np BM: Mr. Rajkumar Thapa
E-MAIL: GAUR-TEAM@sunrisebank.com.np Kusha Devi Marg-5, Panauti, Kavre
bipat.chaudhary@sunrisebank.com.np LAHAN BRANCH TEL.: 977-011-440602
BM: Mr. Pramod Kumar Das E-MAIL: PANAUTI-TEAM@sunrisebank.com.np
Lahan 8 (opposite Army Camp), Siraha Nepal rajkumar.thapa@sunrisebank.com.np
TEL.: 977-033-562403, 562404
E-MAIL: LAHAN-TEAM@sunrisebank.com.np
pramod.das@sunrisebank.com.np

POKHARA BRANCH SURUNGA BRANCH
BM: Mr. Nitesh Regmi BM: Mr. Sudesh Malla
New Road 9, Pokhara, Kaski BT Complex-3, Jhapa Road, Surunga
TEL.: 977-61-537845 TEL.: 977-023-550881, 550880
E-MAIL: POKHARA-TEAM@sunrisebank.com.np E-MAIL: SURUNGA-TEAM@sunrisebank.com.np
nitesh.regmi@sunrisebank.com.np sudesh.malla@sunrisebank.com.np
RAJBIRAJ BRANCH TANDI BRANCH

BM: Mr. Rohit K. Mahaseth BM: Mr. Govinda Prasad Poudyal
Gajendra Chowk-4, Rajbiraj Ratnanagar-2, Tandi, Chitwan
TEL.: 977-031- 520727, 520721 TEL.: 977-056-562993
E-MAIL: RAJBIRAJ-TEAM@sunrisebank.com.np E-MAIL: TANDI-TEAM@sunrisebank.com.np
rohit.mahaseth@sunrisebank.com.np govinda.poudyal@sunrisebank.com.np
SANIBHERI BRANCH TERHATHUM BRANCH

BM: Mr. Rohit Bahadur Chand BM: Mr. Drona Chandra Ghimire
Sanibheri-9, West Rukum Myaglung-1, Terhathum
TEL.: 977-081-694916 TEL.: 977-026-460720
E-MAIL: SANIBHERI-TEAM@sunrisebank.com.np E-MAIL: TERATHUM-TEAM@sunrisebank.com.np
rohit.chand@sunrisebank.com.np drona.ghimire@sunrisebank.com.np
SUKHAD BRANCH UDAYAPUR BRANCH

BM: Mr. Surendra Bahadur Shahi BM: Mr. Umesh Prasad Kushawaha
Ghodaghodi Municipality -9, Sukhad, Kailali Udayapur Cement Factory Premises,
TEL.: 977-091-403012, 403013 Jaljale-11, Udayapur
E-MAIL: SUKHAD-TEAM@sunrisebank.com.np TEL.: 977-035-411016, 9753003729
surendra.shahi@sunrisebank.com.np E-MAIL: UDAYAPUR-TEAM@sunrisebank.com.np
umesh.kushawaha@sunrisebank.com.np
SUNDAR BAZAR BRANCH
BM: Mr. Manoj Gurung
Tallo Bazar-7, Sundar Bazar
TEL.: 977-066-402061, 402062
E-MAIL: SUNDARBAZAR-TEAM@sunrisebank.com.np
manoj.gurung@sumrisebank.com.np
SUNWAL BRANCH
BM: Mr. Megh Bahadur K.C
Sunwal Chauraha-4, Sunwal
TEL.: 977-078-570473
E-MAIL: SUNWAL-TEAM@sunrisebank.com.np
megh.kc@sunrisebank.com.np

ATM Lists
ATTARKHEL BRANCH DHARAN BRANCH NEPALGUNJ BRANCH
BALAJU CHOWK ATM DUHABI BRANCH NEW BANESHWAR CHOWK LOUNGE
BANDIPUR ATM DUMRE BRANCH NEWROAD BRANCH
BANIYATAR BRANCH 2 ATM GABAHAL BRANCH DHARMAPATH NEWROAD POOL
BANIYATAR BRANCH GAIGHAT BRANCH NEWROAD2 BRANCH
BARAHICHOWK LAKESIDE LOUNGE GAIRIDHARA INSIDE SITA PAILA PADMA COLONY ATM
POKHARA GAIRIDHARA OUTSIDE PHARPING BRANCH
BARDIBAS BRANCH GAUR BRANCH POKHARA BRANCH
BAJEKO SEKUWA BATTISPUTALI LOUNGE GAUSHALA BRANCH POKHARA LAKESIDE LOUNGE
BESISAHAR BRANCH GOTHATAR BRANCH PUTALISADAK BRANCH
BHADRAPUR BRANCH HETAUDA BRANCH RAJBIRAJ 2 ATM
BHAIRAHAWA BRANCH HOTEL B&Y BIRTAMODE RAJBIRAJ BRANCH
BHAISIPATI BRANCH HOTEL GARUDA LOUNGE THAMEL SANEPA BRANCH ATM
BHAKTAPUR BRANCH HOTEL HARISSION BIRATNAGAR SANKHAMUL BRANCH
BHARATPUR BRANCH ILLAM BRANCH SITAPAILA BRANCH
BIRATCHOWK BRANCH ITAHARI BRANCH ATM SUKHAD BRANCH
BIRATNAGAR BRANCH JAIN BHAWAN LOUNGE KAMALPOKHARI SUNCITY APARTMENT GOTHATAR ATM
BIRGUNJ BRANCH JHUMKA BRANCH SUNDARBAZAR BRANCH
BIRTAMODE BRANCH JYATHA BRANCH SUNWAL BRANCH
BOUDHA STUPA BOUDHA LOUNGE KAKARVITTA BRANCH SURKHET BRANCH
BIRATNAGAR AIRPORT ATM KALANKI BRANCH SURUNGA BRANCH
BUDANILKANTHA BRANCH KALIKASTHAN BRANCH TAUKHEL BRANCH
BUDHABARE BRANCH KALIMATI BRANCH TERATHUM BRANCH
BUTWAL BRANCH KAMALPOKHARI BRANCH THAMEL LOUNGE
BISHALNAGAR CENTRAL PARK ATM KHUSIBU BRANCH TINKUNE BRANCH
CHABAHIL BRANCH LAGANKHEL BRANCH TINKUNE BRANCH 2
CMC EXT CTR CHITWN LAHAN BRANCH UDAYPUR BRANCH
CMC HOSTEL CHITWAN RADDISSON- LAZIMPAT LOUNGE
DADELDHURA BRANCH LUVU BRANCH
DAMAK BRANCH MAHARAJGUNJ BRANCH
DAMAULI BRANCH MAHENDRANAGAR BRANCH
DANCING BOAT POKHARA LAKESIDE NARAYANGHAT I BRANCH
DARCHULA BRANCH ATM NARAYANGHATII BRANCH
DHANGADI BRANCH NARSINGA CHOWK 2 THAMEL
DHARAN (BPKIHS) NARSINGH CHOWK LOUNGE THAMEL

194
AREAS OF ACTIVITIES
Budhanilkantha
Maharajgunj Attarkhel
Baniyatar
MB Gairidhara
N
Boudha
Khusibu Chabahil

Jyatha Gaushala
Kathmandu Kamal Pokhari Gothatar
Putalisadak Kalikasthan
Gongabu Tinkune
Sitapaila
Newroad Sankhamul
Kalimati Bhaktapur
Sanepa Gabahal
Kalanki
Lagankhel
Darchula Bhainsepati
Pharping
Luvu
Dadeldhura
Lalitpur
Taukhel
Mahendranagar Guthichaur
Sukhad
Dhangadi
Birendranagar Besisahar
Pokhara
Damauli Sundarbazar
Nepalgunj Dumre
Narainapur Deurali
Butwal
Bharatpur
Bhairahawa Bamtibhandar
Narayanghat Tandi
Panauti
Hetauda Terhathum
Gaighat Maiwakhola Surunga
Sunwal Udayapur
Bindabasini Bardibas Dharan Illam
Jhumka Itahari Kakarvitta
Birgunj Lahan
Aurahi Duhabi Buddhabare
Biratchowk
OUR NETWORKS Gaur Birtamod
Rajbiraj
Bhadrapur
Branches ATMs Biratnagar
80 95 Damak
Sunrise Plaza, Gairidhara,
Kathmandu Metropolitian City-2,
TEL.: 01-4004560, 4004562,
4004563, 4004564
TOLL.: 16600 122444
FAX.: 01-4422475
SWIFT: SRBLNPKA
DESIGN & PRINT PROCESS: www.TheSquare.agency
E-MAIL: info@sunrisebank.com.np
wwww.sunrisebank.com.np

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ANNUAL REPORT

a phase of consolidation together with

clients, employess and shareholders. We

are now poised for taking off on a path of

innovation and growth to emerge as a leader

in Nepal's banking industry.

ANNUAL REPORT 2016/17

4 SUNRISE BANK LIMITED

RISK REVIEW INVESTOR'S RELATIONSHIP

CORPORATE SOCIAL BANK'S PERFORMANCE

VISION MISSION STRATEGY OBJECTIVES

8 SUNRISE BANK LIMITED

CORPORATE INTEGRITY AND

PRODUCTS & SERVICES

ANNUAL REPORT 2016/17 9

'07/08 '08/09 '09/10 '10/11 '11/12

Inception of Completed Expanded Expanded Expanded

10 SUNRISE BANK LIMITED

PRODUCTS & SERVICES

Deposit: Expanded Expanded Launched First Achieved the

extension counter at branches. Bank has

ANNUAL REPORT 2016/17 11

TABLE OF SECTORAL LENDING

SECTOR 2015/16 2016/17 GROWTH

Industry 7,768 9,509 22.4%

12 SUNRISE BANK LIMITED

13 ANNUAL REPORT 2016/17

33,487 37,389 58,739 71,456

14/15 15/16 16/17

14/15 15/16 16/17

14/15 15/16 16/17 16/17

14 SUNRISE BANK LIMITED

PRODUCTS & SERVICES

NPR 216 million which includes

ANNUAL REPORT 2016/17 15

Estimates of Central Bureau

of Statistics (CBS) show the

2016/17 compared to 0.4% in the

to grow by 6.9% compared to a

improved power supply and

accelerate growth from the low

base of the preceding year. The

a record high since 1993/94.

The record high growth was on account of

a pick up in agricultural output by 5.3% and

Increased tourists inflow, expansion of trade and

The annual average consumer price inflation

Non Performing Loan

previous year. The annual average inflation of

2016/17 has been the lowest since 2004/05.

The higher base price of the preceding year,

improved supply situation and lower global

prices including that of India contributed to the

16 SUNRISE BANK LIMITED

PRODUCTS & SERVICES

in the review year. to 5,068 in mid-July 2017 from 4,272 a year

ANNUAL REPORT 2016/17 17

18 SUNRISE BANK LIMITED

PRODUCTS & SERVICES