Name of enterprise: Rastriya Banijya Bank Report Date: Ashwin End ...

I. Basic Information (Only enter any changes after 1st submission) 

Established / Transformed date 

Current Governing Act: 

Line Ministry 

Current Address (Head Office) 

Location 

P.O. Box 

Telephone 

Fax 

4252931 

Web www.rbb.com.np 

CEO Bruce. F. Henderson 

Email 

Sector: Banking/Insurance/Stock trading 

Name of enterprise: Rastriya Banijya Bank 

Report Date: Ashwin End 2061 ( Mid October 2004) First Quarter, 2061-62 ( 2004-05) Fiscal Year. 

Magh 10, 2022 

Banks and Financial Institutions Ordinance, 2060 

Finance Ministry 

Singhadurbar Plaza, Kathmandu, Nepal 

Kathmandu 

6368 

4252595 

central.office@rbb.com.np 

Banking 

PE Performance Information -Finance PEs(Note i) 

II. Operational Information 

Volume -related figures 

Business Turnover (I) 

Unit 

Difference- 

Actual - Budget- 

Year to Date Year to Date Year to Date 

Second 

Second Second 

Actual as on Budgetas Differencea 

quarter 

quarter ended quarter ended 

Asadh end on Asadh s on Asadh 

ended 

Paush 2061 ( Paush 2061 ( 

2061 for FY end 2061 for end 2061 for 

Paush 2061 

FY 2061-62) FY 2061-62 

2060-61 FY 2060-61 FY 2060-61 

( FY 2061-62 

Last Year 

Actual 

2059/60 

Commentary 

a. Deposits Rs '000 41789000 40640000 1149000 40867000 40080000 787000 39402272 Deposits were higher than budgeted due to increase in 

savings deposits of Approved Retirement Fund of the 

b. Loans Rs '000 24795000 25000000 (205000) 25105000 26000000 (895000) 

Bank b Rs 1 5 billion 

26608828 Gross loans reduced due to higher NPA recovery and 

less than expected new lending 

c. Guarantee issued ( in No.'s) 

Notional capacity (II) 

- 

- 

- 

- 

- 

- 

Not Available 

a.deposit collection limit on networth 

There is no restriction on deposit collection by commercia 

Prepared by:Ashish Garg, CA RBB Date:28/02/05 

- 

- 

- 

- 

- 

- 

banks subject to maitaining liquidity levels. 

b.limit on loan to deposits and capital 

- - - - - - Nepal Rastra Bank Directives require maintenance of 

minimum core capital of 6% of risk weighted assets and 

minimum capital fund of 12% of the risk weighted assets. 

In view of negative net capital fund of the Bank the Bank 

has not complied with the capital fund requirements. The 

negative net worth of Bank is Rs. 21 billion at end of Q 2 

employed 

c. 

FY 04-05 

Days operated in the period Days 118 118 0 241 241 0 Excluding weekly holidays and public holidays 

Shifts operated / day 

Not-operated days (business lost) due to: 

NA NA NA NA NA NA NA Not applicable 

Public holidays NA NA NA NA NA NA NA Not applicable 

Service holidays NA NA NA NA NA NA NA Not applicable 

System breakdowns NA NA NA NA NA NA NA Not applicable 

Labour unrest NA NA NA NA NA NA NA Not applicable 

Lack of sales/services NA NA NA NA NA NA NA Not applicable 

Other NA NA NA NA NA NA NA Not applicable 

Approved by:Gopal Rajbahak, Chief Finanical Officer RBBDate:28/02/05 Page 1 of 5




Persons involved No's 3716 3741 25 3938 3822 (116) 5402 The Bank implemented Voluntary Retirement Scheme in 

two phases which resulted in retirement of 1475 

employee. 

Management (executives/officers) 

No's 

450 

455 5 459 455 (4) 624 

Servicing staff (non-officers) No's 

3,266 

3286 20 3479 3367 (112) 4778 

Servicing staff (labour) NA NA NA NA NA NA NA Not applicable 

Temporary staff NA NA NA NA NA NA NA Not applicable 

III. Profitability Analysis (Rs. '000) 


Notes 

provided 

Actual - 

Second 

quarter ended 

Paush 2061 ( 

FY 2061-62) 

Budget- 

Second 

quarter ended 

Paush 2061 ( 

FY 2061-62 

Difference- 

Second 

quarter 

ended 

Paush 2061 

( FY 2061-62 

Year to Date 

Actual as on 

Asadh end 

2061 for FY 

2060-61 


Budget as 

on Asadh 

end 2061 for 

FY 2060-61 


Difference 

as on Asadh 

end 2061 for 

FY 2060-61 

Value of the transactions (III) 

a. Deposits 922000 (227000) 1149000 1465000 678000 787000 408983 Deposits were budgeted to remain at a stable level with 

minor variation. However the increase in savings deposits 

of approved retirement fund led to more than expected 

increase. 

b. Loans (292000) 4130000 (4422000) (1504000) (609000) (895000) (428540) With increased recovery loan gross loans were expected 

to reduce 

c. Guarantee 

Operating Income (IV) 

0 0 0 0 0 0 

Not Available. 

a. Interest Income 916000 1203000 (287000) 2236000 2298000 (62000) 2050682 Interest income reduced mainly due to less than expected 

recovery from NPAs and reduction in interest rates on 

good loans. 

b. Commission 83000 145000 (62000) 310000 266000 44000 211483 

Commission income could not meet the quarterly target 

mainly due to less than expected income from letter of 

credit, bank gurantee and remittance income. 

c. Exchange Fluctuation (8000) 13000 (21000) 16000 92000 (76000) 2856 Wide forex flucutations 

Other income (V) 83000 73000 10000 293000 349000 (56000) 90993 

No major variation 

Total income 1074000 1434000 (360000) 2855000 3005000 (150000) 2356014 

(370000) (910000) (540000) (899000) (775000) 124000 1593731 Write back of loan loss provision was less than expected 

due to reduced recovery,stricter provisioning norms of 

NRB and conservative policy on write back of provision 

Loan loss provision 

from restructured loans. 

Loans/interest written off 

Cost of Operation (VI) 

- - - - - - 

a. Interest paid on deposits and 

borrowings 

b. Office Opearting expenses 

532000 672000 140000 1494000 1553000 59000 2108158 Reduced cost of fund led to favorable budget variance 

c. - - - - - - 

Other expense - 

- 

- 

- 

- 

- 

Total staff costs 357000 323000 (34000) 702000 705000 3000 3248984 Employee expenses 

87,000 134,000 47000 195000 239000 44000 208861 Office operating expenses were less than budgeted due 

deferrement of certain expenses as a resutl of delay in 

Total occupancy costs (admin/general) 

computerisation and effective budgetary control 

Abnormal & other non-recurrent items - 

- 

- 

- 

- 

- 

Other expenses - 

- 

- 

- 

- 

- 

Depreciation & amortisation 17,000 20,000 

3000 

34000 58000 24000 36063 Depreciation for the quarter has been estimated 

Total expense 623000 239000 (384000) 1526000 1780000 254000 7195797 

Last Year 

Actual 

2059/60 

Commentary 





Earnings before interest on non-operating borrowings & 451000 1195000 (744000) 1329000 1225000 104000 (4839783) 

Subsidy from HMGN - - 

- - 

- - 

Subsidy from others - - 

- - 

- - 

Interest on non-operating borrowings - - 

- - 

- - 

Earnings before tax 451000 1195000 (744000) 1329000 1225000 104000 (4839783) 

Extraordinary items & changes in a/c policy 41000 75000 34000 203000 50000 (153000) 0 Voluntary Retirement Scheme expenses 

Minority interests NA NA NA NA NA NA NA Fully Government Owned 

Out of Profit Expense/Allocations 

- 

- 

- 83,000 75,000 (8000) - To be finalised at year end 

a. Bonuses 

83000 75000 (8000) 0 

b. Staff welfare 

0 

c. Corporate Tax 

0 Adequate accumulated losses. 

Net Profit 

d. Specific Provisions 

e. Dividend 

f. General Reserves 

1043000 1100000 265000 (4839783) 

Prior period expense 

2000 100000 98000 0 

Retained profit 410000 1120000 (778000) 1041000 1000000 167000 (4839783) 

IV. Financial Condition (Rs. '000) 

Notes 

provided 

Difference- 

Actual - Budget- 

Year to Date Year to Date Year to Date 

Second 

Second Second 

Actual as on Budgetas Differencea 

quarter 

quarter ended quarter ended 

Asadh end on Asadh s on Asadh 

ended 

Paush 2061 ( Paush 2061 ( 

2061 for FY end 2061 for end 2061 for 

Paush 2061 

FY 2061-62) FY 2061-62 

2060-61 FY 2060-61 FY 2060-61 

( FY 2061-62 

Last Year 

Actual 

2059/60 

Commentary 

Cash at bank and on hand 7018000 4107000 2911000 3736050 Cash at vault, commercial banks, foreign banks and NRB 


Short money market loans 100000 300000 (200000) 740000 Inter bank loans 

Due from other FIs Money at call and short notice 

Securities 

Statutory deposits 

2992000 4658000 (1666000) 4623132 Shares, treasury bills and bonds 

Loans: gross less unearned income 

(Loans in arrears) 

25106000 26000000 (894000) 26608828 

Less loan loss reserves 

Specific provisions 

General provisions 

14274000 14929000 

655000 14929339 

Net loans 10832000 11071000 (239000) 11679489 

Other investments 125000 100000 25000 

Other financial assets 23597000 21079000 2518000 21497506 

Total financial assets 44664000 41315000 3349000 42276177 

Net book value of fixed assets 391000 401000 (10000) 478984 Written down value 

Work in progress/cap. Expenditure - 

- 

- 

Other tangible assets - 

- 

- 

Intangibles - 

- 

- 

Deferred tax assets - 

- 

- 

Total assets 45055000 41716000 3339000 42755161 





Due to other FIs 80000 150000 70000 161950 

Deposits 40867000 40080000 (787000) 39402272 

Other public borrowings - 

- 

- 

Bonds, notes and commercial papers - 

- 

- 

Loans: banks and other financial 

institutions 

- 

- 

- 

Loans: HMGN, other Government 

agencies & donors 

- - - 

Other financial liabilities 25109000 21543000 (3566000) 25566609 

Total financial liabilities 

Current loans 

Payables 

66056000 61773000 (4283000) 65130831 

Other liabilities: 

Life insurance fund 

438000 1325000 887000 16421 

Bills payable/reinsurance outstanding 

Deferred income tax 

24000 25000 1000 16421 

Other non-current liabilities 414000 1300000 886000 

Total liabilities 66494000 63098000 (3396000) 65147252 

Paid in share capital 1172000 1172000 - 1172000 

a.Government 1172000 1172000 - 1172000 

b.PEs - 

- 

- 

- 

Capital grant - 

- 

- 

- 

Reserves 421000 511000 90000 292072 (23564091) 

Profit/(loss) at end of last financial year (24073000) (24065000) 8000 (19016380) 

Current year profit/(loss) 1041000 1000000 167000 (4839783) 

Shareholders’ funds 

Check: Total assets-total liabilities=total 

(21439000) (21382000) (42821000) (22392091) 

shareholders funds (21439000) (21382000) (42821000) (22392091) 

V. Unfunded and Contingent liabilities Notes 

Actual - Budget- Difference- Year to Date Year to Date Year to Date 

Second Second Second Actual as on Budgetas Differencea 

quarter ended quarter ended quarter Asadh end on Asadh s on Asadh 

Paush 2061 ( Paush 2061 ( ended 2061 for FY end 2061 for end 2061 for 

Last Year 

Actual 

2059/60 

Commentary 

Estimated redundancy cost (VII) Two phases of VRS completed. No further staff lay off 

anticipated 

Unfunded liabilities 7000 3000 (4000) 7000 

i. Labour/employees related (VIII) - 

- 

- 

ii.Unpaid share calls 7000 3000 (4000) 7000 Uncalled amount on investment in shares 

iii. Other - 

- 

- 

Contingent liabilities 1345000 1548000 203000 1334171 

i. Litigation 98000 98000 - 

98000 Income tax litigation 

ii. Guarantee 384000 450000 66000 561010 Bank guarantees 

iii.Other claims 863000 1000000 137000 675161 Letter of credit, bills discounting, biils for collection, 

acceptances and endorsement, claims against the bank 

not accepted as debt. 






Notes: 

I Enter the volume of transactions 

Banking:i) deposit accounts, ii) loan accounts, iii) number of guarantees issued 

Insurance: policies transacted: i) life insurance, ii) general insurance 

Stock trading: Securities transacted : i) corporate securities, ii) Govt. securities 

II Enter the notional capacity 

Banking: i) deposit collection limit on networth, if any; ii) limit on loan to deposits and capital employed, if any 

Insurance : policy coverage limit on networth, if any 

Stock trading: listed corporate securities: i) new listing, ii) bonus shares , iii) rights shares 

III Enter the value of transactions 

Banking: i) deposits collected (gross), ii) loans disbursed, iii) guarantees provided during the period 

Insurance: premiums received 

Stock trading : Value of the securities transacted at transactional price 

IV Enter the sales/services income 

Banking: i) interest income, ii) commission, iii) exchange fluctuation income 

Insurance: i) net premium, ii) reinsurance commission 

Stock trading: fee/commission on security transactions 

V Do not include subsidies in Other Income 


VI Enter the cost of operation 

Banking: Interest paid on deposits and borrowings 

Insurance:claims and surrender value, service fee and commissions, reinsurance premium 

Stock trading: directly chargeable costs in securities transactions if specifically accounted 

VII Show only if a redundancy programme is (i) planned or (ii) anticipated 

VIII Unfunded liabilities in lieu of accumulated leave, gratuity provision, undeposited provident fund, etc.

Name of enterprise: Rastriya Banijya Bank Report Date: Ashwin End ...

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