Quarter Report April 20 2022

NIC ASIA Bank Ltd.
Consolidated Statement of Financial Position

For the Quarter Ended 30th Chaitra 2078 (13th April 2022)
Amount in NPR
Group Bank
Particular Immediate Previous Year Immediate Previous Year
This Quarter Ending This Quarter Ending
Ending Ending
Assets
Cash and cash equivalent 10,993,488,170 28,266,984,006 9,788,283,405 23,902,662,784
Due from Nepal Rastra Bank 9,380,482,072 9,072,897,671 9,380,482,072 9,072,897,671
Placement with Bank and Financial Institutions - - - -
Derivative financial instruments. 586,999,840 5,359,380,480 586,999,840 5,359,380,480
Other trading assets 6,711,704 12,815,074 5,700,000 11,800,000
Loan and advances to B/FIs 13,394,059,140 10,053,956,892 16,644,059,140 14,289,456,892
Loans and advances to customers 280,676,324,117 265,072,547,940 257,679,192,365 248,770,354,077
Investment securities 46,828,619,944 33,739,079,470 46,474,454,261 33,293,725,162
Current tax assets - 296,218,884 - 297,107,341
Investment in subsidiaries - - 1,264,500,000 1,264,500,000
Investment in associates - - - -
Investment property 982,891,295 1,275,463,444 982,891,295 1,275,463,444
Property and equipment 3,117,494,895 3,170,873,551 2,975,604,824 3,038,162,554
Goodwill and Intangible assets 121,576,572 99,156,836 113,095,847 91,548,342
Deferred tax assets - - - -
Other assets 4,593,793,051 5,556,048,231 4,350,496,561 5,480,462,976
Total Assets 370,682,440,800 361,975,422,479 350,245,759,611 346,147,521,722
Group Bank
Particular This Quarter Ending Immediate Previous Year This Quarter Ending Immediate Previous Year
Ending Ending
Liabilities
Due to Bank and Financial lnstitutions 20,821,222,527 24,340,920,818 6,871,322,300 13,329,472,380
Due to Nepal Rastra Bank 7,227,764,978 3,238,618,707 7,227,764,978 3,238,618,707
Derivative financiaI instruments 588,216,000 5,337,920,000 588,216,000 5,337,920,000
Deposits from customers 299,110,673,649 289,497,923,428 296,176,168,112 287,024,798,908
Borrowing - - - -
Current Tax liabilities 278,722,419 - 220,610,750 -
Provisions - - - -
Deferred tax liabilities 285,113,727 449,707,043 285,811,050 459,535,668
Other liabilities 5,108,065,301 5,585,933,170 3,773,992,209 4,884,182,481
Debt securities issued 10,804,393,835 10,969,374,120 10,804,393,835 10,969,374,120
Subordinated liabilities - - - -
Total Liabilities 344,224,172,436 339,420,397,285 325,948,279,235 325,243,902,264
Equity
Share capital 11,564,005,366 11,564,005,366 11,564,005,366 11,564,005,366
Share premium - - - -
Retained earnings 3,590,638,222 1,935,127,958 2,984,119,499 1,599,552,618
Reserves 10,014,484,575 7,967,784,555 9,749,355,511 7,740,061,474
Total equity attributable to equity holders 25,169,128,163 21,466,917,879 24,297,480,376 20,903,619,458
Non-controlling interest 1,289,140,201 1,088,107,315 - -
Total equity 26,458,268,364 22,555,025,194 24,297,480,376 20,903,619,458
Total Liabilities and equity 370,682,440,800 361,975,422,479 350,245,759,611 346,147,521,722
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NIC ASIA Bank Ltd.
Consolidated Statement of Profit or Loss
Amount in NPR
Group Bank
Particular Current Year Previous Year Corresponding Current Year Previous Year Corresponding
This Quarter Upto this Quarter (YTD) This Quarter Upto this Quarter (YTD) This Quarter Upto this Quarter (YTD) This Quarter Upto this Quarter (YTD)
Interest income 9,269,599,475 25,817,433,704 7,051,638,561 18,112,385,948 8,526,433,695 23,556,926,647 6,259,384,169 16,753,361,845
Interest expense 5,909,253,309 16,398,701,665 3,866,560,788 10,571,703,201 5,509,662,696 15,298,483,352 3,621,798,300 10,168,969,497
Net interest income 3,360,346,166 9,418,732,039 3,185,077,772 7,540,682,747 3,016,771,000 8,258,443,296 2,637,585,869 6,584,392,349
Fees and commission income 638,218,116 1,920,997,463 694,304,885 1,762,142,183 546,826,534 1,534,617,387 475,431,714 1,411,045,069
Fees and commission expense 109,320,066 243,179,710 68,463,254 136,892,165 109,298,691 240,735,022 58,140,179 136,892,165
Net fee and commission income 528,898,050 1,677,817,752 625,841,631 1,625,250,018 437,527,843 1,293,882,365 417,291,535 1,274,152,904
Net interest, fee and commission income 3,889,244,216 11,096,549,791 3,810,919,403 9,165,932,765 3,454,298,843 9,552,325,661 3,054,877,404 7,858,545,252
Net trading income 14,622,873 164,446,284 80,160,291 226,259,644 14,409,754 161,996,233 80,160,291 219,997,198
Other operating income 86,612,580 321,980,056 21,951,405 160,041,482 86,685,873 319,966,990 22,986,204 160,002,346
Total operating income 3,990,479,669 11,582,976,131 3,913,031,099 9,552,233,891 3,555,394,470 10,034,288,884 3,158,023,899 8,238,544,796
Impairment charge/(reversal) for loans and
other losses 137,734,606 544,197,997 369,512,003 437,860,767 159,842,712 501,905,598 324,512,003 252,584,101
Net operating income 3,852,745,063 11,038,778,134 3,543,519,096 9,114,373,124 3,395,551,758 9,532,383,286 2,833,511,896 7,985,960,695
Operating expense
Personnel expenses 1,199,063,406 3,386,032,900 1,114,652,552 2,604,768,815 1,070,545,153 2,937,530,923 911,082,530 2,287,444,974
Other operating expense 631,841,418 1,412,091,612 554,450,408 1,197,750,328 538,373,077 1,193,438,653 473,460,977 1,029,956,012
Depreciation & Amortisation 101,920,668 312,243,453 99,355,564 280,838,003 93,788,401 288,013,559 91,423,125 272,905,564
Operating Profit 1,919,919,570 5,928,410,169 1,775,060,572 5,031,015,979 1,692,845,127 5,113,400,151 1,357,545,264 4,395,654,146
Non operating income 25,062,597 36,132,869 (490,850) 60,534,214 25,057,597 36,025,869 570,000 6,445,255
Non operating expense - - 9,146,502 109,505,633 - - 9,146,502 109,505,633
Profit before income tax 1,944,982,167 5,964,543,039 1,765,423,219 4,982,044,560 1,717,902,725 5,149,426,021 1,348,968,762 4,292,593,768
Income tax expense
Current Tax 583,494,650 1,789,362,912 529,626,966 1,494,613,368 515,370,817 1,544,827,806 404,690,628 1,287,778,131
Deferred Tax - - - - - - - -
Profit /(loss) for the period 1,361,487,517 4,175,180,127 1,235,796,253 3,487,431,192 1,202,531,907 3,604,598,214 944,278,133 3,004,815,638
Group Bank
Current Year Previous Year Corresponding Current Year Previous Year Corresponding
Particular
This Quarter Upto this Quarter This Quarter Upto this This Quarter Upto this Quarter This Quarter Upto this Quarter
(YTD) Quarter (YTD) (YTD) (YTD)
Profit or loss for the period 1,361,487,517 4,175,180,127 1,235,796,253 3,487,431,192 1,202,531,907 3,604,598,214 944,278,133 3,004,815,638
Other comprehensive income
a) ltems that will not be reclassified to profit or loss
-Gains/(losses) from investments in equity instruments measured at fair value (20,398,814) (282,520,443) 93,829,491 151,791,090 (20,398,814) (282,520,443) 93,829,491 151,791,090
-Gain/(loss) on revaluation - - - - - - - -
-Actuarial Gain/loss on defined benefit plans - - - - - - - -
-lncome tax relating to above items 6,119,644 84,756,133 (28,148,847) (45,537,327) 6,119,644 84,756,133 (28,148,847) (45,537,327)
Net other compressive income that will not be reclassified to profit or loss (14,279,169) (197,764,310) 65,680,644 106,253,763 (14,279,169) (197,764,310) 65,680,644 106,253,763
b) ltems that are or may be reclassified to profit or loss - - - - - - - -
-Gains/(losses) on cash flow hedge - - - - - - - -
-Exchange Gains/(losses) (arising from translating financial assets of foreign operation) - - - - - - - -
-lncome tax relating to above items - - - - - - - -
Net other compressive income that are or may be reclassified to profit or loss -
c) Share of other comprehensive income of associate accounted as per equity method - - - - - - - -
Other comprehensive income for the period, net of income tax (14,279,169) (197,764,310) 65,680,644 106,253,763 (14,279,169) (197,764,310) 65,680,644 106,253,763
Total Comprehensive lncome for the period 1,347,208,348 3,977,415,817 1,301,476,897 3,593,684,955 1,188,252,738 3,406,833,904 1,009,958,777 3,111,069,401
Profit attributable to:

Equity holders of the Bank 1,309,289,552 3,973,046,317 1,076,159,093 3,306,930,829 1,202,531,907 3,604,598,214 944,278,133 3,004,815,638
Non-controlling interest 52,197,965 202,133,810 159,637,160 180,500,364 - - - -
Total 1,361,487,517 4,175,180,127 1,235,796,253 3,487,431,192 1,202,531,907 3,604,598,214 944,278,133 3,004,815,638
Earnings per share
Basic earnings per share 48.58 40.47 - 41.94 34.87
Annualized Basic Earnings Per Share 48.58 40.47 - 41.94 34.87
Diluted earnings per share 48.58 40.47 - 41.94 34.87
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NIC ASIA Bank Ltd.
Financial Indicators
Amount in NPR
Group Bank
Ratios as per NRB Directive Current Year Previous Year Corresponding Current Year Previous Year Corresponding
This Quarter Upto this Quarter (YTD) This Quarter Upto this Quarter (YTD) This Quarter Upto this Quarter (YTD) This Quarter Upto this Quarter (YTD)
Capital fund to RWA 13.21% 11.72% 13.11% 11.44%
Non-performing loan (NPL) to total loan 0.58% 0.53% 0.51% 0.47%
Total loan loss provision to Total NPL 309.87% 254.40% 338.49% 267.80%
Cost of Funds 7.34% 5.05% 7.24% 5.03%
Credit to Deposit Ratio 92.99% 87.81% 86.68% 84.21%
Base Rate 9.49% 6.79% 9.39% 6.77%
Interest Rate Spread 4.67% 4.55% 4.40% 4.38%
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Group
Statement of Changes in Equity
Share Exchange Regulatory Fair Value Revaluation Non-controlling

Particulars Share Capital General Reserve Retained Earning Other Reserve Total Total Equity
Premium Equalisation Reserve Reserve Reserve Interest
Balance as at Shrawan 1, 2077
Adjustment/Restatement 9,717,651,568 - 3,117,001,069 39,579,316 704,604,676 440,709,687 - 2,136,788,863 1,321,022,137 17,477,357,316 565,581,311 18,042,938,627
Adjusted Restated Balance at Shrawan 1, 2077 - - - - - - - - - - - -
Comprehensive Income for the year 9,717,651,568 - 3,117,001,069 39,579,316 704,604,676 440,709,687 - 2,136,788,863 1,321,022,137 17,477,357,316 565,581,311 18,042,938,627
Profit for the year
Other Comprehensive income, net of tax - - - - - - - 3,686,307,340 - 3,686,307,340 238,596,768 3,924,904,108
Gains/(losses) from investments in equity
- - - - - - - - - - - -
instruments measured at fair value
Net gain(loss) on revaluation - - - - - 169,170,552 - 162,796,876 - 331,967,429 - 331,967,429
Atuarial gains/(losse) on defined benefit plans - - - - - - - - - - - -
Gains/(losses) on cash flow hedge - - - - - - - - 4,926,049 4,926,049 - 4,926,049
Exchange gains/(losses) (arising from translating
- - - - - - - - - - - -
financial assets of foreign operation)
Total comprehensive income for the year - - - -
Transfer to reserve during the year - - - - - - - 6,009,566,867 1,325,948,187 21,524,231,922 1,130,088,676 22,654,320,598
Transfer from the reserve during the year - - 805,396,084 8,352,454 484,598,853 - - (2,045,374,379) 709,749,386 - - -
Transactions with owners, directly recognized in
- - - - - - - (80,530,983) (41,000,086) - (41,000,086)
equity
Right share issued - - -
Share based payments - - - - - - - - - - - -
Dividends to equity holders: - - - - - - - - - - - -
Bonus Shares issued - - - - - - - - - - - -
Cash Dividend Paid 1,846,353,798 - - - - - - (1,846,353,798) - - - -
Other - - - - - - - (133,181,846) - (133,181,846) - (133,181,846)
Total contributions by and distributions: - - - - - - - - - - - -
Balance as at Asar End, 2078 1,846,353,798 - - - - - - (1,979,535,643) - (133,181,846) - (133,181,846)
11,564,005,365 - 3,922,995,264 47,931,771 1,225,883,020 791,180,239 - 1,935,127,958 1,979,794,261 21,466,917,879 1,088,107,315 22,555,025,194
Balance as at Shrawan 1, 2078
Adjustment/Restatement 11,564,005,365 - 3,922,995,264 47,931,771 1,225,883,020 791,180,239 - 1,935,127,958 1,979,794,261 21,466,917,879 1,088,107,315 22,555,025,194
Adjusted Restated Balance at Shrawan 1, 2078 - - - - - - - - 37,406,049 37,406,049 - 37,406,049
Comprehensive Income for the year -
Profit for the year - - - - - - - - - - - -
Other Comprehensive income, net of tax - - - - - - - 3,973,046,317 - 3,973,046,317 202,133,810 4,175,180,127
Gains/(losses) from investments in equity instru-
- - - - - - - - - - - -
ments measured at fair value
Gains/(losses) on revalution - - 28,082,832 - - (338,178,470) - 112,331,328 - (197,764,310) - (197,764,310)
Actuarial gains/(loses) on defined benefit plans - - - - - - - - - - - -
Gains/(losses) on cash flow hedge - - - - - - - - - - - -
- - - - - - - - - - - -
Total comprehensive income for the year 28,082,832 - - - - 6,020,505,603 2,017,200,310 25,279,605,935 1,290,241,125 26,569,847,059
Transfer to reserve during the year - - 720,919,643 625,000 607,309,786 - - (2,332,362,661) 1,003,508,232 - - -
Transfer from the reserve during the year - - - - - - - (12,973,052) (12,973,052) - (12,973,052)
Transfer to/from the reserve during the year - -
Transactions with owners, directly recognized in
- - -
equity
Right share issued - - -
Bonus Shares issued - - - - - - - - - - - -
Cash Dividend Paid - - - - - - - (97,504,719) - (97,504,719) (1,100,924) (98,605,643)
Other - - - - - - - - - - - -
Total contributions by and distributions: - - - - - - - (97,504,719) - (97,504,719) (1,100,924) (98,605,643)
Balance as at Chaitra End, 2078 11,564,005,365 - 4,671,997,739 48,556,771 1,833,192,807 453,001,770 - 3,590,638,222 3,007,735,490 25,169,128,163 1,289,140,201 26,458,268,364
NIC ASIA Bank Limited
Statement of Changes in Equity
For the Quarter Ended 31st Chaitra 2077 (13th April 2021)
Share Exchange Regulatory Fair Value Revaluation Non-controlling

Particulars Share Capital General Reserve Retained Earning Other Reserve Total Total Equity
Premium Equalisation Reserve Reserve Reserve Interest
Balance as at Shrawan 1, 2077 8,834,228,698 - 2,429,809,484 39,007,260 727,646,318 280,091,979 56,204,010 2,112,880,839 455,866,926 14,935,735,514 - 14,935,735,514
Adjustment - - - - - - - - - - - -
Adjusted Restated Balance at Shrawan 1, 2077 - - - - - - - - - - - -
Comprehensive Income for the year - - - - - - - - - - - -
Profit for the year - - - - - - - - - - - -
Other Comprehensive income, net of tax - - - - - - - - - - - -
Gains/(losses) from investments in equity
- - - - - - - - - - - -
instruments measured at fair value
Net gain(loss) on revaluation - - - - - 160,617,707 - 29,585,938 - 190,203,646 - 190,203,646
Actuarial gains/(losses) on defined benefit plans - - - - - - - - - -
Gains/(losses) on cash flow hedge - - - - - - - - 18,713,353 18,713,353 - 18,713,353
- - - - - - - - - -
Total comprehensive income for the year - - - - - - - - - - -- -
Transfer to reserve during the year - - - - - 160,617,707 - 3,128,122,904 18,713,353 3,307,453,964 - 3,307,453,964
Transfer from the reserve during the year - - 619,707,393 572,057 (23,041,643) (56,204,010) (1,405,352,500) 839,714,597 (24,604,107) - (24,604,107)
- - - - - - - - - - - -
Transactions with owners, directly recognized
- - - - - - - - - - - -
in equity
Right share issued - - - - - - - - - - - -
Bonus Shares issued 883,422,870 - - - - - - 883,422,870 - - - -
Cash Dividend Paid - - - - - - - (976,414,751) - (976,414,751) - (976,414,751)
Other - - - - - - - - -
Total contributions by and distributions: 883,422,870 - - - - - - (1,859,837,621) - (976,414,751) - (976,414,751)
Balance as at Asar End, 2078 9,717,651,567 - 3,049,516,877 39,579,316 704,604,676 440,709,687 - 1,975,813,622 1,314,294,876 17,242,170,621 - 17,242,170,621
- - - -
Balance as at Shrawan 1, 2078 9,717,651,567 - 3,049,516,877 39,579,316 704,604,676 440,709,687 - 1,975,813,622 1,314,294,876 17,242,170,621 - 17,242,170,621
Adjustment/Restatement - - - - - - - - - - -
Adjusted Restated Balance at Shrawan 1, 2078 9,717,651,567 - 3,049,516,877 39,579,316 704,604,676 440,709,687 - 1,975,813,622 1,314,294,876 17,242,170,621 - 17,242,170,621
Comprehensive Income for the year - - - - - - - - - - -
Profit for the year - - - - - - - 3,004,815,638 - - - -
Other Comprehensive income, net of tax - - - - - - - - - - -
Gains/(losses) from investments in equity instru-
- - - - - 89,144,173 - 17,109,590 - 106,253,763 - 106,253,763
ments measured at fair value
Gains/(losses) on revalution - - - - - - - - - - - -
Actuarial gains/(losses) on defined benefit plans - - - - - - - - - - - -
Gains/(losses) on cash flow hedge - - - - - - - - - - - -
- - - - - - - - - - - -
Total comprehensive income for the year - - - - - 89,144,173 - 3,021,925,228 - 3,111,069,401 - 3,111,069,401
Transfer to reserve during the year - - 600,963,128 2,453,563 576,247,789 - - (1,784,212,635) 604,548,156 - - -
Transfer from the reserve during the year - - - - - - - - (24,729,160) (24,729,160) - (24,729,160)
- - - - - - - - - - - -
Transactions with owners, directly recognized
- - - - - - - - - - - -
in equity
Right share issued - - - - - - - - - - - -
Bonus Shares issued 1,846,353,798 - - - - - - (1,846,353,798) - - - -
Cash Dividend Paid - - - - - - - (96,633,105) - (96,633,105) - (96,633,105)
Other - - - - - - - - - - -
Total contributions by and distributions: 1,846,353,798 - - - - - - (1,942,986,903) - (96,633,105) - (96,633,105)
Balance as at Chaitra End, 2078 11,564,005,365 - 3,650,480,004 42,032,879 1,280,852,464 529,853,860 - 1,270,539,311 1,894,113,872 20,231,877,757 - 20,231,877,757
Consolidated Statement of Cash Flow Statement
Amount in NPR
Bank
Particular Corresponding Previous Year Corresponding Previous Year
Upto This Quarter Upto This Quarter
Up to This Quarter Up to This Quarter
CASH FLOWS FROM OPERATING ACTIVITIES
Interest received 23,658,893,702 18,243,865,951 21,186,505,093 16,701,550,549
Fees and other income received 1,920,997,463 1,762,142,183 1,534,617,387 1,411,045,069
Dividend received - - - -
Receipts from other operating activities 266,960,638 371,672,839 264,403,588 311,282,298
Interest paid (15,620,128,146) (10,571,703,201) (14,519,909,833) (10,168,969,497)
Commission and fees paid (243,179,710) (136,892,165) (240,735,022) (136,892,165)
Cash Payment to Employees (3,386,032,900) (2,604,768,815) (2,937,530,923) (2,287,444,974)
Other expense paid (1,486,264,259) (1,007,954,141) (1,206,411,639) (1,151,318,276)
Operating cash flows before changes in operating
5,111,246,788 6,056,362,651 4,080,938,651 4,679,253,005
assets and liabilities
(Increase)/Decrease in Operating Assets (17,800,765,595) (90,843,376,828) (9,698,445,889) (83,366,284,454)

Due from Nepal Rastra Bank (307,584,401) 6,629,502,685 (307,584,401) 6,629,502,685
Placement with bank and financial institutions - - - -
Other trading assets 6,103,370 (134,595,137) 6,100,000 (283,610,000)
Loan and advances to bank and financial institutions (3,340,102,248) 3,135,038,621 (2,354,602,248) 1,142,885,821
Loans and advances to customers (18,371,096,513) (99,192,550,828) (11,633,866,225) (90,035,029,304)
Other assets 4,211,914,197 (1,280,772,169) 4,591,506,985 (820,033,657)
-
Increase/(Decrease) in operating liabilities 9,313,225,642 99,659,237,948 5,271,939,130 90,755,365,103
Due to bank and financial institutions (3,519,698,291) 16,964,210,823 (6,458,150,080) 11,106,235,709
Due to Nepal Rastra Bank 3,989,146,271 3,680,478,610 3,989,146,271 3,680,478,610
Deposit from customers 9,612,750,221 76,108,501,174 9,151,369,204 73,687,651,104
Borrowings - - - -
Other liabilities (768,972,560) 2,906,047,340 (1,410,426,265) 2,280,999,681
Net cash flow from operating activities before tax paid (3,376,293,165) 14,872,223,771 (345,568,108) 12,068,333,653
Income taxes paid (1,168,134,385) (1,270,608,269) (980,822,492) (1,700,000,000)
Net cash flow from operating activities (4,544,427,550) 13,601,615,502 (1,326,390,600) 10,368,333,653
CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of investment securities (13,635,049,196) - (13,726,237,821) -
Receipts from sale of investment securities 262,988,279 483,132,583 262,988,279 828,831,719
Purchase of property and equipment (285,765,943) (180,840,906) (252,356,975) (44,478,146)
Receipt from the sale of property and equipment 51,679,271 - 51,679,271 -
Purchase of intangible assets (47,197,862) 13,613,599 (46,325,631) 15,419,765
Receipt from the sale of intangible assets - - - -
Purchase of investment properties (43,007,536) (806,170,472) (43,007,536) (580,015,847)
Receipt from the sale of investment properties 335,579,684 - 335,579,684 -
Interest received 1,154,679,964 - 1,154,679,964 -
Dividend received 255,598,571 75,162,501 253,585,504 70,891,342
Net cash used in investing activities (11,950,494,767) (415,102,695) (12,009,415,260) 290,648,834
CASH FLOWS FROM FINANCING ACTIVITIES -

Receipt from issue of debt securities - 1,963,776,399 - 1,963,776,399
Repayment of debt securities - - - -
Receipt from issue of subordinated liabilities - - - -
Repayment of subordinated liabilities - - - -
Receipt from issue of shares - - - -
Dividends paid - (96,627,775) - (96,627,775)
Interest paid (778,573,519) - (778,573,519) -
Other receipt/payment - - - -
Net cash from financing activities (778,573,519) (96,627,775) (778,573,519.12) (96,627,775.27)
Net increase (decrease) in cash and cash equivalents (17,273,495,836) 13,089,885,031 (14,114,379,378.88) 10,562,354,712
Cash and cash equivalents at Shrawan 1, 2077 28,266,984,006 12,661,266,837 23,902,662,784.12 12,294,510,663
Effect of exchange rate fluctuations on cash and cash
-
equivalents held
Cash and cash equivalents at Chaitra end 2077 10,993,488,170 25,751,151,869 9,788,283,405.240 22,856,865,375
a}+s klg ;fyL klg

Statement of Distributable Profit or Loss
Amount in NPR
Q3 FY 2078-79
Net Profit for the period Ended Second Quarter of FY 77/78 3,604,598,214
Appropriations
a.General reserve from PL 720,919,643
b. Foreign exchange fluctuation fund 625,000
c. Capital redemption reserve 967,462,250
d. Corporate social responsibility fund 36,045,982
e. Employees' training fund -
f. Other -
- Deferred Tax reserve -
- Investment Adjustment Reserve -
-Sale of investment (112,331,328)
Profit or (loss) before regulatory adjustment 1,991,876,667
Regulatory adjustment : (607,309,786)
a. Interest receivable (-)/previous accrued interest received (+) (791,630,240)
b. Short loan loss provision in accounts (-)/reversal (+)
c. Short provision for possible losses on investment (-)/reversal (+)
d. Short loan loss provision on Non Banking Assets (-)/resersal (+) 184,320,454
e. Deferred tax assets recognised (-)/ reversal (+)
f. Goodwill recognised (-)/ impairment of Goodwill (+)
g. Bargain purchase gain recognised (-)/resersal (+)
h. Acturial loss recognised (-)/reversal (+) -
i. Other (+/-)
-Debt securities recognised at amortised cost
-Defined benefit obligation
-Fair value reserve
Distributable profit or (loss) 1,384,566,881
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1. Reporting Entity
NIC ASIA Bank Limited (“NICA” or “the Bank”) is a limited liability company domiciled in Nepal which
has been in operation in Nepal since 1998. The Bank is registered with the Office of Company
Registrar as a public limited company and carries out commercial banking activities in Nepal under
the license from Nepal Rastra Bank (Central Bank of Nepal) as Class “Ka” licensed institution. The
Bank registered, and corporate office are at Kathmandu, Nepal.
The Bank offers full commercial banking services of banking products and services including loans
and advances, deposits, trade finance, e-commerce services, bullion, etc. to wide range of clients
encompassing individuals, corporates, multinationals, large public sector companies, government
corporations, etc. as authorized by the Nepal Rastra Bank. The Bank is listed on Nepal Stock
Exchange and its stock symbol is “NICA”.
1.1 Subsidiaries
The Bank has three subsidiaries namely NIC ASIA Capital Limited, NIC ASIA Laghubitta Bittiya
Sanstha Limited and NIC ASIA Securities Limited.
a. NIC ASIA Capital Limited is wholly owned subsidiary of the Bank and was incorporated on
15th May 2016 as a public limited company as per the Companies Act 2063 and licensed
by Securities Board of Nepal under the Securities Businessperson (Merchant Banker)
Regulations, 2008 to provide merchant banking and investment banking services.
b. NIC ASIA Laghubitta Bittiya Sanstha Limited is subsidiary with 67.87% holiding of Bank
and was incorporated on 25th July 2017 as a public limited company under Companies
Act, 2063 and licensed by Nepal Rastra Bank as “D” class financial institution having
registered office at Jajarkot, Nepal. The principle activities involved extending banking
products and services to the deprived sectors/communities.
c. NIC ASIA Securities Limited is also a wholly owned subsidiary of the Bank and was
incorporate as public limited company under Companies Act 2063 with registered office
at Kathmandu, Nepal. The Company is incorporated with objective of providing security
brokerage services, market maker and dealer and related services. The company has not
started its operaton till reporting period.
“The Group” represents the Bank and its subsidiaries.
2. Basis of Preparation
The interim financial statements of the Bank have been prepared in accordance with Nepal Financial
Reporting Standards (NFRS) : NAS 34 Interim Financial Reporting as published by the Accounting
Standards Board (ASB) Nepal and pronounced by The Institute of Chartered Accountants of Nepal
(ICAN).
The disclosures made in the condensed consolidated interim financials information have been
limited on the format prescribed by Nepal Rastra Bank Directive no. 4.
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The interim financial statements comprise of:-
l Condensed Consolidated Statement of Financial Position

l Condensed Consolidated Statement of Profit or Loss and Condensed Consolidated Statement
of Other Comprehensive Income shown in a single statement
l Condensed Consolidated Statement of Changes in Equity
l Condensed Consolidated Statement of Cash Flows
l Notes to the Interim Financial Statements and
l Ratios as per NRB Directive.
The interim financial statements do not include all of the information required for a complete set of
NFRS financial statements. However, selected explanatory notes are included to explain events
and transactions that are significant to an understanding of the changes in the Bank’s financial
position and performance since the last annual financial statements.
The Bank has applied following carve out issued by The Institute of Chartered Accountants
of Nepal:
1. NAS 39: Financial Instruments: Recognition and Measurement
a) Impairment
In para 58, an entity shall assess at the end of each reporting period whether there is
any objective evidence that a financial asset or group of financial assets measured at
amortized cost is impaired. If any such evidence exists, the entity shall apply paragraph
63 to determine the amount of any impairment loss unless the entity is bank or financial
institutions registered as per Bank and Financial Institutions Act, 2073. Such entities shall
measure impairment loss on loan and advances as the higher of amount derived as per
norms prescribed by Nepal Rastra Bank for loan loss provision and amount determined
as per paragraph 63; and shall apply paragraph 63 to measure the impairment loss on
financial assets other than loan and advances. The entity shall disclose the impairment
loss as per this carve-out and the amount of impairment loss determined as per paragraph
63.

The impacts of the application of this carve- out in the reporting period is as under:
Impairment Loss as per NFRS NPR 1,312,506,013

Impairment Loss as per norms of NRB NPR 4,720,653,463
The higher of two above i.e.NPR 4,720,653,463 has been taken in account for impairment
loss on loan and advances for the reporting period.
b) Impracticability to determine transaction cost of all previous years which is the part of
effective interest rate
In para 9, The effective interest rate is the rate that exactly discounts estimated future
cash payments or receipts through the expected life of the financial instrument or, when
appropriate, a shorter period to the net carrying amount of the financial asset or financial
liability. When calculating the effective interest rate, an entity shall estimate cash flows
a}+s klg ;fyL klg

considering all contractual terms of the financial instrument (for example, prepayment, call
and similar options) but shall not consider future credit losses. The calculation includes
all fees and points paid or received, unless it is immaterial or impracticable to determine
reliably, between parties to the contract that are an integral part of the effective interest
rate (NAS 18 Revenue), transaction costs and all other premiums or discounts. There
is a presumption that the cash flows and the expected life of a group of similar financial
instruments can be estimated reliably. However, in those rare cases when it is not possible
to estimate reliably the cash flows or the expected life of a financial instrument (or group of
financial instruments), the entity shall use the contractual cash flows over the full contractual
term of the financial instrument (or group of financial instruments).
2.1 Reporting period and approval of financial statements

Reporting Period is a period from the first day of Shrawan (mid of July) of any year to the
last day of quarter end, i.e. Ashoj (mid of October), Poush (mid of January), Chaitra (mid of
April) and Asadh (mid of July) as per Nepali calendar.
Period Nepali Calendar English Calendar

Current Year Period 1st Magh 2078 to 15th January 2022 to
30th Chaitra 2078 13th April 2022
Previous Year Period 1st Magh 2077 to 14th January 2021 to
31st Chaitra 2077 13th April 2021
2.2 Functional and Presentation Currency

The interim financial statements are presented in Nepalese Rupees (NPR) which is the
Bank’s functional currency. All financial information presented in NPR has been rounded to
the nearest rupee except where indicated otherwise. Mid rate has been used in calculation
of balance in foreign currency.
3. Statement of Compliance with NFRSs
The interim financial statements have been prepared in accordance with Nepal Financial Reporting
Standards (NFRS) : NAS 34 Interim Financial Reporting, as published by the Accounting Standards
Board (ASB) Nepal and pronounced by The Institute of Chartered Accountants of Nepal (ICAN) and
in compliance with BAFIA 2073, Unified Directives 2078 issued by Nepal Rastra Bank and all other
applicable laws and regulations. The interim condensed consolidated financial statements do not
include all the information and disclosures required in the annual financial statements, and should
be read in conjunction with the Bank’s annual financial statements as at 31st Ashad, 2078.
4. Use of estimates, assumptions and judgements
The Bank, under NFRS, is required to apply accounting policies to most appropriately suit its
circumstances and operating environment. Further, the Bank is required to make judgments in
respect of items where the choice of specific policy, accounting estimate or assumption to be followed
could materially affect the financial statements. This may later be determined that a different choice
could have been more appropriate.
a}+s klg ;fyL klg

The NFRS requires the Bank to make estimates and assumptions that will affect the assets,
liabilities, disclosure of contingent assets and liabilities, and profit or loss as reported in the financial
statements. The Bank applies estimates in preparing and presenting the financial statements and
such estimates and underlying assumptions are reviewed periodically. The revision to accounting
estimates are recognized in the period in which the estimates are revised and are applied
prospectively.
5. Changes in Accounting Policies
The Bank prepared the interim financial statements as per Nepal Financial Reporting Standard
(NFRS) by recognizing all assets and liabilities whose recognition was required by NFRS, not
recognizing the items of assets or liabilities which were not permitted by NFRS, and applying NFRS
in measurement of recognized assets and liabilities.
The accounting policies adopted while preparing these interim financial statments are consistent
with those applied in the Bank’s annual financial statements for the year ended 31st Ashad 2078.
6. Significant Accounting Policies
The accounting policies and methods of computation adopted in the preparation of the interim
financial statements are consistent with those adopted and disclosed in the Bank’s annual financial
statements for the financial year ended 31st Ashad 2078.
6.1 Basis of Measurement

The financial statements have been prepared on historical cost basis except for the following
material items in the statement of financial position:
l Financial assets and liabilities are measured at fair value at its initial recognition.
Subsequent recognition of FVTOCI and FVTPL financial instruments are measured at
fair value. Investment property is measured at fair value
l The liability for defined benefit obligations is recognized as the present value of the
defined benefit obligation less the net total of the plan assets, plus unrecognized actuarial
gains, less unrecognized past service cost and unrecognized actuarial losses.
6.2 Basis of Consolidation

a) Non-Controlling Interest (NCI)
For each business combination, the Bank elects to measure any non-controlling interests
in the acquiree either:
l at fair value; or
l at their proportionate share of the acquire identifiable net assets, which are generally
at fair value.

Changes in the Bank’s interest in a subsidiary that do not result in a loss of control are accounted
for as transactions with owners in their capacity as owners. Adjustments to non-controlling interests
are based on a proportionate amount of the net assets of the subsidiary. No adjustments are made
to goodwill and no gain or loss is recognised in profit or loss.
a}+s klg ;fyL klg

b) Subsidiaries
Subsidiaries are the entities controlled by the Bank. The Bank controls an entity if it is
exposed, or has rights, to variable returns from its involvement with the investee and
has the ability to affect those returns through its power over the investee. The Financial
Statements of subsidiaries are included in the Consolidated Financial Statements from the
date that control commences until the date that control ceases.
The Bank reassesses whether it has control if there are changes to one or more of the
elements of control. In preparing the consolidated financial statements, the financial
statements are combined line by line by adding the like items of assets, liabilities, equity,
income, expenses and cash flows of the parent with those of its subsidiary. The carrying
amount of the parent’s investment in subsidiary and the parent’s portion of equity of
subsidiary are eliminated in full. All intra group assets and liabilities, equity, income,
expenses and cash flows relating to transactions between entities of the group (such as
interest income and technical fee) are eliminated in full while preparing the consolidated
financial statements.
c) Loss of Control
Upon the loss of control, the Bank derecognizes the assets and liabilities of the subsidiary,
carrying amount of non controlling interests and the cumulative translation differences
recorded in equity related to the subsidiary. Further parent’s share of components
previously recognized in Other Comprehensive Income (OCI) is reclassified to profit or loss
or retained earnings as appropriate. Any surplus or deficit arising on the loss of control is
recognized in the profit or loss. If the Group retains any interest in the previous subsidiary,
then such interest is measured at fair value at the date that control is lost. Subsequently,
it is accounted for as an equity-accounted investee or in accordance with the Group’s
accounting policy for financial instruments depending on the level of influence retained.
d) Transaction Elimination on Consolidation
All intra-group balances and transactions, and any unrealized income and expenses
(except for foreign currency transaction gains or losses) arising from intra-group
transactions are eliminated in preparing the consolidated financial statements. Unrealized
losses are eliminated in the same way as unrealized gains, but only to the extent that there
is no evidence of impairment.
6.3 Cash and Cash equivalent
Cash and cash equivalents include cash in hand, balances with BFIs, money at call & short notice
and highly liquid financial assets with original maturities of three months or less from the acquisition
dates that are subject to an insignificant risk of changes in their fair value and are used by the
Bank in the management of its short-term commitments. Cash and cash equivalents are carried at
amortized cost in the statement of financial position.
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6.4 Financial Assets and Financial Liabilities
a) Recognition
The Bank initially recognizes a financial asset or a financial liability in its statement of
financial position when, and only when, it becomes party to the contractual provisions
of the instrument. The Bank initially recognize loans and advances, deposits and debt
securities/ subordinated liabilities issued on the date that they are originated which is
the date that the Bank becomes party to the contractual provisions of the instruments.
Investments in equity instruments, bonds, debenture, Government securities, NRB bond
or deposit auction, reverse repos, outright purchase are recognized on trade date at
which the Bank commits to purchase/ acquire the financial assets. Regular way purchase
and sale of financial assets are recognized on trade dateat which the Bank commits to
purchase or sell the asset.
b) Classification
I. Financial Assets
The Bank classifies the financial assets as subsequently measured at amortized cost or
fair value on the basis of the Bank’s business model for managing the financial assets
and the contractual cash flow characteristics of the financial assets.
The two classes of financial assets are as follows;
i. Financial assets measured at amortized cost

The Bank classifies a financial asset measured at amortized cost if both of the
following conditions are met:
l The asset is held within a business model whose objective is to hold assets
in order to collect contractual cash flows and
l The contractual terms of the financial asset give rise on specified dates to
cash flows that are solely payments of principal and interest on the principal
amount outstanding.
ii. Financial asset measured at fair value

Financial assets other than those measured at amortized cost are measured at fair
value. Financial assets measured at fair value are further classified into two
categories as below:
l Financial assets at fair value through profit or loss.

Financial assets are classified as fair value through profit or loss (FVTPL) if
they are held for trading or are designated at fair value through profit or loss.
Upon initial recognition, transaction cost is directly attributable to the acquisition
are recognized in profit or loss as incurred. Such assets are subsequently
measured at fair value and changes in fair value are recognized in Statement
of Profit or Loss.
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l Financial assets at fair value through other comprehensive income
Investment in an equity instrument that is not held for trading and at the initial
recognition, the Bank makes an irrevocable election that the subsequent
changes in fair value of the instrument is to be recognized in other
comprehensive income are classified as financial assets at fair value though
other comprehensive income. Such assets are subsequently measured at
fair value and changes in fair value are recognized in other comprehensive
income.
II. Financial Liabilities
The Bank classifies its financial liabilities, other than financial guarantees and loan
commitments, as follows;
l Financial Liabilities at Fair Value through Profit or Loss

Financial liabilities are classified as fair value through profit or loss if they are
held for trading or are designated at fair value through profit or loss. Upon
initial recognition, transaction costs are directly attributable to the acquisition
are recognized in Statement of Profit or Loss as incurred. Except for particular
liabilities designated as at FVTPL, the amount of the change in the fair value
that is attributable to changes in the liability’s credit risk is recognized in Other
Comprehensive Income.
l Financial Liabilities measured at amortised cost

All financial liabilities other than measured at fair value though profit or loss are
classified as subsequently measured at amortized cost using effective interest
rate method.
c) Measurement
i. Initial Measurement
A financial asset or financial liability is measured initially at fair value plus or minus,
for an item not at fair value through profit or loss, transaction costs that are directly
attributable to its acquisition or issue. Transaction cost in relation to financial assets
and liabilities at fair value through profit or loss are recognized in Statement of Profit
or Loss.
ii. Subsequent Measurement
A financial asset or financial liability is subsequently measured either at fair value

or at amortized cost based on the classification of the financial asset or liability.
Financial asset or liability classified as measured at amortized cost is subsequently
measured at amortized cost using effective interest rate method.
The amortized cost of a financial asset or financial liability is the amount at which the
financial asset or financial liability is measured at initial recognition minus principal
repayments, plus or minus the cumulative amortization using the effective interest
method of any difference between that initial amount and the maturity amount, and
a}+s klg ;fyL klg

minus any reduction for impairment or uncollectibility.
Financial assets classified at fair value are subsequently measured at fair value.
The subsequent changes in fair value of financial assets at fair value through
profit or loss are recognized in Statement of Profit or Loss whereas of financial
assets at fair value through other comprehensive income are recognized in other
comprehensive income.
iii. Derecognition
Derecognition of Financial Assets
The Bank derecognizes a financial asset when the contractual rights to the
cash flows from the financial asset expire, or it transfers the rights to receive the
contractual cash flows in a transaction in which substantially all the risks and
rewards of ownership of the financial asset are transferred or in which the Bank
neither transfers nor retains substantially all the risks and rewards of ownership and
it does not retain control of the financial asset.
Any interest in such transferred financial assets that qualify for derecognition that
is created or retained by the Bank is recognized as a separate asset or liability. On
derecognition of a financial asset, the difference between the carrying amount of
the asset (or the carrying amount allocated to the portion of the asset transferred),
and the sum of (i) the consideration received (including any new asset obtained
less any
new liability assumed) and (ii) any cumulative gain or loss that had been recognized
in other comprehensive income is recognized in profit or loss.
In transactions in which the Bank neither retains nor transfers substantially all the
risks and rewards of ownership of a financial asset and it retains control over the
asset, the Bank continues to recognize the asset to the extent of its continuing
involvement, determined by the extent to which it is exposed to changes in the
value of the transferred asset.
Derecognition of Financial Liabilities
A financial liability is derecognized when the obligation under the liability is

discharged or canceled or expired. Where an existing financial liability is replaced
by another from the same lender on substantially different terms, or the terms of
an existing liability are substantially modified, such an exchange or modification is
treated as a derecognition of the original liability and the recognition of a new liability.
On de-recognition of gain and loss on such instruments fair value movement till
preceding year is recognized in other comprehensive income and realized gain in
the reporting year to income statement based on the decision of Nepal Accounting
Standards Board, Nepal dated 20th October 2020.
iv. Determination of Fair Value
Fair value is the amount for which an asset could be exchanged, or a liability
settled, between knowledgeable, willing parties in an arm’s length transaction on
the measurement date. The fair value of a liability reflects its non-performance risk
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The fair values are determined according to the following hierarchy:
Level 1 fair value measurements are those derived from unadjusted quoted prices
in active markets for identical assets or liabilities.
Level 2 valuations are those with quoted prices for similar instruments in active
markets or quoted prices for identical or similar instruments in inactive markets
and financial instruments valued using models where all significant inputs are
observable.
Level 3 portfolios are those where at least one input, which could have a significant
effect on the instrument’s valuation, is not based on observable market data.
When available, the Bank measures the fair value of an instrument using quoted
prices in an active market for that instrument. A market is regarded as active if
quoted prices are readily and regularly available and represent actual and regularly
occurring market transactions on an arm’s length basis. If a market for a financial
instrument is not active, the Bank establishes fair value using a valuation technique.
Valuation techniques include using recent arm’s length transactions between
knowledgeable, willing parties (if available), reference to the current fair value of
other instruments that are substantially the same, discounted cash flow analyses.
The best evidence of the fair value of a financial instrument at initial recognition is
the transaction price – i.e. the fair value of the consideration given or received.
However, in some cases, the fair value of a financial instrument on initial recognition
may be different to its transaction price. If such fair value is evidenced by comparison
with other observable current market transactions in the same instrument (without
modification) or based on a valuation technique whose variables include only data
from observable markets, then the difference is recognized in profit or loss on initial
recognition of the instrument. In other cases, the difference is not recognized in
profit or loss immediately but is recognized over the life of the instrument onan
appropriate basis or when the instrument is redeemed, transferred or sold, or the
fair value becomes observable. All unquoted equity investments are recorded at
cost, considering the non-trading of promoter shares up to the date of balance
sheet, the market price of such shares could not be ascertained with certainty.
Hence, these investments are recognized at cost net of impairment, if any.
v. Impairment
At each reporting date the Bank assesses whether there is any indication that
an asset may have been impaired. If such indication exists, the recoverable
amount is determined. A financial asset or a group of financial assets is impaired
and impairment losses are incurred if, and only if, there is objective evidence of
impairment as a result of one or more events occurring after the initial recognition
of the asset (a loss event), and that loss event (or events) has an impact on the
estimated future cash flows of the financial asset or group of financial assets that
can be reliably estimated.
The Bank considers the following factors in assessing objective evidence of

impairment:
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l Whether the counterparty is in default of principal or interest payments.
l When a counterparty files for bankruptcy and this would avoid or delay
discharge of its obligation.
l Where the Bank initiates legal recourse of recovery in respect of a credit
obligation of the counterpart.
l Where the Bank consents to a restructuring of the obligation, resulting in a
diminished financial obligation, demonstrated by a material forgiveness of
debt or postponement of scheduled payments.
l Where there is observable data indicating that there is a measurable
decrease in the estimated future cash flows of a group of financial assets,
although the decrease cannot yet be identified with specific individual
financial assets.
The Bank considers evidence of impairment for loans and advances and held-
to-maturity investment securities at both a specific asset and collective level.
All individually significant loans and advances and held-to-maturity investment
securities are assessed for specific impairment. Those found not to be specifically
impaired are then collectively assessed for any impairment that has been incurred
but not yet identified.
Loans and advances and held-to-maturity investment securities that are not
individually significant are collectively assessed for impairment by grouping together
loans and advances and held-to-maturity investment securities with similar risk
characteristics. Impairment test is done on annual basis for trade receivables and
other financial assets based on the internal and external indication observed.
In assessing collective impairment, the Bank uses statistical modelling of historical

trends of the probability of default, the timing of recoveries and the amount of loss
incurred, adjusted for management’s judgment as to whether current economic and
credit conditions are such thatthe actual losses are likely to be greater or less than
suggested by historical trends. Default rates, loss rates and the expected timing of
future recoveries are regularly benchmarked against actual outcomes to ensure
that they remain appropriate.
Impairment losses on assets measured at amortised cost
As per NAS 39
Financial assets carried at amortised cost (such as amounts due from Banks, loans
and advances to customers as well as held– to–maturity investments is impaired,
and impairment losses are recognized, only if there is objective evidence as a result
of one or more events that occurred after the initial recognition of the asset. The
amount of the loss is measured as the difference between the asset’s carrying
amount and the deemed recoverable value of loan.
Loans and advances to customers with significant value (Top 50 borrowers and
borrowers classified as bad as per Nepal Rastra Bank Directive) are assessed for
individual impairment test. The recoverable value of loan is estimated on the basis
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of realizable value of collateral and the conduct of the borrower/past experience
of the bank. Assets that are individually assessed and for which no impairment
exists are grouped with financial assets with similar credit risk characteristics and
collectively assessed for impairment. The credit risk statistics for each group of the
loan and advances are determined by management prudently being based on the
past experience. For the purpose of collective assessment of impairment bank has
categorized assets in to six broad products as follows:
1. Term Loan
2. Auto Loan
3. Home Loan
4. Personal Loan
5. Working Capital Loan
6. Others
If, in a subsequent year, the amount of the estimated impairment loss increases
or decreases because of an event occurring after the impairment was recognised,
the previously recognised impairment loss is increased or reduced by adjusting the
other reserves and funds (impairment reserve) in other comprehensive income and
statement of changes in equity. If a future write–off is later recovered, the recovery
is credited to the ‘Income Statement’.
As per Loan Loss Provision of Nepal Rastra Bank
Loan loss provisions in respect of non performing loans and advances are based
on management’s assessment of the degree of impairment of the loans and
advances, subject to the minimum provisioning level prescribed in relevant NRB
guidelines. Provision is made for possible losses on loans and advances including
bills purchased on the basis of classification of loans and advances, overdraft and
bills purchased in accordance with NRB directives
The Bank has measured impairment loss on loan and advances as the higher
of amount derived as per norms prescribed by Nepal Rastra Bank for loan loss
provision and amount determined as per paragraph 63 of NAS 39.
Impairment of investment in equity instrument classified as fair value through

other comprehensive income
Where objective evidence of impairment exists for financial assets measured at

FVTOCI except investment in equity instrument, the cumulative loss (measured
as the difference between the amortized cost and the current fair value, less any
impairment loss on that financial asset previously recognized in the statement
of profit or loss) is reclassified from equity and recognized in the profit or loss. A
significant or prolonged decline in the fair value of an equity security below its cost
is considered, among other factors in assessing objective evidence of impairment
for equity securities.
6.5 Trading Assets
Trading assets and liabilities are those assets and liabilities that the Bank acquires or incurs
principally for the purpose of selling or repurchasing in the near term or holds as part of a portfolio
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that is managed together for short-term profit or position taking.
Trading assets and liabilities are initially recognized at fair value and subsequently measured at fair
value in the statement of financial position, with transaction costs recognized in profit or loss. All
changes in fair value are recognized as part of net trading income in profit or loss as regarded as
fair value through profit & loss account.
6.6 Derivatives Assets and Derivative Liabilities
Derivatives held for risk management purposes include all derivative assets and liabilities that are
not classified as trading assets or liabilities. Derivatives held for risk management purposes are
measured at fair value in the statement of financial position.
Considering the requirement of NAS 39 for qualification of hedge accounting and cost benefits
along with materiality, Bank has not adopted hedge accounting for certain derivatives held for risk
management.
6.7 Property and Equipment
i. Recognition and Measurement
The cost of an item of property and equipment shall be recognized as an asset, initially recognized
at cost, if, and only if:
l It is probable that future economic benefits associated with the item will flow to the entity; and
l the cost of the item can be measured reliably.
Cost includes purchase price including any non-refundable taxes after deducting volume rebates
and trade discounts and such other costs that are incurred to bring asset to location and condition
to be operating in a manner intended by management.
The cost of self-constructed assets includes the following:
l the cost of materials and direct labor;

l any other costs directly attributable to bringing the assets to a working condition for their
intended use;
l when the Bank has an obligation to remove the asset or restore the site, an estimate of the
costs of dismantling and removing the items and restoring the site on which they are located;
l Capitalized borrowing costs.
The Bank adopts cost model for entire class of property and equipment.Neither class of the property
and equipment are measured at revaluation model nor is their fair value measured at the reporting
date. The items of property and equipment are measured at cost less accumulated depreciation
and any accumulated impairment losses.
Purchased software that is integral to the functionality of the related equipment is capitalized as part
of that equipment.
Subsequent expenditure is capitalized if it is probable that the future economic benefits from
the expenditure will flow to the Bank. Ongoing repairs and maintenance to keep the assets in
working condition are expensed as incurred. Any gain or loss on disposal of an item of property and
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equipment (calculated as the difference between the net proceeds from disposal and the carrying
amount of the item) is recognized within other income in profit or loss.
Assets with a value of less than NPR 10,000 are charged off to revenue irrespective of their useful
life in the year of purchase..
ii. Capital Work in Progress
Fixed assets under construction and cost of assets not ready for use are shown
as capital work in progress.
iii. Depreciation
Depreciation on other assets is calculated using the straight- line method to allocate
their cost to their residual values over their estimated useful life as per management
judgement as follows:
Group Useful Life (In years)
Computer 5
Metal Furniture 10
Office Equipment 10
Vehicle 10
Wooden Furniture 5
Building 50
Leasehold Lower of 15 years or Lease period
For depreciation purposes broken dates were considered as 1st of the month for assets procured
till 14th and 1st of next month for assets procured from 15th to the end of the month.
iv. De-recognition
The carrying amount of Property and Equipment shall be derecognized on disposal or when
no future economic benefits are expected from its use or disposal. The gain or loss arising
from the de-recognition of an item of property and equipment shall be included in profit or loss
when the item is derecognized except for sales and lease back transaction. The gain shall not
be classified as revenue.
Depreciation method, useful lives and residual value are reviewed at each reporting date and
adjusted, if any.
6.8 Intangible Assets/Goodwill
Goodwill
Any excess of the cost of acquisition over the fair values of the identifiable net assets acquired in
Business Combination is recognized as goodwill. Following initial recognition, goodwill is measured
at cost less any accumulated impairment losses.
Goodwill is reviewed for impairment annually, or more frequently, if events or changes in

circumstances indicate that the carrying value may be impaired.
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Acquire Intangible Assets
Intangible assets are initially measured at fair value, which reflects market expectations of the
probability that the future economic benefits embodied in the asset will flow to the Bank and are
amortized on the basis of their expected useful lives.
Computer Software
At each reporting date, these assets are assessed for indicators of impairment. In the event that
an asset’s carrying amount is determined to be greater than its recoverable amount, the asset is
written down immediately.
Software is amortized on a straight-line basis in profit or loss over its estimated useful life, from the
date that it is available for use. The estimated useful life of software for the current and comparative
periods is five years. Software assets with costs less than Rs. 10,000 are charged off on purchases
as revenue expenditure.
Amortization methods, useful lives and residual values are reviewed at each reporting date and
adjusted if appropriate.
6.9 Investment Property/ Non-Current Assets Held for Sale
Investment Property
Investment properties include land or land and buildings other than those classified as property
and equipment and non-current assets held for sale. Generally, it includes land, land and building
acquired by the Bank as non-banking assets but not sold as on the reporting date.
The Bank holds investment property that has been acquired through enforcement of security over
the loans and advances.
Non-Current Assets Held for Sale
Non-current assets (such as property) and disposal groups (including both the assets and liabilities
of the disposal groups) are classified as held for sale and measured at the lower of their carrying
amount and fair value less cost to sell when:
(i) their carrying amounts will be recovered principally through sale;

(ii) they are available-for-sale in their present condition; and
(iii) their sale is highly probable.
Immediately before the initial classification as held for sale, the carrying amounts of the assets (or
assets and liabilities in a disposal group) are measured in accordance with the applicable accounting
policies described above.
6.10 Income Tax
Tax expenses comprise current and deferred tax. Current and deferred tax are recognized in
profit and loss except to the extent they relate to items recognized directly in equity or in other
comprehensive income.
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Current tax
Current tax is the expected tax payable or recoverable on the taxable income or loss for the year,
using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax
payable in respect of previous years.
Deferred Tax
Deferred tax is recognized in respect of temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.
Deferred income tax is determined using tax rate applicable to the Bank as at the reporting date
which is expected to apply when the related deferred income tax asset is realized or the deferred
income tax liability is settled.
Deferred tax assets are recognized where it is probable that future taxable profit will be available
against which the temporary differences can be utilized.
6.11 Deposits, Debt securities issued and sub ordinated liabilities
Deposit
The bank accepts deposits form its customers under account current, term deposits and margin
accounts which allows money to be deposited and withdrawn by the account holder. These
transactions are recorded on the bank’s books, and the resulting balance is recorded as a liability
for the Bank and represents the amount owed by the Bank to the customer.
Debt securities issued
It includes debentures, bonds or other debt securities issued by the Bank. Deposits, debt securities
issued, and subordinated liabilities are initially measured at fair value minus incremental direct
transaction costs, and subsequently measured at their amortized cost using the effective interest
rate method, except where the Group designates liabilities at fair value through profit or loss.
However, debentures issued by the bank are subordinate to the deposits from customer.
Subordinated Liabilities
Subordinated liabilities are those liabilities which at the event of winding up are subordinate to the
claims of depositors, debt securities issued and other creditors. The bank does not have any of
such subordinated liabilities.
6.12 Provisions
The Bank recognizes a provision if, as a result of past event, the Bank has a present constructive
or legal obligation that can be reliability measured and it is probable that an outflow of economic
benefit will be required to settle the obligation.
A disclosure for contingent liability is made when there is a possible obligation or a present obligation
that may but probably will not require an outflow of resources. When there is a possible obligation or
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a present obligation in respect of which the likelihood of outflow of resources is remote, no provision
or disclosure is made.
A provision for onerous contract is recognized when the expected benefits to be derived by the Bank
from a contract are lower than the unavoidable cost of meeting its obligation under the contract.
Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. If
it is no longer probable that an outflow of resources would be required to settle the obligation, the
provision is reversed. Contingent assets are not recognized in the financial statements if it is not
probable that the amount will be received. If it is probable, then disclosure is given for the contingent
asset. However, contingent assets are assessed continually and if it is virtually certain that an inflow
of economic benefits will arise, the asset and related income are recognized in the period in which
the change occurs.
6.13 Revenue Recognition
Revenue is the gross inflow of economic benefits during the period arising from the course of the
ordinary activities of an entity when those inflows result in increases in equity, other than increases
relating to contributions from equity participants. Revenue is recognized to the extent it is probable
that the economic benefits will flow to the Bank and the revenue can be reliably measured. Revenue
is not recognized during the period in which its recoverability of income is not probable. The Bank’s
revenue comprises of interest income, fees and commission, foreign exchange income, cards
income, remittance income, bancassurance commission, etc. and the bases of incomes recognition
are as follows:
Interest Income
Interest income on available-for-sale assets and financial assets held at amortized cost shall be
recognized using the bank’s normal interest rate which is very close to effective interest rate using
effective interest rate method.
For income from loans and advances to customers, initial charges are not amortized over the life of
the loan and advances as the income so recognized closely approximates the income that would
have been derived under effective interest rate method. The difference is not considered material.
The Bank considers that the cost of exact calculation of effective interest rate method exceeds the
benefit that would be derived from such compliance. However, Bank have adopted the effective
interest method on the Debentures issued.
The effective interest method is a method of calculating the amortized cost of a financial asset or a
financial liability and of allocating the interest income or interest expense over the relevant period.
The effective interest rate is the rate that discounts estimated future cash payments or receipts
through the expected life of the financial instrument or, when appropriate, a shorter period, to the
net carrying amount of the financial asset or financial liability. When calculating the effective interest
rate, the Bank estimates cash flows considering all contractual terms of the financial instrument
(for example, prepayment options) but does not consider future credit losses. As per the carve-
out Notice issued by ICAN, the calculation includes all fees paid or received between parties to
the contract that are an integral part of the effective interest rate, transaction costs and all other
premiums or discounts unless it is immaterial or impracticable to determine reliably, between parties
to the contract that are an integral part of the effective interest rate, transaction costs and all other
premiums or discounts.
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Loan
Gains and losses arising from changes in the fair value of financial instruments held at fair value
through profit or loss are included in the statement of profit or loss in the period in which they arise.
Contractual interest income and expense on financial instruments held at fair value through profit or
loss is recognized within net interest income.
Fees & Commission
Fees and commissions are recognized on an accrual basis when the service has been provided or
significant act performed whenever the benefit exceeds cost in determining such value. Whenever,
the cost of recognizing fees and commissions on an accrual basis exceeds the benefit in determining
such value, the fees and commissions are charged off during the year.
Dividend Income
Dividend income are recognized when right to receive such dividend is established. Usually this
is the ex-dividend date for equity securities. Dividends are presented in net trading income, net
income from other financial instruments at fair value through profit or loss or other revenue based
on the underlying classification of the equity investment.
Net Trading Income
Net trading income comprises gains less losses related to trading assets and liabilities, and includes
all realized and unrealized fair value changes, interest, dividends and foreign exchange differences.
Net Income from other financial instrument at fair value through profit and loss statement
Net income from other financial instruments at fair value through profit or loss relates to non-
trading derivatives held for risk management purposes that do not form part of qualifying hedge
relationships and financial assets and liabilities designated at fair value through profit or loss. It
includes all realized and unrealized fair value changes, interest, dividends and foreign exchange
differences.
6.14 Interest Expenses
Interest expense on all financial liabilities including deposits are recognized in profit or loss using
effective interest rate method. Interest expense on all trading liabilities are considered to be
incidental to the Bank’s trading operations and are presented together with all other changes in fair
value of trading assets and liabilities in net trading income.
6.15 Employees Benefits
a) Short Term Employee Benefits
Short term employee benefit obligations are measured on an undiscounted basis and are
expensed as the related service is provided. A liability is also recognized for the amount
expected to be paid under bonus required by the Bonus Act, 2030 to pay the amount as a
result of past service provided by the employee and the obligation can be estimated reliably
under short term employee benefits.
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Short-term employee benefits include all the following items (if payable within 12 months
after the end of the reporting period):
• wages, salaries and social security contributions,

• paid annual leave and paid sick leave,
• profit-sharing and bonuses and
• non-monetary benefits
b) Post-Employment Benefits
Post-employment benefit plan includes the followings;
Defined Contribution Plan
A defined contribution plan is a post-employment benefit plan under which the Bank pays fixed
contributions into a separate entity and has no legal or constructive obligation to pay further
amounts. Obligations for contributions to defined contribution plans are recognized as personnel
expenses in profit or loss in the periods during which related services are rendered.
Contributions to a defined contribution plan that are due more than 12 months after the end of the
reporting period in which the employees render the service are discounted to their present value.
All employees of the Bank are entitled to receive benefits under the provident fund, a defined
contribution plan, in which both the employee and the Bank contribute monthly at a pre-determined
rate of 10% of the basic salary. The Bank does not assume any future liability for provident fund
benefits other than its annual contribution.
Defined Benefit Plan
A defined benefit plan is a post-employment benefit plan other than a defined contribution plan.
The Bank’s net obligation in respect of defined benefit plans is calculated separately for each plan
by estimating the amount of future benefit that employees have earned in return for their service
in the current and prior periods. That benefit is discounted to determine its present value. Any
unrecognized past service costs and the fair value of any plan assets are deducted.
The Bank recognizes all actuarial gains and losses net of deferred tax arising from defined benefit
plans immediately in other comprehensive income and all expenses related to defined benefit plans
in employee benefit expense in profit or loss.
The Bank recognizes gains and losses on the curtailment or settlement of a defined benefit plan
when the curtailment or settlement occurs. The gain or loss on curtailment or settlement comprises
any resulting change in the fair value of plan assets, any change in the present value of the defined
benefit obligation, any related actuarial gains and losses and any past service cost that had not
previously been recognized.
Termination Benefits
Termination benefits are recognized as an expense when the Bank is demonstrably committed,
without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment
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before the normal retirement date, or to provide termination benefits as a result of an offer made to
encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognized
as an expense if the Bank has made an offer of voluntary redundancy, it is probable that the offer
will be accepted, and the number of acceptances can be estimated reliably. If benefits are payable
more than 12 months after the reporting date, then they are discounted to their present value.
6.16 Foreign Currency Translation
The financial statements are presented in Nepalese Rupees (NPR).
Transactions in foreign currencies are initially recorded at the functional currency using rate of
exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in
foreign currencies are retranslated at the functional currency rate of exchange at the statement of
financial position date.
Foreign exchange gains and losses resulting from the settlement of such transactions, and from
the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign
currencies are recognized in the statement of profit or loss.
Non-monetary assets and liabilities are translated at historical exchange rates if held at historical
cost, or year-end exchange rates if held at fair value, and the resulting foreign exchange gains
and losses are recognized in either the statement of profit or loss or other comprehensive income
depending on the treatment of the gain or loss on the asset or liability.
6.17 Financial guarantee and loan commitment
Financial guarantees are contracts that require the Bank to make specified payments to reimburse
the holder for a loss it incurs because a specified debtor fails to make payment when due in
accordance with the terms of a debt instrument. Loan commitments are firm commitments to provide
credit under pre-specified terms and conditions.
Loan commitment is the commitment where the Bank has confirmed its intention to provide funds to
a customer or on behalf of a customer in the form of loans, overdrafts, future guarantees, whether
cancellable or not, or letters of credit and the Bank has not made payments at the reporting date,
those instruments are included in these financial statements as commitments.
6.18 Share Capital and Reserves
The Bank classifies capital instruments as financial liabilities or equity instruments in accordance
with the substance of the contractual terms of the instruments. Equity is defined as residual interest
in total assets of the Bank after deducting all its liabilities. Common shares are classified as equity
of the Bank and distributions thereon are presented in statement of changes in equity.
Dividends on ordinary shares classified as equity are recognized in equity in the period in which
they are declared.
Incremental costs directly attributable to the issue of an equity instrument are deducted from the
initial measurement of the equity instruments considering the tax benefits achieved thereon.
The reserves include retained earnings and other statutory reserves such as general reserve,
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bond redemption reserve, foreign exchange equalization reserve, regulatory reserve, investment
adjustment reserve, staff training and development fund, CSR reserve etc.
The reserves include retained earnings and other statutory reserves such as general reserve,
bond redemption reserve, foreign exchange equalization reserve, regulatory reserve, investment
adjustment reserve, staff training and development fund, CSR reserve etc.
6.19 Earnings per share including diluted
The Bank presents basic and diluted earnings per share (EPS) data for its ordinary shares. The
basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the
Bank by the weighted average number of ordinary shares outstanding during the period. Diluted
EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the
weighted average number of ordinary shares outstanding for the effects of all dilutive potential
ordinary shares.
As there are no potential ordinary shares that would dilute current earning of equity holders, basic
EPS and diluted EPS are equal for the period presented.

If the number of ordinary or potential ordinary shares outstanding increases as a result of a
capitalization due to right share, bonus issue, the calculation of basic and diluted earnings per
share for all periods presented are adjusted retrospectively.
6.20 Operating Segment Reporting
The Bank is organized for management and reporting purposes into segments such as Retail
Banking, Corporate Banking, SME Banking, Deprived Sector Banking, Treasury, Transaction
Banking and Other Banking. The segment results that are reported include items directly attributable
to a segment as well as those that can be allocated on a reasonable basis. Unallocated items
comprise mainly common assets, head office expenses, and tax assets and liabilities.
7. Segmental Information
A. Information about reportable segments (NPR in million)
Corporate Retail SME Deprived
Particulars Current Quarter Corresponding Current Quarter Corresponding Current Quarter Corresponding Current Quarter Corresponding
Previous Year Previous Year Previous Year Previous Year
Quarter Quarter Quarter Quarter
Revenue from 3,184 2,306 10,132 7,358 6,864 5,043 2,118 1,532
external customers
Intersegment (14) (7) 8 4 5 2 1 1
revenues
Segment Profit 225 297 1,977 1,745 1,361 1,259 340 326
(Loss) before tax
Segment assets 27,677 26,862 112,237 108,930 108,004 104,822 28,842 27,992
Segment liabilities 28,706 27,860 113,334 109,995 112,090 108,787 19,191 18,625
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Treasury Transactional Banking Others Total
Particulars Current Quarter Corresponding Current Quarter Corresponding Current Quarter Corresponding Current Quarter Corresponding
Previous Year Previous Year Previous Year Previous Year
Quarter Quarter Quarter Quarter
Revenue from 2,009 1,504 485 382 540 282 25,333 18,408
external customers
Intersegment - - - - - - (0) -
revenues
Segment Profit 807 479 99 69 340 117 5,149 4,293
(Loss) before tax
Segment assets 73,312 71,152 159 155 14 13 350,246 339,925
Segment liabilities 76,856 74,592 68 66 1 1 350,246 339,925
B. Reconciliation of reportable segments profit or loss (NPR in million)

Particulars Current Quarter Corresponding Previous Year
Quarter
Total Profit before tax for reportable 5,149 4,293
segments
Profit before tax for other segments - -
Elimination of inter segment profits - -
Elimination of discontinued opera- - -
tion
Unallocated amounts - -
-Other corporate expenses - -
Profit before tax 5,149 4,293
8. Related Party Disclosures
I. Subsidiary Companies
Name Shareholding %
NIC
ASIA Capital Limited 100.00
NIC ASIA Laghubitta Bittiya Sanstha Limited 57.75
NIC ASIA Securities Limited 100.00
II. Transactions with Subsidiaries
S No Particulars NIC Asia Capital NIC Asia Laghubitta NIC Asia Securities
1 Share Registrar fee paid 453,750
2 Deposit received from subsidiary 337,020,599 191,232,201 66,693,813
3 Borrowings 3,250,000,000
4 Interest paid to subsidiaries 36,431,113 4,263,100
5 Interest received from subsidiaries 175,450,439
6 Reimbursement received 620,941 12,721,410
7 Service Level Agreement 22,950,000
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9. Dividends paid (aggregate or per share) separately for ordinary shares and other shares
The bank has not paid any dividend during the reporting period.
10. lssues, repurchases and repayments of debt and equity securities

The bank has not issued any debt or equity securities during the reporting period.
11. Events after interim period
The Bank monitors and assesses events that may have potential impact to qualify as adjusting and
/ or non-adjusting events after the end of the reporting period. All adjusting events are adjusted in
the books with additional disclosures and non-adjusting material events are disclosed in the notes
with possible financial impact, to the extent ascertainable. There were no material events that
have occurred subsequent to date of Interim Financial Statements.
12. Effect of changes. in the composition of the entity during the interim period merger including
and acquisition
There are no merger or acquisitions transaction during the reporting period.
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Quarter Report April 20 2022

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NIC ASIA Bank Ltd.

Consolidated Statement of Financial Position

Cash and cash equivalent 10,993,488,170 28,266,984,006 9,788,283,405 23,902,662,784

Due from Nepal Rastra Bank 9,380,482,072 9,072,897,671 9,380,482,072 9,072,897,671

Placement with Bank and Financial Institutions - - - -

Derivative financial instruments. 586,999,840 5,359,380,480 586,999,840 5,359,380,480

Other trading assets 6,711,704 12,815,074 5,700,000 11,800,000

Loan and advances to B/FIs 13,394,059,140 10,053,956,892 16,644,059,140 14,289,456,892

Loans and advances to customers 280,676,324,117 265,072,547,940 257,679,192,365 248,770,354,077

Investment securities 46,828,619,944 33,739,079,470 46,474,454,261 33,293,725,162

Current tax assets - 296,218,884 - 297,107,341

Investment in subsidiaries - - 1,264,500,000 1,264,500,000

Investment property 982,891,295 1,275,463,444 982,891,295 1,275,463,444

Property and equipment 3,117,494,895 3,170,873,551 2,975,604,824 3,038,162,554

Goodwill and Intangible assets 121,576,572 99,156,836 113,095,847 91,548,342

Deferred tax assets - - - -

Other assets 4,593,793,051 5,556,048,231 4,350,496,561 5,480,462,976

Total Assets 370,682,440,800 361,975,422,479 350,245,759,611 346,147,521,722

Due to Bank and Financial lnstitutions 20,821,222,527 24,340,920,818 6,871,322,300 13,329,472,380

Due to Nepal Rastra Bank 7,227,764,978 3,238,618,707 7,227,764,978 3,238,618,707

Derivative financiaI instruments 588,216,000 5,337,920,000 588,216,000 5,337,920,000

Deposits from customers 299,110,673,649 289,497,923,428 296,176,168,112 287,024,798,908

Current Tax liabilities 278,722,419 - 220,610,750 -

Deferred tax liabilities 285,113,727 449,707,043 285,811,050 459,535,668

Other liabilities 5,108,065,301 5,585,933,170 3,773,992,209 4,884,182,481

Debt securities issued 10,804,393,835 10,969,374,120 10,804,393,835 10,969,374,120

Total Liabilities 344,224,172,436 339,420,397,285 325,948,279,235 325,243,902,264

Share capital 11,564,005,366 11,564,005,366 11,564,005,366 11,564,005,366

Retained earnings 3,590,638,222 1,935,127,958 2,984,119,499 1,599,552,618

Reserves 10,014,484,575 7,967,784,555 9,749,355,511 7,740,061,474

Total equity attributable to equity holders 25,169,128,163 21,466,917,879 24,297,480,376 20,903,619,458

Non-controlling interest 1,289,140,201 1,088,107,315 - -

Total equity 26,458,268,364 22,555,025,194 24,297,480,376 20,903,619,458

Total Liabilities and equity 370,682,440,800 361,975,422,479 350,245,759,611 346,147,521,722

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Profit attributable to:

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Share Exchange Regulatory Fair Value Revaluation Non-controlling

Share Exchange Regulatory Fair Value Revaluation Non-controlling

(Increase)/Decrease in Operating Assets (17,800,765,595) (90,843,376,828) (9,698,445,889) (83,366,284,454)

CASH FLOWS FROM INVESTING ACTIVITIES

CASH FLOWS FROM FINANCING ACTIVITIES -

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“The Group” represents the Bank and its subsidiaries.

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l Condensed Consolidated Statement of Financial Position

1. NAS 39: Financial Instruments: Recognition and Measurement

Impairment Loss as per NFRS NPR 1,312,506,013

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2.1 Reporting period and approval of financial statements

Period Nepali Calendar English Calendar

2.2 Functional and Presentation Currency

3. Statement of Compliance with NFRSs

4. Use of estimates, assumptions and judgements

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5. Changes in Accounting Policies

6. Significant Accounting Policies