Archives

With the view to encourage the people to take earthquake safety and measures while constructing houses, the bank offers 50% reduction in the processing charge and 0.5% reduction in the interest rate for the prospective borrowers who visit the stall during the exhibition period and applies for EBL Home Loan within 30th Jan, 2005. EBL is a pioneer in home loan being the first bank in Nepal to introduce home loan to the individuals.

Those who are interested in availing EBL Home Loan with reduced charges are cordially invited to visit our stall at Patan Durbar Square for further details. Everest Bank Limited is supporting the theme “Compliance to Building Code is the road to Earthquake Safety”.

Based on the first three months, ending Ashwin 2061, unaudited accounts, the Bank’s operating profit has shown an increase by 47% over last year reaching a figure of Rs.106.38 million for thefirst three months of this fiscal year.The Bank’s credit has grown to Rs.6736 million posting a growth of 22% over the last year. The Bank continues to maintain a very low level of Non-Performing Assets (NPA) with net NPA being NIL.The 10th Annual General Meeting (AGM) of the Bank was held on Thursday (10th Mangsir, 2061) wherein the Balance Sheet and the Profit & Loss A/c of the Bank for the year ended 31st Asadh, 2061 were approved. The Bank’s decision to pay cash dividend of 20% to its shareholders was also approved by the AGM.Sh. B. K. Shrestha, Chairman while presenting the Annual Report for the fiscal year informed that the Bank has been able to maintain Capital Adequacy Ratio of over 11%, the benchmark fixed by Nepal Rastra Bank which speaks of good health of the Bank.EBL has added one more branch at Dry Port, Birgunj and an Extension Counter at Customs Point, Birgunj during the fiscal raising the number of branches to 15. The Bank is planning to open its 16th branch at Pokhara soon.Continuing its thrust on introducing new products the Bank has come out with “Home Equity Loan Scheme” under its retail lending segment and has also launched schemes of granting loans against Shares as also Life Insurance Policies”.The Bank has already installed ATMs at its branches at a) New Baneshwor and b) New Road. The Bank is installing further ATMs at a) Pulchowk and b) Tribhuvan International Airport. Permission has been received from Nepal Rastra Bank and Reserve Bank of India to enable EBL and PNB to share their ATMs (PNB already has more than 600 ATMs in India). This will enable the ATM cardholders of the Bank to use all the ATMs of PNB. Likewise PNB cardholders while visiting Kathmandu will be able to use our ATMs. The technical points regarding switch sharing arrangement is being finalized.

Amidst economic difficulties and increased deteriorating law and order situation in the country, the banking sector is not aloof from this menace that has explored a number of challenges for its survival.

S S Dabas, executive director of Everest Bank Limited (EBL), in an exclusive interview to The Himalayan Times said, banking sector is now facing a difficult time. Dabas was of the view that unless the banks control their non-performing assets and run the banks professionally in lending and recovery of loans, they will face problems. “The timing is getting tough in the days ahead,” he added.

In Nepal, the size of the banks is small and capital base is also same. With global and regional trading bodies such as World Trade Organisation (WTO), SAFTA and BIMSTEC came into being, the business environment tional progress and horizontal its achievement of containing whether it is trade, banking or growth. “Despite the fact that NPAs with gross NPAs restricted to others are sure to face tough com- economy is not sound and facing 1.72 per cent of the total credit petition, opined Dabas. In such a ups and downs’, EBL has main- whereas net NPA being reduced to situation, bankers need to think tamed a steady grow over a nil. The bank has been able to regseriously of mergers and acquisi- decade and has increased its cus- ister remarkable progress which is tions which may strengthen them tourer base manifold and shown attributed to its culture of corpoto grow in a sustained way, he growth in all parameters of bank- rate governance on which the commented.

When talking to The Himalayan posits, advances as well as profits “Introduction of new products Times on the eve of 10th anniversary of the EBL, Dabas commented that the bank has been able to set up an example of effecient and effective working culture by serving the customers fast. He said ‘Everest Bank, Which is joint venture with Punjab National (PNB), India, has been emerged as one of the fast growing companies in the country.

He said that the bank has two ways of progress – one is operational progress and horizontal growth. “Despite the fact that economy is not sound and facing ‘ups and downs’, EBL has maintained a steady grow over a decade and has increased its customer base manifold and shown growth in all parameters of banking. The bank has doubled its deposits, advances as well as profits during the past three years in spite of the fragile security situation in the country,” Dabas commented.

The bank’s operating profit during the financial year 2003-04 has grown up by 55 per cent and the net profit has increased by 52 per cent, he informed. The average credit growth has been over 26 per cent reaching a figure of Rs 6099 million and deposits have touched Rs 8064 million.

A notable feature of the bank is its achievement of containing NPAs with gross NPAs restricted to 1.72 per cent of the total credit whereas net NPA being reduced to nil. The bank has been able to register remarkable progress which is attributed to its culture of corporate governance on which the bank lays utmost emphasis. Introduction of new products is as important as monitoring of credit portfolio to achieve success,” said Dabas.

“However, the bank maintains a system of constant and regular review and monitoring of all regular accounts,” he informed. Talking about challenging in banking businesses, Dabas said ‘ in the competitive environment , where the interest rates are falling regularly, the bank is cautious of controlling its cost of funds. ” The bank does not offer high interest rates to corporate circle,” he said, “The bank lends at an interest rate ranging from seven per cent to 12 per cent”.

Mentioning about the actual progress of the bank, Dabas said the management has been successful in registering the operating profit of Rs 330 million in comparison to Rs 153.3 million three years back which is attributed to the bank’s timely steps to redefine its strategies and diversified activities in deposit mobilisation, introduction of new products in order to retain lending segments, increased direct housing fnance,EBL property plus, loan against lease rentals, educational loans and professional loans.

According to Dabas, the bank has grown horizontally by adding new branches which totals 15 at present scattered across the country. All branches are computerised and interconnected through anywhere branch baking system (ABBS). The latest branch of the bank is in Birgunj.

Not only that the bank has already opened up its representative office in the Indian capital New Delhi, which is the only and first ever Nepali bank’s branch outside Nepal to facilitate Nepalis living in India to remit their money back home. Nepalis in India have been able to remit thier money through banking channel without any hurdles and most economically. It also enables them to open their accounts to any branch in EBL in Nepal without being in Nepal, he said.

“The bank also helps resolve the problems of both Nepali and Indian exporters and importers. Over Rs 2.0 billion is remitted from India to Nepal from EBL alone,’ he informed.

The Board of Directors of Everest Bank Ltd. in its meeting held on 13th/14th September, 2004 approved the Financials of the Bank for the year 2060-61. As per the data approved, it was observed by the Board that despite constraints in economy the Bank was able to increase its deposits and advances in excess of 20 % during the year 2060-61 compared to the previous year. This resulted in increase in operating profit to approx. Rs.34.00 crore – an increase of almost 53% over last year.

The Board also resolved to recommend to the forthcoming Annual General Meeting of its share holders a cash dividend of 20% subject to the prior permission from Nepal Rastra Bank.

In its endeavour to extend wide range of products to its valued customers, Everest Bank Ltd (EBL), a joint venture with Punjab National Bank (PNB), India has introduced yet another credit scheme – “Loan Against Shares” which enables the customers to enjoy the instant liquidity against the shares approved by the bank. As per the scheme, the loan is extended to the individual/firms/Companies, business houses in the shape of Demand Loan/ Overdraft upto a maximum of Rs.50 lacs and 200 lacs for individuals and Firms/Companies respectively.

This facility can be availed by the borrowers to meet their personal/business needs. The customer will enjoy the liquidity at a low interest rate without having to sell the shares. EBL has been adding new products for the benefit of individual borrowers as well as for the business community and is committed to help in the economic development of the nation.

As per the provisional yearly results for the period ending Asadh 2061 Everest Bank has shown a record growth of 50% in its operating profit over last year reaching a figure of Rs.323 million. The Bank’s average credit has grown by 29% reaching a figure of Rs.6099 million. The average deposits of the Bank have increased by 23% touching Rs.8064 million over the preceding year. This spectacular growth of the Bank is attributable to its strong systems and procedures, professional approach and quality lending. Bank continuous to maintain strict control over its Non Performing Assets (NPA) which remain less than 2% in gross value. The Bank’s net NPA have become nil as at the close of the financial year.

Continuing it pioneering role in the retail lending segment, Everest Bank (EBL) has now introduced a new scheme for lending against life insurance policies. This scheme shall benefit individuals for availing finance against their life insurance policies obtained from established insurance companies approved by the Bank. The loan shall be available upto a maximum of 90% of the surrender value of life insurance policy at an affordable interest rate of 8.5% p.a. payable quarterly. The loan can be availed for meeting any personal requirements of the intending borrower.

With the launching of this scheme, EBL has now 8 schemes specially formulated for individuals under its retail lending umbrella and the Bank remains committed to work on new schemes for the benefit of the society at large.

After signing an agreement with NRB, which gives EBL the authority to collect Customs Duty and Other Government Revenues at Dry Port and also at Customs Point, Birgunj, the Bank has opened its 15th branch at Dry Port, Birgunj. It is also in the process of opening its Extension Counter at Customs Point Birgunj. It is committed to provide most efficient and professional services to the importers and exporters at its branch at Dry Port and also at the Extension Counter at Custom Point, Birgunj.

The branch at Dry Port shall be fully computerized having Anywhere Branch Banking System linking it with all the branches of the valley as also with other branches in major cities of the Kingdom of Nepal.

Everest Bank has come out with yet another product under its retail lending segment and have launched its “EBL Home Equity Loan Scheme”, which will allow the existing home loan customers to avail a line of credit against the equity they have built in their houses. As per this new scheme the existing home loan customers of the Bank who have been regularly paying their installment, whose disposable income has increased and where the market value of the house has appreciated shall be eligible for additional loan under this scheme. This will give flexibility to the customers to access the low interest loans against the extension of the mortgage of the existing house. The loan can be utilized by the customers for any purpose like home improvement, education, purchase of a new car and for meeting various other expenses.

EBL has been adding new products under its retail lending for the benefit of individual borrowers as well as for business community. With the launching of this scheme, EBL now has seventh products to offer under retail lending. The scheme has been launched after proper review and success of its earlier schemes.

Everest Bank has introduced its Debit Card for its customers. Everest Bank’s Debit Card shall have wide accessibility as the bank has entered into an ATM sharing agreement with Smart Choice Technology (SCT), which shall enable the usage of EBL’s Debit Card at a network of 15 shared ATM’s carrying the logo of SCT and also in over 250 Merchant Outlets in Nepal. This Debit card can be used at Merchant Outlets like Departmental Stores, Hotels, and Restaurants etc with no additional cost.

Everest Bank’s ATM at its New Baneshwor Branch was inaugurated today by its Chairman Mr. B. K. Shrestha and Mr. C. P. Swarnakar, Sr. General Manager, Punjab National Bank, India and Director representing Punjab National Bank on the Board of Everest Bank Limited.

The very fact that, Mr. Swarnakar has come all the way form India for this purpose shows the value and commitment Punjab National Bank attaches to its joint venture in Nepal. Speaking on the occasion, Mr. Swarnakar reassured the EBL Management and its patrons and clients that PNB will continue to provide EBL the latest banking know-how and wished that EBL shall continue growing at the same pace so as to achieve a predominant position amongst the banking system in Nepal.

Mr. B. K. Shrestha, Chairman of EBL stated that EBL Board and Management is conscious of the fast changing developments in the financial sector and assured its customers that EBL shall not be found lacking in any field and shall adopt the latest technology in order to retain its pioneer position amongst the banks in Nepal. He also declared that looking at the banks results for the 10 months ending Baisakh 2061, EBL is poised to show spectacular growth in all parameters at the ensuing year ending Ashadh 2061.