Archives

In an endeavor to provide banking facilities to large and well spread out sections of the society, we have strived to establish our branches in all the regions of the country. In this attempt, we have opened our 16 th branch at Pokhara, New Road on 28 th March 2005 . H.E. Mr. Shiv Shanker Mukherjee, Ambassador of India to Nepal inaugurated the branch at a function attended by Mr. Lekh Nath Bhusal, Dy. Governor of Nepal Rastra Bank as a chief guest and accompanied by various other dignitaries of Pokhara.

Everest Bank Limited (EBL) was established in 1994 and started its operations with its first branch at Naya Baneshwar Katmandu. With a objective of establishing a professional banking standards, EBL joined hands with Punjab National Bank (PNB), the largest public sector bank in India as it’s joint venture partner in India in 1997. Everest Bank is one of the fastest growing private banks, serving its valued customers through a network of 16 branches with the opening of Pokhara branch and over 250 correspondents around the globe. All the major branches are interconnected through Anywhere Branch Banking Systems (ABBS), a facility which enables its customers to do banking transactions from any of these branches irrespective of their having accounts in the other branch. The bank’s EBL Debit Card can be accessed through 25 ATM centers associated with SCT network and around 150 Point of Sales.

Based on the first six month’s unaudited accounts, the Bank’s operating profit showed an increase of 21% over the last year reaching a figure of about Rs 186.92 million for the first six months of this fiscal year. The Bank’s credit has grown by 25 % reaching a figure of Rs 7198 million. The total deposits of the Bank have increased by 18 % touching Rs8749 million over the preceding year. This sustained growth of the Bank is attributable to its strong systems and procedures, professional approach and quality lending. The Bank continues to maintain strict control over its Non Performing Assets (NPA), which remains at 1.7% in gross value. The Bank’s net NPA is nil as at the close of the financial year 2060-61.

Recognizing the value of offering a complete range of services not only to corporate but also to individuals, EBL has pioneered in the banking sectors in extending various customer friendly products like Home Loan, education loan, EBL Flexi Loan, Loan against Future Lease Rentals and Home Equity Loan, car loan, loan against shares and loan against insurance policies etc., thus helping people realize their dreams.

It is a well-known fact that large numbers of people from Pokhara and adjoining districts have been moving abroad and remitting their earnings to the hometown. Thus with EBL’s 250 correspondent, drawing arrangements with reputed exchange companies and banks around the globe, this branch is expected to add another dimension in facilitating easy and reliable remittance for people from and surrounding areas of Pokhara.

On the ocassion Mr H.N Gurung , Asst. General Bank highlighted the latest position of the bank having deposit of around 900 crore, lending around 750 crore and around 3.5% share in the total Nepalese banking sector.

“We at EBL, have always endeavored in enriching and beautifying the lives through our innovative products and services suiting the needs and requirement of our customers and with this end in view we have come to serve the community of Pokhara” said Mr. DVSSV Prasad, Executive Director of the bank.

“ I am very impressed to note the impressive growth of the bank over the last decade and maintaining the Non Performing Asset at less than 1% is a positive sign for healthy growth” said H.E Mr. Shiv Shanker Mukherjee, Ambassador of India to Nepal on the occasion. He also assured India ‘s continuing economic co-operation to Nepal .

Considering the large volume of inward remittance to Pokhara ,Mr. Lekh Nath Bhusal , Dy. Governor NRB was hoped that EBL would continue to add value in providing service in facilitating remittance.

Mr. Lalchan, President of Pokhara Chamber of Commerce and Industry observed that most of the banks in Pokhara are focused on deposits and hoped that EBL will focus equally on lending and investment in Pokhara.

The inaugural ceremony was concluded with the vote of thanks by Mr. B.K Shrestha, Chairman of the bank. He informed that Everest Bank is the first and the only bank in Nepal to open a representative office in India . The rep office facilitates the opening of the account of Nepalese from the identified branches of Punjab National Bank, India to any of the branches of Everest Bank Limited in Nepal and also facilitate in remitting the funds instantly with a very nominal charge.

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.