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Everest Bank Ltd, a joint venture with Punjab National Bank (PNB), is one of the fastest growing private sector Banks having a wide network of 16 branches across the nation and over 250 correspondents around the globe. The bank has shown track record of profitability registering remarkable growth in its size and operation. The bank has always endeavored in introducing innovative products for the benefit of the individuals and the growth of the economy. Similarly, in its attempt to developing the capital market in Nepal for the benefit of the individuals, business houses and the institutions which will give them higher return on Investment than the normal deposits and also contribute to development activities of the country, Everest Bank Ltd organized the seminar on “Development of Mutual Fund Industry in Nepal”, bringing the expertise from its joint venture partner, PNB and Principal Financial Group of USA.

The Mutual Fund Industry in Nepal is still in nascent stage. The various options/ schemes that are available to investors’ worldwide are not available to the local investors. Likewise, the benefits that may accrue by way of development of Capital Market and infrastructure Industry due to the operation of the Mutual Funds are also not seen. The latest monetary policy of the NRB makes a mention of their desire to develop this Industry.

The speakers for the seminar were chosen carefully to suit/ understand the requirements of our country using their worldwide experience. Sri Ranjan Dhawan is a General Manager of PNB, previously the Head of the AMC and Mutual Fund Coy of PNB. Mr. Ashok Bhargav is a Senior Manager at Principal Mutual , a part of the Principal Financial Group , which is a fortune 100 coy having global presence with more than 15 customers  and managing assets worth over USD 175 billion across the world.

A mutual fund is simply a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. The mutual fund will have a fund manager who is responsible for investing the pooled money into specific securities (usually stocks or bonds). When you invest in a mutual fund, you are buying shares (or portions) of the mutual fund and become a shareholder of the fund. Mutual funds are one of the best investments ever created because they are very cost efficient and very easy to invest in (you don’t have to figure out which stocks or bonds to buy). By pooling money together in a mutual fund, investors can purchase stocks or bonds with much lower trading costs than if they tried to do it on their own and the biggest advantage to mutual funds is diversification.

Benefits

–                     Provides an option to systematically start planning for ones retired life and secure a sound financial return in future

–                     Availibity of very attractive short term, medium term and long term investment options to suit every class of investors, based on their individual appetite for risk

–                     Professional Fund Management which would lead to better returns for investors

–                     Benefits of free markets as competition would lead to lower costs which would improve overall returns

–                     Transparency in operations

Thus with the view of providing alternative avenues of investments to the benefits of the investors and the alternative source of raising fund to the benefit of the corporate, Everest Bank Ltd, PNB & the Principal Financial Group aims at working closely with the regulator to help develop the framework for introducing a strong long term social security in Nepal. We can jointly work to put in place a framework to offer Mutual Funds/ Retirment Products via Everest Bank’s Branches.

1

Total Deposit

10097.69

8063.90

25.22

2.

Total Credit

7900.09

6095.84

29.60

3.

Total Income

867.83

785.06

10.54

4.

Total Expense

490.92

468.70

4.74

5.

Operating Profit

376.91

316.36

19.14

Based on the first nine month’s unaudited accounts, the Bank’s operating profit showed an increase of 23% over the last year reaching a figure of about Rs 282.8 million for the first nine months of this fiscal year. The Bank’s credit has grown by 22 % reaching a figure of Rs 7456.9 million. The total deposits of the Bank have increased by 20 % touching Rs 9325.4 million over the preceding year.This sustained growth of the Bank is attributable to its strong systems and procedures, professional approach, quality lending and highly motivated staff members.

The bank provides a wide range of banking facilitates through a wide network of 16 branches and over more than 250 reputed correspondent banks across 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 28 ATM centers associated with SCT network and around 150 Point of Sales.

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.

Unaudited Financial Results as at 3 rd Quarter, Chatira 2060 and Chaitra 2061at a glance

Amount In Million

S.No.

Particulars

This Quarter as on end oc Chaitra 2061

Previous Year as on end of Chaitra 2060

Growth %

1

Total Deposit

9325.37

7721.48

21

2.

Total Credit

7456.89

6127.20

22

3.

Total Income

620.83

572.31

8.48

4

Total Expense

338.08

342.63

-1.33

5

Operating Profit

282.75

229.68

23

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.