MIRA INFORM REPORT

 

 

Report Date :

04.06.2013

 

IDENTIFICATION DETAILS

 

Name :

SANIMA BANK LIMITED

 

 

Registered Office :

"Alakapuri", Naxal, Kathmandu  G.P.O. Box: 20394

 

 

Country :

Nepal

 

 

Financials (as on) :

15.07.2012

 

 

Date of Incorporation :

16.03.1996

 

 

Legal Form :

Limited Company

 

 

Line of Business :

General Banking

 

 

No. of Employees :

758

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Nepal

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

NEPAL - ECONOMIC OVERVIEW

 

Nepal is among the poorest and least developed countries in the world, with about one-quarter of its population living below the poverty line. Agriculture is the mainstay of the economy, providing a livelihood for three-fourths of the population and accounting for a little over one-third of GDP. Industrial activity mainly involves the processing of agricultural products, including pulses, jute, sugarcane, tobacco, and grain. Nepal has considerable scope for exploiting its potential in hydropower, with an estimated 42,000 MW of feasible capacity, but political instability hampers foreign investment. Additional challenges to Nepal's growth include its landlocked geographic location, civil strife and labor unrest, and its susceptibility to natural disaster.

Source : CIA

 

Company Identification Details

 

Enquired Name

:

SANIMA BANK LIMITED

Correct Name of Company

:

SANIMA BANK LIMITED

Registered Office

:

"Alakapuri", Naxal, Kathmandu
G.P.O. Box: 20394
Phone: +977-1- 4428977, 4428979, 4428980
Fax:     +977-1-4428969
SWIFT: SNMANPKA
Email: sanima@sanimabank.com

Branch

:

Damak, Newroad, Dhadingbesi, Kumaripati, Pokhara, Narayangarh, Suryavinayak, Chuchchepati, Inaruwa, Belbari, Bhandara, Gongabu.

Industry

:

Bank

Nature of Activity

:

With the decision of Credit Agricole Indosuez to divest, a group of companies comprising of bankers, professionals, industrialists and businessmen, had acquired on April 2002 the 50% shareholding of Credit Agricole Indosuez in Nepal Indosuez Bank Ltd.

The name of the bank has been changed to Nepal Investment Bank Ltd. upon approval of bank’s Annual General Meeting, Nepal Rastra Bank and Company Registrar’s office with the following shareholding structure.

 

 

A group of companies holding 50% of the capital

Rashtriya Banijya Bank holding 15% of the Capital.

Rashtriya Beema Sansthan holding the same percentage.

The remaining 20% being held by the General Public (which means that NIBL is a Company listed on the Nepal Stock Exchange).

 

We believe that NIBL, which is managed by a team of experienced bankers and professionals having proven track record, can offer you what you're looking for. We are sure that your choice of a bank will be guided among other things by its reliability and professionalism.

 

Core Values and Ethical Principles:

Our core values tell us, our customers and the communities we serve, who we really are; what we are about; and the principles by which we pledge to conduct business. In essence, we believe that success can only be achieved by living our core values and principles:

Customer Focus: At NIBL, our prime focus is to perfect our customer service. Customers are our first priority and driving force. We wish to gain customer confidence and be their trusted partner.

Quality: We believe a quality service experience is a paramount to our customers and we are strongly committed in fulfilling this ideal.

Honesty and Integrity: We ensure the highest level of integrity to our customers, creating an ongoing relationship of trust and confidence. We treat our customers with honesty, fairness and respect.

Belief in our people: We recognize that employees are our most valuable asset and our competitive strength. We respect the worth and dignity of individual employees who devote their careers for the progress of the Bank.

Teamwork: We are a firm believer in team work and feel that loyal and motivated teams can produce extraordinary results. We are drived by a performance culture where recognition and rewards are based on individual merit and demonstrated track record.

Good Corporate Governance: Effective Corporate Governance procedures are essential to achieve and maintain public trust and confidence in any company, more so in a banking company. At NIBL, we are committed in following best practices resulting in good corporate governance.

Corporate Social Responsibility: As a responsible corporate citizen, we consider it important to act in a responsible manner towards the environment and society. Our commitment has always been to behave ethically and contribute towards the improvement of quality of life of our people, the community and greatly the society, of which we are an integral part.

 

 

 

Official Company Data

 

Legal Form

:

Limited Company

Corporate Identity Number (CIN)

:

884

ROC Code 

:

Kathmandu

Registration Date

:

16.03.1996

Employee

:

758

Business Activity / Product

Description

:

With the decision of Credit Agricole Indosuez to divest, a group of companies comprising of bankers, professionals, industrialists and businessmen, had acquired on April 2002 the 50% shareholding of Credit Agricole Indosuez in Nepal Indosuez Bank Ltd.


The name of the bank has been changed to Nepal Investment Bank Ltd. upon approval of bank’s Annual General Meeting, Nepal Rastra Bank and Company Registrar’s office with the following shareholding structure.

 

 

A group of companies holding 50% of the capital

Rashtriya Banijya Bank holding 15% of the Capital.

Rashtriya Beema Sansthan holding the same percentage.

Auditor

:

L.D. Mahat

Partner

CSC & Co.

Chartered Accountants

Bankers

:

Nepal Rasto Bank Ltd

 

Financial 

 

Balance Sheet

as on Ashad 31, 2069 (July 15, 2012)

                                                                               

1  Share Capital                                                                   4.1            2,016,000,000               2,016,000,000

2  Reserves and Funds                                                       4.2               113,580,523                  102,690,956

3  Debentures and Bonds                                                  4.3                                  -                                        -

4  Borrowings                                                                       4.4                 88,250,000                   658,000,000

5   Deposit Liabilities                                                           4.5          11,178,734,351               6,356,737,379

6  Bills Payables                                                                  4.6                                  -                                        -

7   Proposed and Payable Dividend                                                     110,880,000                  131,040,000

8   Income Tax Liabilities

9   Other Liabilities                                                               4.7               215,021,267                    98,912,538

Total Capital Liabilities                                                                13,722,466,141               9,363,380,873

1   Cash Balance                                                                 4.8              256,197,727                 147,095,662

2   Balance with NRB                                                          4.9           1,005,249,544                 326,975,202

3   Balance with Banks/Financial Institutions               4.10              111,615,471                   52,235,738

4   Money at Call and Short Notice                                4.11                                 -                 1,049,936,449

5   Investments                                                                   4.12           2,105,770,255                 916,983,033

6   Loans Advances and Bills Purchase                       4.13           9,531,504,834              6,371,323,985

7   Fixed Assets                                                                  4.14              479,044,422                 361,072,445

8   Non-Banking Assets                                                    4.15                                 -                                       -

9   Other Assets                                                                  4.16              233,083,888                 137,758,359

Total Assets                                                                                       13,722,466,141              9,363,380,873

 

 

Profit and Loss Account

For the period from July 17, 2011 to July 15, 2012 (Shrawan 01, 2068 to Ashad 31, 2069)

 

1.     Interest Income                                                              4.18           1,172,200,388            1,038,456,715

2.     Interest Expenses                                                         4.19              753,616,780               683,000,393

Net Interest Income                                                                                       418,583,608                  355,456,322

3.     Commission and Discount                                         4.20                11,251,196                    4,949,150

4.     Other Operating Income                                              4.21                44,618,555                  34,805,648

5.     Exchange Fluctuation Income                                    4.22                                 -                         157,502

Total Operating Income                                                                                 474,453,359                  395,368,622

6.     Employees Expenses                                                  4.23                79,987,290                  55,835,896

7.     Other Overhead Expenses                                          4.24              151,863,729                 84,325,436

8.     Exchange Fluctuation Loss                                         4.22                     175,238                                   -

Operating Profit Before Provision for Possible Loss                                     242,427,102                  255,207,289

9.     Provision for Possible Losses                                    4.25                52,492,738                  13,272,070

Operating Profit                                                                                             189,934,364                  241,935,219

10.  Non-operating Income/Expenses                              4.26                     678,396                       347,659

11.  Provision Written-Back                                                 4.27                                 -                      2,161,002

Profit from Regular Operations                                                                     190,612,760                  244,443,880

12.  Profit/Loss from extra-ordinary activities                  4.28                                 -                                     -

Net Profit after considering all activities                                                      190,612,760                  244,443,880

13.  Provision For Staff Bonus                                                                   17,328,433                  22,222,171

14.  Provision For Income Tax                                                                   51,514,761                  67,001,354

This Year’s                                                                                             51,892,481                  67,105,214

Previous Year’s                                                                                          108,909                       496,779

Deferred Tax Expense/(Income)                                                          (486,629)                     (600,639)

Net Profit/(Loss)                                                                                               121,769,566                   155,220,355

 

 

Board of Directors

 

 

Chairman                                    
Mr. Jiba Lamichhane    

 

Director
Mr.Binaya kumar Shrestha

 

Director
Mr. Ram Krishna Shah

 

Director
Mr. Shamba Lama

 

Director
Mr. Mahesh Ghimire

 

Director
Mr. Bharat Kumar Pokhrel

 

Capital Structure

Authorised Capital: Rs. 2,100 million

Issued Capital: Rs. Rs.2, 016 million

Paid-up Capital: Rs. 2,016 million

Shareholding Pattern

Promoters: 70 %

General Public: 30 %

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.56.57

UK Pound

1

Rs.86.15

Euro

1

Rs.73.64

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.