E B L A C T I V I T I E S A N D U P D A T E S | V O L . 8 3 | S E P T - O C T , 2 0 1 3

Mr. H.P. KulkarniMr. Kumar JoshiMr. Dev R. DangalMr. Sandeep Khatry

E D I T O R I A L

TEAM

My Dear Colleagues,

It is a matter of pride for me to join the EBL family. I am indeed fortunate to have such a dedicated team of staff members.

The Bank, in the recent period has emerged as one of the top Banks serving the widespread sections of the society. Everest Bank has become a brand name and is looked upon with respect by the peer banks. All this has been possible because of the dedication & devotion of all staff members.

Now, our job is to carry all the good works that have been done in the past forward and take the Bank to greater heights. I am sure that all of us will rise to the occasion and make Everest Bank a name to be reckoned with.

We have just completed the Financial Year 2069/70. I take this opportunity to congratulate all of you for this reasonably good performance. The Bank has been able to register the y-o-y growth of 34.14% in Operating Profi t and simultaneously reduced the NPA to 0.62%. Most importantly, the Bank has now joined the league of the largest commercial banks with total business in excess of Rs. 10,000 Crore. We should however not be complacent since some of our peer banks are still ahead than us.

Thus, it’s a time to increase our dedication & alertness to remain competitive and consolidate our position.

Our priorities therefore are as under:

Widen the Customers Base through continuous Product Innovation & Improvement in service delivery

Greater thrust in improving Retail Business, Non-interest Income & Non-fund Business

Strengthen Compliance & Post-sanction follow-up so as to maintain the Asset Quality

Let us all redefi ne our strategies so that we maintain our dominant position without deteriorating the quality. We should continue to be Strong in our system, Consistent in our growth & Dependable for the entire stakeholders.

No leader can be greater than the team it leads and the fact remains that EBL employees comprise a team which is full of pride. I call upon this team to rise to face the future challenges and act as leaders in the banking sector of Nepal.

I look forward to active participation & commitment from all my staff members on our journey towards excellence.

Also extending very warm wishes to you & your entire family for shortly approaching DASHAIN & DEEPAWALI 2070.

MESSAGEFrom the CEO’s Desk

Nearly all men can stand adversity, but if you want to test a man’s character, give him power. -Abraham Lincoln

Based on the un-audited fi nancial results of FY 2069/70, the Bank has been able to register Operating Profi t of Rs.240.16 crore with y-o–y growth of 34.14%. Likewise, Deposit & Advances of the Bank reached Rs. 5,772.05 crore & Rs. 4,419.78 crore with y-o–y growth of 15.43% & 20.70% respectively. Maintaining the Assets Quality, the Bank’s gross NPA is reduced to 0.62% from 0.82% last year. Moreover, the Bank has been able to secure its position as one of the largest banks in the country with total business in excess of Rs. 10,000 Crore.

Arun K Ahluwalia

EBL Fourth-Quarter Performance (FY 069/70)

EDITORIALE B L A C T I V I T I E S A N D U P D A T E S

Customer service is an integral part of our job in Banks. A company’s most vital asset is its customers. Without them, we cannot exist in business. When we sat-isfy our customers, they not only help us grow by continuing to do business with us, but recommend us to friends and as-sociates. Here are a few tips to improve customer service.1. Know who is boss. You are in busi-

ness to service customer needs, and you can only do that if you know what your customers want. When you truly listen to your customers, they let you know what they want and how you can provide good service. Never forget that the customer pays our salary and makes your job possible.

2. Be a good listener. Take time to iden-tify customer needs by asking ques-tions and concentrating on what the customer is really saying. Listen to their words, tone of voice, body lan-guage, and most importantly, how they feel. Beware of making assump-tions - thinking you intuitively know what the customer wants. Identify and anticipate needs. Customers don't buy products or services. They buy good feelings and solutions to problems. Most customer needs are emotional rather than logical. The more you know your customers, the better you become at anticipating their needs. Communicate regularly so that you are aware of problems or upcoming needs.

3. Make customers feel important and appreciated. Treat them as individuals.

Always use their name and fi nd ways to compliment them, but be sincere. People value sincerity. It creates good feeling and trust. Think about ways to generate good feelings about doing business with you. Customers are very sensitive and know whether or not you really care about them. Thank them every time you get a chance.

4. Help customers understand your sys-tems. Your organization may have the world's best systems for getting things done, but if customers don't under-stand them, they can get confused, impatient and angry. Take time to explain how your systems work and how they simplify transactions. Be careful that your systems don't reduce the human element of your organiza-tion.

5. Appreciate the power of "Yes". Always look for ways to help your customers. When they have a request (as long as it is reasonable) tell them that you can do it. Figure out how afterwards. Look for ways to make doing business with you easy. Always do what you say you are going to do.

6. Know how to apologize. When some-thing goes wrong, apologize. It's easy and customers like it. The customer may not always be right, but the cus-tomer must always win. Deal with problems immediately and let custom-ers know what you have done. Make it simple for customers to complain. Value their complaints. As much as we

dislike it, it gives us an opportunity to improve. Even if customers are having a bad day, go out of your way to make them feel comfortable.

7. Give more than expected. Since the future of all companies lies in keeping customers happy, think of ways to el-evate yourself above the competition. Consider the following:• What can you give customers that

they cannot get elsewhere?• What can you do to follow-up and

thank people even when they don't buy?

• What can you give customers that is totally unexpected?

Get regular feedback. Encourage and welcome suggestions about how you could improve. There are several ways in which you can fi nd out what customers think and feel about your services.

• Listen carefully to what they say.• Check back regularly to see how

things are going.• Provide a method that invites con-

structive criticism, comments and suggestions.

Treat employees well. Employees are your internal customers and need a regular dose of appreciation. Thank them and fi nd ways to let them know how im-portant they are. Treat your employees with respect and chances are they will have a higher regard for customers. Ap-preciation stems from the top. Treating customers and employees well is equally important.

Customer Service

EBL SHORT NEWS

E B L A C T I V I T I E S A N D U P D A T E S

In order to carry a positive action we must develop here a positive vision. -Dalai Lama

SegmentIncremental Growth

No. of A/c Amt. in Lacs

Retail Deposit 6338 51.45

Retail Credit 41 1786.41

Retail Business CampaignIn order to address volatile liquidity situation as well as to create a long-term base of Core Deposit, the Bank observed “Retail Business Campaign” from 15th May to 14th June 2013. During the period, the bank mobilized sizable business under different retail deposit & loan schemes. During the period, the branches were able to source total business as under:

Asha 2070 Fixed Deposit In an endeavor to provide innovative & latest products/ser-vices to the Customers, the Bank launched a new deposit product called “Asha 2070 Fixed Deposit”. With an objective of inculcating habit of long-term savings among the General Public, the bank has introduced this product. It is basically targeted at the individuals intended to have higher return than the regular Fixed Deposit over a period of time. Un-der the scheme, the deposit not only attracts higher rate of interest but also accumulates in a handsome amount with quarterly compounded interest during a period of 2070 days. Further, the customers will also have other privileges like 50% discount on annual locker charge as well as the waiver of security deposit during the tenure of Deposit.

EBL NEWSE B L A C T I V I T I E S A N D U P D A T E S E B L A C T I V I T I E S A N D U P D A T E S

Jagadamba ATMB/o Gulariya B/o Tikapur

Recently, 2nd Convention of Association of Everest Bank’s Staff (AEBS) unanimously elected new executive committee with following members:

President - Mr. Jay Kumar ThapaVice President - Mr. Rojal ShresthaG. Secretary - Mr. Chandra Mani AcharyaSecretary - Mr. Bishnu PoudelTreasurer - Mr. Binod AryalMember - Mr. Parashuram SubediMember - Mr. Rajesh AdhikariMember - Mr. Bipin KoiralaMember - Mr. Raju Kumar BhagatMember - Mr. Bigya Darshan AcharyaMember - Ms. Purna Laxmi Pariyar

Parsa Ext. Counter

Anyone who has never made a mistake has never tried anything new. -Albert Einstein

Celebrating the milestone of 50 BranchesAs a part of its expansion strategy, Everest Bank opened its 49th & 50th branches at Gulariya (Bardiya) and Tikapur (Kailali). The bank also launched ATMs at both the places. With this, the network of the Bank reached 50 branches, 5 Extension Counters, 20 Revenue Collection Counters & 68 ATMs.

The 49th Branch & 66th ATM at Gulariya was inaugurated by Mr. Man Bahadur BK (Chief District Offi cer, Bardiya). Whereas the 50th branch & 67th ATM at Tikapur (Kailali) was jointly inaugurated by Mr. P.K. Mohapatra (the then CEO) and Mr. Naresh Kumar Khatry (President-Tikapur Chamber of Commerce & Industry). The inaugural functions were also attended by high ranking offi cials from Chamber of Com-merce, Local Government Offi ces & Security Bodies. Besides, the bank established two more extension counters at Parsa (Chitwan) and At-tariya (Kailali).

New Executive Committee of AEBS

CEO called on Rt. Hon’ble PresidentRecently, Mr. AK Ahluhwalia (CEO) called on the Rt. Hon’ble President Dr. Ram Baran Ya-dav. During the meet, Mr. Ahluwalia apprised various activities undertaken by the Bank as a part of its Corporate Social Responsibility. His Excellency acknowledged current perfor-mance of the Bank and its contribution to the Society.

Mr. Bansal joined EBL as new DGM

Mr. AK Bansal, AGM at Pun-jab National Bank recently joined EBL as the Dy. Gen-eral Manager. Mr. Bansal possesses more than 28 years of banking experi-ence and has key exper-tise in Project Financing & Branch Operations. The Bank is expected to be ben-efi tted from his vast knowl-edge & experience.

Farewell to Mr. PK MohapatraMr. PK Mohapatra, CEO of the Bank returned to his parent organization (i.e. Punjab National Bank) after completing his tenure. He had joined EBL on June 2010 and served the Bank for 3 years. During his tenure, Mr. Mohapatra was able to transform the image of the Bank by establishing it among the top Banks of the country. Similarly, Mr. AK Ahluwalia, the new CEO of the Bank took over charge with ef-fect from 1st July 2013. Mr. Ahluwalia is the Dy. General Manager at PNB and possesses more than 32 years of experience in banking. He is a seasoned Banker and an expert in Credit & Recovery. The Bank is expected to be benefi tted from his vast experience & dynamic leadership.

EBL ACTIVITIESE B L A C T I V I T I E S A N D U P D A T E S

Th ere are only two mistakes one can make along the road to truth; not going all the way, and not starting. -Buddha

CEO Farewell

EBL ACTIVITIESE B L A C T I V I T I E S A N D U P D A T E S

Self-pity is our worst enemy and if we yield to it, we can never do anything wise in this world. -Helen Keller

CEO Farewell

E B L A C T I V I T I E S A N D U P D A T E S

EBL ACTIVITIES

Be faithful in small things because it is in them that your strength lies. -Mother Teresa

CEO Mr. Ahluwalia during Courtesy Meeting with Dr. Khatiwada,

Governor, NRB.

Rt. Hon’ble President receiving cheque of Rs.1.11 lacs from CEO Mr. Ahluwalia towards support to Flood Victims of Western Region

CEO Mr. Ahluwalia & GM of NEPSE during Signing Ceremony for listing

EBL Debenture

NLHDA Kantipur Ghar Jagga Mela

Everest Bank Higher Secondary Rating Ranking Award

Everest Bank Business School Rating Ranking Award

Introduc on:

The quality of loans held by banks and fi nancial institutions is a critical indicator of the health of the fi nancial system. If the assets are of high quality, the credit risk is less and vice-versa. Thus, credit growth is one of the accelerators of the economic growth of the country. Non Performing asset is a disaster to the Nepalese Banking Industry. The increase in the level of Non- Performing assets (NPAs) has a number of negative consequences. Now a Days management of NPAs through speeding up of loan recovery and controlling the default rate of the loan has become a major challenge. In order to bring out signifi cant improvement in the strength in the banking system the banks are trying to keep its NPAs at the lowest level.

What is Non Performing Asset:

An asset becomes a non performing asset when it stops generating income for the bank. Generally, a Non Performing Asset is a loan and advance where;

Interest or Installment of principal overdue for the period of more than 90 days in terms of Term Loan.In case of Overdraft account when the interest remains overdue for more than 90 days.The bill remains overdue for a period of more than 90 days for the bills purchased and discounted.Besides these there are other factors which result in the NPA of the accounts such as Diversion of funds, Shrink in value of the collateral, insolvency of the borrower etc.

Factors arising Rise in NPA:

Generally due to the internal and external environment there is a rise in NPAs.

EXTERNAL FACTORS• Willful Default by Customers• Economic Recession• Change in Government Policies• Ineffective legal framework and weak recovery tribunals.• Political Interferences

INTERNAL FACTORS• Defective lending Process• Inadequate Credit Appraisal System• Managerial Defi ciencies• Absence of regular monitoring• Inadequate network and linkages between banks

NPA Management Strategies

The NPAs of the banks can be controlled through two of the approaches:Preventive Approach: As the name denotes, preventive approach resembles in preventing the account from turning it to NPA account. Generally, Developing KYC Profi les, Monitoring Early Warning Signals in the account, Installing Proper Credit Assessment & Risk Management Mechanism by the bank are tools that can be used by the Banks & Financial Institutions for safeguarding the account from turning it to NPA.Curative Approach: Once the account is turned into NPA it becomes a non-earning part of the bank. So, it is better off to get rid of it instantly. Tools like Follow-ups, Re-Structuring of loans, Entering in the compromise schemes with the borrowers for one time settlement of the loan, Approaching Debt Recovery Tribunals and by strengthening the database of the defaulters will prove to be helpful for the cure of NPA accounts.

Conclusion:

It is inevitable to completely secure the Bank from NPA accounts. But, with sound judgment and proper analysis of the borrower/unit in pre sanction of the loan with the help of Preventive Approach a Bank can minimize the risk of loss arising from NPA accounts.

NPA Management

TransferRecently, following staff members have been transferred to meet the requirement of the branches:

Name Previous Posting

Present Posting

Chhitij Parajuli Chabahil Lekhnath

Deepti Rajbanshi Head Offi ce Pulchowk

Yadav Bhandari Head Offi ce Dhangadhi

Kelsang Yangzom Lekhnath Teku

Bimala Pant Dhangadhi Golfutar

Deepa Shrestha Pulchowk HO, Credit

Bishwo Raj Shakya Bhairahawa Chabahil

Pramendra Nath Maskey Head Offi ce Bhairahawa

Rojal Shrestha New Road HO, IT

Rajiv Prakash Dhar Birgunj Thamel

Nirmal Khanal Biratnagar HO, Credit

Krishna Chandra Karn Janakpur Biratnagar

Bhaskar Poudel Butwal Lumbini

Suvaraj Kafl e Kushma Lekhnath

Suman Khatri Pokhara Kushma

Ravi Adhikari Krishnanagar Kritipur

Santosh Sigdel Kritipur Narayangarh

Prakash Gyawali Narayangarh Tikapur

Rajan Pokharel Duhabi Nepalgunj

Rishikesh Thapa ICD HO,Treasury

Rajesh Adhikari Teku Satungal

Shankar Pokharel Head Offi ce New Road

Bipin Raj Ojha Nepalgunj Pulchowk

Bishal Dahal Head Offi ce Duhabi

Barun Pd. Sapkota Dhangadhi Simara

Rupa Shrestha Simara Teku

E B L A C T I V I T I E S A N D U P D A T E S E B L A C T I V I T I E S A N D U P D A T E S

HR ACTIVITIESEBL VIEWSCompiled by

Kalyan SigdelHead Offi ce

Staff members are requested to contribute their Articles to the Newsletter.Upon the judgement of the Editorial Team, best article will be published

Do not pray for easy lives. Pray to be stronger men. -John F. Kennedy

RecruitmentIn order to meet bank’s requirement, 29 Junior Assistants have been recruited and posted at different branches inside & outside the valley.

PromotionRecently, 52 staff members from Sr. Assistant to Dy. Manager have been promoted to the next higher level(i.e. Supervisor & Manager respectively)

EBL ACHIEVEMENT

- Congratulations -to Mr. Ranjan Khadka

(Manager, B/o Lazimpat)

for receiving

“Rastriya Nagarik Swarna Samman - 2070”

From Hon. Minister, Mr. Ram K. Shrestha

E B L A C T I V I T I E S A N D U P D A T E S

Congratulationson getting married !

EBL Family wish you all a

happy married life !!

Mrs. & Mr. Khagendra Nepal Mrs. & Mr. Dhakeshwor Pahari

Mrs. & Mr. Santosh Kumar Gurung

Mrs. & Mr. Dharma Raj Bista Mrs. & Mr. Santosh Shrestha

Mrs. & Mr. Binaya Shrestha Mrs. & Mr. Mukunda Bhandari Mrs. & Mr. Shiva Karki Mrs. & Mr. Bibek Uprety

Disclaimer: Th e information contained in this newsletter has been obtained from and any opinion here in are based upon, source believed to be reliable. Th e bank makes no represantation or warranty, express or implied as to its accuracy or completeness and should be relied upon as such. Th e bank and its employees accept no liability whatsoever for any direct or consequential loss however arising from this newsletter or its contents.

Suggestions are welcomed at marketing@ebl.com.np