- Initial Public Offering (IPO) Name: Civil Bank Limited
- IPO Size: NPR 800 million
- Units Allotted for Staff: 0.4 million
- Size Allotted for Staff: NPR 40 million
- Units Allotted for Mutual Fund: 0.4 million
- Size Allotted for Mutual Fund: NPR 40 million
- Units Allotted for General Public: 7.2 million
- Size Allotted for General Public: NPR 720 million
- Closing Date (Minimum): 2069/08/28
- Closing Date (Maximum): 2069/09/09
- Minimum Investment Units: 50 units
- Minimum Investment Amount: NPR 5000
- Maximum Investment Units: 2 million
- Maximum Investment Amount: NPR 200 million
Note: IPO applied for more than 50 units should be of divisible by 10 and when applied for more than or equal to Rs 50,000, the payment should be made through account payee cheque.
Issue Manager:
- Nabil Investment Banking Limited
- NCM Merchant Banking Limited
Introduction of Civil Bank Limited
Civil Bank Limited (CiBL) was established under the Company Act, 2063 and Bank and Financial Institution Act, 2063. It started its operation as the 30th commercial bank of Nepal from 2067/08/10 after receiving license from Nepal Rastra Bank as on 2067/08/03. It is founded by promoters with strong background in real estate, financial institutions, business, trade and industry. The Bank envisions in becoming a dominant player in the Nepalese banking industry.
The Bank has been registered with an issued capital of NPR 2000 million and paid up capital of NPR 1200 million. The Bank firmly believes in contributing to the nation's economic growth by rendering services and empowerment to all classes and sectors of the society.
The company registered office is situated at Kathmandu Metropolitan City, Ward No. 31, Kamaladi, Kathmandu which is also the Head office of the Bank. Apart from it, the Bank has been providing its services through other 17 branches disperse in the various areas of the country like Kathmandu, Lalitpur, Dhading, Pokhara, Melamchi etc. Altogether, there are 5 branches within the valley and rest 13 is situated outside of the valley.
Board of Directors of Civil Bank Limited
1. Er. Ichchha Raj Tamang, Chairman
Qualification: Master of Science (MSc)
Work Experience: Has been working as an Assistant Professor in the field of education. Similarly, also have work experience in the financial sector, consulting firm and in international project. .
2. Mr. Ambir Bogati, Director
Qualification: Bachelors
Work Experience: 21 years experience in the business field of grain production.
3. Mr. Prakash Tayal, Director
Qualification: Bachelors
Work Experience: Proprietor of Prakash Concern and Ganga Rosin and Turpentine and also serving as chairman of A-One Tek Nepal Pvt. Ltd.
4. Ms. Juni Gurung, Director
Qualification: Bachelors of Business Administrator
Work Experience: Director of Central Cinema QFX, Central BAL Sansar and Central Food Court.
5. Mr. Trimir Maharjan, Director
Qualification: Bachelors of Business Administrator
Work Experience: General Manager of MC Builder Pvt. Ltd.
Management Team of Civil Bank Limited
1. Mr. Kishore Maharjan (Chief Executive Officer)
Qualification: Masters of Business Administration
Work Experience: 28 years of Banking experience; has worked in the Banks like Nepal Bank Ltd., Rastriya Banijya Bank, Nepal Investment Bank Ltd, Himalayan Bank Ltd and Sunrise Bank Ltd.
2. Mr. Govinda Gurung (Senior Executive Officer)
Qualification: Masters of Business Administration
Work Experience: 16 years of Banking experience; has worked in the Banks like Himalayan Bank Ltd., Global IME Bank and Mega Bank Ltd.
3. Mr. Sarbendra Mishra (Chief Operating Officer)
Qualification: Masters of Business Studies
Work Experience: 16 years of Banking experience; has worked in the Banks like Nabil Bank Ltd. and Sunrise Bank Ltd.
4. Mr. Sagar Poudyal (Chief ITC Officer)
Qualification: Masters of Business Administration
Work Experience: 16 years of Banking experience; has worked in the Banks like Himalayan Bank Ltd. and Sunrise Bank Ltd.
5. Mr. Bhola Bista (Corporate Business Division)
Qualification: Masters of Business Administration
Work Experience: 10 years of Banking experience; has worked in the Banks like Nepal Investment Bank, Himalayan Bank Ltd. and Sunrise Bank Ltd.
6. Mr. Suman Acharya (Head - Country Risk)
Qualification: Masters of Business Administration
Work Experience: 12 years of Banking experience; has worked in the Banks like NCC Bank Limited, NIC Bank Ltd., Sunrise Bank Ltd. and Himalayan Bank Ltd.
7. Mr. Suman Shrestha (Branch Manager -Main Branch)
Qualification: Masters of Business Administration
Work Experience: 9 years of Banking experience; has worked in the Banks like Grand Bank Ltd., Himalayan Bank Ltd. and Bank of Asia Nepal Ltd.
Capital Structure
Authorized Capital: NPR 2000.00 Million
Issued Capital: NPR 800.00 Million
Paid up Capital (Promoters): NPR 1200.00 Million
FINANCIAL HIGHLIGHT OF THE BANK
Figure in Rs “000”
Company FY 2067/68 FY 2068/69 FY 2068/69 First quarter FY 2069/70 First quarter
Paid up Capital 1,200,000 1,200,000 1,200,000 1,200,000
Reserve and Surplus 4,600 31,835 13,823 54,505
Looking at the capital and reserve Civil Bank Ltd. has maintained 60% of the authorized capital of NPR 2,000 millions. Its reserve also over the years has grown in an impressive rate. But, it is to be noted that the bank till FY 2071/72 have no plan to increase its capital base. So, there will be less chance of Bonus share or Right share issuance from the company until and unless it amends it’s authorized capital after IPO.
Years FY 2067/68 FY2068/69 FY 2068/69 First quarter FY 2069/70 First quarter
CD Ratio 74.76% 75.07% 72.68% 78.65%
Growth in Deposits - 198.33% - 143.92%
Growth in Loan and - 148.16% - 124.13%
Advances
The CD ratio of the company despite the sluggish economic condition has improved over the years. However, as per the directives of Nepal Rastra Bank to maintain CD ratio of 80%, the bank fails to meet the benchmark set by NRB. Similarly, the bank has been able to keep a steady growth in both deposits and loan portfolio.
From the table we can see that the bank has performed well in the previous quarter as it had made drastic improvements in both deposits and loan & advances. Similarly, in the first quarter of current fiscal year also the bank has increased its credit exposure and maintain the growth in both loan and deposit over 100%. However, with lowering of interest rate its deposit growth in this quarter has taken a hit because of which despite of the increase in credit exposure the loan and advance growth rate falls behind than the previous quarter.
Years FY 2067/68 FY 2068/69 FY 2068/69 First quarter FY 2069/70 First quarter
Operating Profit before 33,381 89,544 19,579 49,792
provision (in Rs 000)
Growth in Operating - 168.25 - 154.3
Profit Before Provision (%)
Net write back (in Rs 000) -31552 -46747 -9682 -14168
Net write back/loan (%) 1.01 0.60 0.24 0.15
Net profit (in Rs 000) 1,164 27,235 6,298 22,669
Growth in Net Profit (%) - 2239.78 - 259.94
The company’s operating profit before provision in both i.e. in the previous quarter and current FY first quarter has grown by an impressive amount. This shows that the bank has been able to expand its services and products in the market. But with the expansion , the provision of the bank has also increased by the flow of time as it net write back in FY 2068/69 and the first quarter of current fiscal year compared to its corresponding fiscal year quarter has increased more than 40%.
However, the bank provision among the total loan portfolio has improved over the time. The net write back to loan signifies the bank overall loan portfolio to the amount occupied by the bad debt or bad loan. As we can see in the table, its exposure to bad loan in the overall loan portfolio has been improving.
The company’s net profit has also surged from its date of operation. In the previous quarter its net profit grew into the thousands, it simply because in initial its base was small. But with the increase in its base with time, the growth in profit has taken a dive as it can be seen from the data of current fiscal year first quarter figures. The growth in net profit in the first quarter as compared to corresponding fiscal year first quarter was in the hundreds whereas in the previous quarter the growth rate was in thousands signaling that the bank's growth in profit may gradually come down with its increase in its base.
Years FY 2067/68 FY 2068/69 FY 2068/69 First quarter FY 2069/70 First quarter
Net Worth (Rs.) 100.38 102.65 101.15 104.54
EPS (Rs.) 0.10 2.27 2.10 7.56
ROA 0.03% 0.25% 0.42% 0.76%
ROE 0.10% 2.21% 2.08% 7.23%
If you look at the Net Worth, the company’s Net worth has grown steadily from the date of establishment. Similarly, its EPS has also surged up come till the first quarter of this fiscal year.
As per ROA and ROE, the bank in the first quarter of 2069/70 has jumped up very high than previous fiscal year first quarter. With the company enjoying higher spread in the market, the growth in net profit has helped to push up the ROA and ROE of the company.
Overall, the company has been performing well in the financial aspects from the time of the establishment as it is indicated through the various financial indicators above. However, the increase in the provision of the loan with the flow of time and its cost of fund being among the top of the commercial bank surely will impact in the profit of the company in the upcoming days.
