Balance Sheet of Nepal

 

 

So, with all this in mind, let me brief you on the balance sheet of Nepal Rastra Bank. Nepal Rastra Bank (Nepali: नेपाल राष्ट्र बैंक) is a Nepalese government-owned central bank. It was formed in 2053 B.S (1993), marking an independent Nepal's commencement. Personal loans, overdraft facilities and home loans are some of the products that NBR provide to the general public, but like all banks they also offer foreign exchange and international transfers as well as insurance services. Furthermore, Just to be clear before we get started, a balance sheet is something that records a company's financial position at a point in time. It lists assets alongside liabilities and usually shows the profit or loss of what has happened at that point in time.

 

Please note that this blog post is not designed to make any political arguments or statements and it will have no bias toward any party involved. The analysis assumes that all parties have acted appropriately and within the law during their governing tenure.

 

As of 31st March 2017, the total assets on the balance sheet of NBR were NPR. 1,175 Billion (1,52,000 Crore) and the liabilities were NPR. 1085 Billion (1,38,000 Crore). This means that NBR has a Net Balance Sheet Asset position over NPR. 90 Billion (124 Crores). At this point in time when I am writing this blog post, these figures are up to date as of 31st March 2017.

 

The first thing you notice is that every rupee invested in NBR translates into a rupee and fifty paisa return which is not bad! As you dig deeper into the balance sheet of NBR, you will find some more surprises. It turns out that the total liabilities of NBR are approximately NPR 80 Billion (about 1,30,000 Crore). This means that NBR has a Total Liabilities position of NPR. 44 Billion (57,000 Crore), roughly equal to the assets.

 

As a quick guide to help you with this blog post, I have used NPR. 1 Crore as the unit of measurement but please be aware that you are free to convert this figure into any currency you prefer but be mindful that these are not official figures as these will differ from year to year.

 

The way this works out is really simple. NBR has a Total Assets position of NPR. 90 Billion and a Total Liabilities position of NPR. 44 Billion. To sum this up, NBR has a Current Assets (Assets less Liabilities) position of NPR. 54 Billion, which is equal to the amount that it owes to its depositors and the government(Deposits) but it is worth noting that the current assets are divided in to two categories. Firstly there are Current Investments, which is the money in "investment securities" like gold but also cash investments like gold bars at various vaults around Nepal and elsewhere. Secondly there are Fixed Assets which are machinery and equipment like computers that can be considered as tangible assets as opposed to investments.

This is the stated goal of NBR as an institution "To promote a sound and efficient financial system that supports economic growth and development in Nepal.". As of 2011 (the most recent data available) there are currently 35 branches throughout the country, with head offices in Kirtipur near Kathmandu. This number will most likely increase by time of completion, as is the nature of banking institutions. The current president is Mr. Purna Chandra Jha, who took office on January 1st 2006 and will remain there until 2014 at least. There are also executive directors who work under him and make up the executive team for NBR with approximately 20 members between them all.