Directive no.3

C.1

However, the SOL shall be 30% of Core Capital** for the Following industries.
✅ export sector,
✅ small and medium industries,
✅pharmaceutical industries,
✅ agricultural sector,
✅tourism,
✅ cement industries,
✅ iron industries
✅ other production-oriented industries.

Single Obligor Limit in general
is 25% of Core Capital. (Funded + Non-funded Facilities)

The Core Capital Taken is the previous Quarter's Core Capital Certified by The Internal Auditor

C.2

Loan Provided to Hydro Power Project, Transmission Line and Cable Car Project

Upto 50% of Core Capital

However, for Hydro Power Project if loan is to be provided above 25% SOL, Power Purchase Agreement with the related authority has to be done

However, Repayment Schedule shall be prepared and the same shall be justified by the Cash flows and other proof of inflows.

Installment shall start the earlier of Production or Moratorium Period for Hydropower

If A Customer Wants to invest in more than one of the above mentioned sector(Hydro,Trans,Cable Car) the total loan shall be 50%

C.3 LOAN LIMIT NOT APPLICABLE

C.3.A

Bond issued GoN

Bond issued by NRB)

✅FD LOAN

Unconditional Guarantee of :
✅Asian Development Bank
✅World Bank
✅ International Financial Corporation
✅Other International Multilateral Financial Institutions in which Nepal is a member
✅International Rated Bank

C.3.B

Loan provided by A Class BFI
to the following institution for the purchase and import of the following:
✅ NOC ➡ Gas and Petroleum Products
✅ Nepal Food Corporation ➡ Food
✅ Agricultural Product Company Ltd➡ Agricultural Chemical Manure

C.4 Loan and Facilities provided on Guarantee or Counter Guarantee of Joint Venture BFI

No limit but, SOL Applies
However, not for Internationally Rated

C.5. Related Parties to be Considered A single Party

The following parties are considered to be related parties:
✅ Co holding. 25% of another Co., then Both Companies are related parties.
✅ Company and it's shareholder, directors
or their Single family or chutteko Husband and Wife , Son, Daughter, DharmaPutra, Dharmapurtri, Father, Mother, Step Mother
and those people to be looked after by the person like brother, sister

If the person mentioned in above holds 25% singly or in group then such company

if the related parties maintain control over the companies

Firm or Companies under a single group . EG : CG

If credit is provided to more than one person against the same collateral, all of such persons;

a personal guarantee has been given to each other, all of such persons giving/taking the guarantee.

The licensed institution shall prepare the records of the single borrower and related customers on half-yearly basis and submit within one month to the Bank and Financial Institutions Regulation Department and the concerned Supervision Department of this Bank.

C.7
Any corporate body or company having full or more than 50 percent ownership of Government of Nepal shall be treated as a separate group.

C. 8
Where a licensed institution has extended credit or facility to one customer, firm, company or group of related borrowers in excess of the exposure limit referred to in Sub-clause (1) of Clause (1) above, such excess credit or facilities shall be provided with 100 % additional loan loss provisioning to cover the concentration risk.

C.9 The details of Big Borrower ( Loan > 2 crore) shall be updated within 1 month of Quarter End. Bank

C.10 Sectorial Loan Limit

The licensed institution shall separate sectoral exposures into two levels on the basis of credit concentration and arrange for control, monitoring and information system as follows

Licensed institution shall have adequate internal policies and systems in place to monitor the concentration of sectoral exposures for controlling risks.
Provided that in the event of Directives issued by this Bank, an additional loan loss provision according to Clause 8 shall be provided. The list of various sectors of the economy is referred to in the enclosed Directives Form No. 3.

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