Section 41
Allocation Of Net Profit
(1) In case the Bank makes a profit in any fiscal year, the allocation and use of such profit shall be made in according to the following priority:-
(a) Unless five percent of the total monetary liability of the Bank shown in the balance sheet is met, an amount equal to five percent of the net profit of each year shall be allocated from the profit and kept in the monetary liability fund. The amount deposited in the monetary liability fund shall be used only for the purpose of fulfilling the financial liability of the Bank.
(b) An amount prescribed by the Board not less than ten percent of the net profit of the Bank shall be allocated in the general reserve fund established by the Bank.
(c) While allocating an amount in the general reserve fund pursuant to Clause (b), an additional amount shall be appropriated to cover the capital expenses referred to in the annual budget of the Bank.
(d) The amount equal to the revaluation profit shall be kept in the revaluation reserve fund.
(e) The Board shall, having appropriated the amounts referred to in Clauses (a), (b), (c) and (d), appropriate the remaining profit in other funds as may be necessary and pay the remaining amount to Government of Nepal.
(2) The amount allocated to general reserve fund pursuant to Sub-section 1 Clause (b) and (c) shall be used only for the purpose of recovering the loss.
(a) Unless five percent of the total monetary liability of the Bank shown in the balance sheet is met, an amount equal to five percent of the net profit of each year shall be allocated from the profit and kept in the monetary liability fund. The amount deposited in the monetary liability fund shall be used only for the purpose of fulfilling the financial liability of the Bank.
(b) An amount prescribed by the Board not less than ten percent of the net profit of the Bank shall be allocated in the general reserve fund established by the Bank.
(c) While allocating an amount in the general reserve fund pursuant to Clause (b), an additional amount shall be appropriated to cover the capital expenses referred to in the annual budget of the Bank.
(d) The amount equal to the revaluation profit shall be kept in the revaluation reserve fund.
(e) The Board shall, having appropriated the amounts referred to in Clauses (a), (b), (c) and (d), appropriate the remaining profit in other funds as may be necessary and pay the remaining amount to Government of Nepal.
(2) The amount allocated to general reserve fund pursuant to Sub-section 1 Clause (b) and (c) shall be used only for the purpose of recovering the loss.