Section 41: Allocation of net profit

*1) If the Bank makes a net profit in any fiscal year, allocation and use of such profit shall have to be made as follows:

(a) The amount equal to the revaluation profit from the net profit shall have to be separated and kept in the revaluation reserve fund.

(b) Five percent distributable amount of the net profit remained after separating the amount as per Clause (a), shall have to be kept in monetary liability fund; the amount fixed by the Board so as not to be reduced from ten percent in general reserve fund; five percent amount in financial stability fund and the amount as fixed by the Board shall have to be kept in net accumulated savings fund.

(c) After the amount is appropriated as per Clause (b), the Board shall submit the remaining amount to the Government of Nepal from the rest of the savings.

(d) While allocating the amount in the general reserve fund, an additional amount shall be appropriate to cover up to the capital expenses as well as referred to in the annual budget of the Bank.

2) The amount of the general reserve fund and the accumulated savings fund can be used for the sake of increasing the capital of the Bank as well.

3) Regarding the amount, except what is allocated to the funds as per sub-sections (1) and (2), it shall be as per the provision made in the Rule.

* Amended by the Second Amendment.