General Reserve Fund

(1) The Bank shall establish a General Reserve Fund into which shall be paid twenty per cent of the net profit made by the Bank during each financial year and the remainder of such profit after deducting any sum paid into reserve under this sub-section shall be paid by the Bank to the Accountant General for the Consolidated Revenue Fund, Provided that whenever the General Reserve Fund is equal to or exceeds the amount of the paid-up capital of the Bank, ten per cent of the net profit of the Bank shall be paid into the General Reserve Fund and the remainder shall be paid by the Bank to the Accountant General for the Consolidated Revenue Fund. 13 (2) For the purpose of this section and subject to the provisions of section 50, net profit shall be determined by deducting from gross income all expenses together with allowance for depreciation of assets, contributions to staff benefit funds, provision for bad and doubtful debts and such other contingencies and accounting provisions as are usually made by banks. (3) If the General Reserve Fund is in any year insufficient to cover any net loss of the Bank recorded in its Profit and Loss Account, an amount equivalent to the deficiency is hereby appropriated and shall be debited to the account of the Government with the Bank.