Bhutan Development Bank Ltd (Credit Line)

Bhutan Development Bank Limited

The Royal Charter, January 1988, incorporated Bhutan Development Bank Limited (BDBL) with assistance from Asian Development Bank (ADB) to function as a development finance institution (DFI). BDB is now registered as a company under the Companies Act 2000 and licensed under the Financial Institutions Act 1992. BDB now functions as a domestic development bank after obtaining its banking license in March 2010.

A Board of Directors appointed by RGoB governs BDBL and the Royal Monetary Authority regulates its operation. The Royal Government of Bhutan owns 96% of its paid up share capital, which is Nu. 507.317 million.

Bhutan Development Bank Limited (BDB) was incorporated by the Royal Charter, in January 1988, with assistance of the Asian Development Bank (ADB) to function as a development finance institution (DFI). BDB is registered as a company under the Companies Act (2000 and licensed under the Financial Institutions Act 1992). BDB now functions as a domestic development bank with cheque facilities after obtaining its banking license in March, 2010.

BDB is the only Bank that gives focus to the rural farmers and immediately assumed responsibility for the nation-wide credit program, which mainly provide seasonal, small and medium term loans to the country’s small farmers. It had also commenced its Industrial Lending operations providing term finance and working capital for industrial and Agro-based ventures. Farmers Outreach banking was also introduced to the clients in the rural areas, where the field officers visit the farmers for loan disbursement, collection, deposit, withdrawal etc, at fixed period, place and time. The clients in the rural areas can save their expenses to come to the branch office. The Royal Government of Bhutan (RGoB) owns 96% of it’s paid up share capital.

MANDATES OF BDB

Provide micro, small and medium financial services for the development and modernization of agricultural, commercial and industrial enterprises in the country;
Enhance income of the people thereby improve standard of living through provisions of financial services.
Provide financial services for private sector development;
Alleviate poverty;
Provide technical and advisory services to the enterprises;
Mobilize external and internal funds for investments.
Where Does BDB Operate?

Head Office in Thimphu
3 Regional OfficesWestern Region based in Paro
Central Region based in Gelephu
Eastern Region based in Trashigang
35 Branches nationwide
26 Geog Field Offices
200 Community Centers

BDBL is the only Development Bank that provides seasonal and other small and medium term loan and banking services to the rural farmers. It also provides term and working capital loan to industrial, commercial and agricultural enterprises in Bhutan.

As a part of the Bank’s social mandate to increase people’s access to financial services and promote financial inclusion, the Bank is putting an effort to introduce geog banking services in all 205 geogs in the country. Since the geog banking services is based on the Point of Sales (POS) device, the bank provides a wide range of banking services on a real time basis like cash deposits, withdrawals, loan repayment, account inquiry, fund transfers, remittances, enrollment of customers, mini statement of last five transactions and utility bill payments.

BDBL has partnered with the Business Opportunity and Information Centre (BOiC) to deliver the post fund sanction services on behalf of BoIC. Besides, BDBL has also taken over the operation of the Community Service Center established across all 205 geogs from Bhutan Postal Corporation as per the mandate of Royal Government of Bhutan.

As on date the Bank has 33 branches and 3 Regional Offices across the country with its Corporate Office based in Thimphu.