Rationale for the establishment of BDB
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 93.50% of it’s paid up share capital.
BOARD OF DIRECTORS
The main objective is “ to promote the Agricultural, Industrial and Commercial development of the economy of Bhutan”
BDB SHAREHOLDING PATTERN
- The RGOB enhanced the paid up capital by another Nu. 100 million in June 2009 to Nu. 200 million.
“To be the strong, dependable and customer focused Bank that provides much more than money, to ensure that businesses grow and succeed and our people enjoy a better tomorrow”
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 Offices
- Western Region based in Paro
- Central Region based in Gelephu
- Eastern Region based in Trashigang
- 33 Branches nationwide