BDBL earns profit of Nu 322mn last year

Bhutan Development Bank (BDB) earned a profit of Nu 322mn last year.

In 2017, BDB ran into losses worth Nu 762mn while in 2016 the bank earned a profit of Nu 325mn.

Chief Executive Officer of BDB, Phub Dorji, said that in 2017, the bank introduced a new system called core banking solutions (CBS) but the system faced a lot of issues and accounts were not collected.

The CEO said that the bank lost the details of clients and their loan portfolio.

However, the CEO mentioned that the bank recovered all the losses in 2018 and they could also earn a profit of Nu 322mn.

The CEO mentioned that most of the clients were from rural areas and rural people availed the highest amount of loans. “The amount has been increasing every year.”

Rural clients comprise 63% and urban clients 37% of the bank’s clientele.

As of now BDB has over 60,000 clients across the country.

In 2016, rural people availed Nu 10.5bn, Nu 12bn in 2017 and Nu 12.4bn in 2018. Similarly, urban people availed Nu 5.9bn in 2016, Nu 6.8bn in 2017 and Nu 6.4bn in 2018.

The CEO said that that the bank provides highest interest rate for saving as compared to other financial institutions and they also have the highest number of deposit amount and accounts.

“We want to encourage depositors to save money,” said the CEO.

The interest rate for saving is 5.75% per annum.

In 2016, rural people deposited Nu 5.1bn, Nu 6.1bn in 2017 and Nu 7.5bn in 2018.

Similarly, in 2016, urban people deposited Nu 12.3bn, Nu 13.5bn in 2017 and Nu 12.4bn in 2018.

BDB has high non-performing loans among the rural peoplecomprising 20% of the loans in 2018.

The bank has also introduced saving schemes such as Drinchenama saving special for rural women who is the head of the household, Chodey scheme especially for monks in the monastic body and steady income plan.

Asof today BDB has 35 branches, 26 gewog field offices and 198 gewog banking services.

In 2010,BDB had about Nu 3bn in assets. As of 2018,BDB had Nu 25bn worth assets of which Nu 22bn comprised deposits.

Dechen Dolkar from Thimphu