The bank has become a major contributor mobilizing the inflow of foreign currencies to the country
With Nu 4.3bn, the remittance inflow of the T-Bank contributed about 54% to the overall inward remittances in the country last year, making it the highest remittance inflow among five financial institutions so far.
A rough calculation shows that the bank is one of the major contributors to mobilizing the inflow of foreign currencies in the country. The bank was able to mobilize a total sum of USD 48.77mn from abroad through international remittances last year.
The bank received Nu 3.6bn (USD 48.77mn) from Australia alone and the remaining Nu 798mn (USD 10.81mn) came from countries like Dubai, Qatar, Kuwait, Japan, and the US last year.
The overall Australian Dollar (AUD) inward remittances have tripled between AUD 4.66mn in 2021 and AUD 4.66mn in 2021 and AUD 11.85mn as of March this year. This could be attributed to the increasing number of Bhutanese leaving for Australia.
Remittance is, meanwhile, funds that an expatriate sends to their country of origin. These peer-to-peer transfers of funds across borders are economically significant for many countries that receive them.
However, the figures compiled by the RMA were extracted from the four commercial banks and exclude other channels like the Western Union money transfer and other informal means.
Of the total inward remittance received through the formal channels, about 50% was from Australia. The remittance from the US and the Middle East constituted about 40% and 10% percent respectively.
However, remittances have been a source of foreign currency with the Bhutanese working abroad having remitted a record high Nu 8.062bn as of December 2021.
According to the T-Bank annual report 2021, during the Covid-19 pandemic when the country’s major source of inflow of foreign currencies was severely affected, the bank limited was able to contribute more than half of total remittances last year.
“Despite the decrease in the international remittances for the bank in 2021 compared to 2020, the bank is still the contributor in mobilizing the inflow of foreign currencies for the country,” the report states,
Although the inward remittances received in T-bank have decreased in 2021, compared to 2020, the bank continues to be a major contributor to the inward remittance received in the country last year.
The Bank was able to mobilize a total sum of Nu 6.2bn (USD 84.09mn) in 2020, which was around 74.9% of the overall country’s inward remittances.
“During the period of the covid-19 pandemic, When the major sources of inflow of foreign currencies were severely affected, the bank was able to mobilize a total sum of USD 84.09mn from abroad through international remittances in 2020,” the report states.
Some economists said that there is a chance that inbound remittances will rise even further, with the AUD making a significant contribution.
Additionally, other than the inward remittances, the bank’s performance for last year is also significantly good, and the bank has recorded a very good financial performance.
Further, the profit before tax (PBT) increased by Nu 152.72% from Nu 55.22mn in 2020 to Nu 139.56mn in 2021.
Tshering Pelden from Thimphu