WELCOME TO BANK OF BHUTAN Outline 1

WELCOME TO BANK OF BHUTAN

Outline 1. History & Back Ground 2. Products & Services § Deposit Schemes §

History & Back Ground • Bank of Bhutan Ltd. incorporated by Royal Charter, 1968 • Now incorporated under the Companies Act 2000 • Established with a paid-up capital of Nu 2. 5 million • Started with only 20 account holders Copyright © 2009, Bank of Bhutan. All rights reserved. 3

Bo. B - Today 1. Has 27 branches (new Ngalam Branch) and 3 extension counters spread all over the country 2. Has a paid up capital of Nu. 400 million (80: 20) 3. Deposit Account Holder: 180421 4 Copyright © 2009, Bank of Bhutan. All rights reserved.

Personal Banking §Savings Account §Current Account §Recurring Deposits §Fixed Deposits 5 Copyright © 2009,

INTEREST RATES DEPOSIT INTEREST RATES (Per Annum) DEPOSITS RATES Savings Deposit Account Term Deposits: 3 months to less than 1 year to less than 3 years and above For Institution & Corporate bodies 2. 00%* 46 days to 1 year 4. 50% 6. 00% 7. 00% (*w. e. f. 24/04/2006) 6 Copyright © 2009, Bank of Bhutan. All rights reserved.

Housing Loan New construction/purchase of already constructed houses/flats/vertical and horizontal expansion of a house

Vehicle Loan 8 Copyright © 2009, Bank of Bhutan. All rights reserved.

Transport Loan Purchase of commercial vehicles 9 Copyright © 2009, Bank of Bhutan. All

Service and Tourism Tourist operators / hoteliers 10 Copyright © 2009, Bank of Bhutan.

Consumer Loans General purpose loan 11 Copyright © 2009, Bank of Bhutan. All rights

Manufacturing/Industry Project Financing & Working Capital 12 Copyright © 2009, Bank of Bhutan. All

Loans / Credit Facilities Trade and Commerce Loan Eligibility 1. Traders & Shopkeepers. 2. Contractors & Suppliers. 3. Exporters. Purpose 1. Working capital for expansion & establishment of business. 2. Execution of work & supply order. Quantum of Loan 3. Export. 1. Traders & Shopkeepers – 50 -60% of stocks value 2. Contractors & Suppliers – 60 -75% of related costs. Rate of 3. Exporters – 50% of LC value. 1. Traders & Shopkeepers – 13. 75% per annum. Interest 2. Contractors & Suppliers – 13. 75% per annum. Period 3. Exporters – 13% (up to 60 days from last disbursement date) & 15% thereafter. 1. Traders & Shopkeepers – 1 year subject to yearly review and renewal of limit. 2. Contractors & Suppliers – 1 to 3 years. 3. Exporters – 6 months. Repayment Copyright © 2009, Bank of Bhutan. All rights reserved. 13

Animal Husbandry Loan Seasonal loan for marketing cash crops Purchase of tractors, power tillers

Credit Guarantee Scheme Recommendation from Small Business Resource Center (SBRC) of Ministry of Trade

Loans / Credit Facilities Gold Loan Eligibility Any Individual. Purpose Personal or Miscellaneous. Quantum of Loan Nu. 3200/- and Nu. 3000/- per 10 gram for 24 & 22 carats respectively. Rate of Interest 15% per annum. Repayment Period 1 – 2 years. Security Pledge of gold. A valuation certificate from a licensed Goldsmith certifying the quantum, genuineness and value of the gold offered for pledge against the loan. Documents Required 16 Copyright © 2009, Bank of Bhutan. All rights reserved.

Loans / Credit Facilities Loan For Buying Shares Eligibility Any Individual, Firm or Company. Purpose Purchase of company shares. Quantum of Loan 50% of share values/issue price. Rate of Interest 13% per annum. Repayment Period 5 years. Security Pledge of shares. Documents Proof of Share Floatation in the Market. Certificate of Registration with Royal Security Exchange of Bhutan in case of companies floating the shares to public. 17 Copyright © 2009, Bank of Bhutan. All rights reserved.

Loans / Credit Facilities Bank Guarantee Eligibility Any individual / firm / contract agencies holding valid business licence. Purpose Execution of Supply Order. Performance guarantee. Security Deposit / Earnest Money. Fund Mobilization. Validity Maximum of 12 months. However, it may be extended on request at bank’s discretion. Margin Money is insisted based on the risk associated with BG upto the extent of 10%, which may be parked in TDR @ 2% p. a. (Minimum 46 days) 18 Copyright © 2009, Bank of Bhutan. All rights reserved.

Loans / Credit Facilities Letter of Credit Eligibility Any individual / firm / companies with valid license for importing goods from third countries. Purpose For importing of goods. Bill Charges @ 0. 30% Commitment @ 0. 15% Charge Cash Margin 25% of LC value (Minimum). 19 Copyright © 2009, Bank of Bhutan. All rights reserved.

Loans / Credit Facilities Loan Against TDR Eligibility Any deposit holders. Purpose Domestic and personal. Quantum of Loan 75% of issue price and accumulated balance of Fixed Deposit Receipt and Recurring Deposits accounts respectively. Rate of 1% above the deposit interest rate. Interest Repayment Period Security Upon maturity of deposits duly discharged or monthly installments. Pledge of deposit receipts. 20 Copyright © 2009, Bank of Bhutan. All rights reserved.

Education Loan 21 Copyright © 2009, Bank of Bhutan. All rights reserved.

Miscellaneous Services REMITTANCES/ FOREX/ BILLS • DRAFTS/ MULTICITY CHEQUES • TT/ SWIFT • CASH WARRANT • PURCHASE of DD • OC PURCHASE • COLLECTION OF CHEQUES AND DRAFT • COLLECTION – IB/CBC (IN FC) • PURCHASE / SALE OF USD TRAVELLERS CHEQUES 22 Copyright © 2009, Bank of Bhutan. All rights reserved.