DRUK PNB BANK … Your Partner in Growth

About Our Bank Establishment 27 jan’10 with 1st Branch at Thimphu 10 Feb’10: Opened Branch at Phuntsholing Shareholders PNB-51% 4 Local Promoters-19% Public- 30% Management Board of Directors (Chairman from Local Promoter) One Director to be appointed from the public CEO from PNB Staff Strength: 48

Fundamental Roles of Bank Mobilization of savings fund from individuals, household, business community and the Government….. through various deposit schemes Channeling savings fund for productive use in different sectors of the economy……..through various loan schemes To act as efficient conduit for payments system …….through various mode of remittance

Savings Deposit Dual benefit: Easy liquidity and also earns interest @ 5% pa Account can be opened with minimum of Nu 500/- Need to maintain Minimum Quarterly Average Balance of Nu 1000 Interest is paid on daily product basis without any restriction on no of withdrawals and without any ceiling on balance in the Account

Current Deposit Transaction(check in) account for business purpose No Interest on this account Cheque book is issued in this account Account can be opened by depositing at least Nu 1000/- Need to maintain minimum Quarterly Average Balance of Nu 5,000/-

Fixed Deposit Fixed maturities- 3 months to over 5 years Suitable for all kinds of depositors-Individual, businesses etc High return(interest) and easy liquidity Loan facility up to 90% of the balance at 1% or 2% above the applicable interest rate on the deposit Premature closure is possible, subject to penalty.

Total Salary Freedom A/c Purpose: To enable employees meet temporary cash requirement by extending OD Eligibility: Govt/Corporate/firms…. at least 75% of total employees with minimum participants of 10 Should be permanent employees OD Amount: Lower of Nu 50,000/- or Net Pay Repayment: Anytime during the month or in bullet repayment at the time of next salary credit Other Benefits:

Housing Loan Purpose: Loan is extended for purchase of plot for building of House up to maximum of Nu 2 million. Extent of finance: Construction/Purchase of House/Flat - 75% of the estimated cost of construction subject to repaying capacity For repairs/renovations- 60% of estimated cost up to maximum of Nu 2 million subject to repaying capacity

Education Loan Purpose: For higher studies only Eligibility: Meritorious students who have gained admission for degree program with minimum of 60% in higher secondary exam Extent of Finance: In Bhutan : Up to Maximum of 4 lacs with 0 margin Out side Bhutan: Up to maximum of 15 lacs with 15% margin Security: Acceptable collaterals in the form of Immovable property depending on loan amount

Education Loan….. continuation Repayment: 5 years Commencement of Repayment : Course period + 1 year OR 6 months after getting job, whichever is earlier. Co-Borrower: Guardian shall be co-borrower and the parents/Guardian’s Income should be sufficient to repay the loan

Loan Against Term Deposits Extent of Finance: Up to 90% of the balance deposit amount plus accumulated interest Interest: 1% above deposit interest rate if depositor takes the loan 2% above deposit interest rate if third person takes the loan

Services Loan Related Remittances Bank Guarantee (Performance/Bid Bond(EMD)/Security) Purchase of Bills and Drafts, Cheques etc Collection of Bills and Drafts, Cheques etc Remittances Demand Draft/TT/PO NEFT(t+1)/RTGS(t+0) through PNB in India PNB Cheques payable at par at any bank in India Fund Transfer in Foreign Currencies thru SWIFT

Alternate Delivery Channels ATM Free Card Annual fee : 100 per Card per year For Add On Card: 100 per Card….. Up to 2 Cards Can be used in all ATMs of PNB Branches in India Master Card …under process Internet Banking….. to be introduced Mobile phone banking…..to be introduced

FIXED DEPOSIT INTEREST RATES For Individual Depositor SL No Period of investment(Public) Interest Rate ( % Per annum) 1. 3 months to less than 1 year 5.00 2. 1 year to less than 3 years 6.00 3. 3 years and above but less than 5 years 7.00 4. 5 years and above 8.00 5. Premature cancellation penal Interest 1.00

FIXED DIPOSIT INTEREST RATES For Corporate Bodies S. No Period of Deposit Rate of interest (% per annum) 1. 46 days and above but less than 1 year 2.25 2. I year and above but less than 3 years 3.00 3. 3 years and Above but less than 5 years 4.00 4. 5 years an above but less than 7 years 5.50 5. 7 years and above but less than 10 years 6.00 6. 10 years and above but less than 12 years 7.00 Single bulk Deposit S. No Period Nu.10 million < Nu 50 Million Nu.50 million and above 1. 46 days ≤1 year 2.50% per annum 2.75% per annum Premature cancellation: 2% below normal applicable rate

Loan Interest rates S. No Purpose of Loan Rate of Interest (% per annum) 1. Education Loan Up to Nu.0.40 million 9.00 Above Nu 0.40 million (Maximum Nu 1.5 mio 11.00 2. Trade Loan-Primarily Stock Based Working Capital Term Loan 14.00 3. Housing Loan Construction/ purchase Renovation of existing house 10.00 12.00 4. Loan Against bank’s Deposit To depositor To third party 1.00 above the applicable rate of interest in deposit 2.00 above the applicable rate of interest in deposit

Loan Interest rates 5. Loan for Service and Tourism Activities Working Capital Term Loan 13.00 10.00 6. Loan Against Shares 7. Loan to Contractors Term loan 14.00 8. Manufacturing / Industrial Loan 12.50 13.50 9. Personal loan to: Public Gov’t/Pvt Employees 15.00 12.00 10. Personal Loan Scheme for Pensioners Repayable within 3 years Repayable 3 years or more but max of 5 yrs

Loan Interest rates 11. Financing Property Owners against Future Lease Rentals Repayable within 5 years Repayable in over 5 years 12% 13% 12. Transport Loan Term loan Working Capital 13.00 14.00 13. Agriculture loan 14. Small Business and Artisans 15 Vehicle Loan Repayable in less than 3 years Repayable in 3 years or more max. of 7 years 11.00 11.50 16. Export Finance

TASHI DELEK