WELCOME TO BANK OF BHUTAN

Copyright © 2009, Bank of Bhutan. All rights reserved. 2 Outline 1. History & Back Ground 2. Products & Services  Deposit Schemes  Loans & advances 3. Other Services

Copyright © 2009, Bank of Bhutan. All rights reserved. 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 3

Copyright © 2009, Bank of Bhutan. All rights reserved. 4 BoB - 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:

Copyright © 2009, Bank of Bhutan. All rights reserved. 5 Personal Banking  Savings Account  Current Account  Recurring Deposits  Fixed Deposits

Copyright © 2009, Bank of Bhutan. All rights reserved. 6 INTEREST RATES DEPOSIT INTEREST RATES (Per Annum) DEPOSITSRATES Savings Deposit Account4.50% Term Deposits: 3 months to less than 1 year4.50% 1 year to less than 3 years6.00% 3 years and above7.00% For Institution & Corporate bodies2.00%* 46 days to 1 year(*w.e.f. 24/04/2006)

Copyright © 2009, Bank of Bhutan. All rights reserved. 7 Housing Loan New construction/purchase of already constructed houses/flats/vertical and horizontal expansion of a house

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

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

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

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

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

Copyright © 2009, Bank of Bhutan. All rights reserved. 13 Loans / Credit Facilities Trade and Commerce Loan Eligibility1. Traders & Shopkeepers. 2. Contractors & Suppliers. 3. Exporters. Purpose1. Working capital for expansion & establishment of business. 2. Execution of work & supply order. 3. Export. Quantum of Loan1. Traders & Shopkeepers – 50-60% of stocks value 2. Contractors & Suppliers – 60-75% of related costs. 3. Exporters – 50% of LC value. Rate of1. Traders & Shopkeepers – 13.75% per annum. Interest2. Contractors & Suppliers – 13.75% per annum. 3. Exporters – 13% (up to 60 days from last disbursement date) & 15% thereafter. Repayment1. Traders & Shopkeepers – 1 year subject to yearly review and renewal of limit. Period2. Contractors & Suppliers – 1 to 3 years. 3. Exporters – 6 months.

Copyright © 2009, Bank of Bhutan. All rights reserved. 14 Animal Husbandry Loan Seasonal loan for marketing cash crops Purchase of tractors, power tillers & other farm machinery.

Copyright © 2009, Bank of Bhutan. All rights reserved. 15 Credit Guarantee Scheme Recommendation from Small Business Resource Center (SBRC) of Ministry of Trade & Industry, Thimphu.

Copyright © 2009, Bank of Bhutan. All rights reserved. 16 Loans / Credit Facilities Gold Loan EligibilityAny Individual. PurposePersonal or Miscellaneous. Quantum of LoanNu.3200/- and Nu.3000/- per 10 gram for 24 & 22 carats respectively. Rate of Interest15% per annum. Repayment Period1 – 2 years. SecurityPledge of gold. Documents Required A valuation certificate from a licensed Goldsmith certifying the quantum, genuineness and value of the gold offered for pledge against the loan.

Copyright © 2009, Bank of Bhutan. All rights reserved. 17 Loans / Credit Facilities Loan For Buying Shares EligibilityAny Individual, Firm or Company. PurposePurchase of company shares. Quantum of Loan50% of share values/issue price. Rate of Interest13% per annum. Repayment Period5 years. SecurityPledge of shares. DocumentsProof of Share Floatation in the Market. Certificate of Registration with Royal Security Exchange of Bhutan in case of companies floating the shares to public.

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

Copyright © 2009, Bank of Bhutan. All rights reserved. 19 Loans / Credit Facilities Letter of Credit EligibilityAny individual / firm / companies with valid license for importing goods from third countries. PurposeFor importing of goods. Bill 0.30% 0.15% Charge Cash Margin25% of LC value (Minimum).

Copyright © 2009, Bank of Bhutan. All rights reserved. 20 Loans / Credit Facilities Loan Against TDR EligibilityAny deposit holders. PurposeDomestic and personal. Quantum of Loan75% of issue price and accumulated balance of Fixed Deposit Receipt and Recurring Deposits accounts respectively. Rate of1% above the deposit interest rate. Interest RepaymentUpon maturity of deposits duly discharged or monthly installments. Period SecurityPledge of deposit receipts.

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

Copyright © 2009, Bank of Bhutan. All rights reserved. 22 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

Copyright © 2009, Bank of Bhutan. All rights reserved. 23 Other Services 24 Hrs ATM Services Free ATM Cards Free Internet Banking SMS Banking

Copyright © 2009, Bank of Bhutan. All rights reserved. 24 Tashi Delek