Bhutan Development Bank

What Bhutan Development Bank does

Bhutan Development Bank Limited (BDB) is the only development bank in Bhutan, incorporated by Royal Charter in January 1988 with Asian Development Bank assistance and 96% owned by the Royal Government of Bhutan. Operating under the Financial Institutions Act 1992 with a developmental mandate to serve rural farmers and the agricultural sector, BDB has transitioned from a development finance institution to a licensed domestic development bank (banking license obtained March 2010). The bank holds a monopoly position in development-focused banking within Bhutan and is governed by a board that includes directors from the Ministries of Finance, Industry/Commerce/Employment, and Energy/Natural Resources, ensuring alignment with national development priorities and the Gross National Happiness framework.

The bank operates a comprehensive retail and SME banking platform spanning deposits, lending, digital channels, and international services. Deposit products include Normal Savings, Drinchen Ama Savings, Pensioners Savings, Youth Ethics Savings, Fixed Deposits, Recurring Deposits, Current Accounts, and Corporate Fixed Deposits. Loan products cover Personal, Employee, Transport, Housing, Small Scale Industrial, General Trade, Manufacturing/Industrial, Working Capital, Overdraft, Co-operative, Service and Tourism, Seasonal, and Agricultural/Livestock loans with rates ranging from 7.50% floating to 14.00% fixed. Distribution relies on 31 branch offices, 4 extension offices, 13 gewog field offices, 43 ATMs, and 16 BDB Zhabtog agency banking agents, supplemented by a Farmers Outreach Banking program that dispatches field officers to rural locations on fixed schedules for loan disbursement, collection, and deposits.

Revenue is generated primarily through interest income on the loan book (spreads of roughly 4-6 percentage points against deposit costs of 4.60%-9.10%), supplemented by transaction fees on ATM usage, interbank transfers, safe deposit lockers, and SWIFT/RTGS-based international remittance. Digital infrastructure includes Internet Banking, the ePay mobile application, a Digital Lending Portal, a Customer Self-Service Portal, and online eKYC onboarding. Cross-border payments are enabled through BHIM UPI integration with Indian banks and a UnionPay International QR framework launched in mid-2026 under Royal Monetary Authority oversight. The bank is not a typical commercial competitor; it functions as a state-aligned development finance institution whose mandate prioritizes rural financial inclusion over profit maximization.

Name

Bhutan Development Bank

Legal name

Bhutan Development Bank Limited

Website

https://bdb.bt

Company type

Private

Founded year

1988

Operating status

Operating

Headcount range

1–10 employees

Short description

Bhutan's only government-owned (96% Royal Government of Bhutan) development bank, providing comprehensive retail, SME, and agricultural lending, deposits, digital banking, and rural outreach across 31 branches nationwide under a financial-inclusion mandate.

Ownership category

akta.pro rank

Product category

Rural Development Banking

NAICS

Depository Credit Intermediation (5221)

SIC

State Commercial Banks (6022)

akta.pro primary industry

Agricultural & Rural Development Banks (FSABAKAE)

akta.pro secondary industries

Branch & In-Person Banking (Teller/ATM Networks) (FSABAAAE), Multi-Currency Accounts, Wallets & IBAN Services (FSAMAIAG)

Keywords

• Rural development banking
• Agricultural lending
• Savings deposit products
• SME commercial lending
• Development finance institution

Headquarters

HQ city

Thimphu

HQ country

Bhutan

HQ region

Asia

Offices26 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Technology or R&D, Marketing or Sales

Revenue model

1. Interest Income from Loans: The primary revenue stream comes from interest charged on various loan products including agricultural, housing, personal, employee, transport, commercial, industrial, and working capital loans. Interest rates vary by product type and tenure, ranging from approximately 8.50% to 14.00%
2. Deposit Interest: Interest paid to depositors on savings accounts, fixed deposits, and recurring deposits. Savings rates range from 4.60% to 4.75%, while fixed deposit rates range from 5.00% to 9.10% depending on tenure
3. ATM and Service Charges: Fees collected for ATM transactions (Nu. 9.00 per off-us transaction after 5 free transactions), cheque book issuance (Nu. 50.00 for 50-leaf current account cheque book), BIRT transfers (Nu. 20.00 for BITS, Nu. 50.00 for RTGS), and safe deposit lockers (Nu. 750 to Nu. 1,300 annually)
4. International Remittance: Commission income from SWIFT and RTGS outward remittance services to India, with charges based on transfer amount tiers
5. Safe Deposit Locker Rental: Annual rental income from safe deposit lockers available at selected branches in three sizes: Large (Nu. 1,300), Medium (Nu. 1,000), Small (Nu. 750)

Pricing tiers

Go-to-market motion1 record

Distribution channels5 records

Marketing channels5 records

Core offering

Bhutan Development Bank Limited provides retail and development banking services in Bhutan, including agricultural/livestock, housing, personal, employee, transport, SME, industrial, service/tourism, cooperative, seasonal, and working capital loans, plus savings accounts (Normal, Drinchen Ama, Pensioners, Youth Ethics), fixed deposits, recurring deposits, current accounts, corporate fixed deposits, and ancillary services (safe deposit lockers, ATM, BIRT interbank transfers, QR code payments, correspondent banking, agency banking). The bank operates 31 branches, 4 extension offices, and 13 gewog field offices, complemented by digital channels (ePay mobile app, internet banking, digital lending portal, eKYC platform).

Product overview

Bhutan Development Bank (BDB) operates as a diversified financial services institution offering a unified banking platform with multiple digital channels, deposit products, and loan products. The core offering consists of traditional and digital banking services including Internet Banking, the ePay mobile app, Digital Lending Portal, and Customer Self-Service Portal. Deposit products include Normal Savings, Drinchen Ama Savings, Pensioners Savings, Youth Ethics Savings, Fixed Deposits, Recurring Deposits, Current Accounts, and Corporate Fixed Deposits. Loan products span Personal, Employee, Transport, Housing, Small Scale Industrial, General Trade, Manufacturing/Industrial, Working Capital, Overdraft, Co-operative, Service and Tourism, Seasonal, and Agricultural/Livestock loans. Supporting services include QR code payments, correspondent banking, BIRT interbank transfer system, Farmers Outreach Banking, agency banking (BDB Zhabtog), safe deposit lockers, and ATM services. The bank serves individuals, businesses, cooperatives, and rural communities across 31 branch offices, 4 extension offices, and 13 gewog field offices.

Differentiator

Problem solved

Functional benefit

Brands

• ePay: Mobile banking application that enables users to conveniently use for fund transfer, loan repayment and settle utility bills through online transactions.

Products and services

• Agricultural and Livestock Loan Loan for land development, purchase of farm machinery, growing crops, and raising/breeding/harvesting of plant and animal products, with tenure up to 10 years at fixed rate 10.75% / floating 8.25%. Targeted at rural individuals engaged in agricultural and livestock activities.
• Personal Loan Loan for personal consumption purposes with maximum limit of Nu. 500,000 or 60% LTI, tenure up to 5 years at 14.00% fixed / 9.25% floating rate. Targeted at Bhutanese individuals with reliable income sources.
• Employee Loan Loan for government and corporate employees entitled to post-retirement benefits, with maximum limit of Nu. 1,000,000 or 50% LTI, tenure up to 7 years at 9.50% fixed interest rate.
• Transport Loan Loan for purchasing vehicles from authorized dealers with financing ratios of 30% for personal vehicles, 50% for trucks/heavy machinery, and 70% for electric vehicles and passenger buses. EV/Hybrid vehicles at 11.00% fixed / 8.25% floating.
• Housing Loan Loan for construction, purchase, repair/renovation of houses. Home Loan up to Nu. 10 million at 11.00% fixed / 8.25% floating (LTV 90%); Commercial Housing Loan up to Nu. 50 million at 13.00% fixed / 9.00% floating (LTV 80%).
• Small Scale Industrial Loan Long-term financing for setting up new manufacturing units and service industries including hospitality, entertainment, education, IT, and tourism sectors. Targeted at small-scale industrialists and service-sector entrepreneurs.
• General Trade Loan Loan for wholesalers and retailers holding trade licenses for selling goods and rendering services, with maximum term of 5 years at 13.00% fixed / 12.00% floating rate.
• Manufacturing or Industrial Loan Loan for individuals and companies to start or expand businesses in manufacturing or mining sector with maximum term of 10 years. Targeted at manufacturing and industrial enterprise operators.
• Working Capital Loan Loan for day-to-day operations of business entities in manufacturing, mining, and service sectors with maximum term of one year, renewable. Targeted at SMEs requiring short-term liquidity.
• Overdraft Loan Credit facility against overdraft limit determined by contract value of work, supply orders, and stocks, with maximum term of one year. Targeted at SMEs and contractors.
• Co-operative Loan Wholesale lending facility for registered cooperatives to undertake income-generating activities, with maximum term of 5 years at 8.75% interest rate. Targeted at registered cooperatives and groups.
• Service and Tourism Loan Loan for construction of service industries such as hotels, tour companies, schools, and consultancy, with tenure up to 10 years (30 years for hotel/institution construction). Targeted at service-sector and tourism entrepreneurs.
• Seasonal Loan Loan for rural individuals engaged in seasonal agricultural/livestock activities, with maximum term of one year (non-renewable/non-extendable). Targeted at seasonal farmers and agricultural laborers.
• Normal Savings Account Standard savings deposit account with up to 4.75% interest rate, offering cheque facility, no restrictions on transactions, and interest calculated daily and credited monthly. Targeted at individual depositors.
• Drinchen Ama Savings Account Variant savings account focused on homemakers/heads of families to help save and secure the family, with zero balance requirement to open. Targeted at women heads of households.
• Pensioners Savings Account Special savings account maintained for pension holders upon request from NPPF, with transfers only from NPPF and no ATM/cheque facility. Targeted at retired government/corporate pensioners.
• Youth Ethics (YE) Savings Account Savings account for youth below 18 years to inculcate savings habit and financial education, governed by RMA's YE banking concept. Targeted at minors and youth below 18 years of age.
• Fixed Deposit Account Term deposit with fixed amount for fixed period, principal and interest withdrawable on maturity. Minimum Nu. 10,000 with minimum 91 days and maximum 10 years tenure; rates 5.00% to 8.50% based on term. Targeted at individual and corporate depositors.
• Recurring Deposit Facility for regular deposit of fixed amounts at predetermined periods with minimum deposit of Nu. 100 and terms from 6 months to 120 months; rates 5.75% to 9.10% based on tenure. Targeted at individual savers seeking systematic accumulation.
• Current Account Non-interest bearing deposit account for business transactions, cheque payments, and collections with no restrictions on withdrawal/deposit amounts or frequency. Targeted at businesses and individuals with active cash flow.
• Corporate Fixed Deposit Account Term deposit tailored for corporate clients with minimum deposit of Nu. 1,000,000 and negotiable interest rates. Targeted at corporate and institutional depositors.
• ePay Mobile App BDBL mobile banking app enabling fund transfers, loan repayment, utility bill settlement, account opening/closure, cheque services, cardless cash withdrawal, QR scan and pay, and recharge services. Available on Google Play and App Store. Targeted at individual account holders and mobile banking customers.
• Internet Banking Web-based online banking platform enabling customers to perform various transactions and manage accounts from anywhere with an internet connection via computer, tablet, or smartphone. Targeted at all account holders and online banking users.
• Digital Lending Portal Online platform for digital loan application and processing, enabling borrowers to apply for loans electronically. Targeted at individual and SME loan applicants.
• Customer Self-Service Portal Self-service portal for customers to manage accounts, update CID details, activate dormant accounts, and access PIT loan certificates. Targeted at existing account holders.
• Online Account Opening (eKYC) Digital platform for online account opening and KYC (Know Your Customer) updates, allowing new customers to onboard remotely. Targeted at prospective individual and business account holders.
• QR Code Payments QR code-based payment acceptance from Bhutanese banks (BDBL, BOB, BB, TBank, DK, DPNB) and Indian banks via BHIM UPI, including cross-border UnionPay International transactions with China. Targeted at merchants and consumers in Bhutan.
• Correspondent Banking and Remittance Correspondent banking relationships with State Bank of India and Axis Bank for INR inward remittance from India, SWIFT transfers, and RTGS services. Targeted at individuals and businesses transferring funds to/from India.
• BIRT (Bhutan Inter-Bank Real Time) Fund Transfer Inter-bank real-time fund transfer system providing RTGS (for transfers above Nu. 1 million), BITS (below Nu. 1 million), and BULK (multiple fund transfers) payment services. Targeted at account holders transferring funds to other banks.
• Farmers Outreach Banking Service where BDB field staff visit rural communities at predetermined places, dates, and times to provide loan intake, disbursement, collection, savings withdrawals, and other banking services. Targeted at rural farmers and agricultural communities without nearby branch access.
• BDB Zhabtog (Agency Banking) Agency banking network enabling agents (individuals/businesses) to provide banking services in underserved areas, enhancing financial inclusion through commissioned agents (16 agents currently). Targeted at individuals in rural and underserved locations.
• Safe Deposit Lockers Locker services at selected branches in three sizes (Large: Nu. 1,300, Medium: Nu. 1,000, Small: Nu. 750) with annual hiring charges. Targeted at individuals and businesses requiring secure storage for valuables.
• ATM Services Automated teller machine network with 43 ATM locations across Bhutan offering cash withdrawal, fast cash, mini statement, balance inquiry, PIN change, and funds transfer. Targeted at individual account holders.

Segments5 records

Ideal customer profiles5 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Seven partnerships are on record, tiered core.

• State Bank of India, HasimaracoreTechnology or IntegrationCorrespondent bank for outward INR rupee remittance to India. IFSC Code: SBIN0001447. Used for facilitating international money transfers from Bhutan to India.
• Axis Bank Limited, SiliguricoreTechnology or IntegrationCorrespondent bank for outward INR rupee remittance. SWIFT/BIC: AXISINBB. Partner for international banking transactions to India.
• Royal Monetary Authority of BhutancoreStrategic or Co-development PartnerRegulatory authority governing Bhutan's monetary system. BDB operates under Financial Institutions Act 1992 and is licensed by RMA. The common QR code framework for payments is regulated by RMA.
• All Domestic Financial InstitutionscoreTechnology or IntegrationBDB maintains correspondent banking relationships with all domestic financial institutions for domestic banking transactions through the BIRT (Bhutan Inter-Bank Real Time) system.
• National Pension and Provident Fund (NPPF)coreStrategic or Co-development PartnerBDB offers special Pensioners' Savings Account as desired by NPPF for the convenience of pension holders. NPPF transfers pensions directly to BDB accounts.
• BHIM UPI (India)coreTechnology or IntegrationBhutan Development Bank's QR codes accept payments from UPI-enabled mobile banking apps in India, providing cross-border transaction capabilities.
• UnionPay InternationalcoreTechnology or IntegrationUnionPay International payment solution launched to enhance domestic QR payment system and support cross-border transactions with China using the RMA common QR code framework.

Scale indicators5 records

Recent moves7 records

Expansion highlights5 records

Emerging players

• Bangladesh Krishi Bank: Bangladesh Krishi Bank is a state-owned agricultural development bank in Bangladesh providing rural credit and SME loans — closely comparable in mandate and customer base to BDB, though it operates in a larger, more commercially oriented market and is currently undergoing restructuring.
• Agriculture Development Bank Limited (Nepal): Agriculture Development Bank Limited (ADBL) is Nepal's principal agricultural development bank — offering rural/agricultural lending, SME finance and remittance services comparable to BDB's portfolio, in a similarly sized South Asian Himalayan economy with cross-border remittance flows.

Direct peers

• Bank of Bhutan: Bank of Bhutan is the largest commercial bank in Bhutan, offering the same core deposit and loan products as BDB and competing head-to-head for retail and SME customers across the same domestic market; BDB's QR interoperability explicitly lists BOB as a partner peer.
• T-Bank Bhutan: T-Bank (formerly Bhutan Development Finance Corporation) is another Bhutanese commercial bank offering deposits, personal/SME loans and QR payments; it is included in BDB's interoperable QR network and competes in the same retail and small-business segments.
• Druk PNB Bank Limited: Druk PNB Bank is a Bhutanese commercial bank with Indian-origin shareholders that competes directly with BDB on deposits, retail lending and QR-based payments; BDB has also engaged in joint asset-auction activity with DPNBL, confirming close operational adjacency.
• Bhutan National Bank: Bhutan National Bank is one of the principal commercial banks in Bhutan, competing directly with BDB on deposits, SME lending, housing and personal loans; it is one of the financial institutions BDB interconnects with via the BIRT real-time transfer system.

Broad incumbents

• Small Industries Development Bank of India (SIDBI): SIDBI is India's principal DFI for MSME financing — directly comparable to BDB's SME and small-scale industrial lending vertical, government-backed with a development mandate; operates at materially larger scale but with similar policy-driven structure.
• National Bank for Agriculture and Rural Development (NABARD): NABARD is India's apex development finance institution for agriculture and rural development — directly comparable to BDB's mandate, scale of operation, and government ownership structure, though it operates at far larger scale as a DFI/refinance institution rather than a direct retail bank.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat3 records

Key risks6 records

Key highlights7 records

Customer concentration

• YouTubeyoutube.com/@BhutanDevelopmentBank-BDB
• Facebookfacebook.com/Bhutan.Development.Bank
• Instagraminstagram.com/bhutandevelopmentbank
• TikToktiktok.com/@bhutandevelopmentbank
• LinkedInlinkedin.com/company/bhutan-development-bank-ltd

Revenue estimate

Valuation estimate

Number of profiles

Profiles15 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Bhutan Development Bank