Amidst strong competition from other players in the banking sector, the Bank of Bhutan (BOB) recorded the highest ever profit of over Nu 510 million last year. The Bank also made a record income of over Nu 1.4 billion, registering a whopping 8.31% annual growth in its profit after tax. BOB declared 75% dividend amounting to Nu 300 million to its two share holders, the Druk Holding and Investments (DHI) and the State Bank of India (SBI). DHI holds the majority of 80% shares of the Bank while SBI holds the remaining 20% shares.
Describing it as the highest financial performance by the Bank in its history, BOB officials said prudent lending policy and strong recovery efforts by the Bank led to the decrease in the provisions for loans consequently increasing profit margins. The increased profit was also attributed to drastic decrease in the Bank’s non-performing loans. Out of the total income, the Bank’s interest income which is earned from loans and advances amounted to Nu 1.14 billion while non-interest income increased by 6.66%. The total expenditure of the Bank was Nu 690 million. BOB currently has a reserve of about Nu 2.27 billion, up from 2 billion in 2009.