Question 1

What is Bank of Bhutan (BoB)?

Accepted Answer

Bank of Bhutan (BoB) is the largest and oldest commercial bank in Bhutan. Established by Royal Charter in May 1968, it is a public sector commercial bank registered under the Companies Act of the Kingdom of Bhutan, 2000.

The bank serves as the country's premier financial institution, operating as a universal bank providing comprehensive retail and commercial banking services. BoB was the only banking institution in Bhutan until 1997 and remains the dominant player in the kingdom's financial sector.

As of 2017, the bank accounts for approximately 41% of deposits and 32% of loans to Bhutan's economy, maintaining its position as the nation's largest financial institution.

Question 2

When was Bank of Bhutan (BoB) founded?

Accepted Answer

Bank of Bhutan was founded on May 28, 1968 under a Royal Charter. The bank was initially established as a joint venture with the Chartered Bank of India, Australia and China, which owned 25% of the bank.

In 1970, the Chartered Bank's share was transferred to the State Bank of India. The bank was restructured in 1971 and served a unique dual role as both Bhutan's commercial bank and central bank until the establishment of the Royal Monetary Authority of Bhutan in 1982.

Until 2007, the bank was operated directly by the Ministry of Finance of Bhutan. In 2007, management control was transferred to Druk Holding & Investments (DHI), a state-owned holding company.

Question 3

Where is Bank of Bhutan (BoB) headquartered?

Accepted Answer

Bank of Bhutan's principal office is located in Phuntsholing, Bhutan. The bank also maintains its registered office in Thimphu, the capital city of Bhutan, at P.O. Box 102, Norzin Lam.

The bank's Corporate Head Office is situated on Norzin Lam in Thimphu, serving as a key operational center alongside the principal office in Phuntsholing.

Question 4

Where does Bank of Bhutan (BoB) operate?

Accepted Answer

Bank of Bhutan operates throughout the Kingdom of Bhutan with comprehensive nationwide coverage. The bank maintains a presence in every Dzongkhag (district), Dungkhag (sub-district), and major township across the country.

As of 2020, the bank's network consisted of 54 branch offices, including 42 full-fledged branches and 12 extension offices. The bank also operates 115 ATM terminals and over 621 BoBConnect Agents to serve both urban and rural populations.

BoB has strategically positioned its branches to ensure financial inclusion across Bhutan's diverse geographic landscape, from the capital city to remote rural areas.

Question 5

What services does Bank of Bhutan (BoB) offer?

Accepted Answer

Bank of Bhutan provides a comprehensive range of financial products and services, including:

Core Banking Services: Deposits (savings, current, fixed deposits), consumer loans, mortgages, commercial loans, and trade finance. The bank also provides money market services and foreign exchange dealing in major currencies including USD, EUR, GBP, JPY, CHF, and others.

Card Services: As a principal member of VISA and MasterCard, BoB offers credit and debit card issuance and acquiring services, including virtual card generation capabilities.

Digital Banking: The bank implemented Core Banking Solution technology in 2009, enabling automated operations across all branches. Digital channels include mBoB mobile banking app (launched May 15, 2015), internet banking, SMS banking, USSD banking (*262#), and e-payment gateway services.

Additional Services: ATM services, Point of Sale (POS) terminals, Agency Banking (BoBConnect) with over 621 agents, cheque book services, and integration with BIRMS (Bhutan Integrated Revenue Management System) for tax and customs payments.

The bank's mobile app offers features such as account inquiries, fund transfers, loan repayments, cheque book requests, and instant card activation.

Question 6

What makes Bank of Bhutan (BoB) unique?

Accepted Answer

Bank of Bhutan holds several distinctive features that set it apart in the Bhutanese financial sector:

Historical Significance: As the oldest bank in Bhutan, BoB served as both the country's commercial bank and central bank for 14 years (1968-1982), playing a foundational role in establishing Bhutan's modern financial system.

Royal Patronage: The bank was established under Royal Charter and operates under royal patronage, reflecting its importance to the kingdom's economic development.

Market Dominance: BoB is the largest bank in Bhutan by a significant margin, controlling 41% of deposits and 32% of loans, giving it unparalleled reach and influence in the economy.

Financial Inclusion Leadership: The bank pioneered mobile and agency banking services (mBoB) in 2015 to reach underbanked and unbanked populations, particularly in rural areas. The BoBConnect agent network extends banking services to communities without physical branches.

Bilingual Services: BoB launched all its digital services in Dzongkha in 2019, making it more accessible to citizens who prefer the national language.

Foreign Investment Partnership: The bank's collaboration with IFC (International Finance Corporation) through a landmark US$20 million investment in 2025 represents the first foreign debt investment in the institution, supporting its growth and modernization.

Question 7

What type of financial institution is Bank of Bhutan (BoB)?

Accepted Answer

Bank of Bhutan is a public sector commercial bank and operates as a universal bank, providing both retail and commercial banking services to individuals, businesses, and government entities.

The bank is classified as a commercial bank under Bhutanese banking regulations, supervised by the Royal Monetary Authority of Bhutan, the country's central bank and financial sector regulator. It is registered under the Companies Act of the Kingdom of Bhutan, 2000.

Ownership Structure: The bank's shares are held by Druk Holding & Investments (DHI), which owns 80% of the authorized capital, and the State Bank of India, which holds the remaining 20%. DHI is a state-owned holding company wholly owned by the Ministry of Finance of Bhutan, making BoB effectively a government-controlled financial institution.

As a universal bank, BoB serves multiple customer segments including retail consumers, small and medium enterprises, large corporations, and government departments, offering a full spectrum of banking products from basic savings accounts to complex trade finance and foreign exchange services.

Question 8

What is Bank of Bhutan's role in Bhutan's financial ecosystem?

Accepted Answer

Bank of Bhutan plays a critical role in Bhutan's financial development beyond traditional commercial banking. The bank serves as the retail banking agent for the Royal Monetary Authority of Bhutan, helping implement monetary policy at the grassroots level.

BoB has historically provided significant funding for national development projects, including large capital programs such as irrigation projects in Bhutan's south-central region. The bank introduced several banking innovations to Bhutan, including ATMs, Point of Sale systems, internet banking, and mobile banking.

The bank holds a 13.85% equity stake in the Financial Institutions Training Institute (FITI), contributing to capacity building in Bhutan's financial sector. As an authorized foreign exchange dealer, BoB facilitates international trade and tourism, essential components of Bhutan's economy.

Through its extensive branch network and agency banking model, BoB has been instrumental in promoting financial inclusion in a country with challenging mountainous terrain and dispersed population, ensuring that banking services reach every corner of the kingdom.

Bank of Bhutan (BoB)

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About Bank of Bhutan (BoB) in Bhutan