The Druk Punjab National Bank

January 28 - The Druk Punjab National Bank Ltd. (DPNB) in Thimphu did brisk business yesterday disbursing more than Nu 100 million in loans and 200 plus people opening accounts on its opening day.

An Indian national, AB, was among the first to open an account. “It will be easier and cheaper for me to send money to my mother in India,” said AB who works with the Business Bhutan weekly newspaper. “With the two ATM cards issued by the bank I’ll send one to my mother who can use it to withdraw money in India from my account.”

This is possible with DPNB’s tie up with the Punjab National Bank, India. Each customer can subscribe for three ATM cards and withdraw money from any of PNB’s 5,000 branches in India with the ATM card issued in Bhutan.

“My children are studying in India I need an account in DPNB,” said Darjay, a businessman who opened an account yesterday. “It will be safe and quick.”

The CEO of the bank, N K Arora, said the facility should relieve the demand for the Indian Rupee within the country.

DPNB is the first joint venture bank in the country with PNB owning 51 percent share and the Bhutanese promoters 19 percent. The rest 30 percent of the Nu 300 million bank will be offered to the Bhutanese public from mid February to mid March.

“We are very proud to be the first private bank in Bhutan’s history,” said the chairman of the bank and one of the Bhutanese partners, Dasho Sangay Wangchuk. “We feel that our entry into the market will be able to take financial services to the next level.”

According to the chairman, PNB rescued the Nepal based Everest bank which in 1997 was neither growing nor making any profits. “The success witnessed by the Everest bank convinced us to bring in PNB as our partner,” said the chairman.

The CEO said the joint venture is an ideal situation. “By entering the market with a local entrepreneur, we get local feedback and marketing which would not have been possible if we had entered alone.”

The managing director of the Royal Monetary Authority Daw Tenzin said, “the days of lazy banking are over. It should also open up avenues for the big 10 borrowers who might have hit the limit with the existing banks”.

According to the CEO, the bank’s schemes are not fixed or rigid. The interest rates on the deposit and advances of the bank are in line with the other two banks. The bank will lend on the basis of credit worthiness with flexibility in the decision on the quantum of collateral security.

The bank also has a special scheme for salary accounts – total freedom salary account. This scheme provides an opportunity to avail over draft facility. The bank will give out personal loans to employees of private sector and to pensioners.

The official inauguration will be done in March when the corporate offices in Thimphu are functioning. DPNB will open the Phuentsholing branch on February 10 and a third branch at Wangdue in April.

source: kuensel