After concerns over overlapping functions, the National CSI Development Bank has finally merged with the Bhutan Development Bank. The merger was made official at the beginning of last month. The merger was done after approval from the Cabinet and authorisation from the central bank. All services offered by the former National CSI Development Bank will be delivered by the BDB and its branch offices.
The Chief Executive Officer of the BDB, Tshering Om, said the amalgamation has been carried out based on approval by the Lhengye Zhungtshog on 21st August.
According to a news release, the merger was carried out by an amalgamation committee appointed by the Finance Ministry with member representatives from senior management of the two banks.
The CEO said that the loan terms and conditions of the existing borrowers of the National CSI Development Bank or NCSIDBL will remain unchanged. She said a dedicated division for the NCSIDBL clients has also been established at the BDB head office.
She added that services previously offered by NCSIDBL will continue uninterrupted through BDB branches across the nation.
Meanwhile, all the employees of the NCSIDBL have been integrated and deployed with the BDB service rules, preserving employment continuity and ensuring the welfare of the employees.
The Royal Audit Authority asked the Finance Ministry last year to re-assess the relevance of the National Cottage and Small Industry Development Bank as the bank’s function overlaps with the Bhutan Development Bank Limited.
The RAA also found that the CSI bank was incurring consecutive losses since its inception and was heavily dependent on the government. It stated that the bank was unable to even fund its operating costs.
The National CSI Development Bank was instituted in February 2020.
BDB was incorporated as a development finance institution in January 1988 with assistance from the Asian Development Bank.
Tashi Yangden
Edited by Yeshi Gyaltshen
