The bank has the highest number of applicants for agriculture CSIs
Bank of Bhutan (BoB) has sanctioned priority sector lending (PSL) loan amounting to Nu 73.19mn for non-agriculture cottage and small industry (CSI) so far.
The highest amount has been sanctioned to non-agri CSI as compared to agriculture CSI and integrated agri CSI.
There were 59 applicants for non-agri CSI and only six applicants for integrated agriculture CSI.
However, the bank has the highest number of 136 applicants for agriculture CSI.
The total amount sanctioned for agriculture CSI amounts to Nu 41.41mn and Nu 10.13mn for integrated agriculture CSI so far.
A total of 287 projects were declined for agriculture CSI followed by non-agriculture CSI with 77 project proposals declined and integrated agriculture with eight project proposals declined.
The Head of public relations and media of BoB, Passang Norbu, said that the reason for declining the project proposal was due to withdrawal by clients because of high insurance premium, proposed projects not in the PSL list, non-performing Credit Information Bureau report and no market.
The other reasons he mentioned were unrealistic projections, non-response from the clients after submission of their application and no equity in case of non-agri CSI and integrated agri-CSI.
“As per PSL guidelines(Agri CSI), for primary production, the maximum gestation period is one year, so, we do not finance those projects which take more than one year to generate income if applicant does not have other sources of income to repay the loan,” said Passang Norbu.
He also mentioned that if the earlier financed project did not do well, the bank does not finance further for the same project in the location.
The total number applicants were 198, total loan amount sanctioned is Nu 125.67mn and a total of 327 project proposalswere declined.
As usual,Thimphu has the highest number of applicants with 48 and the highest amount of loan sanctioned with Nu 41.41mn so far.
The PSL initiative was launched on December 13, 2017 and implemeted from January 1, 2018.
Dechen Dolkar from Thimphu