An Analysis of Funds Management-Loan Disbursement and Recovery-a Case Study on Bhutan Development Finance Corporation Ltd. (BDFCL)

Abstract

Bhutan Development Finance Corporation Ltd. is the only development bank in Bhutan. The main objective of this development bank is to join hands with the Royal government of Bhutan to develop and promote agriculture and industries range from small to large scale. The study is focused on sectoral flow of funds-disbursement and recovery of loan, relationship between loan disbursement, loan recovery and non-performing assets. To this study, nine years' secondary data have been used. The tool that has been used is Elasticity of Coefficient which, as a dynamic ratio, helps in judging the efficiency of management of funds. The ratio indicates the relationship with the scale of operations i.e., the inflow and the outflow of funds to examine the mobility of funds.