摘要:Bhutan is a small developing country with agriculture being the primary source of livelihood. Among the financial institutions, Bhutan Development Bank Limited (BDBL) is the only the development bank in the country. BDBL plays an important role in the economic development of the country. It fosters growth and supports the industry and other sectors of the country by providing loans, advances, technical assistance to the potential entrepreneurs. The study is an attempt to analyse the loansand recovery ofBDBL by using elasticity co-efficient. The study finds that investment in industry sectors covering construction sector is increasing in comparision to agriculture sector. It also finds that the loan recovery of the BDBL has been satisfactory over the period of study.