  We calculate the decay width of $h^0 \to b \bar{b}$ in the Minimal
Supersymmetric Standard Model (MSSM) with quark-flavour violation (QFV) at full
one-loop level. The effect of $\tilde{c}-\tilde{t}$ mixing and
$\tilde{s}-\tilde{b}$ mixing is studied taking into account the constraints
from the B-meson data. We discuss and compare in detail the decays $h^0 \to c
\bar{c}$ and $h^0 \to b \bar{b}$ within the framework of the perturbative mass
insertion technique using the Flavour Expansion Theorem. The deviation of both
decay widths from the Standard Model results can be quite large. While in $h^0
\to c \bar{c}$ it is almost entirely due to the flavour violating part of the
MSSM, in $h^0 \to b \bar{b}$ it is mainly due to the flavour conserving part.
Nevertheless, $\Gamma(h^0 \to b \bar{b})$ can fluctuate up to $\sim 7\%$ due to
QFV chargino exchange with large $\tilde{c}-\tilde{t}$ mixing. due to QFV
chargino exchange with large $\tilde{c}-\tilde{t}$ mixing.
