The continuation of PT Bank Pundi Indonesia Tbk (BEKS)’ rights issue will be decided during the second Extraordinary General Meeting (EGM) of Stakeholders on July 21, 2016. If the meeting approves PT Banten Global Development (BGD) to become BEKS’ new controlling shareholder, then BGD will have some work to do to improve the quality of bank’s credit assets.
Bank Pundi’s management said that the Bank will focus on asset quality improvement, among others, during the phase of transforming Bank Pundi into PT Bank Pembangunan Daerah Banten Tbk or Bank Banten for the period 2016-2017. BGD’s entry as new shareholder is expected to develop bank credit to commercial and consumer sectors, particularly by disbursing credits to Civil Servants in Banten region.
According to the company’s financial report, BEKS’ net non-performing loan (NPL) in the past three years approached the maximum limit set by the Financial Services Authority (FSA) at 5%. By the end of 2014, BEKS’ net NPL touched 4.85%; in 2015 climbed to 4.91% and as of March 31, 2016 went up to 4.98%. High NPL forced the company to allocate funds to deal with losses due to asset impairments by Rp 123 billion in 2014, Rp 183 billion in 2015 and Rp 17 billion as of March 2016. Consequently, BEKS incurred net loss worth Rp 120 billion in 2014 which increased to Rp 331 billion in 2015. As of the first quarter of 2016, BEKS still incurred net loss worth Rp 80 billion. (*)
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