Bank Mantap Reports 199 Percent Increase In Assets

Kuta (Antara Bali) - Bank Mandiri Taspen Pos (Bank Mantap) recorded a 119.6 percent increase in assets to Rp5.6 trillion by the end of October, 2016 after it came on stream in August, 2015 .

Chief Executive of PT Bank Mantap, Nixon LP Napitupulu said the joint venture between three state companies - Bank Mandiri, PT Taspen and PT Pos Indonesia - recorded a healthy growth so far.

The third party funds held by the bank rose 198.6 percent to Rp4.76 trillion Nixon said after an extraordinary shareholders` meeting here on Monday.

Its credit disbursement shot up 196.6 percent to Rp3.96 trillion and its net profit surged 108.5 percent to Rp58.7 billion before tax.

Bank Mantap is a joint venture between three state companies - Bank Mandiri, PT Taspen and PT Pos Indonesia.

The shareholders discussed realization of right issue or capital injection for the first time since it was established on 7 August 2015. The bank needs to have a core capital of between Rp1 trillion and Rp5 trillion.

In the first phase, the bank would issue 249 million new shares .

The bank has prepared strategies including expansion of branch offices to facilitate its marketing.

Bank Mantap already has a network of 118 offices spread in various areas including Bali and Nusa Tenggara, Sumatra, Java and Sulawesi .

Director of Finance and Risk Management of Bank Mantap, Josephus KT said with the additional capital the bank`s capital adequacy ratio (CAR) by the end of 2016 will increase to around 29 percent, well above the level of 11 percent set by the regulator.

Without additional capital , the CAR would be 17 percent by the end of 2016, Josephus said.

The additional capital is also needed to cover a deficit in core capital allocation on the opening of new bank offices.

Meanwhile Investment Director of PT Taspen Iman Firmansyah said the need for bank business is strong that capital injection is needed.

Iman said Taspen would buy the right shares not bought by other shareholders.

The director of Retail Banking of PT Bank Mandiri , the country`s largest lender in assets would buy the right shares.

With the right issues, the composition of the shareholders of Bank Mantap would likely change . (WDY)