Bank Umum Servitia delays merger plan<\/p>\n
JAKARTA (JP): Publicly listed Bank Umum Servitia (BUS) said
\nyesterday it had delayed its plan to merge with three other
\nmedium-sized banks.<\/p>\n
The bank said in a statement that the delay was decided to
\nenable each bank to consolidate their operations before entering
\nthe merger.<\/p>\n
The bank announced in April that it would merge with Bank
\nCentral Dagang (BCD), Bank Hastin and Bank Prima Express this
\nyear to enable the four banks to meet the minimum capital
\nrequirement set by Bank Indonesia.<\/p>\n
\"The merger plan will be discussed again in the next nine
\nmonths,\" the bank's statement said. It is thought the other three
\nbanks are still going to proceed with the merger.<\/p>\n
BUS, which is currently under the supervision of the
\nIndonesian Banking Restructuring Agency (IBRA), reported that
\nits pretax profit plunged to Rp 1.52 billion in the first half of
\nthis year from Rp 15.20 billion in the corresponding period of
\nlast year.<\/p>\n
The statement said the decline in profit was largely due to a
\nsignificant increase in the bank's loan loss provision to Rp
\n106.99 billion in 1998 as compared to just Rp 26.1 billion the
\nprevious year.<\/p>\n
\"We had to increase the nonperforming loan provision to
\nanticipate the increase in nonperforming loans this year,\" it
\nsaid.<\/p>\n
Total public funds collected by BUS in the first half of this
\nyear rose to Rp 2.65 trillion compared to Rp 1.17 trillion in the
\nsame period last year.<\/p>\n
The bank's credits rose to Rp 2.38 trillion in the first
\nsemester from Rp 1.25 trillion in the corresponding period last
\nyear.<\/p>\n
The bank will also increase its paid-up capital to Rp 500
\nbillion by the end of this year from Rp 100 billion currently
\nbringing its capital adequacy ratio (CAR) to 20 percent, higher
\nthan the four percent set by the government, it said.<\/p>\n
The statement said the bank secured the Rp 400 billion in
\nfresh funds from a recent rights issue to boost its capital.
\n(aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bank-umum-servitia-delays-merger-plan-1447893297",
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