Bank Duta management undergoes major change

Bank Duta management undergoes major change

JAKARTA (JP): The management of publicly-listed Bank Duta
underwent a major change yesterday following rumors that the bank
would merge with Bank Bukopin, the country's only cooperative
bank.

Timber tycoon Mohamad (Bob) Hasan and Bank Bukopin's Muchtar
Mandala were appointed as Bank Duta's new chief commissioner and
new president respectively at yesterday's meeting of the bank's
shareholders.

Hasan dismissed rumors that he had injected fresh funds into
Bank Duta. "This bank has a solid financial structure and does
not, therefore, need any injection of funds."

Informed sources indicated earlier that Hasan had injected
fresh funds into Bank Duta through the Dharmais Foundation, which
helped save the bank from the brink of collapse in 1990, after
the bank suffered losses totaling US$420 million in margin
trading.

Bank Duta, which floated shares on stock markets in June 1990,
is 26.4 percent owned by Ali Afandi, 26.4 by Hedijanto, 26.4
percent by Zahid Husein, six percent by Mitra Duta Cooperative
and 14.7 percent by public shareholders.

Hasan rejected the assumption that he had been elected as Bank
Duta's chief commissioner because he held a stake in the bank. "I
don't have any share in this bank. If I bought shares, it would
be insider trading."

Hasan is also chief commissioner of Bank Bukopin and Bank Umum
National.

The shareholders' meeting yesterday reappointed four former
commissioners of Bank Duta: Mung Parhadimulyo, Arjodarmoko, Zahid
Husein and Hedijanto.

Muchtar Mandala, president of Bank Bukopin, also dismissed
rumors yesterday that, under the new management, Bank Duta would
be merged with Bank Bukopin.

"It's not true and will never come true because each bank has
its own mission," Muchtar said, adding that the two banks might
cooperate in the form of a joint operation.

Management

Asked why the shareholders' meeting had reshaped the bank's
management, Muchtar said flatly: "It's the prerogative right of
the shareholders. If I were the owner of the bank, I might have
changed its management as I wished."

Yesterday's meeting endorsed the appointment of a new board of
directors for Bank Duta, including Maharany Reza Musrizal Maszdi,
Marwan Cut Hasan, Zainul Arifin and Darman Rahman.

B.S. Salamoen, Bank Duta's former president, said he had done
his best for the bank. "It's just the right time to transfer Bank
Duta to new management because the bank is in good condition," he
said.

Salamoen, who had led Bank Duta since October 1990, noted that
he had worked hard to regain people's trust in the bank following
its losses in margin trading.

"I intentionally ran the bank in a conservative way," Salamoen
said, in reference to the claim of his critics that he had been
too conservative.

He said the bank's total assets were Rp 2.47 trillion (US$1.1
billion) as of last year, almost the same as their 1990 level of
Rp 2.4 trillion.

The bank's net profit increased by 8.6 percent to Rp 29
billion last year, from Rp 26.7 billion in 1993. This year, the
bank's net profit is projected to increase further to Rp 31.3
billion.

Credit extended by the bank was Rp 1.54 trillion last year, as
compared with Rp 1.55 trillion in 1990.

Yesterday's meeting decided to distribute 64.4 percent of the
bank's total net profits, Rp 18.7 billion or Rp 100 per share, in
cash dividends. (rid)