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)