Bank Papan plans rights issue

Bank Papan plans rights issue

JAKARTA (JP): Publicly listed Bank Papan Sejahtera plans to
issue rights shares soon to increase its capital so it can remove
itself from the Indonesian Bank Restructuring Agency's (IBRA)
supervision.

Bank Papan president Al Njoo said in a statement yesterday the
bank would also develop new saving schemes to attract more public
funds to fuel the bank's operations.

The bank additionally plans to merge with other institutions
to strengthen its capital and operations.

"I'm confident that with these efforts, Bank Papan will soon
be able to remove itself from the IBRA list," Al Njoo said.

Bank Papan, controlled by Hashim Djojohadikusumo's Tirtamas
Group, is among 32 private commercial and provincial development
banks currently under IBRA supervision.

These banks, according to IBRA, have liquidity credits from
Bank Indonesia equivalent to more than 200 percent of their
capital and have a capital adequacy ratio of below 5 percent.
(rid)