Bank Pikko, Danpac to merge

JAKARTA(JP): Bank Pikko plans to merge with the publicly listed Bank Danpac in a bid to create a more efficient and stronger banking institution, according to the former's president Ary Karyono.

"The merger talks are in process. It'll take some time, of course, as we're still at the preliminary stage of preparations," Ary told reporters following a shareholders meeting.

Bank Pikko director Herman Chondro said that the merger process of the two banks should be relatively smooth as they have the same majority shareholder.

The two small banks are majority controlled by Singapore-based Chinkara Capital Ltd.

Bank Indonesia has required that all banks must have a minimum capital adequacy ratio (CAR) of 8 percent by the end of this year or risk closure. To avoid closure, banks are being urged to merge.(10)