Bank Putera needs Rp 200b

JAKARTA (JP): Private Bank Putera will need at least Rp 200 billion (US$26.7 million) to meet the Capital Adequacy Ratio (CAR) requirement of at least 4 percent by the end of the year.

The bank's president, Masyhud Ali, said on Tuesday that the bank shareholders would provide about Rp 40 billion of the required fund and the government was expected in inject the remainder.

He said that the bank had been given one month to submit a business plan before receiving the government funds.

The government has required all the country's commercial banks to have a CAR of at least 4 percent by the end of this year.

Banks with CAR of between minus 25 percent and less than 4 percent (Category B) are eligible to join the recapitalization program in which the government will provide 70 percent of the funds needed to meet the CAR requirement.

Banks with CAR of less than minus 25 percent (Category C) should inject fresh capital to enable them to enter the B category.

Masyhud said that Bank Putera falls into the B category and that it was eligible to join the recapitalization program. (29)