Bank Ratu to boost profits

JAKARTA (JP): Bank Sinergi, which was partly acquired by Mustika Ratu last year, yesterday announced its new name, Bank Ratu, and intention to triple its profit to Rp 3.3 billion (US$1.4 million) this year.

Wien Asmoro, the bank's president, said that to reach the target the bank will expand its credits this year by 100 percent over last year's level of Rp 50 billion.

"This year we'll open four branches, in Bandung, Surakarta, Surabaya and Denpasar," he said, adding that his bank will provide at least 20 percent of its credits to small and medium- scale businesses, including those selling traditional medicinal herbs.

He noted that before the year 2000, the bank, which was acquired by Grasindo Group and Mustika Ratu last year, will become a foreign exchange bank and will be listed on the Jakarta Stock Exchange.

Bank Ratu is now 55 percent owned by Kusuma Vina Festindo, a subsidiary of the construction company Grasindo, and 45 percent by the cosmetic company Mustika Ratu, which is listed on the Jakarta Stock Exchange.

"To realize the goals, we'll increase our equity from Rp 20 billion as of December 1995 to Rp 40 billion this year and to Rp 150 billion in the coming years," Wien said.

A foreign exchange bank is required to have a minimum paid-up capital of Rp 150 billion.

Asked how Bank Ratu will increase its equity, Wien said that several banks have already offered merger proposals. "But we're still considering the proposals," he said.

As of last December, Bank Ratu's assets were recorded at Rp 135 billion and its loan to deposit ratio was 75 percent. (13)