Bank Universal plans Rp 3.3t in fresh loans

JAKARTA (JP): Publicly listed Bank Universal plans to extend new loans of about Rp 3.3 trillion (about US$29.33 million) this year.

The bank said the fresh loans would raise its total outstanding credits by 55 percent to Rp 9.3 trillion this year from about Rp 6 trillion in 2000.

Bank Universal corporate secretary Ekoputro Adijayanto said on Tuesday that about 70 percent of the fresh loans would be extended to small and medium-sized businesses, and the remaining 30 percent as car loans.

"Most of the loans will go to the less risky retail market," he told reporters after the annual general meeting of shareholders.

About Rp 1.5 trillion of the new loans were extended from January to May, he said, adding that the lending expansion was expected to help boost the bank's interest income.

The bank's profit fell by 92.6 percent to Rp 1.1 billion during the first quarter of this year from Rp 15 billion in the same period of last year.

According to him, the bank's nonperforming loans (NPLs) reached 11.53 percent, while its capital adequacy ratio (CAR) stood at 4.32 percent at the end of March.

The bank, as well as other banks, has to meet the minimum CAR requirement of 8 percent and the maximum NPLs of 5 percent at the end of 2001 as required by Bank Indonesia.

In the meeting, shareholders agreed to change the composition of the supervisory and executive board.

The new supervisory board is led by Theodore Permadi Rahmat, with four members Darry Halim, Michael Dharmawan Ruslim, Amir Abadi Jusuf and Agresius Kadiaman, of which three of them are newcomers.

Agresius, a new commissioner, was previously a division head at the Indonesian Bank Restructuring Agency (IBRA). He replaces Hendro Sentosa who will be retiring.

Darry and Amir are also new commissioners in the bank in the newly launched independent commissioners posts.

Stephen Z. Satyahadi was named president, and Mahdi Syahbuddin and Ongky Wanadjati Dana as vice presidents.

Hendradjaja Gunawan, Tjutjut Bramantoro, Djemi Suhendra and Dudi Hendrakusuma Syahlani were installed as directors.

Earlier reports said Bank Universal would merge with Bank Danamon as part of the government's consolidation of the banking industry.

The bank, whose former majority shareholder is automotive giant Astra International, is now under the control of IBRA following the government's bailout program last year to save the bank.(05)