BNI expects to book higher bad loans

BNI expects to book higher bad loans

JAKARTA (JP): Publicly listed state-owned Bank Negara
Indonesia (BNI) projected yesterday that its nonperforming loans
would likely increase in the near future due to the economic
crisis dogging the country.

BNI president Widigdo Sukarman told journalists after an
extraordinary shareholders meeting that his bank's nonperforming
loans currently stood at 5.9 percent of its total credits of Rp
30.15 trillion (US$5.79 billion) as of last September.

Bad loans accounted for less than 1 percent of BNI's total
credits as of last September, Widigdo said.

"Due to the current crisis, we expect that nonperforming loans
will increase in the near future. Already, many companies are
facing a difficult time, especially those operating with much
import content," Widigdo said.

"And to anticipate such a possible increasing loans problem,
we significantly increased our reserves for nonperforming loans,"
he added.

He said BNI had raised reserves for nonperforming loans by
77.2 percent to Rp 755.58 billion as of last September from Rp
426.49 in September 1996.

As of last September, BNI had collected Rp 21.19 trillion in
third party funds, a 18.83 percent increase from 18.12 trillion
in September last year.

BNI's total assets rose 34.7 percent to Rp 44.43 trillion from
Rp 32.98 trillion.

Yesterday's extraordinary shareholders meeting reinstated
Sarmono Warnopuspito as the bank's chief commissioner until the
next shareholders' meeting. (rid)