BNI plans stock split as share falls

BNI plans stock split as share falls

JAKARTA : PT Bank Negara Indonesia (BNI), the nation's second-biggest bank by assets, said it plans a stock split that will reduce the number of shares to 6.6 percent of its Rp 257.5 billion (US$30.2 million) outstanding shares.

The number of shares will be reduced to 17.2 billion after the split, which will take effect on Dec. 29, the Jakarta-based lender said in a statement published.

The lender needs to keep its share price above the minimum required level of Rp 50 specified by the local stock exchange or risk being delisted. BNI shares have fallen more than a third to Rp 95 in the past month after the police started a probe into a suspected loan fraud.

The government, which owns 97 percent of the lender, plans to replace the bank's directors at a meeting with shareholders on Dec. 15. -- Bloomberg