Mayapada plans rights issue

JAKARTA (JP): Publicly listed Bank Mayapada International will launch a rights issue in July to raise Rp 160 billion (US$21 million) for expansion programs.

Mayapada chairman Tahir said the bank would open branches in Jakarta, Medan and Bandung in its expansion into the consumer market.

"We plan to increase our consumer portfolio to 80 percent from 50 percent at present," he said.

The company's capital adequacy ratio -- the ratio of equity capital to risk weighted assets -- is now 17 percent, he said, adding that he planned to reduce the ratio to slightly above 10 percent, which is still far above the minimum 4 percent mandated by the government.

Despite losses in the past two years, Tahir estimated the bank would book Rp 5 billion to Rp 10 billion in net profit this year. (bkm)