NISP plans to double stake in Bank Daiwa Perdania

JAKARTA (JP): Publicly listed Bank NISP plans to purchase more shares in Bank Daiwa Perdania to increase its ownership to 20 percent from 11.93 percent at present.

Bank NISP president Pramukti Surjaudaja said on Tuesday that the purchase would be in line with Bank Daiwa Perdania's plan to increase its paid-up capital.

Bank Daiwa Perdania, which is jointly owned by Bank NISP with a 11.93 percent stake and Daiwa Bank of Japan with 84.95 percent ownership, will increase its paid-up capital from Rp 125 billion to Rp 200 billion through the issuance of 750,000 unpaid authorized shares, each with a nominal value of Rp 100,000.

Pramukti said as a shareholder Bank NISP would purchase 160,000 of the shares to be issued by Bank Daiwa Perdania, which would increase its stake to 15.46 percent.

Bank NISP would also buy an additional 92,851 shares from Daiwa Bank to raise its stake by another 4.64 percent, he said.

"From the two transactions, Bank NISP will increase its stake in Bank Daiwa Perdania to 20.10 percent," Pramukti said in a statement.

He said that the transaction agreement would be decided in Bank NISP's extraordinary shareholders meeting on March 30.

Pramukti said Bank NISP posted a 28 percent drop in net profit last year to Rp 18.32 billion from Rp 25.15 billion in 1999.

He partly attributed the drop in earnings to the fall in the bank's interest income in 1999 to Rp 112.73 billion from Rp 117.43 billion the previous year.

The bank's capital adequacy ratio (CAR), the ratio between the bank's capital and weighted risk assets, dropped from 20.62 percent to 14.85 percent, but it was still far higher than the minimum four percent level set by the government. (hen)