NISP revises share value

JAKARTA (JP): Shareholders of publicly listed PT Bank NISP approved on Friday the management's proposal to increase the nominal value of the bank's shares from Rp 100 (about US$1.20 cents) to Rp 250.

The bank said the decision to change the nominal value of its shares was made after the management of the Jakarta Stock Exchange (JSX) rejected the bank's plan to cut the par value of its shares to Rp 100.

The bank won shareholders' approval in late June to lower the nominal value of its shares to Rp 100 from Rp 500 in a bid to improve the liquidity of its stock. The move, however, which would automatically have resulted in a fivefold increase in the bank's shares, was opposed by the JSX.

The change in the nominal value to Rp 250 would adjust the bank's dividend payment for the 1998 fiscal year from Rp 2.5 per share to Rp 6.25 per share.

Bank NISP is one of the few banks which escaped closure or takeover by the government.

Bank NISP saw its net profit increase slightly in 1998 to Rp 25.15 billion from Rp 24.18 billion the previous year. The bank booked net profit of Rp 6 billion in the first quarter of this year. (udi)