Panin plans rights issue

JAKARTA (JP); Panin Bank, a publicly listed private bank, plans to issue 60.18 million rights shares, each with a face value of Rp 1,000 (44 U.S. cents), a bank executive said.

Roosniaty Salihin, a director of the bank, told reporters after the bank's extraordinary shareholder meeting over the weekend that every four existing shares will be eligible to buy one new share at Rp 1.900.

She said the bank will also distribute cash dividends of Rp 7.22 billion, or Rp 30 per share.

She said the bank will maintain its annual lending interest rates at between 21 percent and 23 percent to support its loan expansion program.

She reasoned that lending interest rates of over 23 percent might discourage borrowers from seeking loans for their businesses.

Roosniaty said the bank's after-tax profit last year increased to Rp 47.30 billion from Rp 38.6 billion in the previous year.(32)