Panin plans rights issue

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)