Permata targets loan expansion

Permata targets loan expansion

JAKARTA: PT Bank Permata is planning to increase its loan
disbursed by between 15 percent and 20 percent next year, despite
the country's sluggish economic growth caused by soaring
inflation and interest rate hikes.

"Although high inflation and interest rates -- also tough
business competition -- will be major obstacles next year, the
company has set up a strategy to expand the loans," the seventh
largest bank's president director, Stewart D. Hall, said on
Monday.

The bank has targeted corporate loans to stand at between 20
percent and 30 percent this year. But until September, the credit
expansion has reached 45 percent and is projected to reach 63
percent by the year-end.

"However, the bank's non-performing loans (NPL) this year have
increased by 1 percent to 6.4 percent, caused by two major
debtors, with debts standing at Rp 400 billion (US$40.82 million)
and Rp 300 million," Hall said.

The bank's net interest income increased by 12 percent until
September to Rp 1.27 trillion while its net profit dropped by 62
percent to Rp 184 billion. The decline in net profit was caused
by Bank Indonesia's regulation to increase provision costs to Rp
131.5 billion, double for the same period last year. -- Antara