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Bank Dinar to boost loans for infrastructure sector
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Bank Dinar chief commissioner Syaiful Amir (second right) and Bank Dinar president director Hendra Lie (right) pose after an extraordinary shareholders meeting in Jakarta on Monday. (JP/dra)
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ublicly listed private lender PT Bank Dinar (DNAR) plans to expand its lending to the infrastructure sector this year following the recent acquisition of the bank by a South Korean company.
DNAR’s president director Hendra Lie said the bank intended to allocate 25 percent of the lending portfolio this year to infrastructure supporting companies, such as retailers engaged in the sales of construction materials including cement, iron and steel.
With the increase in loan allocation -- from 15 percent last year -- the bank wants to meet its target to increase the total lending by 16 percent from Rp 1.33 trillion last year.
“We expect that this expansion to infrastructure will boost our lending growth this year,” he told reporters following the bank’s shareholders meeting. The company’s total assets rose by 11.46 percent to Rp 2.31 trillion last year from Rp 2.07 trillion in 2015. The bank booked Rp 13.08 billion in after-tax profits.
On February, DNAR sold 77.38 percent of its shares to the South Korean consumer finance firm APRO Financial Co. for Rp 691 billion. The bank is waiting for approval from the Financial Service Authority (OJK) to merge with another local bank Bank Andara, which is also partly owned by APRO.
With the merger, the bank will be able to upgrade its capital status from BUKU I (core capital below Rp 1 trillion) category to BUKU II (core capital between Rp 1 trillion and Rp 5 trillion) category, he said. (ecn/ags)
