The bank reported its net NPL ratio as of September increased to 0.85 percent from last year's 0.56 percent. The September ratio however, was better than in the first half of the year, which had reached 1.09 percent.

Mandiri's director for special asset management, Abdul Rahman, said Sunday that the debts did not prevent healthy profit growth.

The bank's Jan-Sept net profits reached Rp 4.62 trillion ($482 million), 16.8 percent higher than the Rp 3.95 trillion gained in the same period last year.

Mandiri president director Agus Martowardojo said that the bank would prefer restructuring big debts rather than bringing them to the courts.

According to Abdul, the most affected companies came from the footwear and textile sectors, as their biggest importers - the US and European countries - had been severely hit by economic slowdown. "We give them opportunities to reschedule their debt payments so that their business could keep rolling."

Mandiri is now focusing on settling big debts with flag carrier PT Garuda Indonesia, food producer PT Suba Indah, Bali-based hotel and tourism company PT Dewata Royal International, the plantation firm the Benua Indah Group, coffee producer Tripanca Group and a number of companies grouped under the Djajanti Group.

The bank, however, has been forced to file lawsuits against a number of debtors who were "unwilling" to repay their debts.

"Bank Mandiri will take clear actions against debtors that seem not to show goodwill," Abdul said. (bbs)

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