JAKARTA (TheInsiderStories) - PT Bank Mandiri Tbk (IDX:BMRI), the country’s largest bank in assets term, said it has decided to cut lending rates for corporates, commercial and SMEs by 25 basis points, starting April 1, 2016 as a move to stimulate economic activities in the productive sector.
In addition, the bank also decided to cut home loan rates by an average of 50 basis points, said Bank Mandiri Corporate Secretary Rohan Hafas.
“The cut applies to selected customers and will hopefully stimulate the growth of Indonesia’s economy,” Rohan said.
Rohan said the rate cut will not affect the company’s financial performance. Currently, the bank has applied single digit rates for People’s Business Credit or KUR.
The bank plans to provide Rp13 trillion KUR this year, compared to Rp3.5 trillion last year. The total credit of the bank in 2015 reached Rp595.5 trillion, increased by 12.4 percent.
Of these, investment credit grew by 14.2 percent, working capital credit rose 12.3 percent, while loans to infrastructure and construction sector accelerated by 4.2 percent, followed by processing industry which recorded credit increase of 21.7 percent. (*)