JAKARTA (TheInsiderStories) - A small lender, PT Bank Harda International Tbk (IDX: BBHI) is looking a strategic investors to meet the capital requirements by Indonesian regulator, said the management today. The company wants to upgrade its class from BOOK 3 to BOOK 2.
In the first semester (1H) of 2020, the bank’ core capital fell to Rp 272.03 billion (US$18.76 million), from previous year was Rp297.33 billion. While, the amount of core and complementary capital worth of Rp280.34 billion as of 1H of 2020 from 1H of 2019, Rp308.81 billion.
In the same period, Bank Harda‘ assets amounted to Rp2.20 trillion, down from December 2019 was Rp2.53 trillion. Net interest income also dropped from Rp49.12 billion to Rp29.58 billion and net profit soared to Rp32.86 billion from 1H of 2019 Rp9.27 billion.
Currently the company’ shareholders are PT Hakimputra Perkasa with 73.71 percent, Kwee Sinto 3.79 percent, and 22.50 percent are public investors. Several institutions related to the major shareholders are PT BPR Cahaya Wiraputra and PT BPR Varia Centra Artha.
Recently, Financial Service Agency (FSA) announced the regulator can force Indonesian banks to consolidate, merging or other steps to maintain financial stability amid the COVID-19. While, Moody’s Investor Services has warned could lowering outlook of Asia Pacific banks rating caused of the pandemic.
“FSA to take the steps needed to maintain financial system stability, especially in the banking sector amid the threat of economic slowdown as a result of the spread of the pandemic,” said the authority in an official statement in April.
The regulation consists of the scope of regulation applies to banks and branch offices domiciled overseas. The FSA’ also has authority to give written orders to banks to merging, consolidating, taking over, or/and integrating. In addition, written orders are given to lenders that meet the criteria based on FSA assessments.
There are some adjustments to the process of merging, consolidation, acquisition, or integration of the lenders, said the agency. For conventional and Islamic banks, it can be excluded from the provisions regarding sole ownership in Indonesian banks, ownership of commercial bank shares, or deadline for fulfilling minimum core capital. For rural bank and Islamic people’ financing banks or branch offices can still be maintained in accordance with the office network area that has been established.
Bank Harda was established in the form of a legal entity PT Bank Arta Griya on Oct. 21, 1992. Then, changed its name on Jan. 16, 1993 to PT Bank Harda Griya and officially operated on Oct. 10, 1994. In 2015, the lender conducted an initial public offering of 800 million shares.
The bank was hit by unpleasant rumors about illegal banking practices called forward trade confirmation, but the management confirmed that it was not issued by the company.
US$1: Rp14,500
Written by Staff Editor, Email: theinsiderstories@gmail.com
