Jakarta. Some middle level banks are ready to accumulate capitals. Some banks, including PT Maybank Indonesia Tbk plan to issue rights in 2017 in order to meet the Basel III rule.
Financial Director of Maybank Indonesia Thilagavathy Nadason said that the bank will issue rights in 2017. The potential value of the new shares is expected to amount of more than Rp 1 trillion.
“This year we have issued the sub debt. We are planning to issue rights in the next year to strengthen the capitals,” said Thila.
PT Bank Permata TBK has the similar plan. But, to date the management of Bank Permata is still arranging the options for increasing the capitals that will be included under the bank business plan (RBB).
Maybank targets the capital adequacy ratio (CAR) will stand at the level of 17% until this year. The CAR is expected to be at the level of 17%-18% in 2017.
Bank Permata had just obtained Rp 5.5 trillion fresh funds from the rights issue in June 2016. The rights issue had increased the CAR of Bank Permata by 19.3% as of September 2016.
President Director of Bank Permata Arman Arfandy said that the additional capitals will come at the end of the year. However, this will be discussed with the shareholders.
Meanwhile, PT Bank Artha Graha Internasional Tbk will issue rights in December 2016.
Bank Artha Graha will issue 2.7 million new shares with offering price at Rp 111 per share. The rights issue is expected to raise Rp 300,57 trillion funds, said President Director of Bank Artha Graha Internasional Andy Kasih, Thursday (24/11).
Bank Banten also will issue rights in February 2017 to raise around Rp 200 billion funds. The funds will be allocated to expand the bank’s branches.
Above the limit
As information, the CAR of banking industry has gone above of the minimum limit, which is 8%. By the end of third quarter of 2016, the banking’s CAR has increased by 198 bps on year on year (YoY) basis to 22.6%.
The middle level banks group have booked the highest increase in CAR at the level of 25.23% as of September 2016. The CAR of middle level banks has increased by 253 bps on YoY basis.
However, ironically, the major banks recorded the lowest CAR at the level of 20.67%. The capitalization of the major banks was also below the average capitalization of the overall banking industry.
(Muhammad Farid/Translator)
