Surabaya - Surya
Good news to clients and debtors of Rural Banks (BPR) and co-operatives in East Java. Post acquisition into Bank Andara, the bank which previously as Bank Sri Partha is committed to strengthening the liquidity of rural banks and cooperatives.
Business Development Director of Bank Andara, Don Johnston said Bank Andara designated as Apex Rural Bank through Andara Bersama BPR program (ABB) which is expected to strengthen the position of BPR in order to compete with commercial banks in microfinance sector.
Until the end 2010, it is expected to provide a capital injection through linkage program up to Rp 270 billion. Until semester I/2010, it has been recorded of Rp 130 billion in Jakarta, Denpasar and Surabaya.
Total members of APEX rural banks (BPR) are 250 rural banks (BPR) and 10 cooperatives. In Java, there are 30 BPR who join in APEX from 363 existing rural banks.
Competition in the micro credit sector quite strict. Micro finance institutions (MFIs), such as rural banks and cooperatives have a stronger network until remote area but some of its liquidity began to weaken," said Don, Tuesday (6 / 7).
Bank Andara will open a branch in Surabaya. It is expected that approximately 400 MFIs can embrace until the end of the year. "We do not have too many branches because businesses no longer focus on retail banking, but wholesale banking," he continued.
Bank Andara is a new name of Bank Sri Partha post acquisition on April 2009. Bank which focus on financing the microfinance institutions, such as cooperatives, rural banks and Village Credit Institutions (LPD).
We give a competitive interest linkage range from 13.5 to 15 percent. Rural banks and cooperatives are expected to offer cheaper interest rates also on the debtor," said Don.
Bank Andara assets currently recorded RP 240 billion, with equity of Rp 120 billion.
Chairman of DPD Perbarindo at East Java, Soegeng Notodiharjo added, commitment Bank Andara as a parent of rural banks is expected to restore liquidity of rural banks in East Java which weakened due to competition with commercial banks.
“The growth of BPR loans per April/2010 reached 20 percent, higher than commercial banks," continued Soegeng.
Funding sources of rural banks is 11.4 percent from interbank liabilities, or linkage between commercial banks, from Third Party Funds (TPF) 65 percent, the rest is own capital.
Bank who active in providing loans through the linkage program, CIMB Niaga and Bank Mandiri.
(Quoted from Surya, Wednesday 7 July 2010)