Bank Mandiri to offer more loans to the mining sector
Tuesday, March 20 2012 - 05:58 AM WIB
One of Indonesia's largest national banks Bank Mandiri stated Monday that it plans to offer more loan to the mining industry this year.
"Our credit portfolio for the mining industry has grown about 105 percent in the last two years," said Bank Mandiri Commercial Banking Vice President Novi Wahyu Hadi to Petromindo.com.
The bank gave around Rp 3.3 trillion worth of loan for the mining industry until June 2011, up from Rp 2.4 trillion in the same period in 2010.
"Despite its massive quantity, the Rp 3.3 trillion worth of credit only account for about 1.4 percent of our entire credit portfolio," he said, stating that a raise between 10 to 12 percent credit portfolio is what the bank aims to achieve for the sector.
Wahyu also stated that Bank Mandiri recorded the lowest non performing loan (NPL) rating at 0.4 percent compared to the average national bank at 1.5 percent, adding that the bank currently only provides loan for mining companies that are undergoing exploitation stage.
Editing by David Mustakim