The plan to issue the subdebts, if approved by its parent company, would strengthen its capital adequacy ratio (CAR) which began to decline, PT BSM President Director Yuslam fauzi said on Thursday.
Bank Mandiri had injected Rp200 billion in funds to BSM in two phases with each amounting to Rp100 billion, he said.
He said if the capital injection from Bank Mandiri was far from enough BSM would issue subdebts.
"True, Bank Mandiri has approved our fund needs of Rp900 billion. But we still have to study how to meet the funds," he said.
BSM posted a net profit of Rp270 billion in the year ended June 2011, a 36.64 percent increase compared to Rp197.60 billion in the same period a year earlier.
He said the total financing extended by BSM in the first half of 2011 reached Rp30.06 trillion, up by 51.28 percent from the same period last year when the figure was Rp19.87 trillion.
As per June 30, 2011, BSM`s unaudited assets surged by 44.49 percent to Rp38.25 trillion from Rp26.38 trillion a year earlier.
He attributed the increase in total assets to third party funds which rose 45.56 percent to Rp33.96 trillion in the first semester of 2011 from Rp23.33 trillion in the same period last year. (*)
Editor: Kunto Wibisono
Copyright © ANTARA 2011
