JAKARTA. PT Bank CIMB Niaga Tbk (BNGA) will push the growth of cheap funds this year, because its Loan to Deposit Ratio (LDR) hasn't fully recovered.
Tigor M. Siahaan, President Director of BNGA, said that the company would optimize its digital banking facilities to boost the growth of cheap funds or Current Account and Savings Accounts (CASA). Siahaan also acknowledged that in 2018, the banking industry in Indonesia felt that credit growth was quite slow.
"In terms of the industry itself, the deposit is lagging. So we prepared a number of options, in terms of capital markets and in CASA too, "Siahaan said on Monday (15/4) when met by idnfinancials.com.
In 2016, the BNGA's LDR was at the level of 98.38%. Its value fell to 96.24% in 2017 and improved slightly in 2018 to the level of Rp 97.18%, but it has not grown above the LDR level in 2016.
The total Third Party Funds (DPK) collected by BNGA in 2018 were recorded at Rp 190.75 trillion, up by only 0.76% from the previous year, which was Rp 189.32 trillion. Therefore, Siahaan admitted that the company would not target large growth in its credit disbursement and deposits this year. "So, [our target] is mid-to-single digits for credit, same for DPK, "explained Siahaan. (KR/AR)