JAKARTA - The non-performing loan ratio of PT Bank Artha Graha Internasional Tbk. is rising quite rapidly, due to the economic slowdown.
Director of PT Bank Artha Graha Internasional Tbk. Anas Latief, stated that this year, the company's credit quality declined quite rapidly. The company's gross NPL ratio rose from 4.92% in June 2018 to 7.29% in the first half of this year.
According to him, the slowdown in the national economy affects almost all of the bank's debtor. "Yes, we see that there is an economic slowdown. This has an impact on our credit portfolio. All our debtors are loyal, but economic conditions have worsened their financial condition, so we need to take steps to recover," he said as quoted from Bisnis on Tuesday (15/10)
However, he is optimistic that the gross NPL ratio can be pushed back to below 5% by the end of this year. The company will conduct restructuring, take over collaterals, and increase its reserves.
"Gross NPLs are indeed difficult to control, but we will continue to push it down to below 5%, and below 3% for the net NPL," he said.
Based on the company's financial report, Bank Artha Graha has disbursed Rp 15.29 trillion worth of credit in the first half of 2019, 1.26% higher than the figure recorded in the same period last year of Rp 15.08 trillion. (ARM/AR)