JAKARTA. PT Bank of India Indonesia Tbk (BSWD) is focusing on reducing its non-performing loans (NPLs) ratio to 3% by selling receivables to third parties (cessie) and asset takeovers (ayda).
Primasura Pandu D., Compliance Director of BSWD, believed that those steps were necessary, because the national economic condition and the banking industry growth in Indonesia were stagnant. "Even though we are stagnating, our NPL has improved," Pandu said when met at his office on Tuesday (22/10) today.
As of Q3 2019, BSWD has collected Rp 2.36 trillion in third-party funds (DPK), 2.88% lower than the figure recorded in the same period last year. This number is down 2.88% from the same period last year. However, over the past 3 years, the bank has managed to reduce its NPL ratio from 15.82% at the end of 2016 to 4.42% at the end of September 2019.
Pandu explained, the company had to sacrifice its Allowance for Impairment Losses (CKPN) to improve its NPL ratio. In 2016, BSWD allocated Rp 381 billion as CKPN, but the figure continues to decline to reach Rp 98 billion by the end of Q3 2019.
For information, BSWD generated Rp 14 billion in net profit as of Q3 2019. In this period, the company's Net Interest Margin (NIM) was at the level of 4.50%, higher than the same period last year of 3.84%. (KR/AR)