Needing capital, Bank Banten will hold a rights issue with a target fund of Rp 3.04 trillion

Reporter: Laurensius Marshall Sautlan Sitanggang | Editor: Herlina Kartika Dewi

KONTAN.CO.ID – JAKARTA. PT Bank Pembangunan Daerah Banten Tbk (Bank Banten) said that the plan to increase capital is only a matter of waiting for the game date, after previously being delayed.

President Director of Bank Banten Fahmi Bagus Mahesa explained that the additional capital is certainly in line with the disclosure of information that has been done, namely through the Limited Public Offering (PUT) VI alias rights issue.

If the plan goes according to plan, of course the bank codenamed the BEKS stock exchange will be able to accelerate its performance growth more quickly, which has been under pressure. Reflected by the realization in June 2020, Bank Banten recorded a loss of IDR 99.98 billion. This is because, according to Fahmi’s statement, his party is targeting funds that can be obtained through this action to reach Rp 3.04 trillion.

Meanwhile, the carrying out of this corporate action is also related to the Banten Province Regional Regulation (Perda) Number 1 of 2020. In this Perda, the Banten Provincial Government as the shareholder of the company through PT Banten Global Development (BGD) will strengthen the capital of Bank Banten with a value of up to IDR 1. 55 trillion.

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He also emphasized that this effort was also intended to comply with the Financial Services Authority Regulation (POJK) Number 12 of 2020 concerning the Consolidation of Commercial Banks. In the regulation, it is clear that all banks in the country are required to have a minimum core capital of Rp 3 trillion.

Fulfillment of these provisions can be done in stages, including Rp. 1 trillion in 2020, then Rp. 2 trillion at the end of 2021 to Rp. 3 trillion on December 31, 2022.

Apart from that, Fahmi also said that his party is currently still waiting for the realization of the conversion of provincial government funds to BGD to be deposited in the holding account of PUT VI.

“Thus, the corporate action registration process can be resumed,” Fahmi said to Kontan.co.id, Wednesday (4/11).

This corporate action plan has also received approval from shareholders through the Extraordinary General Meeting of Shareholders (EGMS) which was held on October 2, 2020.

As an illustration, referring to the financial report of Bank Banten in July 2020, the company’s total core capital (Tier 1) is indeed very small, which is only IDR 63.09 billion. That number decreased drastically from the period a year earlier which had reached IDR 217.22 billion or decreased by 70.95%. year on year (yoy).