Bank Mandiri to sell stake in small Bali bank

Bank Mandiri will sell part of its stake in Bank Sinar.

Bank Sinar is a small bank that caters mainly to smallholding farmers that trade in Bali’s wet markets, has a ratio of non-performing loans that is close to zero. Non-performing loans are loans that are in default, or are close to it.

Two state enterprises, Pos Indonesia and Taspen, are each set to buy a 20.2 percent stake in the bank.

Bank Mandiri took control of Bank Sinar Harapan Bali, a small lender in Bali, in 2008 aiming to expand its reach in the resort island’s micro lending sector.

It has total assets amounting to Rp 1.08 trillion ($185.6 million) at the end of September 2012, posted a total net interest income of Rp 69.7 billion in the first nine months last year from Rp 64.7 billion in the same period in 2011. While its net income rose to Rp 12 billion from Rp 11 billion in the same period in 2011, according to data from Bank Sinar

Zulkifli Zaini, president director of Bank Mandiri, said on Wednesday that even if Bank Mandiri sells part of its stake in Bank Sinar, Bank Mandiri will remain the controlling shareholder. “We want to be the controlling shareholders,” Zulkifli said.

Pos Indonesia and Taspen are each set to buy a 20.2 percent stake in Bank Sinar from Bank Mandiri.

After the acquisition, Bank Sinar will be a joint venture bank raising its capital to Rp 500 billion from its existing Rp 100 billion.

For more.

https://www.thejakartaglobe.com/business/bank-mandiri-to-sell-stake-in-bali-bank/568823