TEMPO.CO, Jakarta - The Financial Service Authority (OJK) welcomed recent right issue launched by Bank Bukopin raising Rp1.46 trillion in fresh fund.
The right issue on Friday was effective in line with the time frame as planned, a statement received by OJK said on Saturday.
The right issue will have positive impact on the bank strengthening the bank capital and supporting its business expansion, the statement said.
The success in the process of the sales of right shares also indicates that international market players still have confidence in the country`s banking industry, it said.
Standby buyer, Kookmim Bank, one of South Korea`s largest lenders , will be a 22 percent shareholder of the country`s bank.
With Kookmin Bank, which operates mainly in the small and medium banking market, as major shareholder, the right issue is expected to lead to Bank Bukopin offering more credits to the micro, small and medium (UMKM) sector.
The process could also have positive impact on business expansion of Bank Bukopin contributing more to the country`s economic growth," the statement said.
Bank Bukopin, a medium lender bank, recorded Rp302 billion in the first half of this year, or an increase of 25 percent from Rp242 billion in the same period last year.
Based on its financial report for the second quarter of 2018, the bank`s assets were valued at Rp91.7 trillion by June in this year.
The bank`s outstanding credits were valued at Rp66.8 trillion as against third party funds it held at Rp72.1 trillion.
The increase in its profit was attributable mainly to 31 percent rise in fee based income, a 9 percent decline in operating cost and 1.5 percent increase in net interest income.
Reporting by Satyagraha.