JAKARTA: Indonesia’s largest bank by assets, Bank Mandiri, is planning to seek about US$800 million in wholesale funding this year after parliament rejected a government capital injection proposal, its chief finance officer said here the other day.
The funding plan has been included in Bank Mandiri’s 2015 budget, chief finance officer Pahala Mansury said. The bank may issue bonds or tap the capital market.
“We are still reviewing whether we need funds from the capital market and in what form,” Mansury said.
Indonesian parliament’s budget body rejected the government’s plan to inject Rp 5.6 trillion ($436.65 million) in capital into the state-controlled lender.
The bank reported a 9 percent increase in profit for 2014 to Rp 19.87 trillion. Mandiri’s net profit growth was mainly driven by its loans, which increased by 12.2 percent to Rp 530 trillion last year, from Rp 472.4 trillion in 2013.
