JAKARTA (Yosefardi) – The Indonesian Depositors Insurance Agency (LPS) approves to inject Rp1.5 trillion to support PT Bank Mutiara Tbk (BCIC), who was bailed out with Rp6.7 trillion five years ago.
The fund injection aims to maintain BCIC’s capital adequacy ratio (CAR) at 14%. The bank needs additional capital to deal with the non-performing loan (NPL).
Bank Mutiara yet to publish its financial statement for the period of January-September 2013. As of June 30, 2013, however, the bank had total assets of Rp15.96 trillion and equity of Rp1.29 trillion, clearly too small to support the bank, especially it the non performing loan is increasing.
The bank generated net profit of Rp58.74 billion in the first half, dropped significantly from Rp87.36 billion in the corresponding period of 2012.