Although BI Rate Rises, Bank Mandiri Is Optimistic Of Loans Growing 11 Percent

Illustration (Photo: Doc. Antara)

JAKARTA – PT Bank Mandiri Tbk. assessing that Bank Indonesia's move to increase the benchmark interest rate by 25 basis points to 3.75 percent will not have a significant impact on the pace of banking intermediation.

Corporate Secretary Rudi Asaturridha stated that the company's credit remains on track and is expected to achieve the targets set for this year.

"Bank Mandiri remains optimistic that the loan growth target of 11 percent (year on year / yoy) until the end of 2022 can be realized while maintaining the principle of prudence," he said in a written statement quoted on Friday, August 26.

According to Rudi, as of the end of July 2022, the company's total credit distribution on a bank only basis has managed to grow 11.38 percent yoy.

“This growth was supported by the trend of improvement from all segments, especially the wholesale segment which became our flagship with growth of 10.8 percent yoy. In addition, credit in the retail segment grew 12.5 percent yoy," he said.

Rudi added that the increase in the BI rate to interest on loans and deposits will depend on the liquidity conditions of each bank, including the calculation of the trend of interest rates in the market.

He explained that since the beginning of last year, Bank Mandiri's rupiah deposit interest rate had fallen by 50-75 bps from the previous 3.00 percent in March 2021 to 2.25 percent to 2.50 percent in July 2022.

"Similarly, the basic loan interest rate which on average for all segments has fallen by 167 bps during 2021 to 2022 with the largest decline in the basic loan interest rate for the consumption segment," he added.

Meanwhile, currently, the state-owned bank's liquidity level is still at the ample or liquid level, which is reflected in the position of Bank Mandiri's loan to deposit ratio (LDR) as of July 2022 at the level of 87.48 percent, dominated by low-cost funds (CASA).

It was recorded that as of July 2022, Bank Mandiri's total DPK had reached IDR 1.013.08 trillion, growing 8.7 percent yoy.

This growth was contributed by, among others, CASA which grew 11.8 yoy to IDR 768.09 trillion.