Diversified To The Corporate-Comersil Segment, Amar Bank Wants To Balance Credit Portfolio

Rupiah (Photo: Antara)

JAKARTA - PT Bank Amar Indonesia Tbk (Amar Bank) began diversifying its credit portfolio this year. Where, targeting the corporate and commercial segments.

This was done by Amar Bank after the company recorded the success of the distribution of retail loans and MSMEs through the Tunaiku application.

"In addition to Tunaiku, we are also trying to diversify. Not only in terms of retail and MSMEs, we will also diversify to other sectors, namely corporations and commercials to further balance credit portfolios," said Senior Vice President of Finance Amar Bank David Wirawan quoting Antara.

Tunaiku is a digital loan application from Amar Bank. Since the platform was launched in 2014, Tunaiku has served nearly 400,000 MSMEs and distributed more than 1 million loans, totaling more than IDR 10 trillion. Utilizing big data technology, Tunaiku provides productive loan access for MSMEs.

In the third quarter of 2023, Amar Bank's credit disbursement reached IDR 2.47 trillion, an increase of 15.56 percent. Amar Bank also managed to maintain a fairly good ratio of non-performing loans at the level of 1.56 percent and a recorded capital adequacy ratio (CAR) of 124.5 percent. Overall, the profit earned by the company in the third quarter of 2023 became IDR 162.17 billion, an increase of 193.81 percent (YoY).

"Our CAR ratio is very high, which is up to 124 percent. On the one hand, it looks very safe, but on the one hand, we can see that actually this bank may not work optimally. Therefore, we are trying to continue to diverge our books and one of them is by diversifying our portfolio," said David.

He said Amar Bank also has a working team focused on working on the corporate and commercial segments. For strategies in segments that are not too large, such as commercial or medium- and large-scale MSMEs, David said his party also provides easy access to digital in the loan application process at the early stages so that the hope is to attract more customers.

"So the process in front of it does not always have to be human but can also be through digital access. Because now MSMEs are big, they have a mindset, 'I'm afraid that if I go to the bank it's rejected, the documents are complicated. So we can try to find a solution. We can test them by way, they submit the documents in front and we can do key checking assessment at the beginning so that they can provide confidence," he said.