Tough! Bank Mandiri Distributes Rp920 Trillion Loans Until The End Of February 2023

Bank Mandiri Corporate Secretary Rudi Asaturridha. (Photo: Doc. Bank Mandiri Public Relations)

JAKARTA - PT Bank Mandiri (Persero) Tbk recorded a bank credit growth of only 10.72 percent year on year (yoy) to Rp920.03 trillion, at the end of February 2023.

Bank Mandiri Corporate Secretary Rudi Asaturridha said this growth was mainly supported by sectors that were targeted for growth according to the Loan Portfolio Guideline. One of them is the government sector, health services, energy & water, manufacturing industry, and several leading sectors in the region.

"Through a business development and optimization strategy, Bank Mandiri is optimistic that by the end of 2023 credit growth as a whole can grow in the range of 10-12 percent while still prioritizing the precautionary principle, so that credit quality is maintained at an optimal level," said Rudi in a written statement in Jakarta, Thursday, April 13.

Rudi explained that Bank Mandiri's credit distribution also grew evenly across all types of credit, one of which was the distribution of investment loans as of February 2023 which reached Rp413.91 trillion or grew 12.91 percent compared to the same period the previous year.

Not only that, in line with the increasing purchasing power of the community, Bank Mandiri's rate of consumption credit distribution also accelerated with a total of IDR 151.4 trillion in the first two months of 2023.

This realization managed to grow positively by 40.2 percent compared to the position in February 2022.

"One of the strategies carried out by Bank Mandiri to maintain this growth is through the development of technology and digitization, strengthening collaboration, maximizing economic potential in the region, as well as improving the quality of assets and risk management," said Rudi.

The credit growth was also accompanied by adequate liquidity conditions. This is reflected in the growth of third party funds (DPK) by 13.89 percent yoy to IDR 1.1 trillion on a bank only basis.

The growth of the DPK was mainly supported by low-cost funds or current account saving accounts (CASA) which increased significantly to 19.78 percent or exceeded the figure of Rp892.69 trillion as of February 2023.

"Through digital optimization and sustainable business transformation, Bank Mandiri has succeeded in scoring low-cost fundraising growth. This can be seen from the CASA ratio which has reached 78.08 percent as of February 2023 on a bank only basis," he said.

Bank Mandiri has also consistently encouraged lending to the micro, small and medium enterprises (MSMEs) sector.

This effort is in line with the government's commitment to expand bank support for MSME players.

As a result, until the end of February 2023, Bank Mandiri's MSME credit realization on a bank only had reached Rp115.97 trillion, an increase of 10 percent from the previous year's position of Rp105.53 trillion.

Of this amount, this growth occurred in the micro-enterprises sector with the realization reaching Rp69.68 trillion as of February 2023 or growing more than 4.6 times compared to the position in February 2022.

Rudi said, to encourage the distribution of MSMEs, his party has had various strategies that have been implemented expansively for the past few years.

This strategy is carried out through mapping or market segmentation of prospective debtors, especially MSME players, including checking risks by checking business profiles, business capabilities, and financial conditions of prospective debtors.

"In doing the mapping, we also apply credit scoring which refers to the company's risk appetite. This is done to minimize credit risks that may arise in the future," he explained.

Not only that, but Bank Mandiri also held training and assistance programs to help people's businesses improve financial literacy.

"This is done so that people's efforts can understand the importance of good financial management and can manage business finances better," he added.