REPUBLIKA.CO.ID, JAKARTA -- State owned Bank Company, PT Bank Mandiri is targeting 19 to 20 percent growth of retail fund next year. The biggest banking company in Indonesia admitted that banks growth will be more difficult next year as tight liquidity.
"Growth of retail funds next year will be more difficult as the higher interest rates," Director of Micro and Retail in Bank Mandiri, Heri Gunardi said recently.
Bank Indonesia (BI) has increased its benchmark interest rates 175 basis points to 7.5 percent since June 2013. Banks in the country responded by raising interest rates on their funds. Gunardi said that all banks would compete for third party funds. The high competition is not supported by wide market.
Total deposits of Bank Mandiri increased 19.3 percent, from 430.92 trillion IDR to 514.22 trillion IDR in third quarter of 2013. Total low cost fund reached 330.74 trillion IDR in third quarter of 2013, consisted of saving (217.72 trillion IDR), current accounts (113.02 trillion IDR) and deposit (183.5 trillion IDR).
Ikuti Whatsapp Channel Republika