May 20, 2011

BJB, BTN to hold rights issue

Two state-owned banks, PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk (BJB) and PT Bank Tabungan Negara Tbk (BTN), aim to issue new shares to maintain capital adequacy ratios at an adequate level.
BJB intends to conduct the corporate action in the end of 2012 or early 2013 to balance the capital adequacy ratio with regional champion at 14%. Meanwhile, BTN will hold it in 2013.
Consumer Director of Bank Jabar Tatang Sumarna said the company will need additional capital in late 2012 because capital adequacy ratio (CAR) is expected to erode up to 15%.
"In 2012, the company’s CAR will reach 15% with business growth at 20%. If the target is realized, then in the end of 2012 or early 2013 there will be a right issue," he explained, yesterday.

Disclosure: No position at the stock mentioned above.

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