Bank National Nobu, a small lender affiliated with tycoon Mochtar Riady, expects its lending to surge this year after raising funds from its share sale.
Suhaimin Djohan, president director of Bank Nobu, told reporters on Monday that the bank was expecting its lending to reach Rp 1.4 trillion by the end of the year, which is about triple the lending it had by the end of 2012 at Rp 413 billion.
He was speaking on the sidelines of Bank Nobu’s trading debut on the Indonesia Stock Exchange on Monday.
Suhaimin said the Rp 810 billion raised from its initial public offering last week can help the bank expand its branch network and in turn help boost its loans.
With the help of the funds from the IPO, the bank now has more than Rp 1 trillion in capital, which allows it to have more flexibility in opening branches based on Bank Indonesia’s classification.
“With this size of capital, we are now able to have 70 branches, or even up to 100 branches. This will help our credit expansion,”Suhaimin said.
The company now has 52 branches and will open two more next week. For future expansion, he said Bank Nobu will focus on the eastern part of Indonesia.
“Eastern Indonesia is where we think the bigger growth potential is. Loan penetration is low and we will have less competition there,” he said, adding that as of Monday, Bank Nobu has branches in Makassar and Manado in Sulawesi. The bank will continue to focus on lending to small- to middle-sized enterprises in sectors like trading and food processing, among others.
Suhaimin also said that Bank Nobu was applying for a permit to conduct foreign exchange transactions. Mario Satrio, corporate secretary at Bank Nobu, said that the licensing process at the central bank may take a few months to process, but that the bank was already preparing the infrastructure for this as well as the necessary human resources.
Meanwhile, on its trading debut, shares of Bank Nobu opened with 20 percent increase to Rp 450 from its IPO price of Rp 375 per share last week. The bank sold 2.16 billion shares, or 52 percent of its total shares, in the IPO.
The bank is the 9th company listed on the IDX this year.
Bank Nobu was acquired by Mochtar Riady, the patriarch of the Lippo Group, through Kharisma Buana Nusantara. The Jakarta Globe is also affiliated with the Lippo Group.