Sharia Business Unit Donates Bad Debt to BJB Bank Consolidation

By : Wiyanto Dan Aldo Bella Putra | Tuesday, November 21 2017 - 18:00 IWST

Bank BJB
Bank BJB

INDUSTRY.co.id - Jakarta - PT Pefindo still provides a stable rating outlook against Bank BJB, both Bank ratings and bonds. Although currently, a subsidiary, Sharia Business Unit (UUS) BJB stumbles issue on the quality of financing.

PEFINDO analyst Hendro Utomo said that the problem of poor quality of its UUS can affect the rankings.

"I would like to issue bond-related and subordinated issues, as we have pointed out that one of the factors that imply that we limit the high Non Performing Loan (NPL) rating, especially the productive segment and the one from BJB syariah, calculates the subsidiary's condition to the parent's rating," he said. Jakarta, Tuesday (21/11/2017).

He said the bank's own BJB NPL only 1.5%, but if consolidated with its UUS, NPL 2.9% translucent. Although the contribution of UUS's assets to BJB is only 6% to 6.5%.

"Our ratings include the condition of the rated subsidiaries We see that BJB is sufficiently burdened by the condition of bjb sharia, the NPL is not too good. If not calculated sharia, the NPL is only 1.5%, but bjb sharia is high, if the consolidated NPL bjb achieve 2,9%," he said.

Until now, Pefindo has assigned idAA- rating for the 1/2017 sustainable bond issuance worth Rp3.5 trillion and idA rating for the I / 2017 subdebt of Rp1.0 trillion. At the same time, the rating of idAA- for ratings of Bank BJB and bonds VII / 2011 and MTN / 2016 are still outstanding.

News Comment

Today's Industry

EH Free Swinging Hinges

Kamis, 29 September 2022 - 12:00 WIB

Southco Introduces Free-Swinging Hinges in New Materials to Meet Demanding, Heavy-Duty Applications

Southco Asia Ltd., a subsidiary of Southco Inc., a leading global provider of engineered access solutions such as locks, latches, captive fasteners, electronic access solutions and hinges/ positioning…

President Jokowi distributes direct cash assistance in South Buton regency, Southeast Sulawesi province, Tuesday (09/27). (Photo by: BPMI Presidential Secretariat/Laily Rachev)

Rabu, 28 September 2022 - 21:50 WIB

President Jokowi Distributes Assistances in South Buton

President Joko “Jokowi” Widodo Tuesday (09/27) distributed direct cash assistance (BLT) for fuel for beneficiaries of Family Hope Program (PKH) at Batauga post office, South Buton regency,…

President Jokowi at the inspection at PT Wika Bitumen, Buton regency, Southeast Sulawesi province, Tuesday (09/27). (Photo by: BPMI Presidential Secretariat/Laily Rachev)

Rabu, 28 September 2022 - 19:00 WIB

President Jokowi Pushes for Revival of Asphalt Producing Industries in Buton

President Joko “Jokowi” Widodo Tuesday (09/27) expressed hope to Buton regency, Southeast Sulawesi province to maximize its potential so it can re-emerge as an asphalt-manufacturing industrial…

KRAIBURG TPE presents THERMOLAST® R

Rabu, 28 September 2022 - 17:00 WIB

KRAIBURG TPE to campaign in Düsseldorf: The focus is on sustainable products and discussion

To ensure that customers of KRAIBURG TPE always achieve the best result, individual materials solutions are developed for many requested applications. The result: Right in time for the 2022…

Marcelo Tarkieltaub, regional director for Southeast Asia, Rockwell Automation.

Rabu, 28 September 2022 - 15:12 WIB

Rockwell Automation Secures RM150 Million Project from Exyte Group in Malaysia

Rockwell Automation, Inc. (NYSE: ROK), the world’s largest company dedicated to industrial automation and digital transformation, has secured a turnkey project worth RM150 million (about SGD45…