Wednesday 12 November 2008

BCA definitely will establish full-fledged Islamic Bank


Kamis, 30 Oktober 2008
Jakarta (30/10) Bank Central Asia (BCA) will certainly establish a full-fledged of Islamic bank by the acquisition of 100% ownership of PT Utama Internasional Bank (UIB).

The President Director of UIB D.E Sutijoso, has confirmed such acquisition will take placed on his press release in Jakarta yesterday, in 2009, the ownership of PT UIB will be officially transferred to BCA.

"Both parties has been signed an agreement under sale contracts on October 24 2008" said the President Director of P T UIB.

The business opportunity of UIB for BCA is quite promising since the UIB asset has a total amount of IDR 665.7 billions, with credit portfolio of IDR 462.2 billions and as of June 2008, the third parties funds has reached IDR 553.6 billions.

D.E Sutijoso said that UIB has five branch offices and 7 cashier's offices, the acquisition process will take about one year to be completed.

Islamic Finance observers, from Karim Business Consulting, Adiwarman Karim, said that the expected growth of Islamic banking business will be raised to 5%. As of July 2008, the Islamic banking total asset has reached IDR 43 Trillions and will increase to IDR 75 trillions which is about 4% by end of the year.

Moreover Karim said: "as a comparison of last year it needed 12 months to have IDR 10 trillion increment, but now it can be achieved by only seven months, it is easy to accomplished the 5% target. In order to achieve the 75 trillions or 4% by the end of the year is very easy and hopefully by 2009 it will pass beyond the 5%." The acceleration growth of Islamic banking business is because now we have Islamic banking act, we have issued sukuk and by next year double tax deduction is going to be removed.(Agus/Nibra www.pkesinteraktif.com)

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