Bank DKI credit growth in the first quarter of 2021 reached 33.66 trillion. It increased by 3.96 percent Year on Year (YoY) compared to last year that reached Rp 32.37 trillion. This growth is an indicator of increasing demand for credit, it means that economy is starting to recover from COVID-19 pandemic.

Loan and financing are also given very selectively by considering precautionary principle

Bank DKI Corporate Secretary, Herry Djufraini said, despite of growth, Bank DKI continued to implement various initiative and effective risk management to take care against increase in risk of non-performing loans.

"Loan and financing are also given very selectively by considering precautionary principle," he mentioned, Friday (5/28).

For Bank DKI's gross non-performing loan (NPL) ratio is still under control at level 3.19 percent in the first quarter of 2021, or slightly increased by 0.10 percent compared to the first quarter of 2020 which was 3.09 percent.

Increase in Bank DKI NPL ratio is still below the increase in NPL ration of banking industry which was recorded at 0.40 percent from 2.77 percent in first quarter of 2020 into 3.17 percent in first quarter of 2021.

Meanwhile, Bank DKI Net NPL in first quarter of 2021 was recorded at 0.62 percent and was below national banking industry's net NPL ratio of 1.02 percent.

"It shows that Bank DKI has anticipated potential risks by making backups even though there is restructuring program," he added.

According to him, credit risk becomes a challenge for banks in the midst of COVID-19 pandemic. Therefore, extension of relaxation provisions until 2022 by Financial Service Authority (OJK) should be appreciated.

"This policy provides flexibility for banking industry to be better in managing credit risk," he said.

Bank DKI, he continued, has made various efforts to improve ratio of non-performing loans through intensive credit collection, collateral takeover, credit collateral auction, credit restructuring through National Economic Recovery (PEN) program and write-offs.

"In addition to credit growth, other financial performance indicators continue to show positive performance. It means policies implemented by Bank DKI on COVID-19 pandemic have shown positive results from health to companies' business levels," he stated.

He informed that Bank DKI's Third Party Funds (DPK) increased by 28.42 percent (YoY) to Rp 42.98 trillion in first quarter of 2021. It was driven by growth in demand deposits YoY by 74.87 percent, thus cheap fund ratio (CASA Ratio) also increased from 43.54 percent to 47.56 percent.

"The various performance growths boost the growth of Bank DKI's total assets by 20.42 percent, from Rp 46.23 trillion into Rp 55.68 trillion as of March 2021. In line with business growth, Bank DKI's net profit has also increased. It reaches Rp 191.60 billion in March 2021, where it increased by 4.16 percent from the same period in previous year," he closed.