Recapital plans to acquire Bank Eksekutif

Recapital Advisors plans to take over PT Bank Eksekutif International Tbk along with the IDR100 billion minimum capital requirement this year. Recaptial has been conducting due diligence of Bank Eksekutif despite the other investors participation.

The company have been conducted due diligence from January 25 up to February 25, 2010.

After the deadline of due diligence, investor and bank management will report to BI.

Last year, Recapital tried to acquire Bank Eksekutif but it was suspended due to economy crisis.

BI data November 2009 shows the bank suffered from IDR54.2 billion losses so it cut down the capital up to IDR53 billion or far lower than the minimum requirement of IDR80 billion.
The CAR declined into 7.68 percent or under the minimum requirement of 8 percent. When bank with under CAR requirement, it will be under special supervision.
The NPL stood at IDR294 billion of the total credit value of IDR1.06 trillion. It means the NPL stood at 29 percent.

So Bank Eksekutif is under special supervision but it will not last longer, is only two weeks. The banks have increased the capital mid December 2009 worth IDR55 billion. so the capital position is above IDR100 billion and CAR 11.3 percent.

But the bank is still under intensive watch with the NPL above 5 percent. BI regulation stipulates that a bank failing to minimize net NPL under 5 percent will have intensive supervision.