BUSINESS

CO-OPBANK PERTAMA TO GIVE LOANS TO AT LEAST THREE CO-OPS MONTHLY

21/03/2019 05:33 PM

KUALA LUMPUR, March 21 (Bernama) -- Co-opbank Pertama Malaysia Bhd (CBP) is targeting to provide loan assistance to no fewer than three co-operatives every month following the launch of its co-operative (co-op) sector financing scheme.

Chief executive officer Mohd Nor Abd Razak said the share capital of CBP (formerly known as Koperasi Co-opbank Persatuan Malaysia Bhd) had risen to more than RM700 million and the bank was able to offer loans of up to RM40 million for co-ops, depending on the latter's product types.

“To-date, we are in talks with about 20 co-ops. They will need to go through certain processes, including an assessment of their credit ratings, before they can obtain the loans,” he told the media at the scheme's pre-launch ceremony here today.

The scheme will be launched by Malaysia Co-operative Societies Commission (SKM) executive chairman Datuk Nordin Salleh on April 10.

Mohd Nor said this latest CBP initiative was in line with its target of raising the co-op sector's share within its financing portfolio to 30 per cent by 2020.

“We are targeting that by end-2020, CBP's financing portfolio would comprise 70 per cent personal financing and 30 per cent co-op financing (versus the current ratio of 90:10),” he added.

CBP will work together with SKM, which will provide the list of co-ops that require financing.

“This is not an issue, as CBP has sufficient capital to assist them,” Mohd Nor said.

He said that previously, there were many co-ops seeking financing but the capital available was not enough, but now the capital at hand was more than sufficient.

CBP, said Mohd Nor, hoped to help boost the co-op sector's growth to 10 per cent this year from 4.0 per cent in 2018.

The bank was also poised to pay a dividend rate of 9.5 per cent for the 2018 financial year, up from 8.5 per cent in the preceding year, he said.

-- BERNAMA


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