Funds Grow 18 Percent More Danamon

PT Bank Danamon Indonesia Tbk raise third party funds amounting to Rp 89 trillion to the end of March 2012.

The number of third party funds (DPK) was up 8 percent compared with the final quarter of 2011, which amounted to Rp 82 trillion.

Director Vera Eve Liem Danamon in a press release on Tuesday (4/17/2012), suggests, the increase in deposits was supported growth of low-cost funds in the form of demand deposits and savings of 18 percent to Rp 36 trillion.

"Demand deposits grew 33 percent to Rp 13 trillion, while savings grew 11 percent to Rp 23 trillion," said Vera.

However, the total cost of funds is still less expensive than the funds in the form of deposits. Per the first quarter of 2012, deposits grew 3 percent to Rp 53 trillion.

Thus, deposit growth is much smaller than the current accounts and savings deposits still dominates the source of Danamon with 59.55 percent share of total deposits. The low-cost funds reached 40.44 percent of total deposits Danamon.

Deposit of funds is said to be expensive because it provides a greater rate than demand deposits and savings as a low-cost funds. However, it limited the amount of interest rate guarantee issued by the Deposit Insurance Corporation (LPS).

Currently, the interest rate guarantee for rupiah deposits at commercial banks at 5.5 percent. Deposit interest rate is greater than the interest rate guarantee is not guaranteed by LPS.