Plantersbank looking for a bank to buy

Planters Development Bank (PDB), the thrift bank controlled by the Tambunting family, is still looking for a bank to acquire, a PDB official said yesterday,

The PDB official, who requested anonymity, told The STAR, that they are also looking at the possibility of merging with other banks "if necessary."

The official said that these plans are included in the long-term strategy of the bank. "Maybe we can push through with these plans next year. We are still looking at our options," the official said.

According to the official, the bank is also preparing for an initial public offering which it intends to hold about three to five years from now.

"We plan to do that (IPO) in three to five years time. We have to prepare the bank," the official said.

At present, he said the bank is focusing on its information technology enhancement.

He said they are also trying to improve their services to small and medium enterprises, which are the bank’s primary clients. "We are developing products to keep our clients happy," he said.

In an earlier interview, PDB chairman Ambassador Jesus Tambunting said their bank is well-positioned to dominate and capture the SME sector. "We are probably the only bank focused to this sector of the economy," he said.

PDB has 51 branches all over the country. It has plans of putting up another bank to deal with microfinance lending.

It expects net profit for this year to hit P130 million, slightly lower than the P135 million in end-1999.

The bank’s non-performing loans as of end-June 30, 2000 amounted to 13 percent from 12 percent as of end-1999.

Its asset base stood at P19 billion while its capital amounted to P2.6 billion.

Tambunting said that despite its huge capital, PDB is not applying to become a commercial bank since its focus is servicing the SMEs sector.