MANILA, Philippines - The Rizal Commercial Banking Corp. (RCBC) will merge two of its subsidiaries into a thrift bank reportedly called Rizal Microbank.
To be merged are thrift bank Merchant Bank and Pres. Jose P. Laurel Rural Bank, a rural bank concentrated in Southern Tagalog.
“These two banks will eventually be consolidated into one thrift banking unit called Rizal Microbank, which will cater to untapped microfinance markets like Mindanao,” Ma. Lourdes Jocelyn S. Pineda, RCBC senior vice president and head for microfinance operations, said.
The key to the eventual merger is PITAKA, or Pautang Para sa Maliit na Industriya, Tindera, at Agrikultura sa Kanayunan, the microfinance loan program presently marketed by JPLaurel Rural Bank.
PITAKA is the company’s flagship microfinance loan product first offered by JPLaurel Rural Bank, which was acquired by RCBC last year. With the eventual consolidation of JP Laurel Bank with Merchants Bank, also under RCBC, PITAKA will be offered to more strategic locations in the country, from Southern Luzon all the way to Visayas and Mindanao areas.
“Microfinance is an important tool that empowers more Filipinos to be self-sufficient. We are taking active steps to make more inroads in this area,” Pineda said.
PITAKA offers loan amount ranging from P5,000 to P50,000 for initial borrowers, reaching up to P150,000 for repeat clients. Its weekly payment cycle lasts from three up to six months, with just two-percent interest a month.
Before borrowers can get a loan, RCBC requires them to open a contractual savings account with the thrift bank to encourage them also to save for future investment opportunities.
Since RCBC started micro-lending in July last year, its PITAKA loan facility has attracted more than 573 borrowers who generated over 2,000 loans that amount to P48 million. The bank takes pride in the quality of its portfolio due to its stringent screening procedure of loan applicants that results in a delinquency rate of just 0.1 percent for as fast as a three-month loan rotation period and with payment on a weekly basis.