Banks Braces for Non-Performing Loan Surge

PT Bank Mandiri Tbk (BMRI) has restructured Rp 123.4 trillion worth of loans from 543,758 debtors last year, or 16.2 percent of Bank Mandiri's total credit balance.

However, this year, about 10 percent of debtors are in the high-risk category and may fail to pay their loans, commonly known as non-performing loans (NPL). "Based on the analysis, 10-11 percent of debtors in the high-risk category may not survive the pandemic and be downgraded to the NPL level when the tenor of the restructuring is over in 2021," Bank Mandiri director of risk management, Ahmad Siddik Badruddin, revealed on Thursday (1/28).