PROPOSED BUSINESS STRATEGY FORMULATION TO LOWER BANK COST OF FUND DURING THE GLOBAL COVID-19 PANDEMIC (CASE STUDY : PT BANK KANBINA TBK)

• Main Author: Dwi Novianti, Kania
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/53751
• Institution: Institut Teknologi Bandung

COVID – 19 has impacted KANBINA’s performance in the first half of 2020. By YTD of June 2020, it was seen that the Bank’s Net Profit after Tax (NPAT) down to 10% YoY. One of the reason is because the Net interest Margin (NIM) YoY contracted to 6.21 in June 2020 from 6.72 in June 2019. Based on Bank’s June 2020 report, it can be seen that the Bank needs to continue manage its cost, in terms of operational cost, cost of credit and cost of fund. This study will focus specifically on how Kanbina Bank can reduce its Cost of Fund and increase its CASA so that the Bank’s NIM can be maximize. Based on the existing balance sheet analysis currently Kanbina’s funding structure onsist of 74% Time Deposit (TD) and CASA 26%. These proportion are higher compared to other BUKU III Banks. To analyze and research the most appropriate strategies to improve the Bank’s performance in relation to its funding, this paper will gather and gain quantitative and qualitative information, specifically from the current member of Bank’s CASA project team to find alternatives that may be applicable for the Bank. One important requirement needed to lower COF and increase CASA is the Bank’s ability to improve its Relationship Manager capabilities, apart from restructuring current funding products of the Bank.