PT Bank Mandiri (Persero) Tbk projects that the consolidated net interest margin or NIM growth this year will be at the level of 4.6-4.8%.

"We also want to continue to encourage efficiency, especially in reducing the cost of funds by focusing on increasing the ratio of low-cost funds," said Bank Mandiri President Director Darmawan Junaidi in a virtual press conference, Monday (15/3).

He added that Bank Mandiri estimates that credit growth will be at the middle single-digit level. The lender plan to focus the lending on sectors that are already growing, such as food and beverages, telecommunications, plantations, agriculture, and trade.

Regarding credit restructuring that was affected by Covid-19, he said the loan restructuring portfolio that the company had approved was Rp123.4 trillion with a total of 534,000 debtors. Of this amount, the debit balance until the end of December 2020 is around Rp93.3 trillion.

"We estimate it will continue to decline this year," he said.

In the same place, the Director of Risk Management, Ahmad Siddik Badruddin added, of the total Rp 93.3 trillion, Bank Mandiri estimates that around 0.3-0.4% of debtors become non-performing loans because they cannot get back up.

"So, to anticipate some debtors who will fall into NPL, we have set aside sufficient capital reserves from April 2020 until now. Where last year, we have set aside Rp4.5 trillion specifically for the Covid-19 restructuring debtor, which we estimate may fall into the NPL. And this year, we added Rp1 trillion to a total of Rp5 trillion," explained Siddik.