KUALA LUMPUR, April 10 — Co-opbank Pertama Malaysia Bhd (CBP) is setting aside an additional fund of RM700 million for co-operative (co-op) sector financing to boost the sector’s financing percentage allocation to 30 per cent of its total portfolio from 10 per cent previously.
The higher allocation was made based on CBP’s total assets worth RM3.61 billion, said chief executive officer Mohd Nor Abd Razak said.
This, combined with the earlier allocation of RM400 million, raised the total funding under CBP’s co-op portfolio to RM1.1 billion, he said.
Chairman Kamari Zaman Juhari said the funds would be allocated in stages from this year to 2020 through six financing products.
“We will consider co-ops’ applications based on their financial track record as well as credit rating,” he told a media conference after the launch of the Co-op Financing Scheme — Growing with CBP campaign here today.
Asked on the funding limit, he said the amount would depend on the co-op’s needs but it would be in line with CBP’s policy of not exceeding RM40 million.
Its six loan products are property-i, factoring-i, contract-i, bridging-i, term-i and revolving-i.
On the co-op sector’s contribution to CBP’s profit, Kamari said personal financing currently made up 90 per cent of its portfolio mix while 10 per cent came from co-op and corporate sector financing.
Last year CBP achieved a record profit of RM52.59 million in 2018.
It also added more than 6,000 members in 2018, bringing its total membership to 84,357 individuals and 684 co-ops. — Bernama
