Panin Bank Strategically Reduces Undisbursed Loans Amid Credit Slump

Proactive Measures to Boost Credit Utilization

Panin Bank has taken proactive measures to reduce its undisbursed loans to Rp37.95 trillion by the end of 2025, a decrease from Rp38.67 trillion in the previous year. This reduction is part of the bank's strategy to stimulate credit realization in a market characterized by weak demand for new loans. According to Herwidayatmo, President Director of Panin Bank, the bank is focusing on encouraging existing customers to utilize their approved credit facilities as a way to offset the limited demand from new customers.

Strategic Focus on Existing Customer Base

The decision to minimize undisbursed loans reflects Panin Bank's adaptive strategy in response to the current market conditions. By targeting existing customers, the bank aims to maximize the use of already approved credit lines. This approach not only helps in managing the bank's liquidity but also supports the bank's lending targets. Herwidayatmo emphasized that the bank's priority is to ensure that existing customers make full use of their credit facilities, given the subdued demand from new borrowers.

Market Context and Future Outlook

The banking sector is currently facing challenges due to sluggish credit demand, a trend that Panin Bank is addressing through strategic adjustments. By reducing undisbursed loans, the bank is effectively managing its balance sheet and positioning itself for potential future growth when credit demand picks up. This move is seen as a prudent measure to maintain financial stability while continuing to support customers' financial needs.