Bank Mandiri to inject $83-M in Shariah unit

Bank Mandiri will channel anotherf Rp 800 billion ($83 million) to its Shariah unit to expand its services.

The total capital infusion to Bank Syariah Mandiri will reach ahead of its listing in the Indonesia Stock Exchange (IDX).

Bank Syariah Mandiri is trying to meet the Rp 5 trillion requirement needed to provide a domestic trust service for Indonesian customers.

The bank plans to offer corporate customers Shariah-compliant investment and lending options, according to Sunarso, the bank’s director for commercial and business banking.

The Islamic banking market is growing in Indonesia, where 11 banks offer Shariah-compliant financial services. The market reached a combined total of Rp 199.7 trillion by the end of 2012, according to central bank data.

For more.