KUALA LUMPUR: Bank Muamalat Malaysia Bhd expects a modest six to eight per cent loan growth for this year despite the recent Overnight Policy Rate (OPR) cut.
Chief executive officer Datuk Mohd Redza Shah Abdul Wahid said the OPR cut would benefit existing customers more than the new ones.
“We will be making an announcement that we will be joining other banks in reducing loan rates.
“Deposit rates are also reduced. However, there should not be too much impact.
“For about two to three months, our income may be slightly reduced but it should return to normal,” he said after the launch of the bank’s syariah-compliant debit card called “Aisya”, here, yesterday.
Redza said although there was reduction in loan growth since April to eight per cent from 10 to 11 per cent previously, personal financing remained steady.
“The OPR cut was very timely as people are beginning to feel the impact of the economic slowdown. So the cut would be able to help them in terms of financial needs.
“Our lending guidelines remain the same. It is not true that lending rules (have tightened) and the approval processes take longer.
“I think the borrowers do not have the capacity to borrow as they are tied up with other financial needs. To the banks, if you are a good customer, we are more than happy to lend you the money,” he added.
The bank aims to increase its customer base to one million within two years following the introduction of the debit card. Its current customer base stands at 500,000.
Chairman Tan Sri Dr Mohd Munir Abdul Majid said if customers used the debit card, bank would set aside 20 per cent of the interchange fee income for waqf.
“This is a unique card. It is the first of its kind in Malaysia and perhaps the world as it incorporates spending with the social responsibility features of waqf,” he said.
The debit card is named after Prophet Muhammad’s wife, Saidatina Aisya.
Bank Muamalat is a member of the DRB-HICOM Bhd group, which owns a 70 per cent stake in the bank, with the remaining held by Khazanah Nasional Bhd.