Plantersbank plans Tagum branch

DAVAO CITY, Philippines — Planters Development Bank will open a branch in Tagum City in Davao del Norte, only its fifth in Mindanao, early next year as it intensifies lending to small and medium enterprises. Flordelis F. Aguenza, bank president, said the intention is to strengthen Mindanao’s contribution to overall bank performance given the bank’s bullishness about Mindanao’s economy. The bank has already lent roughly P4 billion to small and medium enterprises in Mindanao this year, said Remigio Tito C. Tirones, senior vice-president and head of Plantersbank’s SME Banking Group. Mr. Tirones said the bank is determined to increase its exposure in Mindanao considering the growth potential of small businesses in the island. He added the bank will continue to focus on lending to agriculture-based businesses, although it is also lending to manufacturing, transport services and even school expansion. Mr. Tirones said construction of the Tagum City branch will start before yearend while operations should begin early next year. Ms. Aguenza said the bank’s management decided to open another branch in Mindanao because it is determined to contribute to the island’s economic success. She added that in opening a new branch, the bank hopes to promote entrepreneurship to create more jobs. Mr. Tirones, on the other hand, said although the assets of the bank could qualify it to become a commercial bank, it has remained a development bank because of its desire to specialize in lending to small and medium enterprises. "We believe this is our small contribution to the economy of the country," he said. — Carmelito Q. Francisco, BusinessWorld