Bali rural banks’ NPL ratio falls to 13.15% in May 2026

Denpasar — Bali’s rural banks, known as BPRs, reported a lower gross non-performing loan ratio in May 2026, while lending, deposits and assets all grew from a year earlier, according to figures from the Financial Services Authority (OJK) cited in local reporting and OJK’s own regional disclosures.

The Bali banking sector’s gross NPL ratio for BPRs stood at 13.15% in May 2026, down from 16.65% in May 2025. At the same time, total credit rose 5.77% year on year to Rp13.93 trillion, from Rp13.17 trillion a year earlier.

Third-party funds, or deposits, climbed 6.16% to Rp18.34 trillion, while total assets increased 4.84% to Rp22.76 trillion. The sector’s loan-to-deposit ratio was 75.94%.

Sector size

OJK’s Bali data also showed that the province had 120 conventional BPRs and one Islamic BPR in the period. That figure reflects the sector after a series of consolidations among rural banks in the province.

The numbers point to a weaker share of problem loans, but they do not explain the drivers behind the change. The figures published in the regional reporting do not break down whether the improvement came from stronger repayments, restructuring, write-offs or a combination of factors.

Broader backdrop

In its June 2026 financial-sector review, OJK said Indonesia’s banking industry remained resilient, with adequate liquidity and stable asset quality at the national level. In Bali, the regional banking picture was still supported by credit growth and higher deposits, even as rural banks faced competition from larger lenders and broader economic pressures.

Local industry reporting said Bali BPR leaders have continued to stress prudence in lending, governance and risk management as the sector navigates global uncertainty and tourism-linked volatility. OJK’s regional releases also show that the province’s BPR network has been undergoing consolidation through mergers this year.

For Bali’s rural banks, the May figures suggest that credit stress eased compared with a year earlier, even though the sector still carried a relatively high NPL ratio by banking standards.

Sources

• OJK Provinsi Bali / OJK regional disclosure
• OJK Board of Commissioners Meeting: June 2026
• Tribun Bali report on OJK credit conditions