Bank - Banking attracts cheap funds through payroll business

Bank - Banking attracts cheap funds through payroll business Several banks are trying to find cheap funds to reduce the Cost of Fund (CoF).One of the ways is by boosting the payrollbusiness. Banks collaborate with companies to manage employee salariesthrough accounts at the bank.
If we look at the money supply data from Bank Indonesia (BI), for the components of cheap funds, such as savings and current accounts, they experienced growth of 6.3% and 4.9% yoy respectively in April 2025, with a total of IDR5,574 tn. (Source : Kontan) Comment : Payroll business has significant potential growth and bank will benefit from its low funding cost. Bank who has a solid customer based especially a corporate payroll customer will get more positive impact. In all, continuing solid TPF will sustained more than common savings customer base. Maintain our overweight call for banking with BBCA, BMRI and BRIS as our picks.