Lending growth at Bank Mandiri rose more than 20 percent in the third quarter on strong demand by consumers and corporation.
The increase lifted its total loan outstanding to Rp 438 trillion ($38 billion) in the July-September period from Rp 365.2 trillion in the same period last year.
"Our lending growth remains strong," said Budi Gunadi Sadikin, president director of Bank Mandiri, in Jakarta on Wednesday.
Budi, who was installed as head of the lender in May, was speaking on the sidelines of an event at the University of Indonesia in Depok.
Budi also said the bank, created by the merger of four state banks in 1999, has amended its lending growth target this year to between 19 percent and 20 percent, in line with revised figures from the central bank, Bank Indonesia.
Total outstanding loans by the country's 120 commercial banks stood at Rp 3,045 trillion at the end of July, according to central bank data.
Numbers for the third quarter have yet to be released.
Bank Mandiri reported a 16 percent increase in net income to Rp 8.29 trillion in the first six months of 2013.
Its net interest income — income from loans after deducting charges to depositors — rose 15 percent to Rp 15.4 trillion, it said in July, while its total outstanding loans at the end of June climbed 22 percent to Rp 429 trillion.
Many lenders have benefited from strong loan demand, allowing Bank Mandiri and rivals such as Bank Central Asia, Bank Negara Indonesia and Bank Rakyat Indonesia to post higher profit.
Bank Mandiri has yet to announce its January-September earnings results.
Bank Indonesia has said that slowing economic growth this year would affect loan demand especially credit cards and mortgages with consumers worrying about how rising inflation and higher interest rates could affect their repayments.
Lending rose 20 percent to Rp 2,953 trillion at the end of June from a year earlier, slower than the 22.2 percent gain in March and 21.9 percent rise in April.
The central bank responded to rising inflation by raising its key interest rate — the policy rate — by 1.5 percentage points over a three-month period. The rate now stands at 7.25 percent.
Inflation slowed to 8.40 percent in September from 8.79 percent in August, as costs for food and transportation declined, data from the Central Statistics Agency (BSP) showed on Tuesday. Meanwhile, trade swung to surplus in August.
