Rizal Commercial Banking Corporation (RCBC) president and chief operating officer Francisco S. Magsajo yesterday denied reports that some of its branches are experiencing unusual withdrawals.

The bank official issued the statement in reaction to rumors being circulated via text messaging

Magsajo said these reports are totally baseless and untrue. "The information is unfounded and may have been done by people who have nothing better to do, he said.

In fact, the same official added "RCBC remains on solid footing, recently reporting a strong net income growth of 28 percent to R1.38 billion in 2004 from the year-ago level of R1.08 billion.

Magsajos statement affirms an earlier pronouncement from the Bangko Sentral ng Pilipinas (BSP) dismissing rumors that RCBC is having financial troubles arising from the operations of PPI.

In a recent statement, BSP deputy governor Amando Tetangco said these allegations have no basis since "BSP records show that RCBC has no outstanding loan or equity exposure in PPI.

PPI is confronted with financial issues after filing for a rehabilitation plan with the Makati regional trial court. It said that while it was still able to serve the maturing claims of its current planholders, the company might not be able to sustain this in the future since the government lifted the cap on tuition fees in 1992.

Despite having some common stockholders, BSP said it did not expect the problems of PPI spilling over to RCBC, one of the largest universal banks in the country today. Thus, it has urged the public to be "discerning and responsible in dealing with text messages.

RCBC, a flagship company of the Yuchengco Group of Companies, is the Philippines fifth largest private universal bank with total consolidated assets of R183 billion as of December 31, 2004. With 45 years of reputable track record in the local banking industry, RCBC currently maintains a strong presence in corporate banking, consumer lending, treasury services, asset management and OFW remittance service. Complementing this strength is its strategic partnership with United Financial of Japan (UFJ) which has agreed to merge with the Bank of Tokyo-Mitsubishi Bank, subject to the final approval of its shareholders in June 2005.