UPDATE 1-Two top Indonesian banks post jump in net profit

* Bank Rakyat Indonesia posts 25.6 pct rise in Q3 net profit

* Bank Rakyat eyes sub-debt issue to help finance purchase

* Bank Central Asia posts 14 percent rise in Q3 net profit

By Tyagita Silka and Andreas Ismar

JAKARTA, Oct 30 (Reuters) - Two top Indonesian lenders, Bank Rakyat Indonesia and Bank Central Asia, reported stronger third-quarter net profit, boosted by low interest rates and resilient domestic demand in Southeast Asia's biggest economy.

Indonesia's central bank has slashed interest rates by a total of 300 basis points to a record low of 6.5 percent since December last year. The central bank is expected to keep rates steady for the third month in a row when it meets on Wednesday.

Bank Central Asia (BCA) (BBCA.JK), Indonesia's second-biggest lender, recorded a 14 percent profit rise in third-quarter net profit to 1.79 trillion rupiah ($187.6 million).

According to Reuters calculations, Indonesia's third-biggest lender, Bank Rakyat Indonesia (BRI) (BBRI.JK), also posted a net profit of 1.79 trillion rupiah in the third quarter, a 26 percent rise from year ago.

BRI President Director Sofyan Basir said that its profit was boosted by a 27 percent rise in loans in September from a year ago, outperforming average loan growth in the banking sector.

"We expect to keep the loan growth quite high," he said, adding that lending rates were likely to continue falling until June.

The central bank has urged commercial banks to cut lending rates in a bid to help spur lending, which plays a key role in the domestic financial market given a relatively small corporate bond market.

BRI, which has a strong presence in rural Indonesia, expected to issue 3 trillion rupiah of subordinated debt, Basir said, adding the timing depended on market conditions.

Part of the proceeds would be used to acquire three small banks, he said without elaborating.

BCA shares ended unchanged at 4,575 rupiah on Friday, while BRI shares closed down 0.7 percent at 7,100 rupiah, while the broader market .JKSE ended up 1 percent. (Editing by Ed Davies)