SBI acquires 23% extra stake in Indonesian subsidiary

Hikes stake to 99% to gain complete control on operations

State Bank of India, has picked up an additional 23 per cent stake in its Indonesian subsidiary Bank SBI Indonesia (BSBII) for an undisclosed amount.

With this, SBI’s holding in the unit rose to 99 per cent.

SBI in filing with Bombay Stock Exchange said it has acquired 23% shares of BSBII in a recent deal with P. T. Ravindo Jaya. It did not disclose amount spent on buying additional holding not timing of the deal.

Senior SBI official said with hike in stake (in Indonesian unit), bank would be able to exercise full control on operations. It is scouting for consultant to draw 5-year business growth road-map for operations in Indonesia.

It predominantly caters to business in Indonesia (a fast growing ASEAN country). It is profitable venture and SBI will now focus more capital in Indonesian unit, official said.

According to BSBII’s annual report for 2012 SBI had acquired 76% stake in bank on December 14, 2006 and took over the management in June 2007. Bank’s name was changed to Bank SBI Indonesia and obtained the status of Foreign Exchange Bank in June 2009.

BSBII was originally established as Bank Pasar in 1970 and known as Bank Pasar Gunung Tampomas Jaya. In 1986, Bank Pasar was taken over by PT Ravindo Jaya Group and Ishwar T Daryanani. Bank Pasar changed to Commercial Bank in 1990 and its name was changed to PT Bank Indomonex later.

The bank currently has 14 brances in four major cities in Indonesia--eight in Jakarta, three in Surabaya, two in Bandung and one in Medan--and two cash points in Jakarta at Embassy of India and Medan, according to the annual report.