Mumbai: The State Bank of India (SBI) has completed buyout of a 76-per cent stake in PT Bank IndoMonex of Indonesia, for $5 million.
The deal is expected to benefit SBI, India's largest commercial bank, in terms of gaining an entry into the potentially high-growth Indonesian market.
The Indonesian bank has eight branches and the announcement to acquire it was made in 2005 by SBI's then chairman A K Purwar.
At present, SBI has presence only in Maldives and Mauritius. Further, the bank stands to gain on the ground that a large population of NRIs is present in Indonesia. Against the backdrop of increased trade and political ties India and South-east Asian country, the transaction is expected to enhance business potential for the bank.
SBI, which is planning to grow in a bigger way in business opportunities in foreign countries, said it would be infusing more capital into the bank to grow its business.
The large NRI population present in Indonesia and trade between India and the South-east Asian country growing rapidly, SBI hopes to tap emerging business opportunities in that country.