Bank of India acquires 76 per cent in Indonesia's PT Bank Swadesi

Our Banking Bureau
23 June 2007

The bank has signed an agreement for acquiring majority stake in PT Bank Swadesi, BoI said in a filing with the Bombay Stock Exchange (BSE).

BoI has a representative office in Jakarta and the acquisition is expected to enhance its operations in Indonesia.

A mid-sized bank operating in Indonesia for the last 38 years, Bank Swadesi has 16 outlets and a licence for forex business. It is also listed on the Jakarta Stock Exchange.

Earlier in December 11, 2006, BoI had said that it would acquire 76 per cent stake in PT Bank Swadesi Tbk and had signed a conditional sale-purchase agreement for this purpose with majority shareholders of the Indonesian firm.

The acquisition, however, is subject to necessary approvals or confirmations from Bank Indonesia and the Indonesian capital market regulators, BoI said.

This would be the second acquisition of a bank in Indonesia by an Indian lender after the State Bank of India bought 76 per cent stake in Bank Indomonex.