Date:08/11/2005 URL: http://www.thehindubusinessline.com/2005/11/08/stories/2005110802690600.htm

Back SBI acquires Indonesian bank

Our Bureau

Mumbai , Nov 7

STATE Bank of India has announced that it is picking up 76 per cent stake in an Indonesian bank, PT Bank IndoMonex. SBI will have management control of the bank, which is registered in Jakarta.

This is SBI's third overseas acquisition. The bank had acquired a 51-per cent stake in Indian Ocean International Bank in Mauritius in February for $8 million and a 76-per cent stake in a Kenyan bank, Giro Commercial Bank, for $7 million, in October.

A press release quoting Mr A.K. Purwar, Chairman, State Bank of India, said that the acquisition would give SBI an entry into Indonesia. PT Bank IndoMonex is a closely-held entity and has seven offices in Jakarta, Bandung and Surabaya.

SBI has not disclosed other details of the deal, including the amount paid for the majority stake in the overseas bank.

The press release also quoted Mr Purwar as saying that this acquisition would increase SBI's presence in the ASEAN region where the bank is already present in Singapore.