Standard Chartered Bank (SCB) has completed the sale of its 44.56% stake in Indonesia’s Bank Permata to Thailand’s Bangkok Bank.

Under the transaction terms, SCB received IDR17trn ($1.07bn) in cash, representing a premium of $300m over the group’s book value.

The sale of Bank Permata is in line with Standard Chartered’s strategy to focus on its core banking business in the Indonesian branch.

During the first quarter ended in March, the Indonesian branch led the group to profits and also launched its banking-as-a-service (BaaS) solution nexus.

The completion of the sale is expected to improve the bank’s Common Equity Tier 1 (CET1) capital ratio based on its latest financial results.

This is attributable to a drop in risk-weighted assets of about $9.1bn and deconsolidation of $500m minority interest equity.

Initially, SCB and Indonesian conglomerate Astra International jointly controlled Bank Permata with each holding 44.56% stake in the bank.

In December last year, Bangkok Bank agreed to acquire Standard Chartered and Astra stakes in Bank Permata for nearly $2.67bn.

Last month, SCB and Astra International agreed to sell their combined 89.1% stake in the Indonesian lender for a reduced price.

The revised valuation is as a result of a reduction in Permata’s equity and depreciation of the Indonesian Rupiah (IDR) against US Dollar (USD).