Indonesian lender Bank Central Asia (BCA) is said to be evaluating several smaller banks and considering the possibility of acquiring one to boost the group’s business.
BCA president director Jahja Setiaatmadja said: "We are interested in small banks, but we don’t have a target yet."
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According to Jahja, BCA has been conducting a thorough study on small banks, focusing on financial performance and future prospects, reported the Jakarta Post.
Through the acquisition programme revealed in its 2015 business plan (RBB) submitted to the Indonesian regulator OJK, which differs from other large banks that are interested in expanding business in neighboring countries, BCA will focus on the local market through organic and non-organic growth.
Jahja said: "Any non-organic decision may give either good or bad results, which can create a problem for the parent company in the future due to differences in business cultures between the parent company and the new subsidiary."
"We have an IDR1.5tn ($114m) budget, which includes capital injection for subsidiaries. So, I think we have a sufficient amount of money if we want to acquire small banks. We don’t have to spend so much."
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