Dubai Islamic Bank (DIB) has secured formal approval from the Financial Services Authority, Indonesia (OJK) to raise its stake in Indonesian lender Bank Panin Syariah to 40%.
Bank Panin Syariah, controlled by PT Bank Panin, presently operates with 12 branches.
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In the first phase of acquisition, DIB had purchased nearly 25% stake in Bank Panin Syariah from the market.
Meanwhile, DIB has also secured a formal regulatory approval from the OJK for "Controlling Shareholder Status".
The approval is expected to place the Dubai-based lender in a position to initiate and complete the second phase of its share purchase strategy, which aims to increase its stake to 40%.
DIB group CEO Adnan Chilwan said: "Islamic banking in Indonesia has huge potential which still remains largely unexploited.
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By GlobalData"Given Bank Panin Syariah’s knowledge of local market and DIB’s undisputed expertise in this fast growing segment, we see a massive opportunity for growth and expansion transforming what today is seen as a niche business into a more widely accepted form of banking within the country".
