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Tue 2 Sep 2014 01:28 PM

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Dubai's DIB rules out controlling stake in Indonesian lender

Dubai Islamic Bank says its plans are limited to raising stake in Bank Panin Syariah to max of 40%

Dubai's DIB rules out controlling stake in Indonesian lender
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Dubai Islamic Bank has ruled out seeking a controlling stake in Bank Panin Syariah, and its plans are limited to raising its stake in the Indonesian lender to 40 percent from 25 percent now, its chief executive said on Tuesday.

Dubai Islamic, the largest Islamic bank in the United Arab Emirates, bought 2.42 billion shares in the listed sharia-compliant lender in June, its first foray into southeast Asia.

"It's currently at 25 percent and we want to go up to 40 percent. That's where it stops," chief executive Adnan Chilwan said on the sidelines of an industry conference in Kuala Lumpur, without giving a time frame for when it would raise the stake.

In May, the bank said it hoped to reach 40 percent before the end of the year, using its own cash to fund the purchase.

Under Indonesian rules, foreign ownership of local lenders requires regulatory approval to go above 40 percent. Last month, Indonesia's financial services authority said it was preparing a five-year industry blueprint that would address foreign ownership limits.

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