DBS frontrunner in race to acquire stake in Indonesia’s Panin Bank

Singaporean lender DBS Group is reportedly the frontrunner in the bid to acquire a controlling stake in Indonesia's Panin Bank.

DBS is in competition with Malaysia's CIMB Group in the second round of the bidding process, reported Reuters, citing the three sources familiar with the matter.

About 86% of Panin Bank is up for grabs.

The sale includes stakes owned by Australia's ANZ and the founding Gunawan family.

Their combined holding is valued at $1.8bn as of the market close on 25 March 2025.

ANZ has been looking to divest its stake since 2013, and the Gunawan family is open to negotiation on their portion, depending on the price received. According to LSEG data, ANZ owns a 39% stake in Panin Bank.

The deadline for binding bids is set for the end of April or early May, though this is subject to market conditions, according to one of the sources, who said the bidder perspectives could shift.

Reuters reported that DBS, ANZ, and CIMB have declined to comment on the matter, while Panin Bank's president director Herwidayatmo referred to the bank's controlling shareholders for further comment.

If DBS secures the deal, it will be the first major acquisition under the leadership of its incoming CEO Tan Su Shan, who takes on the role on 28 March.

Tan has expressed that DBS is open to strategic, value-adding, and earnings accretive bolt-on acquisitions.

DBS has one head office and 33 other offices across 15 major cities, employing 3,011 staff in Indonesia.

Panin Bank offers services ranging from consumer financing to private wealth management.

Previously, Singapore's Oversea-Chinese Banking Corp and Japan's Sumitomo Mitsui had shown interest in the stake, according to the sources.

Established in 1971 and listed on the Jakarta stock exchange in 1982, Panin Bank saw a net profit increase of 8.2% to Rp2.74tn ($165m) last year, boosted by higher interest income and lower provisions for bad debt.

In January, DBS Bank, a fully owned subsidiary of Singapore’s DBS Group Holdings (DBSH), acquired an additional stake in Shenzhen Rural Commercial Bank Corporation (SRCB), raising its ownership from 16.69% to 19.40%.

"DBS frontrunner in race to acquire stake in Indonesia’s Panin Bank" was originally created and published by Retail Banker International, a GlobalData owned brand.

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