Bank Islam M'sia Awaits Response From Indonesian Islamic Bank

KUALA LUMPUR, July 3 (Bernama) -- Bank Islam Malaysia (Bank Islam Malaysia Bhd) is awaiting a response from an Indonesian Islamic bank on its proposed offer to acquire between 30 per cent and 40 per cent stake, said managing director, Zukri Samat. Zukri said the proposed acquisition was part of its move to expand its overseas operations. "Bank Islam has identified one bank and has indicated its offer to them, but so far, we have yet to receive any response to our proposal," he said. He said this at a media briefing after handing over hearses and multi-purpose vans to mosques and non-governmental organisations here Tuesday. On the possible Bank Indonesia's decision to allow only up to 40 per cent foreign institution ownership in Indonesian banks, he said, Bank Islam thought that anything above 30 per cent should be consider as strategic stake. "The most important criteria for us are via the acquisition and partnering with any bank that we are keen on so that we can put added value to it," he said. Zukri, who declined to name the bank, said Bank Islam hoped the deal could be finalised by year-end. Meanwhile, in a note Tuesday, CIMB Research said during a recent meeting, the management indicated that talks to acquire a stake in Bank Muamalat Indonesia were still ongoing and there was no concrete timeline for a conclusion. "If an acquisition materialises, it will provide the group a foothold in the under-penetrated and fast-growing Indonesia banking system," it said. It said the penetration of syariah-based banking in Indonesia was even lower at less than 10 per cent. CIMB said the possible cap on the shareholding of a single shareholder in Indonesian banks would not deter Bank Islam from acquiring a stake in Bank Muamalat Indonesia. "The group is still keen to pursue the deal as long as it can exercise control over the Indonesian bank despite the limit it sees vast opportunities for growth in the country," it said. -- BERNAMA