The Indonesian unit of global bank HSBC launched Tuesday the operation of its merged entity with another local lender, Bank Ekonomi Raharja, under the name PT Bank HSBC Indonesia.
Bank Ekonomi Raharja, which was acquired by HSBC Asia Pacific Holdings Ltd in 2009, became the surviving entity. The assets and liabilities of HSBC Indonesia was transferred to it and the name changed to PT Bank HSBC Indonesia.
The Financial Services Authority (OJK) officially approved the integration on April 17.
(Read also: HSBC, Bank Ekonomi to unify fully in 2017)
“I think this integration demonstrates HSBC's commitment in Indonesia. We invested over US$1 billion in the integration and we believe it is a worthwhile investment,” Bank HSBC Indonesia president director Sumit Dutta said on Tuesday in a press conference.
Dutta added that the new investment was mainly aimed at upgrading the status of Bank Ekonomi Raharja from a bank with a core capital of Rp 1 trillion to Rp 5 trillion (BUKU II) to a bank with a core capital of Rp 5 trillion to Rp 30 trillion (BUKU III). Prior to the integration, HSBC Indonesia was operating as BUKU III bank.
Currently, PT Bank HSBC Indonesia has Rp 14 trillion in capital.
The liquidation of HSBC Indonesia, meanwhile, is expected to be completed in two years. (hwa)