SBI, Bank KEB Hana Indonesia Sign Shareholder Agreement for Local Ownership Compliance

State Bank of India (SBI), Bank KEB Hana Indonesia, and Bank SBI Indonesia signed a Shareholder Agreement on September 10, 2024. Bank SBI Indonesia (BSBII), which is SBI’s overseas subsidiary in Indonesia, currently has 99.56% of its shares owned by SBI. To meet Indonesia’s regulatory requirement of having at least 1% local ownership, BSBII plans to issue preference shares to PT Bank KEB Hana Indonesia, a subsidiary of South Korea’s Hana Financial Group.

Under this agreement, Bank KEB Hana Indonesia will invest in 1% of BSBII by purchasing preference shares. Following this transaction, SBI’s stake in BSBII will be 99%. The signing ceremony took place at BSBII’s headquarters in Central Jakarta and was attended by SBI’s Deputy Managing Director Jayati Bansal, Bank KEB Hana Indonesia’s President Director Park Jong Jin, and Bank SBI Indonesia’s President Director Akash Shambhu Damniwala.

Financial Highlights

State Bank of India ) reported a 0.89% increase in net profit for the April to June quarter of the financial year 2024-25, reaching ₹17,035.16 crore, up from ₹16,884.29 crore in the same quarter last year, according to a filing with the Bombay Stock Exchange (BSE) on August 3. The bank’s net interest income (NII) rose by 5.7% year-on-year but decreased by 1.3% compared to the previous quarter, amounting to ₹41,125 crore. SBI’s net interest margin (NIM) for the quarter dropped by 12 basis points to 3.35%, down from 3.47% in the same period last year.

About State Bank of India 

State Bank of India, a Fortune 500 company, is an Indian multinational and public sector banking and financial services institution based in Mumbai. With over 200 years of history, SBI is the largest and oldest bank in India. The bank currently operates a vast network of 22,219 branches and approximately 62,617 ATMs across the country. In addition, it has around 71,968 business correspondent outlets. SBI is significant in the Indian banking sector, commanding a 22.84% market share in deposits and 19.69% in advances, serving a large customer base of around 450 million people.

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