Union Bank starts move to acquire Indonesian banks

Talks with 3 to 4 small-scale Indonesian banks are part of the Indian lender's overseas expansion scheme.

A top bank official said the bank is currently negotiating with three to four small banks in Indonesia for potential acquisitions. "[The] talks are at very preliminary level and nothing has been finalized so far," the official said.

Union Bank's board has already approved a strategy for its overseas expansion, which includes acquisitions in Indonesia, Africa, Europe and UK, the official said.

The lender would seek regulatory approvals from RBI and the Indonesian banking regulator to go ahead with the proposal once the bank identified a target, the official added.

"Through the acquisition of a local bank, we aim to assist Indian entities operating in that region, facilitate trade financing and offer retail banking services to local clients," the official said.