Dubai Islamic Bank (DIB) has secured formal approval from the Financial Services Authority, Indonesia (OJK) to raise its stake in Indonesian lender Bank Panin Syariah to 40%.
Bank Panin Syariah, controlled by PT Bank Panin, presently operates with 12 branches.
In the first phase of acquisition, DIB had purchased nearly 25% stake in Bank Panin Syariah from the market.
Meanwhile, DIB has also secured a formal regulatory approval from the OJK for "Controlling Shareholder Status".
The approval is expected to place the Dubai-based lender in a position to initiate and complete the second phase of its share purchase strategy, which aims to increase its stake to 40%.
DIB group CEO Adnan Chilwan said: "Islamic banking in Indonesia has huge potential which still remains largely unexploited.
"Given Bank Panin Syariah’s knowledge of local market and DIB’s undisputed expertise in this fast growing segment, we see a massive opportunity for growth and expansion transforming what today is seen as a niche business into a more widely accepted form of banking within the country".