The deal, involving 86% of Panin Bank, would mark the first major move under DBS’ new CEO

DBS Group, Southeast Asia’s largest bank by assets, is emerging as the leading contender to acquire a controlling stake in Panin Bank, Indonesia’s 12th largest lender, according to sources familiar with the matter.

The Singaporean bank is competing against Malaysia’s CIMB Group in the final bidding stage. Approximately 86% of Panin Bank is available for sale, with a combined stake owned by Australia’s ANZ and Indonesia’s Gunawan family valued at around US$1.8 billion as of Tuesday’s market close.

ANZ, which holds a 39% stake, has been looking to exit since 2013, while the Gunawan family remains flexible on the size of its divestment, dependent on the offered price. Binding bids are expected by late April or early May, subject to market conditions.

If the acquisition proceeds, this would be the first major deal under DBS’ incoming CEO, Tan Su Shan, who assumes the role on March 28. Tan recently stated that DBS remains open to strategic acquisitions that provide long-term value and align with the bank’s growth plans.

Industry analysts suggest that securing this stake would significantly bolster DBS’ position in Indonesia, where it currently operates through PT Bank DBS Indonesia, which has 33 offices across 15 cities. Panin Bank’s business spans consumer financing and private wealth, making it an attractive asset for expansion.

Although Singapore’s OCBC and Japan’s Sumitomo Mitsui previously expressed interest, DBS and CIMB are now the primary contenders. Panin Bank, founded in 1971 and publicly listed in 1982, reported an 8.2% rise in net profit last year, reaching US$165 million. However, its share value has declined by 20% this year, reflecting broader concerns in Indonesia’s financial markets.