Jakarta. Bangkok Bank, the largest lender in Thailand by assets, has completed a $2.5 billion takeover of Bank Permata, a Jakarta-listed medium-sized lender, from previous owners Standard Chartered Bank and Astra International after securing an approval from the Financial Services Authority, or OJK.

"We welcome Bangkok Bank as the new controlling shareholder in PermataBank," Bank Permata President Director Ridha D.M. Wirakusumah said in a statement on Wednesday, referring to the Jakarta-based lender by its trading name. 

The acquisition is a milestone for the Bangkok-based bank which has been in operation in Indonesia since 1968 with three branches in Jakarta, Medan and Surabaya.

The move would also help Bangkok Bank to consolidate itself in the local banking system as the authorities now require its local branches to merge with Bank Permata. 

Under a deal signed last year, Bangkok Bank agreed to acquire an 89.12 percent stake in Bank Permata from Standard Chartered and Astra for Rp 37.4 trillion ($2.5 billion). 

Astra controlled 44.6 percent of Bank Permata's shares and stood to get Rp 18.7 trillion in cash from the deal. 

"We believe Bangkok Bank will provide the best support for PermataBank to turn itself into a stronger player in the Indonesian banking landscape," Ridha said. 

He said Bank Permata would continue to grow its retail, wholesale and shariah businesses and expand its distribution network and digital banking. 

Permata booked Rp 1.7 billion in net income in the first quarter of this year, down 99 percent from the same period last year as loan quality deteriorated amid the Covid-19 pandemic. 

Ridha, however, took refuge in Permata's ability to book a 16 percent increase in operating income to Rp 2.1 trillion and in net interest income to Rp 1.6 trillion. 

Permata said loans still grew 5.7 percent in the first quarter, with its liquidity and capital position remaining strong. 

"We're focused on strengthening our financial performance and moving toward further sustainable growth," Ridha said.