CBA injects AUS$30 million in Bank ANK to expand market

Surabaya, E Java (ANTARA News) - The Commonwealth Bank of Australia (CBA) has injected Aus$30 million in fresh funds into Bank Artha Niaga Kencana (ANK) which it took over early this year.

Speaking to the press here on Monday, CBA President Director Symon Brewis-Weston said the funds would among other things be used to increase its system networks, improve its human resources and finance its business expansion plans.

"We want to strengthen our market share after our merger with Bank ANK," he said.

CBA officially took over Bank ANK in early January 2008 following the signing on July 26, 2007 of an acquisition agreement.

With the merger, all of Bank ANE`s assets, liabilities, licences and agreements were officially taken over by the Australian-based bank.

"The merger is part of our growth strategy as an initial step to strengthen our position in the Indonesian banking industry," he said.

He said CBA believed the merger would enable it to expand its market share, particularly in East Java which had so far been the focus of Bank ANK`s market strategy and to support the CBA`s plan to expand its market in the eastern parts of Indonesia.

The CBA would maintain the Bank ANK`s business which focused on extending credits to the small and medium business sector.

"East Java and the eastern parts of Indonesia have very great potential to grow in the next 10 to 15 years. Therefore, we do not hesitate to increase investment to support the growth of our business," he said.