Bank Mandiri, the country’s largest lender by assets, is considering plans to open branches in three neighboring countries as part of its plan to become a top lender in Southeast Asia.
The overseas expansion plans would help the lender catch up with regional rivals such as Singapore’s DBS Group Holdings, a unit of Temasek Holdings, in terms of market capitalization.
The Jakarta-based lender, with total assets of Rp 547 trillion ($58 billion) as of March, wants to open new branches in Vietnam, Myanmar and Thailand, Riswinandi, the lender’s vice president director, said on Tuesday.
Bank Mandiri, which was created by the merger of four state banks more than a decade ago, started its first overseas commercial operations in China in April.
The Jakarta-based lender began full-fledged commercial operations in Shanghai following a soft opening in November last year, as part of a move to take advantage of growing trade between China and Indonesia.
Riswinandi said the lender was working with regulators in the countries where it aimed to open branches.
“No need to rush,” he said. “We have to make sure all regulations are met.”
Bank Mandiri has set an ambitious target to become one of the region’s top five banks by 2013 and one of the top three banks by 2020.
The lender is trying to catch up with its rivals such as DBS Group and Singapore’s Overseas Chinese Banking Corporation.
DBS Bank has total market capitalization of $26.09 billion and OCBC has a market value of $23.46 billion.
Bank Mandiri has a total value of $17.66 billion, slightly lower than Bank Central Asia’s Rp 19.5 billion, according to data from Bloomberg.
Riswinandi did not disclose Bank Mandiri’s full plan to extend its reach in the region.
Shares of Bank Mandiri rose 2.9 percent to Rp 7,150 on the Indonesia Stock Exchange on Wednesday.
The shares have risen 7 percent so far this year, outpacing the 3.2 percent gain in the main stock gauge on the local bourse.