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Mitsubishi UFJ to buy Bank Danamon; India dismisses rumors about bank closures


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Mitsubishi UFJ to buy Bank Danamon; India dismisses rumors about bank closures

S&P Global Market Intelligence offers our top picks of banking news stories and more published throughout the week. Please note that some entries may have links to third-party sources that may require a subscription.

MUFG to buy stake in Bank Danamon, more deal news

* Japan's Mitsubishi UFJ Financial Group Inc. agreed to acquire 73.8% of PT Bank Danamon Indonesia Tbk in a three-step transaction, subject to approvals.

* Sumitomo Mitsui Financial Group Inc. CEO Takeshi Kunibe said the bank is ready to increase its stake in Indonesia's PT Bank Tabungan Pensiunan Nasional Tbk from 40% to a majority.

* Resona Holdings Inc. launched a tender offer for the common shares of Sumitomo Mitsui Financial Group units Minato Bank Ltd. and Kansai Urban Banking Corp. as part of a plan to integrate the two regional banks with Resona's Kinki Osaka Bank Ltd.

* Land Bank of the Philippines' planned acquisition of Philippine Postal Savings Bank Inc. will likely be finalized early in 2018 following its receipt of approval from the country's central bank.

* India's Manappuram Finance Ltd. denied a media report that its controlling shareholder V.P. Nandakumar is looking to sell its stake in the company.

* Foreign funds and financial institutions, including Japan-based Credit Saison Co. Ltd. and Aozora Bank Ltd., took a cumulative 20% stake in Vietnam-based Ho Chi Minh City Development JSCB, or HDBank, with each foreign investor holding up to a 3% stake in the bank.

Regulatory developments in the region

* The Securities and Exchange Board of India directed Axis Bank Ltd. to conduct an internal investigation over the company's leaked financial data prior to the release of its earnings results.

* The Australian Prudential Regulation Authority expressed its support for a proposed bill that would strengthen its crisis resolution powers to manage the failure of authorized deposit-taking institutions, or ADIs, and insurers in an orderly fashion.

* India's central bank dismissed rumors about the potential closure of some public sector banks and said its supervisory tool, the prompt corrective action framework, is not intended to constrain normal operations of banks for the general public.

* China's central bank plans to regulate QR code payment in a bid to contain risks arising from the popular payment service.

* Meanwhile, India's finance ministry reportedly asked state-owned banks to shut loss-making domestic and overseas branches to strengthen their financials and improve overall efficiency.

* South Korea's central bank picked 12 banks, including KB Kookmin Bank, Industrial Bank of Korea, Shinhan Bank Co. Ltd., Woori Bank, KEB Hana Bank and Korea Development Bank, to set prices for direct won-yuan transactions.

* The Central Bank of Sri Lanka maintained its policy interest rates, amid expectations that inflation will return to the "desired" level toward the end of the first quarter of 2018.

In other news

* China set out draft amended administrative measures for foreign lenders and separately announced a temporary exemption for foreign firms from paying provisional income tax on profits re-invested in the country.

* Bank of Communications Co. Ltd. received regulatory approval to begin operations of BOCOM Financial Asset Investment Co. Ltd.

* Huishang Bank Corp. Ltd. received approval from the China Securities Regulatory Commission to resume the review process for its China listing.

* Kinki Osaka Bank and Kansai Urban Banking are set to begin consolidating their branches as early as autumn 2019 as part of a wider merger plan.

* Bank of India will close 400 of its ATMs as part of a turnaround plan to reduce costs.

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