OCBC Bank is the leading contender to acquire HSBC Holdings’ retail banking operations in Indonesia, reported Bloomberg citing sources.
The Singapore-based lender is looking to expand further in South-east Asian market.
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The bank is seeking to strike a deal that may value HSBC’s consumer banking business in Indonesia at more than Rp6tn ($350m), the people said.
They requested anonymity because the talks are private.
According to the sources, OCBC is viewed as the most likely buyer after offering more than rival bidders.
However, negotiations are still under way and no binding outcome has been reached.
They also said additional bidders could still come forward.
An OCBC representative declined to comment. An HSBC spokesperson said the bank is examining strategic options for its retail banking business in Indonesia and that no decision has yet been taken.
OCBC already operates in Indonesia through its Jakarta-listed unit, PT Bank OCBC NISP.
The lender has expanded in the market through both organic growth and acquisitions, including PT Bank Commonwealth Indonesia in 2024.
If completed, the transaction would be the first acquisition under new OCBC chief executive Tan Teck Long.
He has set out plans for broader expansion in Asia, with a focus on greater use of AI and digitalisation, as well as helping clients move towards net-zero emissions.
Those plans include building its affluent business in Hong Kong and widening private banking activities in Indonesia.
Indonesia and other faster-growing markets have drawn interest from banks seeking expansion, particularly as groups such as HSBC and Citigroup explore sales of certain non-core assets. ANZ Group Holdings has also weighed a sale of its stake in PT Bank Pan Indonesia.
People familiar with the matter have previously said that other groups considering bids for HSBC’s Indonesian assets included Singapore’s DBS Group Holdings and UOB, Malaysia’s CIMB Group Holdings, and Japan’s Sumitomo Mitsui Financial Group.
HSBC has said it is conducting targeted strategic reviews of its retail operations in Australia, Indonesia and Egypt, while stressing that no decisions have been made.
HSBC Life Singapore is also under review.
