KUALA LUMPUR: Creador II LLC, a private equity fund set up by former ChrysCapital general partner and managing director Brahmal Vasudevan, said its affiliate PT Creador Kapital has invested 290 billion rupiah (RM81.1 million) in a 20% stake in Indonesia-based PT Bank Index Selindo.

In a statement yesterday, Creador said Bank Index is a national private commercial bank providing working capital and investment loans to small and medium enterprises (SMEs).

It added that the bank, which commenced operations in 1993, has the capacity and platform, with its 44 branches across Indonesia, to be a leading SME-focused bank in Indonesia.

“We are excited about our investment in Bank Index not only because the banking sector is attractive, but also because it is a leading bank in the SME segment, a segment that has a strong growth trajectory and is the backbone of the Indonesian economy,” said Creador senior managing director Cyril Noerhadi.

“Our investment in Bank Index is in line with Creador’s strategy in investing in high growth, quality businesses as a strategic minority investor. We aim to support the bank to further develop and accelerate its business,” he added.

Bank Index president director Charlie Paulus said Creador’s investment in Bank Index reflects the bank’s financial strength and potential to become a world-class financial institution, the statement added.

With Creador’s investment, Bank Index has increased its equity to 900 billion rupiah, helping the bank lift its capital adequacy ratio to 22.2% and positioning it well to continue its growth, said Creador.

Bank Index, added Creador, has been growing aggressively over the past five years while maintaining a healthy net interest margin of 5%, with a low level of non-performing loan ratio of 0.4%.

This article first appeared in The Edge Financial Daily, on March 18, 2015.