Shinhan Bank, the flagship unit of South Korea’s No. 4 banking group, Shinhan Financial Group Co., said Thursday it has signed a deal to acquire a stake in an Indonesian bank.

Under the deal, the South Korean bank will purchase a 40 percent stake in Bank Metro Express, whose net assets stand at $70 million, with non-performing loans accounting for 0.72 percent.

A non-performing loan refers to debts that have been overdue for more than three months and thus put creditors at a high risk of being unable to retrieve the interest or principal.

“The acquisition will allow Shinhan Bank to tap deeper into the Indonesian market,” an official from the South Korean firm said.

“Mutual cooperation with Bank Metro Express will also contribute to the Indonesian economy.”

Shinhan Bank currently holds 63 overseas networks in 14 different countries, which are mostly located in Asia. (Yonhap News)