PT Bank Panin's (PNBN.JK) controlling shareholder Mukmin Ali Gunawan doesn't plan to sell his stake in the mid-sized bank although he has received bids from several investors, people who are close to his family told Dow Jones Newswires Monday.

"He has a strong commitment to develop the bank and isn't in a dire need to get cash," one source at the Panin Group said.

Panin Bank's book value as of March 31 was IDR459 a share. Its share price is now trading at 2.42 times its book value. Its assets as of March 31 were IDR81.48 trillion, which makes it the seventh largest lender in Indonesia.

The statement came after Reuters reported, quoting sources, that Standard Chartered and Spain's BBVA are among the banks showing interest in the sale of the Gunawan family's $1.4 billion stake in Bank Panin.

"As a matter of policy we do not comment on market speculation," a spokesman at Standard Chartered said.

Panin Bank, based on data from the Indonesia Stock Exchange, is 44.68%-owned by PT Panin Financial (PNLF.JK), which is controlled by the Gunawan family. Australia & New Zealand Banking Group (ANZ.AU) owns 38.82% in Panin Bank, and the public the remaining 16.5%.

Talks have been abound that a slew of international banks have approached the Gunawan family, seeking to buy its stake in Panin Bank in recent years. A director with the bank said that the family has hired UBS to "deal" with potential investors for the stake, but adding that it has no urgency to sell. UBS has declined to comment on the matter.

Interest from foreign banks to buy local banks has been rising in recent years thanks to an increase in the middle-class ranks and Indonesia's healthy economic growth.

Several foreign banks, such as Standard Chartered, Barclays Plc. (BARC.LN), HSBC Holdings Plc. (HSBA.LN), Malayan Banking Bhd. (1155.KU), CIMB Group Holdings bhd (1025.KU), United Overseas Bank (U11.SG), Oversea Chinese Banking Corp. Ltd (039.SG), and State Bank of India (50012.BY), have bought stakes in Indonesian banks.

-By Edhi Pranasidhi; Dow Jones Newswires; 62 21 3983 1277; edhi.pranasidhi@dowjones.com.

(Linda Silaen in Jakarta and Chester Yung in Hong Kong, contributed to this article)
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