KUALA LUMPUR (July 6): Indonesia's largest banking group by assets, PT Bank Mandiri (Persero) Tbk, expects to start the banking operations of its first Malaysian branch at the end of this year.

Bank Mandiri president director and chief executive officer Kartika Wirjoatmodjo told reporters this following a meeting with Bank Negara Malaysia earlier today.

Kartika said the commencement of banking operations would depend on an audit conducted by Bank Negara in the next few months.

"We are currently working on building operations first. Bank Negara will have to conduct an audit after which we would then be able to open the branch," said Kartika.

This would make Bank Mandiri Bhd the first full banking player from Indonesia here, and its entry is as a Qualified Asean Bank (QAB).

The capital requirement to start its Malaysian operations is RM300 million. Kartika said the bank would be injecting its capital in stages, starting with an initial RM50 million.

He added that the branch will start off by targeting corporate customers.

Currently, Bank Mandiri runs a remittance business in the country under its subsidiary Mandiri International Remittance Sdn Bhd, which was incorporated in March 2009.