The financial performance of the Indonesian bank has improved over the past two years, the report said.

Standard Chartered is examining its options about what to do with its stake in Indonesian lender PT Bank Permata, Reuters has quoted Standard Chartered’s chief executive, Bill Winters, as saying.

“You will appreciate that as a matter of policy we do not comment on speculation. We believe in the long-term fundamentals and prospects of Permata Bank and continue to remain a supportive shareholder," a spokesperson for Standard Chartered told WealthBriefingAsia yesterday.

Standard Chartered and Indonesian conglomerate PT Astra International jointly control the Indonesia bank, each owning 44.56 per cent. 

A report by Reuters stated that there has been speculation in recent times of a change of ownership structure of Permata. Standard Chartered logged a $215 million loss in 2016 from its stake in that bank, as restructuring and bad loan losses took a toll, although financial results have since improved. Standard Chartered, given its heavy exposure in emerging markets, will be keen to keep risks under control. 

The newswire quoted Winters as saying: "It is something we are actively working on ... finding a solution for Permata." "But frankly the bank is doing well," he said. "The bank needed to be fixed up, it's now fixed up. Now we can talk about what we need to do."