BDO completes rural bank takeover

MANILA, Philippines — BDO Network Bank Inc., formerly One Network Bank Inc. (ONB), has completed the acquisition of Bulacan-based Rural Bank of Pandi Inc. (RBPI) late last October.

Bangko Sentral ng Pilipinas sector-in-charge Vicente de Villa issued Circular Letter 2019-085 last Nov. 22 stating that RBPI ceased to operate as a rural bank on Oct. 31 after the completion of the purchase of gross loans receivables and assumption of deposit liabilities by BDO Network Bank.

De Villa said the Monetary Board issued Resolution 1271 last Aug. 22 approving the transaction between the Sy-led BDO Network Bank and RBPI.

The thrift bank arm of BDO Unibank signed a purchase agreement with RBPI in February to acquire its gross loan receivables and branch licenses, and assume its recorded deposit liabilities.

The country’s largest lender continued to expand through organic growth as well as mergers and acquisition. BDO continues to dominate the country’s banking industry in terms of assets, capital, deposits and loans, while BDO Network Bank is the country’s second largest rural bank.

BDO has one of the largest distribution networks, with more than 1,300 operating branches and over 4,000 ATMs nationwide. It also has full-service branches in Hong Kong and Singapore as well as 22 overseas remittance and representative offices in Asia, Europe, North America and the Middle East.

BDO completed the acquisition of ONB from the Consunji family in July 2015 for P6.7 billion. ONB has more than 120 branches and over 220 ATMs most of which are located in Mindanao.

On the other hand, RBPI founded by the Andres and Santos families in 1967, was ranked as the country’s 38th largest rural bank in terms of assets with P1.18 billion as of end-June this year.