ANZ buys 19.9% stake in Shanghai lender

Australia and New Zealand Banking Group Ltd (ANZ), Australia's third-largest lender, bought a 19.9 percent stake in Shanghai Rural Commercial Bank (SRCB) for US$263 million, according to a statement released by ANZ on Wednesday.

ANZ will be providing technical assistance to the Shanghai bank, including a specific program over the next three years through a US$5 million technical support fund.

By introducing ANZ as a strategic partner, the Shanghai bank will be able to leverage on ANZ expertise in a wide range of relevant areas, to alleviate the bank's standing into become a leading retail bank in Shanghai.

Sources revealed that Bob Edgar, senior managing director at the Melbourne-based bank, and Alex Thursby, managing director for the Asia-Pacific branch, will be joining the Shanghai lender's board of directors.

In 1986, ANZ first set foot in China as the first Australian lender.

The Shanghai-based bank is ranked in the 17th position amongst all Chinese lenders, with a total asset of RMB 137 million (US$17 billion). Currently, the bank is operating 330 branches and over 380 ATMs across Shanghai. It has approximately 2.5 million retail customers.