Oversea-China Banking Corporation Limited (OCBC), Singapore's second-largest lender concluded its deal with Dutch banking major ING Bank NV by acquiring its Asian private banking business for $1.5 billion as part of its ambitious expansion plans.

Through the acquisition, OCBC renamed the Singapore-based ING Asia Private Bank Limited and its subsidiaries (IAPB) as 'Bank of Singapore Limited', a statement released on Friday said.

Renato de Guzman, the former CEO of IAPB will head the new Bank of Singapore. The private banking businesses of both IAPB and OCBC will be combined and operate as Bank of Singapore, forming a leading Asian private bank with over 7,000 clients and around $23 billion of assets under its management with its headquarters in Singapore.

Apart from Singapore, the Asian business of ING Bank coveres operations in Philippines, Thailand, and Indonesia, as well as China, Hong Kong, and Taiwan with a staff of around 600 including 200 relationship managers.

OCBC CEO David Conner

OCBC CEO David Conner said, ''Our much larger private bank will significantly benefit customers from both IAPB and OCBC. OCBC private bank customers will benefit from IAPB's fully open architecture product platform and proprietary research, while IAPB customers will benefit from the access to OCBC's extensive branch network and products and services that were previously not available to them.''

''As part of the OCBC family and with the strong backing of OCBC, we remain totally committed and dedicated to helping our clients to seek the best outcome for their financial goals, and to grow and protect their wealth,'' Bank of Singapore CEO Guzman said.

OCBC anticipates an expenditure of around $15 million in connection with the integration of the private banking assets of OCBC and Bank of Singapore, half of which will be for brand building.

The bank has introduced a new logo with a red circle and stripes which have been taken from the original OCBC Bank logo to reinforce the link between Bank of Singapore and OCBC Bank, the statement said.

Through its expansion plans in China as well as targeting non-resident Indian community in Asia, OCBC envisages to double its private banking business in the coming three years.

"China will always be the most attractive location in terms of future growth of the business and of course the India market is also attractive. So in all of Asia, it will be China and India," he said.

Earlier in October, OCBC had announced that it reached an agreement with ING Bank to buy its Asian private banking business for approximately $1.5 billion (S$2 billion), winning over its rivals British banking giant HSBC and Singapore's investment fund DBS. (See: Singapore's OCBC to acquire ING Asia private bank for $1.5 billion)

Surviving on a €10 billion bailout from the Dutch government last year, ING has been struggling to return to financial health by selling some of its non-core assets.

OCBC is among the world's highest rated banks and provides a broad array of specialist financial services, ranging from consumer, corporate, investment, private and transaction banking to treasury, insurance, asset management and stockbroking services.

The bank's key markets are Singapore, Malaysia, Indonesia and China. It has a network of more than 490 branches and representative offices in 15 countries and territories, including 390 branches and offices in Indonesia operated by its subsidiary, Bank OCBC NISP.