The State Bank of Vietnam (SBV) has approved an increase in Sacombank's capital by nearly 52 percent to 18.8 trillion VND (838 million USD), the HCM Stock Exchange has reported.

The decision came after the merger between the Southern Bank and Sacombank (STB) took effect on September 14.

The SBV's decision will remain effective for a year and it will become invalid if Sacombank is unable to raise the capital, or the bank's board of directors, and/or the shareholders, decide on other solutions to raise capital.

After the merger, the new bank will retain the Sacombank name with total assets of 290.8 trillion VND (13 billion USD) and total equity of 22.6 trillion VND (1 billion USD).

Sacombank will have 567 offices in Vietnam, Laos and Cambodia, employing 15,510 people.

However, Tram Be, Vice Chairman of Sacombank's Board of Directors, will not be a part of the board of the new bank. The State Bank of Vietnam will take over the stakes in the Southern Bank, currently Sacombank, and the new Sacombank from Be and his relatives, and appoint the central bank's officials to run the new bank after the merger.-VNA