The Bank of Agriculture and Rural Development of Vietnam (Agribank) has received a capital injection of 10.2 trillion VND (536.84 million USD) from the Government, raising its charter capital to 21 trillion VND(1.11 billion USD).
State-owned bank Agribank plans request an extra 10 trillion VND (526.31 million USD) of government funds to meet financial requirements and achieve a capital adequacy ratio of 8.5 percent by the end of the year.
The latest injection was justified by the Government on the basis that it would help the bank extend finance to farmers and the agricultural sector in general. Agribank has however been instructed by the Government to decelerate credit growth to 20 percent a year after growth reached 24.4 percent at the end of last year.
The move represents an increase in government subsidies for the sector which is already enjoying a government subsidy package which will last until the end of 2012.
Agribank, already the biggest Vietnamese bank in terms of assets, is now the biggest in terms of charter capital after the latest capital injection./.
State-owned bank Agribank plans request an extra 10 trillion VND (526.31 million USD) of government funds to meet financial requirements and achieve a capital adequacy ratio of 8.5 percent by the end of the year.
The latest injection was justified by the Government on the basis that it would help the bank extend finance to farmers and the agricultural sector in general. Agribank has however been instructed by the Government to decelerate credit growth to 20 percent a year after growth reached 24.4 percent at the end of last year.
The move represents an increase in government subsidies for the sector which is already enjoying a government subsidy package which will last until the end of 2012.
Agribank, already the biggest Vietnamese bank in terms of assets, is now the biggest in terms of charter capital after the latest capital injection./.
