Three commercial banks – Orient Commercial Bank, Western Bank, and Navibank – have announced plans to comply with higher charter capital requirements by the end of the year in order to list shares on one of the nation's two stock exchanges.
Under current central bank regulations, all listed banks must maintain charter capital of at least 3 trillion VND (158 million USD).
Orient Commercial Bank shareholders have approved a plan to issue 110 million additional shares this year and increase charter capital from 2 trillion VND (105.3 million USD) to 3.1 trillion VND (163.2 million USD).
With shares currently traded on the over-the-counter market, the bank is also carrying out necessary procedures to list on the HCM City Stock Exchange at the end of the year.
Last year, Orient posted a profit of 272 billion VND (14.3 million USD), an increase of 135 percent over the previous year. Its total assets as of December 31, 2009, reached nearly 12.7 trillion VND (668.4 million USD). Deposits rose by 22 percent to a total of 10 trillion VND (526.3 million USD) while outstanding loans increased 19 per cent over the previous year to VND 10 trillion. The bank's bad debt ratio was 2.64 percent.
This year, the bank expects to pay a 10-percent dividend on profits of 400 billion VND (21.1 million USD). It projects deposits to increase by 40 percent and outstanding loans by 30 per cent over 2009.
The bank is also in negotiations with its French strategic partner, BNP Paribas, to raise the foreign bank's holding from 15 percent to 20 percent, upon approval of the State Bank.
Meanwhile, Western Bank received approval from the HCM Stock Exchange this week to list 100 million shares in May under the code WEB. It will carry out a plan to increase charter capital from 1 trillion VND (52.6 million USD) to 3 trillion VND after listing.
Navibank is completing procedures to list on the Ha Noi Stock Exchange by the end of this quarter./.
Under current central bank regulations, all listed banks must maintain charter capital of at least 3 trillion VND (158 million USD).
Orient Commercial Bank shareholders have approved a plan to issue 110 million additional shares this year and increase charter capital from 2 trillion VND (105.3 million USD) to 3.1 trillion VND (163.2 million USD).
With shares currently traded on the over-the-counter market, the bank is also carrying out necessary procedures to list on the HCM City Stock Exchange at the end of the year.
Last year, Orient posted a profit of 272 billion VND (14.3 million USD), an increase of 135 percent over the previous year. Its total assets as of December 31, 2009, reached nearly 12.7 trillion VND (668.4 million USD). Deposits rose by 22 percent to a total of 10 trillion VND (526.3 million USD) while outstanding loans increased 19 per cent over the previous year to VND 10 trillion. The bank's bad debt ratio was 2.64 percent.
This year, the bank expects to pay a 10-percent dividend on profits of 400 billion VND (21.1 million USD). It projects deposits to increase by 40 percent and outstanding loans by 30 per cent over 2009.
The bank is also in negotiations with its French strategic partner, BNP Paribas, to raise the foreign bank's holding from 15 percent to 20 percent, upon approval of the State Bank.
Meanwhile, Western Bank received approval from the HCM Stock Exchange this week to list 100 million shares in May under the code WEB. It will carry out a plan to increase charter capital from 1 trillion VND (52.6 million USD) to 3 trillion VND after listing.
Navibank is completing procedures to list on the Ha Noi Stock Exchange by the end of this quarter./.
