Vietnam banks to raise registered capital

Many small-scale commercial joint stock banks in Vietnam have completed raising required authorised shareholder capital of at least VND3,000 billion. More have revealed new plans to raise the registered capital this year.


Many small commercial banks have just completed raising the minimum required registered capital to VND3,000 billion and they actively prepare for new capital-raising plans which are scheduled to be done this year. Specifically, Housing Development Bank HD Bank will increase registered capital from VND3,000 billion to VND5,450 billion; TrustBank will hike its charter capital from VND3,000 billion to VND5,000 billion; and OceanBank will lift its capital from VND3,500 billion to VND5,000 billion.

But larger ones are also disclosing plans to boost their capital this year.

With a capital-boosting plan ratified by the annual general meeting, Sacombank will raise charter capital from VND9,179 billion to VND10,739 billion, expected to be completed by the end of this year. The Ho Chi Minh City-based lender will issue shares to existing shareholders at a ratio of 100:15 and employees at a ratio of 100:2.

Mr Dang Van Thanh, President of Sacombank, said the recapitalisation plan is necessary for the bank to invest in fixed assets, set up new units, and supplement profit-taking business.

On April 26, shareholders of Asia Commercial Bank adopted a plan to hike chartered capital from more than VND9,376 billion to over VND11,252 billion. An ACB official said in the situation of stricter regulations on capital adequacy ratio and the rapidly changing business environment, to realise credit growth of 20 percent and earn VND4,100 billion net profit this year, the addition of about 20 percent of registered capital is necessary.

Similarly, Military Bank has also planned to increase its chartered capital from the current VND7,300 billion to VND10,000 billion by the end of this year.

Techcombank also sets high growth targets for this year and is planning to increase its chartered capital to VND8,788 billion.

Eximbank will lift its registered capital from VND10,560 billion to more than VND12,355 billion and Vietcombank has disclosed a plan to boost its charter capital from VND17,587 billion to more than VND24,622 billion.