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Banks moving ahead with capital increase plans
It is now a golden time for commercial banks to implement their plans to raise chartered capital to the required level of 3 trillion dong. The warming up of the stock market has helped make bank stocks more valuable.
Decree No 141 on the structure and operation of commercial banks from 2006 clearly stipulates that commercial banks must have the chartered capital of 3 trillion dong by 2010.
Many banks have drawn up plans to raise chartered capital to the required level, but the plans have been delayed because of the stock market’s falls. Now seems to be the ideal time for banks to restart the plans as the stock market has warmed up, promising success for banks’ plans to issue more shares.
The shareholders’ meeting of HD Bank has approved a plan to increase capital from 1,550 billion dong to 2,000 billion dong this year. However, if there are good market conditions, the bank will increase its chartered capital to 3,000 billion dong in 2009.
Techcombank has announced a plan on issuing stocks in the first phase in 2009 to increase chartered capital from 3,642 billion dong to 4,337 billion as per the resolution of the shareholders’ meeting.
Southern Bank has got permission from the Governor of the State Bank of Vietnam to raise its chartered capital from 2,000 billion dong to 2,304 billion. The bank plans to raise its total assets to 34 trillion dong and obtain the pretax profit of 350 billion dong this year.
Small banks are getting ready to raise chartered capital in order to meet the stipulated requirement for capital, but bigger banks, namely Sacombank, Eximbank and ACB, are also trying to increase capital to become bigger and stronger.
Sacombank, for example, is going ahead with a capital increase plan approved by its shareholders’ meeting. As planned, the bank will increase its capital by 31 percent this year in comparison with 2008 to 6,700 billion dong. Sacombank plans to open 31 more retail branches in 2009, of which, a branch in Cambodia was opened on June 23.
The stock market’s performance seems to have given banks confidence. Securities investors are now trying to collect bank shares as they believe that the national economy is better off, and banking will be the first economic sector to benefit from the recovery.
Bank shares have become more valuable as banks reported high profit for the first five months of the year. ACB, for example, reported 900 billion dong worth of pretax profit, Sacombank 650 billion. Meanwhile, Eximbank expects to gain the profit of 800 billion dong by the end of June 2009.
VietNamNet, DTCK
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