VietNamNet Bridge – To date, the State Bank of Vietnam (SBV) has approved plans by 16 joint-stock banks on increasing chartered capital. However, the approval still cannot make banks sigh with relief, because it is not sure if the plans can be implemented.
 |
Leaders of commercial banks met with big shareholders, including state-owned economic groups and general corporations, to persuade them to inject more capital. However, to get more contributions, the banks must not only get their nod, but also approval from the real owner of these entities – the State.
SBV approved the Orient Commercial Bank (OCB) plan to increase chartered capital from two trillion to 3100 billion dong this year. Under the plan ratified by the shareholders, shares will be issued to existing investors. Ben Thanh Corporation, now a big shareholder of OCB, will have an important voice in the plan’s implementation.
Nguyen Bang Tam, Deputy General Director of Ben Thanh Corporation, remarked that the corporation agreed to the plan, but the corporation will still consult with HCM City People’s Committee on whether it will maintain its ownership ratio.
According to Tam, board members of Ben Thanh Corporation will gather soon to discuss whether or not to continue investing in OCB, and then will ask the People’s Committee’s opinion.
Anticipating problems, OCB’s Board of Directors announced on its official website that, in case existing shareholders are not allowed by competent agencies to purchase more stakes, the board of directors will have the right to sell to other domestic partners.
The general director of a joint-stock bank headquartered in HCM City, also affirmed that his bank is encountering difficulties because some existing shareholders that are State-owned entities are not allowed to make investments in other fields. However, he has taken initiative, looking for other partners and submitting this plan to raise capital to SBV.
Last week SBV sent a document to credit institutions, saying to check the list of shareholders. The central bank has also requested that state-owned economic groups and general corporations to obey the Prime Minister’s decision that requires groups to report to the Prime Minister before they intend to make investment in the fields of finance, banking and securities.
Ho Huu Hanh, Director of the SBV HCM City Branch, revealed the case of Nam Viet Bank (Navibank) confronting difficulties because Vietnam Textile and Garment Group (Vinatex), a big shareholder of the bank, does not want to maintain its ownership ratio.
Vinatex’s General Director Vu Duc Giang told Thoi bao Kinh te Saigon that the Government will not allow Vinatex to pour more capital into Navibank, therefore, the group will not buy shares when issued.
Giang went on to say that Vinatex will ask the Government whether or not the group can maintain ownership, or must withdraw investment capital. Vinatex holds 11 percent of Navibank. The bank received approval to increase its chartered capital from 1000 billion dong to 3500 billion dong.
Vietcombank is now a joint-stock bank, but the State holds more than 90 percent of its stakes. Therefore, Vietcombank must await the State’s decision on whether or not the bank should keep its capital contribution to other banks.
Nguyen Hoa Binh, Chair of Vietcombank, said the State Bank now has its representative at Vietcombank’s Board of Directors, who will has his role in deciding whether Vietcombank will invest in other banks or not.
Currently, Vietcombank is holding 19 percent of capital at Gia Dinh bank. Binh said that Vietcombank will either lower its ownership ratio at the bank because it will not purchase the stakes to be issued by the bank, or withdraw its investment capital. Binh also said Vietcombank is also considering lowering the ownership ratio at some other institutions.
Source: Thoi bao Kinh te Saigon
