TienPhong Bank raises capital to over VND5.5 trillion

December 29, 2012 | 12:26

(0) user say

TienPhong Commercial Bank has obtained approval from the State Securities Commission to spur its charter capital from VND3 trillion to over VND5.5 trillion.

According to a statement released on Thursday, shareholders of the bank have submitted enough money and the capital increase stage will be completed before December 31.

TienPhong is among the banks that have had to restructure themselves. Last January, Do Minh Phu, chairman of Doji Gold and Gems Group, his brother Do Anh Tu and other shareholders acquired a 20% stake of the lender.

Largest shareholders of the bank are Doji Group, FPT Corporation, MobiFone, Vietnam National Reinsurance Corporation, and Singaporean financial group SBI Ven Holding Pte. Ltd.

Concerning this plan amid difficulties of the financial market and many banks’ failure to carry out capital increase plans, Nguyen Hung, general director of TienPhong Bank, said shareholders have entrusted the board of directors to choose suitable investors for this plan, ensuring that they have strong financial capability and will cooperate with the bank in the long term.

With the bigger fund, TienPhong Bank will improve technology infrastructure, expand its network, distribution channels and develop new products such as gold trading, credits for enterprises in the supporting industry and improve online banking services.

The central bank on December 17 issued a document to give the green light to TienPhong Bank to carry out the capital increase plan.

The bank expects to obtain a credit growth rate of 15% and mobilization growth rate of 28% in 2012. Its bad debt ratio is under 5% while property and securities loans account for 4% of total outstanding loans.

SGT

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional