Tienphong Bank shows muscle

Specifically, the bank will increase its chartered capital to VND5,550 billion ($264 million) from VND3,000 billion ($144 million). According to TienPhongBank, its shareholders have already  provided their capital contribution.

Previously, on December 17, 2012, the State Bank issued Document No. 8331/NHNN-TTGSNH allowing TienPhongBank to increase their chartered capital based on submitted plan approved in the bank’s annual general shareholders meeting in April, 2012.

TienPhongBank is one of nine banks that must restructure under orders of State Bank earlier this year. Its strategic partner Gold and  Gems Group Doji, which is holding 20 per cent of the bank’s stake, is helping the bank restructure.

According to Nguyen Hung, general director of TienPhongBank, although the bank must restructure in the context of tough economy, it   still operates normally and profitably.

In the last six months of 2012, financial benchmarks of TienPhongBank had been improved, he said. Total mobilized capital increased by 28 per cent compared to the beginning of this year and the non-performing loan was less than 5 per cent.

“Loans of TienPhongBank in risky areas such as real estate market and stock market make up around 4 per cent of the bank’s total outstanding loans. Our credit growth in 2012 can reach 15 per cent, much higher than the system’s one of around 6 per cent,” said Hung.

The capital increase is an important step in the bank’s restructuring process. With such additional capital, TienPhongBank said it would focus on improving its technology infrastructure, network expansion, distribution channel and in-depth development services and products. 

Participating in stabilizing the gold market and gold business is expected to be a key business  of TienPhongBank.