09:15 | 21/09/2016 Finance - Banking
The State Bank of Vietnam has approved in principle the planned merger between Saigon–Hanoi Bank (SHB) and the financial company Vinaconex Viettel (VVF).
With the central bank’s backing, SHB and VVF will proceed to finalise the relevant documents in accordance with regulations on reorganising credit institutions and submit them to the governor for final approval.
VVF has a charter capital of VND1 trillion (US$45 million), while SHB has VND9.485 trillion (US$426.8 million).
Under the merger plan announced in October 2015, a share of VVF will be swapped for a share of SHB, increasing SHB’s charter capital to VND10.485 trillion (US$471.8 million).
The central bank also approved in principle SHB’s plan to establish a consumer finance company as its subsidiary, through which the bank will increase its loan portfolio to inpidual customers with an annual income of less than VND200 million (US$9,000)./.