Khanh 0904775128 Ha Noi

Khanh 0904775128 Ha Noi

Vietnam rural bank becomes urban

A rural bank based in Vietnam’s Mekong Delta has converted into an urban commercial bank and assumed a new name.

Following its makeover as Petrolimex Group Commercial Joint Stock Bank (PG Bank), the former Dong Thap Muoi Rural Commercial Bank can now expand its network nationwide and offer all banking services including international payment and foreign exchange. The Vietnam Petroleum Corp (Petrolimex) holds 40 percent of the bank’s chartered capital of VND200 billion (US$12.5 million). Smaller stakes are held by securities firm Saigon Securities Incorporation and individuals. Earlier this year Petrolimex announced it had acquired the Dong Thap Muoi Rural Commercial Bank after spending an undisclosed sum to revive the bank. A PG Bank spokesman said the bank would initially open branches in both large and small cities and in other densely populated areas, before expanding further. PG Bank would have access to Petrolimex’s resources. The bank was established in 1993 with a chartered capital of VND700 million and headquarters in Cao Lanh township in Dong Thap Province. At the end of last year it had total assets of VND1.2 trillion ($75 million) and outstanding loans of VND801 billion, and a turnover for the year of VND69 billion ($4.3 million) and pre-tax profit of VND17.49 billion. The bank plans to increase its capital to at least VND1 trillion by next year, and VND3 trillion by 2010. Two other rural banks converted into urban banks – Hai Hung Bank and Mien Tay Bank –last year, taking the total number of such conversions to eight out of 11 rural banks. Acquisitions gain ground The banking industry has recently witnessed acquisitions because of optimistic forecasts for the sector post-WTO. Last month the Ho Chi Minh City-based Saigon Trading Group paid VND80 billion ($5 million) to acquire 1 million shares of the unlisted Southern Commercial Bank. The country’s largest confectioner, Kinh Do Corp, bought a 6.42 percent stake in the Vietnam Export-Import Bank (Eximbank) for $90 million. Reported by M.Q. – Compiled by Dong Ha