The Vietnam Bank for Industry and Trade (Vietinbank) will merge withPetrolimex Group Commercial Joint Stock Bank (PG Bank) in the thirdquarter of this year, said Nguyen Van Thang, Chairman of Vietinbank'sBoard of Directors, at the bank's Annual Shareholders' Meeting.
PG Bank is currently a subsidiary of Vietnam National Petroleum Group (Petrolimex).
"Vietinbankhas actively searched for credit institutions suitable to itsdevelopment strategies. We have found that PGBank is a promisinginstitution to merge with us," he said.
Thang said hisorganisation plans to become a banking and finance group with a strongposition in the domestic banking system. It is also set for gradualexpansion in international markets.
Thang said the merger willhelp Vietinbank increase its capital, develop and expand branches,foster retail services and step up its lending and investments. The moveis expected to foster further cooperation between Vietinbank andPetrolimex's other subsidiaries.
The move will be finalised after the State Bank of Vietnam officially approves the merge in the third quarter, he added.
He said that Vietinbank will also register with the Central SecuritiesCommittee to issue new shares, establish a new financial firm tocomplete the merge and publish information in the third quarter.
He said that Vietinbank will set up a financial company named PGFinance that will have a chartered capital of VND1 trillion and offerservices to Petrolimex's customers after the merge.
Through PG Finance, Vietinbank hopes to benefit from Petrolimex'sdiverse business network that includes 6,600 gas stations and variousPetrolimex customers in need of financial and monetary services.
Thang said that PG Bank's Board of Supervisors and Board of Directorswill resign from their current positions after the move. Vietinbankpromised to then arrange suitable positions for the senior officials.
The change rate for PG Bank shares to Vietinbankshares is 1:0.9, which means Vietinbank will exchange 270 million of itsshares for 300 million of PG Bank shares, he added.
He said that Vietinbank will employ all PG Bank's employees after themerge and ensure that they receive the same incomes and benefits in thecoming six months before the merge.
Vietinbank willevaluate PG Bank's employees' salaries and adjust them to be inaccordance with Vietinbank's regulations six months after the merge,Thang said.
The merge will increase Vietinbank'stotal assets by 25 trillion VND (1.19 billion USD) to 685 trillion VND(31.7 billion USD) and its chartered capital by 3 trillion VND (142.86million USD) to more than 40 trillion VND (1.85 billion USD).
InPGBank's annual report for 2014, their charter capital was 3 trillionVND (142.86 million USD) and total asset values amounted to 25.78trillion VND (1.23 billion USD). Its outstanding loans reached 14.50trillion VND (690.48 million USD) and pre-tax profits hit 168 billionVND (8 million USD).
Vietinbank had 661 trillion VND(31.48 billion USD) in total assets and roughly 37 trillion VND (1.76billion USD) at the end of last year.
In 2014, itspre-tax profits hit about 7.3 trillion VND (347.62 million USD), down5.8 percent over the previous year. Outstanding loans grew 18 percentyear-on-year to reach 542.68 trillion VND (25.84 billion USD).
For 2015, the Vietinbank projects deposit growth of 14 percent andloan growth of 13 percent, and will maintain a bad debt ratio belowthree percent.-VNA
PG Bank is currently a subsidiary of Vietnam National Petroleum Group (Petrolimex).
"Vietinbankhas actively searched for credit institutions suitable to itsdevelopment strategies. We have found that PGBank is a promisinginstitution to merge with us," he said.
Thang said hisorganisation plans to become a banking and finance group with a strongposition in the domestic banking system. It is also set for gradualexpansion in international markets.
Thang said the merger willhelp Vietinbank increase its capital, develop and expand branches,foster retail services and step up its lending and investments. The moveis expected to foster further cooperation between Vietinbank andPetrolimex's other subsidiaries.
The move will be finalised after the State Bank of Vietnam officially approves the merge in the third quarter, he added.
He said that Vietinbank will also register with the Central SecuritiesCommittee to issue new shares, establish a new financial firm tocomplete the merge and publish information in the third quarter.
He said that Vietinbank will set up a financial company named PGFinance that will have a chartered capital of VND1 trillion and offerservices to Petrolimex's customers after the merge.
Through PG Finance, Vietinbank hopes to benefit from Petrolimex'sdiverse business network that includes 6,600 gas stations and variousPetrolimex customers in need of financial and monetary services.
Thang said that PG Bank's Board of Supervisors and Board of Directorswill resign from their current positions after the move. Vietinbankpromised to then arrange suitable positions for the senior officials.
The change rate for PG Bank shares to Vietinbankshares is 1:0.9, which means Vietinbank will exchange 270 million of itsshares for 300 million of PG Bank shares, he added.
He said that Vietinbank will employ all PG Bank's employees after themerge and ensure that they receive the same incomes and benefits in thecoming six months before the merge.
Vietinbank willevaluate PG Bank's employees' salaries and adjust them to be inaccordance with Vietinbank's regulations six months after the merge,Thang said.
The merge will increase Vietinbank'stotal assets by 25 trillion VND (1.19 billion USD) to 685 trillion VND(31.7 billion USD) and its chartered capital by 3 trillion VND (142.86million USD) to more than 40 trillion VND (1.85 billion USD).
InPGBank's annual report for 2014, their charter capital was 3 trillionVND (142.86 million USD) and total asset values amounted to 25.78trillion VND (1.23 billion USD). Its outstanding loans reached 14.50trillion VND (690.48 million USD) and pre-tax profits hit 168 billionVND (8 million USD).
Vietinbank had 661 trillion VND(31.48 billion USD) in total assets and roughly 37 trillion VND (1.76billion USD) at the end of last year.
In 2014, itspre-tax profits hit about 7.3 trillion VND (347.62 million USD), down5.8 percent over the previous year. Outstanding loans grew 18 percentyear-on-year to reach 542.68 trillion VND (25.84 billion USD).
For 2015, the Vietinbank projects deposit growth of 14 percent andloan growth of 13 percent, and will maintain a bad debt ratio belowthree percent.-VNA
