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LienVietPostBank recently announced the closing of the list of shareholders to follow procedures for listing 646.6 million bank shares on UpCom.
Other banks including Techcombank, OCB, Nam A, Kienlongbank, VPBank, MaritimeBank, VIB, VietABank and TPBank are also moving ahead with plans to put their shares into transactions on the bourse. Of these, VIB debuted in early 2017, while Kienlongbank entered the bourse on June 29.
Analysts commented that now is the golden time for banks to list their shares as market conditions are favorable.
On June 29, Kienlongbank shares first appeared on UpCom market with the starting price of VND10,000 per share, equal to the nominal value. On July 5, the shares were traded at around VND11,700 per share, which meant the 17 percent increase after one week of transaction.
VIB entered the bourse with the price of VND17,000 per share. It is now traded on UpCom at VND23,000 per share.
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It’s now better than ever for banks to list shares on the bourse: bank share prices have bounced back after a period of decline. |
VPBank’s shares have seen prices increasing by twofold. Meanwhile, Techcombank share price has soared to VND34,000. LienVietPostBank shares are traded at around VND12,000, while HDBank shares at VND17,000.
According to the State Bank, by December 31, 2016, the total charter capital of 35 commercial banks had reached VND387 trillion, increasing by VND55.94 trillion over 2015.
Of this, seven state-owned banks had capital of VND154.583 trillion, while 28 joint stock banks VND232.425 trillion.
Nineteen out of 35 banks have announced their plan to increase charter capital this year by VND37 trillion. BIDV plans to increase the capital by VND4.445 trillion, Techcombank VND5 trillion, Vietcombank VND3.598 trillion and VP Bank VND3.294 trillion.
While large banks show their strong determination to raise charter capital, smaller banks which have charter capital equal to legal capital (VND3 trillion) don’t intend to raise capital.
Bao Viet Bank, for example, still had charter capital of VND3.15 trillion by the end of 2016, GP Bank VND3.016 trillion, while Kienlong, Ban Viet and PGBank have VND3 trillion each.
It is difficult for banks to raise their capital. SaigonBank in 2014 drew up the plan to raise capital form VND3.08 trillion to VND4.08 trillion but still cannot fulfill the plan.
Four commercial banks are reported as having charter capital of over VND20 trillion. Nine banks have 10-20 trillion, 12 banks have VND5-10 trillion and 10 banks have less than VND5 trillion.
US$1 = VND22,000
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