The Malaysian Public Bank Berhad (PBB) received a 100 per cent foreign-owned bank licence from the State Bank of Vietnam (SBV) last week.

A brach of Public Bank Berhard in Việt Nam. The bank currently has seven branches in Việt Nam. - File Photo

In a filing with Kuala Lumpur Stock Exchange, PBB said it had on March 24 received the approval in relation to its acquisition of the remaining 50 per cent equity capital in VID Public Bank (VPB), the 50:50 joint venture bank with Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV).

Effective on April 1, 2016, VPB will become a 100 per cent wholly-owned subsidiary of PBB and will be renamed as Public Bank Vietnam Limited (PBVN). The new bank has a charter capital of VND3 trillion (US$134.3 million) and has a term of operations of 99 years.

The new bank will be the sixth 100 per cent foreign-owned bank in Vietnam, after HSBC, ANZ, Standard Chartered, Shinhan Vietnam and Hong Leong Bank.

"The 100 per cent foreign-owned bank licence granted to PBB is a significant milestone in VPB's 24-year banking journey in Vietnam.

PBB was one of the first banks to set up a joint venture in Vietnam in 1992, and VPB has been operating profitably since its incorporation", said Founder and Chairman of Public Bank Group, Tan Sri Dato' Sri Dr. Teh Hong Piow.

Currently, VPB has seven branches in Vietnam located in Hanoi, HCM City, Da Nang, Binh Duong, Hai Phong, and Dong Nai.

"Public Bank Vietnam will continue to focus on retail banking business in order to serve a wider reach and spectrum of customers in Vietnam, especially SMEs lending which is the engine of growth for the country.

In addition, it will provide a convenient platform for the Malaysian business community to conduct business operations in Vietnam," he said.