IFC offloads 1.5 pct stake in VietinBank

Vietnamese banks are persisting with the issue of bonds to comply with credit safety regulations and meet rising credit demand.

VietinBank will sell its remaining 4.91 percent stake in Saigonbank next Friday via an auction, the Hanoi Stock Exchange announced.

Four Vietnamese lenders, three state-owned and one private, are among the world’s top 500 most valuable brands this year.

While profit across the banking sector grew by an estimated 40 percent last year, VietinBank, LienVietPostBank and SaigonBank have reported steep declines. 

International norms require VietinBank to increase its capital, but its current ownership structure leaves little room to act.

The credit is to help expand the overloaded Cam Ranh International Airport in central Vietnam.

The purchase was finalised last month during a visit to Vietnam by French President Francois Hollande

Prime Minister Nguyen Xuan Phuc has asked the Ministry of Finance, relevant ministries and local governments to strive to implement the 2016 state budget collection scheme, which has been approved by the National Assembly.

State-owned VietinBank will sell nearly 17 million holding shares in Saigonbank, equivalent to over five percent of the bank's charter capital, to reduce ownership cap down to about five percent with only 15.12 million shares.

Among the 19 Vietnamese commercial banks listed in the Top 100 ASEAN Banks 2016 report released on April 8, VietinBank claimed top spot in terms of core capital and pre-tax profit.