Several banks "race" to increase their charter capital to trillions of Vietnamese dong.

DNHN - Various banks are "racing" to increase their charter capital. There are plans to increase the capital of state-owned and private banks to trillions of dong.

Nam A Bank recently announced an increase in charter capital. As a result, this bank will issue more than 211 million shares with a par value of $10,000 per share; shareholders holding 100 shares will receive 25 additional shares. Existing shareholders on the list of shareholders as of the list's closing date will receive shares in this offering.

The final date to register to exercise the right to receive shares issued in this round is 7/7.

The bank's announced source of issued capital from owner's equity consists of undistributed profit after tax and share premium as of December 31, 2022.

If the issuance is successful, Nam A Bank will increase its charter capital from VND 8,464 billion to VND 10,580 billion. The anticipated proceeds from issuing shares to increase charter capital will be used to purchase fixed assets and labor tools; build the physical base for current and future business units; and provide additional capital for business operations.

Recently, the State Bank of Vietnam approved in writing SHB Bank's proposal to issue shares to pay 18% dividends to existing shareholders in 2022 and to issue shares under the employee stock option program (ESOP). SHB's charter capital will increase from VND 30,674 billion to VND 36,624 billion following the implementation of the aforementioned two options.

The Big 4 banks tend to increase charter capital. According to State Bank policy, Vietcombank, VietinBank, BIDV, and Agribank will be able to increase their capital with after-tax profits (after setting aside funds in 2021, the capital increase process will become clearer). The Government has informed the National Assembly that Agribank's charter capital will increase by VND 17,100 billion between 2021 and 2023. If approved, the capital of Agribank will increase to approximately VND 51,430 billion.

VietinBank has approved the proposal to increase charter capital in 2023 from approximately 12,330 billion VND to 60,387 billion VND, or more than 66,000 billion VND. According to two stock issuances, this bank plans to increase its charter capital with BIDV to more than 61,557 billion in 2023. Vietcombank intends to increase its charter capital from over 47,325 billion VND to over 75,000 billion VND.

With the private banking group, banks LPBank, TPBank, SeABank, and OCB also have approved plans to increase capital.

Nhan Ha