Vietinbank to raise registered capital by 35 pct

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Vietnam's largest partly private bank, Vietinbank, has secured approval to raise its registered capital this year by 35 percent, and will do so by issuing new shares to existing shareholders, the central bank said on Thursday.

The State Bank of Vietnam had granted the Hanoi-based bank, which plans to sell 15 percent of its shares to Canada's Bank of Nova Scotia, permission to raise its registered capital to VND15.1 trillion (US$802.7 million), a central bank statement said.

Vietinbank, or Vietnam Joint Stock Commercial Bank for Industry and Trade, planned to raise the money by issuing VND769 billion worth of bonus shares and VND3.15 trillion worth of common shares to current stake holders, the central bank said.

The issue of the new common shares, however, would need approval from the Finance Ministry to ensure that the state's stake in the bank would be preserved, the statement added.

Pham Huy Hung, Vietinbank's chairman, said in March the lender was awaiting government approval to sell its shares to the Canadian bank.

Vietinbank's shares ended the trading session on Thursday 2.7 percent higher at VND26,800.

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