Nguyen Dinh Lam. — Photo pvfc.com.vn

HA NOI (Biz Hub) — PetroVietnam Finance (PVFC) Chairman Nguyen Dinh Lam will take the reins as chairman of the new Vietnam Public Bank (PVcombank), to be formed by a merger between PVFC and Western Bank.

The decision was made at a joint shareholder meeting on Sunday, where shareholders agreed the new bank would have an initial equity of VND9 trillion (US$428.6 million) and VND12 trillion ($571.4 million) by 2015. Profits are expected to reach VND1.24 trillion ($59.05 million).

PVcombank will concentrate on expanding loans to the oil and gas sectors, including mineral exploitation and energy production; with lending in these areas expected to rise from 42.3 per cent at the end of last year to 48 per cent by 2015.

Agriculture lending will remain a minority share of the bank's offering at around 1 per cent.

The two parties received an initial nod from the State Bank of Viet Nam on the proposed merger last month. — VNS