A GP.Bank transaction office. The bank was acquired by the State Bank of Viet Nam on July 7. -- Photo kinhdoanhnet.vn

HA NOI (Biz Hub) — The State Bank of Viet Nam (SBV) took over Global Petrol Bank on July 7, after the bank failed to meet a deadline to have secured legal capital requirements.

As part of the take over, the SBV acquired all of the equity of the joint stock bank at a price of zero dong per share, converting it into a one-member limited company with a charter capital of more than VND3 trillion (US$142.86 million).

The Global Petrol Bank, or GP.Bank, has been listed among the nation's weaker lenders that need to be managed for three years, after a national plan was put in place to restructure the nation's banking system.

The bank has now been placed under special government supervision, following its inability to assure a minimum bank equity of VND3 trillion, as stipulated by the law.

GP.Bank held its third irregular shareholders meeting this year on July 2, in an effort to seek approval from shareholders for a charter capital supplement by July 4, following the order by the SBV.

The majority of shareholders, however, rejected the capital increase proposal of the bank's management board.

Further, SBV officials said the takeover would enable the central bank to become more active in restructuring GP.Bank, as well as assuring the security and stability of the nation's banking sector.

The acquisition terminated all statuses, including the rights and interests of existing shareholders in GP.Bank. But all legal rights and interests of existing depositors at the bank will be guaranteed, officials confirmed.

Major lender Viet Nam Bank for Industry and Trade, or VietinBank, is to take part in the management of GP.Bank.

Additionally, the former head of Vietinbank's supervisory board, Tran Thi Le Nga, was appointed chairwoman of GP.Bank's management board.

On July 2, audited financial reports revealed that GP.Bank suffered a cumulative loss of VND12.28 trillion ($584.76 million) and its ownership capital was some minus VND9.20 trillion ($438.10 million), as of early April.

Further, the bank's bad debt ratio was at a record high of 45.37 per cent, while its outstanding loans totalled only VND6.67 trillion ($317.62 million).

This year, the SBV also acquired Viet Nam Construction Bank and Ocean Bank due to violations of having a lack of required capital. — VNS