The capital hike through private placement will help MB expand its operations over the next three years, including investing in digital banking services. — Photo MB

The State Bank of Viet Nam has approved Military Commercial Joint Stock Bank (MB)’s proposal to increase its charter capital to VND24.42 trillion (US$1.06 billion) from VND23.73 trillion.

Under the approval, the central bank has asked MB to ensure that the capital increase is in accordance with the law, including regulations on stake ownership limits applied for shareholders and relevant persons, and private placement.

Within ten working days after completing the share issue to increase capital, MB must complete procedures for amending and supplementing its operation licence as regulated in the current laws.

The capital hike through private placement will help MB expand its operations over the next three years, including investing in digital banking services.

Earlier, MB said that it was seeking to sell a 7.5 per cent stake to one or more foreign investors, which was expected to help the bank meet new international capital requirements.

The Government currently owns 44 per cent of MB. Domestic and foreign financial institutions own 11 per cent, with the rest held by individual investors and entities such as mutual funds.

MB’s current two biggest shareholders are military-owned telecom giant Viettel, holding 11.69 per cent, and the State Capital Investment Corp (SCIC), holding 9.74 per cent.

Ending last year, MB’s profit surged by 29 per cent against 2018 and was 5 per cent higher than the bank’s plan, helping it for the first time being listed among few banks with pre-tax profit exceeding VND10 trillion.

Its total assets at the end of last year were worth nearly VND400 trillion, up 13 per cent against the previous year. — VNS