An SHB transaction office. The bank is finalising procedures to open a Laos subsidiary. — Photo infonet.vn

HA NOI (Biz Hub) — The planning and investment ministry has given its approval for the finalising of procedures by the Sai Gon-Ha Noi Bank (SHB) to establish a subsidiary bank in Laos.

SHB plans to open the affiliate by upgrading a branch that was opened in 2012. The new institution was expected to have a charter capital of US$50 million, bank officials told VnExpress online.

The ministry approved the bank's plan to modify its foreign investment licence late last month, following the approval of the State Bank of Viet Nam and the Laos government.

After merging with the Hanoi Building Bank, or Habubank, in August 2012, the equity of SHB reached about VND9 trillion ($428.57 million) at the end of last year.

SHB specialises in credit services, currency, gold trading and international payments. It plans to become a strong financial holding group in the near future.

Vietinbank and Sacombank have also petitioned for a similar upgrade in Laos, but they have received the permission of the central bank only. — VNS