SCB said the increase in capital helped SCB improve its financial capacity, enhancing the quality of its safety ratios, creating a premise for the bank to develop stably, safely and effectively, attracting more strategic shareholders. — Photo courtesy of SCB

The shareholders of Saigon Commercial Joint Stock Bank (SCB) Monday approved the plan to raise charter capital by VND15 trillion (US$649 million).

They also approved the plan to list SCB shares at the Ho Chi Minh Stock Exchange (HOSE).

The decisions were made at the Extraordinary General Meeting of Shareholders in 2020 held Monday in HCM City.

The bank will gradually increase its capital by VND15 trillion in the 2020-2030 period. Particularly in 2020-2021, SCB is expected to increase capital by VND5 trillion, from VND15.2 trillion to VND20.2 trillion.

Under the plan of raising capital by VND5 trillion, SCB plans to offer 500 million shares to existing shareholders, equivalent to 32.92 per cent of total outstanding shares. Offering price is VND10,000 per share.

The bank will supplement the capital to investment in fixed assets, modernising information technology and repairing headquarters.

A representative of SCB said the increase in capital helped SCB improve its financial capacity, enhancing the quality of its safety ratios, creating a premise for the bank to develop stably, safely and effectively, attracting more strategic shareholders.

At the meeting, shareholders also approved a roadmap to officially list SCB shares on the HoSE by 2025.

As of September 30, SCB's assets reached VND611.7 trillion, maintaining its position as a private joint stock commercial bank with the largest total assets among non-State banks.

In the first nine months of 2020, SCB prioritised the provision for credit losses. SCB set aside roughly VND1.96 trillion for credit risk provisions, bringing the total risk reserve fund to over VND13 trillion.

In July, SCB officially signed a strategic co-operation agreement with McKinsey Vietnam.

Accordingly, McKinsey will help SCB find and exploit opportunities and potential in the banking industry in a new digital era, providing comprehensive solutions to improve business efficiency with the goal of raising operating income by 25-30 per cent per year.

McKinsey also advised SCB to select a foreign strategic investor in accordance with SCB's strategy of operation. — VNS