Vietcombank is permitted to open 31 new transaction offices nationwide. — Photo Vietcombank

The State Bank of Viet Nam (SBV) has approved Vietcombank’s proposal to open 31 new transaction offices nationwide.

As the SBV has been hesitant to allow banks to expand in recent years the move is one of the largest network expansions in the country’s banking system.

Most of Vietcombank’s new offices will be located in the central and southern cities and provinces.

Though it is one of the country’s four largest banks in terms of total assets and outstanding loans, Vietcombank had only 537 branches and transaction offices in 54 cities and provinces by the end of last year, ranking sixth in terms of network size behind Agribank, LienVietPostBank, Vietinbank, BIDV and Sacombank.

It is estimated that 25 banks in the country have more than 10,700 branches and transaction offices nationwide, mainly in big cities and provinces.

Banks view expansion as a way to increase market share.

Experts also said transaction networks had brought many advantages to some banks by enabling them to reach more customers and increase brand recognition. However, since some of the networks were too large, some would struggle in terms of cost management. — VNS