SHB merger with VVF approved in principle

SHB received approval in principle from the central bank to merge with finance company VVF. - Photo vtc.vn

HÀ NỘI – The State Bank of Việt Nam this week approved in principle a plan to merge the Sài Gòn-Hà Nội Co妹妹ercial Joint Stock Bank (SHB) and the Vinaconex-Viettel Finance JSC (VVF).

SHB revealed that the central bank also ratified the bank’s plan to set up a new subsidiary, which will be called SHB Finance with charter capital of VNĐ 一 trillion (US$ 四 四. 六 四 million) and will operate in consumer credit.

Following the merger, SHB’s charter capital will increase to more than VNĐ 一0. 五 trillion.

SHB said under the Cicular  六 八 一 二/NHNN-TTGSNH, the central bank asked SHB and VVF to complete their merger in line with SBV’s regulations and submit a report on the merger to the SBV governor for official approval.

The planned merger was approved earlier by SHB and VVF shareholders at their annual general shareholders meetings last year.

SHB Finance will initially provide consumer credit services for individual customers that have annual income from VNĐ 一 五0 million to VNĐ 二00 million, later easing the market share to other individual customers with lower income.

Once SHB Finance is established, SHB will also transfer all its lists of individual borrowers with annual income of less than VNĐ 二00 million to SHB Finance.

According to SBV’s statistics, Việt Nam had  一 六 financial companies till the end of the last year. - VNS