According to the deal, Sacombank will soon take over Southern Bank’s assets, staff, data and customer system as approved under Decision 1844/QD-NHNN issued on September 14.
The new bank will retain the Sacombank name along with total assets of VND290.8 trillion (US$13 billion) and total equity of VND22.6 trillion (US$1 billion). The bank has 567 offices in the three countries of Vietnam, Laos and Cambodia, currently employing 15,510 people.
However, Tram Be, Vice Chairman of Sacombank's Board of Directors, will not be a part of the new bank’s board. The State Bank of Vietnam (SBV) will take over the stakes in Southern Bank, after which the new Sacombank will appoint the central bank's officials to run the new bank after the merger.
Speaking at the signing ceremony, SBV Deputy Head Nguyen Phuoc Thanh highlighted that the merger is part of the restructuring of the banking sector in order to form a healthier financial conglomerate to gain a firm foothold in the highly competitive global market.
The new Sacombank will be the largest bank of the joint stock sector, declared Thanh.
Kieu Huu Dung, Chairman of Sacombank's Board of Directors, said joining the two banks together is expected to improve overall performance, benefiting all involved parties including stakeholders, customers and the Government.
Previously, a shareholders meeting on July 11 decided that one Southern Bank stock was equivalent to 0.75 of a Sacombank stock.
On September 21, the SBV passed a document to increase Sacombank’s chartered capital to VND18.853 trillion (US$838.2 million) from VND12.425 trillion (US$552.4 million).
