DONG NAI (VNS)— A possible merger between HCM City Development Bank and DaiABank revealed two weeks ago was ignored at DaiABank's annual shareholder meeting yesterday.
Only 52 per cent of shareholders attended the function in southern Bien Hoa City, but major shareholders were noticeable by their absence. Talks are expected to re-open on May 29, said a spokesman for DaiABank.
According to Quach Van Duc, DaiABank's chairman, the important news was not announced because negotiations are still underway.
Meanwhile, on April 25, Le Thi Bang Tam, chairwoman of HDBank, told media the two banks were set to wrap up the legal formalities for the merger, which has been approved by the State Bank.
Tam said her bank hired an unidentified consulting company to advise on the merger and find a foreign partner for the merged entity.
Dai A Commercial Joint Stock Bank, based in southern Dong Nai Province since 1993, has capital of VND3.1 trillion (US$147.6 million) while the HDBank, set up in HCM City three years earlier, has capital of VND5 trillion ($380.9 million).
According to SBV Governor Nguyen Van Binh, mergers are expected to make smaller banks financially stronger.
The merger of Western Bank and PetroVietnam Finance (PVF) was announced in March. Three smaller banks also merged into the Saigon Commercial Bank last year.
In 2011, a merger also took place between First Commercial Joint Stock Bank, Vietnam Tin Nghia Commercial Joint Stock Bank, and Sai Gon Commercial Joint Stock Bank (SCB). Two banking giants, Eximbank and Sacombank, also plan to merge in the next three to five years. —VNS