VPBank Raises Deposit Rate to 18.8%

Monday, June 23, 2008
Viet Nam Joint-Stock Commercial Bank for Private Enterprises, known as VPBank, has raised the rate on deposits held for six months to 18.8%, the Dau Tu newspaper reported.

The State Bank of Viet Nam this month raised its benchmark interest rate to 14% from 12% to cool inflation.

Singapore’s OCBC Bank to raise VPBank stake

Friday, May 16, 2008
VPBank is working to help Singapore-based OCBC complete procedures to raise OCBC's holdings in VPBank to 15%, the maximum stake allowed by law in a commercial bank by a single foreign strategic investor.

Any interest held by a single foreign investor requires State Bank of Viet Nam approval.

VPBank general director Nguyen Dac Son said on Wednesday that OCBC would pay 4-5 times more than the face value of VPBank's shares to obtain the additional interest.

"The price that OCBC will pay for an additional 5-per-cent stake in VPBank is likely similar to the amount the Singapore bank paid for the earlier 10-per-cent stake, even now during increased difficulties in the credit situation," commented a Kim Long Securities Co analyst who asked to remain anonymous.

OCBC bought a 10-per-cent stake in VPBank in April 2006 at a cost of VND250bil (US$15.6mil), becoming VPBank's sole strategic partner.

During negotiations to increase the stake to 15%, OCBC invested an additional $7mil for training courses for VPBank's staff, per its commitments as a strategic partner.

A larger OCBC stake, planned since last year, would help VPBank strengthen its relationship with OCBC and help promote VPBank's growth in such areas as risk management, governance and technology, Son said.

UK-based Standard Chartered Bank has also sought a 15-per-cent stake in Vietnam's Asia Commercial Bank, while Singapore-based United Overseas Banking Corporation has sought a 15-per-cent interest in Southern Bank.

"If domestic banks can make use of this foreign-investor interest, the banking sector will be stronger, and banking stocks will better perform their role on the stock exchange as a magnet for foreign capital," said the Kim Long Securities analyst. (VNS)

Singaporean's OCBC Group increases stake at VPBank

Thursday, May 15, 2008
Singapore’s third largest financial group OCBC will increase its Vietnam Joint Stock Commercial Bank for Private Enterprises (VPBank) shareholdings to 15% following an agreement to buy another 5% of the local bank’s stock.

Under the deal inked in Hanoi on May 14, the Singaporean partner will pay 4.5 times more than the share’s market value, or an equivalent to the price previously paid for its 10% stake.

Since becoming VPBank’s strategic partner in May 2006, OCBC has made a number of deals with the local financier, including spending 7 million USD in personnel training for VPBank.

VPBank is one of the three leading commercial joint-stock banks and has 140 branches nationwide. Its charter capital has reached 2 trillion VND.

VPBank launches largest promotion programme

Tuesday, May 13, 2008
Viet Nam Joint Stock Comercial Bank for Privite Enterprises (VPBank) is on May 12 to launch the largest promotion programme so far with the total value of prises of nearly three trillion dong, including the first prize is worth one billion dong.
The programme will be slated for 90 days ending August 9, 2008.
Le Dac Son, the bank's general director said that the promotion programme is to thank all customers on the 15 establishment years of the bank on coming August 12.
Also, VPBank also started to apply the dong deposit rate with a term of 1, 2 and 3 weeks at 10%, 10.3% and 10.5% per annum.