On June 30, 2021, the State Bank of Vietnam (SBV) issued Document No. 4737/NHNN-TTGSNH allowing the National Citizen Commercial Joint Stock Bank (NCB) to increase its charter capital.
Accordingly, the SBV has approved of the NCB's request to increase its charter capital by the maximum amount of VND 1,500,000,000,000 (One thousand five hundred billion Vietnamese Dongs) through the means of issuing additional shares for the existing shareholders in line with the plan for increasing the charter capital adopted by the General Shareholders’ Meeting of the NCB in Resolution No. 29/NQ.DHDCD dated February 22, 2021.
The NCB is requested to (i) increase its charter capital in compliance with the applicable legal regulations; (ii) inform in writing and implement appropriate measure(s) to make sure that all organizations and individuals buying the NCB’s additional shares will be committed to full understanding and fulfillment of the shareholders' duties as prescribed in Article 54 of the 2010 Law on Credit Institutions (as amended and supplemented in 2017).
Within a maximum of 10 working days from the completion date of the issuance of the new shares in accordance with the laws, the NCB shall implement the procedures for amending and supplementing its License as prescribed in Paragraph 2 of Article 12 of Circular No. 50/2018/TT-NHNN dated December 31, 2018 stipulating the dossiers, sequences and procedures for requesting approval of a number of revised substances by commercial banks, foreign bank branches.
The NCB is also requested to ensure that the increased capital of VND 1,500,000,000,000 gained from the additional shares will be used for practical purposes and in an effective and efficient manner to improve the NCB's financial capacity, with priority on handling of financial issues and sufficient risk provisioning in accordance with the regulations; and this newly increased capital shall not to be used for extending credit in risky areas such as real estate.
This Document is valid within 12 months from the date of its signing.
LK