Merger took effect on May 5.
The Bank for Investment and Development of Vietnam (BIDV) has officially announced its merger with the Mekong Housing Bank (MHB), with the entity to acquire the name and legal status of BIDV and be located at its headquarters.
Charter capital post-merger will increase to VND31.51 trillion ($1.45 billion), which includes VND28.11 trillion ($1.29 billion) from BIDV and VND3.4 trillion ($156.84 million) from MHB.
Both banks are majority owned by the State, which holds over 90 per cent.
After the merger the new bank will have total assets of VND695 trillion ($32.06 million).
The State Bank of Vietnam (SBV) previously issued Official Document No. 2833/NHNN-TTGSNH giving in-principle approval to the merger, based on a proposal submitted by the Chairman of BIDV, Mr. Tran Bac Ha, on April 20.
In the beginning of April MHB presented documents to its annual general meeting stating that the bank will merge with BIDV under directions from the SBV.
The merger was made official by Decision No. 589/QD-NHNN, signed on April 25 and taking effect on May 5.
The stock swap ratio is set at 1:1, according to Mr. Ha.
BIDV holds advantages in major cities and industrial zones while MHB has experience in agriculture in the Mekong Delta, putting the new entity in a strong position to perform well.