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Banking & Finance

Oceanbank on brink of being purchased

Released at: 15:54, 07/04/2015

Oceanbank on brink of being purchased

Rumors regarding bank's future will continue to swirl until its annual general meeting.

by Hung Nguyen

As indicated earlier by the Vietnam Economic Times, The State Bank of Vietnam (SBV) has indicated that it may purchase 100 per cent of shares at Oceanbank due to four of its former leaders being arrested over irregularities in lending activities last year, leading to calls for its restructure.

With an Annual General Meeting to be held soon, the personnel structure of the bank remains complicated and the possibility of being purchased by SBV will be discussed.

SBV assigns representative

Ms. Dao Thi Thuy has stepped down as Chairman of the Board of Directors as of April 3. On the same day, the SBV appointed Mr. Do Thanh Son as its representative.

However, a representative of OceanBank clarified that Mr. Son is not the chairman of the bank and the position will remain vacant until a vote is taken by shareholders.

Mr.Son has been a director of Vietinbank Branch in Ho Chi Minh City.

To be purchased or not?

Movements on the Board of Directors and talk from the SBV has fuelled rumors that  Oceanbank will be purchased by the State, or possibly merge with Vietinbank.

Vietnam Oil and Gas Group (PetroVietnam) and Ocean Group each hold 20 per cent of the bank. In the event of a SBV takeover, the investment of these two large intuitions will be lost. 

Regarding the possibility of a merger, it would seem like too much responsibility as the state-owned bank is already planning a merger with PG Bank to increase capital, total assets and widen the bank’s network.

The third option of a restructure would see the SBV assign personnel from Vietinbank to Oceanbank's board to keep help ensure its longevity, as the SBV did with Saigon Commercial Bank (SBV) and Bank for Investment and Development of Vietnam (BIDV) in 2011.

All of three options are only predicted and the final decision will need to wait until the AGM is held.

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