BIDV’s charter capital highest among banks in Vietnam

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Charter capital of the Bank for Investment and Development of Vietnam JSC (BIDV) increases by 26 percent to over VND50,585 billion (USD2.23 billion) from VND40,220 billion (USD1.8 billion), becoming the bank with the highest charter capital in Vietnam’s banking system.

On 16 February 2021, the State Bank of Vietnam (SBV) issued Decision No.155/QD-NHNN revising the Operation License of BIDV. Accordingly, Article 2 of License No. 84/GP-NHNN dated 23 April 2012 by the SBV Governor to the BIDV has been revised as follows: “Charter capital of BIDV is VND50,585,238,160,000”. The SBV requests BIDV to be responsible for implementing applicable procedures in line with clause 4 of Article 29 of the Law on Credit Institutions regarding the above change. The Decision took effect from the date of signing and is an integral part of License No. 84/GPNHNN dated 23 April 2012 by the SBV Governor. Decision No. 103/QD-NHNN dated 21 January 2020 revising BIDV’s License ceased to be effective from the date of signing of this new Decision. Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) ranks second with charter capital reaching VND48,058 billion (USD2.1 billion). The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) is in the third place with VND47,325 billion (USD2.08 billion). Their charter capital increases have been made via share issuance for dividend payment.

Previously in 2019, BIDV issued over 603.3 million shares as a private placement to Hana Bank at a total value of nearly VND20,300 billion (equivalent to USD895 million). After issuing the shares to Hana Bank, BIDV's charter capital increased from VND34,187 billion (USD1.5 billion) to VND40,220 billion - the highest in the Vietnamese banking system at that time.

According to the State Securities Commission of Vietnam, in 2021, the total capital mobilization on the stock market increased by 25 percent compared to 2020, of which share and corporate bond issuance reached VND155,588 billion (USD6.9 billion), 2.3 times higher than 2020. Besides, capital mobilization through corporate bond issuance hit a record of over VND500 trillion (USD22 billion).

BIDV headquarters in Hanoi

Unit: VND Billion Charter capital of a number of banks in Vietnam