Public Bank Berhad (PBB) has on 24 March 2016 received the 100 percent foreign-owned bank license from the State Bank of Vietnam (SBV) in relation to PBB’s acquisition of the remaining 50 percent equity capital in VID Public Bank (VPB), the 50:50 joint venture bank with Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV).
Effective 1 April 2016, VPB will become a 100 percent wholly-owned subsidiary of PBB and will be renamed as Public Bank Vietnam Limited (PBVN).
Under the terms of the foreign-owned bank license, PBVN has been granted a term of operations of 99 years.
“The 100 percent foreign-owned bank license granted to PBB is a significant milestone in VPB’s 24-year banking journey in Vietnam. PBB was one of the first to set-up a joint venture bank in Vietnam in 1992, and VPB has been operating profitably since its incorporation,” said PBB Group founder and chairman Tan Sri Dato’ Sri Dr. Teh Hong Piow.
7 Public Bank Branches in Vietnam
Currently, VPB has 7 branches in Vietnam located in Hanoi, Ho Chi Minh, Danang, Binh Duong, Hai Phong, Cho Lon and Dong Nai.
“The Vietnamese economy has recorded commendable growth, with the GDP growth in 2015 at 6.68%, the highest in recent years. PBB is committed to continuing its support of the efforts and initiatives of the Government of Vietnam in the economic growth and financial development of Vietnam,” Tan added.
Public Bank Vietnam will continue to focus on retail banking business in order to serve a wider reach and spectrum of customers in Vietnam, especially SMEs lending, which is the engine of growth for the country.
In addition, Public Bank Vietnam will provide a convenient platform for the Malaysian business community to conduct business operations in Vietnam, Tan said, adding that the issuance of the 100 percent foreign-owned bank license to PBVN will strengthen PBB’s regional presence in Indo-China.
4 Public Bank Branches in Laos
Cambodian Public Bank, a wholly-owned subsidiary of PBB is currently the third largest bank in Cambodia with a network of 28 branches, whilst Public Bank has 4 branches in Laos PDR.
The inclusion of PBVN as a wholly-owned subsidiary of PBB augurs well for the Group to maximize the synergy within Indo-China and to leverage on the strength of the PB Brand, Tan said.
“Public Bank remains committed to expanding its overseas operations through organic growth strategy in Indo-China, as well as in Hong Kong, China and Sri Lanka where the Group has banking presence,” Tan stressed. – BusinessNewsAsia.com