Dong A Commercial Joint Stock Bank (DongABank) has released information about the extraordinary general meeting of shareholders held on October 12th.
The bank said that shareholders did not approve the plan to offer shares to supplement charter capital as prescribed in Article 144 of the 2014 Enterprise Law (resolutions of the meeting are only approved when at least 65 percent of voting shares of shareholders present at the meeting agree).
“The voting results of the general Meeting of Shareholders on the plan to offer shares to supplement charter capital will not affect DongABank’s business activities. DongABank’s operation is currently stable and liquidity is guaranteed,” according to the bank’s report.
DongABank’s Board of directors (BOD) said that it would report to the State Bank of Vietnam (SBV) to consider restructuring the bank under another plan in accordance with the law. The core principle when implementing the DongABank’s restructuring is to protect the legal rights and interests of depositors as prescribed in law, while ensuring the bank’s safety and operation as well as the banking system.
DongABank has been put under special control by the SBV since 2015. In 2016, the bank’s former general director Tran Phuong Binh was arrested for involvement with Phan Van Anh Vu’s case. Currently, the high-level People’s Court in HCM City is appealing the case of abusing position and power for appropriation of property at DongABank.
After being put under special control, all shareholders of the bank are not allowed to transfer shares of DongABank. In special cases, the SBV will consider transferring shares based on the proposal of the Special Supervisory Board. The bank has completed refunding the money shareholders paid in the bank’s charter capital increase from five trillion dong to six trillion dong.
According to the indictment of the Supreme People’s Procuracy announced on October 12th 2018, the charter capital of DongABank at that time was five trillion dong with 100 percent of domestic shareholders. In particular, founding shareholders accounted for 13.21 percent and ordinary shareholders accounted for 86.79 percent. About 10.24 percent of charter capital was held by Tran Phuong Binh’s family members, 7.7 percent owned by Phu Nhuan Jewellery Joint Stock Company (PNJ), 12.73 percent owned by North South Construction Joint Stock Company (owned by Phan Van Anh Vu), and 12.79 percent was held by HCM City Party Committee Office.
DongABank’s operation has not been widely announced to the market. In the latest press release, DongABank reported that closing the first six months of 2019, the bank mobilised a total of 63.450 trillion dong from customers, up by 2.595 trillion dong (equivalent to 4.3 percent) compared to the beginning of the year. This number was 1.730 trillion dong (equivalent to three percent) compared to the beginning of the year. In particular, customer deposits reached 50.903 trillion dong, equivalent to a 4.8 percent increase compared to the beginning of 2019.
In the first half of 2019, DongABank’s recovery of both debt principal and interests reached 1.870 trillion dong. From August 2015 to June 2019, the debt recovery was 16.350 trillion dong. The bank’s payment ratios always met the requirements and regulations of the SBV, such as the liquidity reserve ratio of 20.78 percent, the solvency ratio for foreign currencies of 77.98 percent, and the solvency ratio for dong of 83.77 percent.
