National Citizen Bank (NCB) has approved a private placement to issue 620 million new shares in 2024 to double its capital.
The issuance is scheduled for the second quarter. The issued shares will be blocked from trading for one year.
If the plan succeeds, NCB’s charter capital will rise from VND5.6 trillion to VND11.8 trillion ($213 million to 487 million).
NCB has for years been among the banks with the lowest amount of capital in Vietnam.
The minimum charter capital requirement in the country is VND3 trillion. Household appliance maker Sun Group became a shareholder in the bank last year.
NCB is in the process of restructuring. It has a bad debt ratio of more than 3%.