The Bank for Investment and Development of Vietnam, better known as BIDV, and its insurance arm, BIDV Insurance Joint Stock Co (BIC), are planning to sell 15 percent and 20 percent stake to strategic partners. As planned, BIDV will complete the transformation into a joint stock commercial bank on May 02, 2012 and will list its shares on the stock exchanges by the end of the second quarter this year, said Pham Quang Tung, deputy general director of BIDV, at a recent shareholders’ meeting. … [Read more...] about BIDV, insurance arm to sell stakes to strategic partners
A man pedals past the Ho Chi Minh Stock Exchange in Ho Chi Minh City Bank for Investment and Development of Vietnam, the country’s second-largest lender, said it will delay a planned trading debut until the third quarter after a slide in the benchmark VN-Index. BIDV, as the lender is known, sold a 3 percent stake in an initial public offering in December and had planned to begin trading on the Ho Chi Minh Stock Exchange on June 26. The stock will debut by September 30, BIDV Deputy General Director Pham Quang Tung said in an interview June 19. Vietnam allows companies to delay listings for as long as a year after IPOs. “Stock-market conditions are still not very favorable, so listing at this time may negatively affect the stock value as well as hurt shareholders and investors,” Tung said. “We expect the trend in the market will be clearer in the third quarter, and will recover well in the second half.” Vietnam’s VN-Index has lost 12 percent from … [Read more...] about BIDV delays debut on Vietnam market slump
The state-run Bank for Investment and Development of Vietnam, better known as BIDV, will officially become a commercial joint stock bank, operating in the form of a financial-banking group, in May. The commercial Bank for Investment and Development of Vietnam is established on the basis of stock and conversion of the state-run version of the bank. With this new development, three of the five biggest lenders in Vietnam have been equitized, while only the Bank for Agriculture and Rural Development of Vietnam (Agribank) and Mekong Housing Bank remain 100 per cent state-owned. At present, the 55-year-old lender is completing necessary procedures to establish a parent company, BIDV Financial Co, for conducting ownership functions for managing and investing the state-owned capitals in the subsidiaries under the financial-banking group form. In related news, as of April 19, the bank was reported to reach a credit growth rate of 4.1 per cent from the beginning of the year. … [Read more...] about BIDV to become commercial joint stock bank
In order to define the reasonable prices for BIDV's shares which will be put into auction in late December, investors refer to the prices of two other big banks - VietinBank and Vietcombank. The information about the IPO (initial public offering) of the Bank for Investment and Development of Vietnam BIDV, slated for December 26, has caught the special attention of investors because BIDV is considered one of the biggest banks now in Vietnam. However, investors still cannot decide whether they should attend the auction where the starting price level has been set at 18,500 dong per share, or buy On December 19, VCB of Vietcombank was traded at 22,000 dong per share, while CTG at 17,500 dong. As such, the starting price of BIDV, set at 18,500 dong per share is in the middle. One of the criteria investors cite in comparing the three banks is their scale. By the end of the third quarter of 2011, BIDV's total assets had reached 380 trillion dong. With that figure, BIDV has the … [Read more...] about What prices for BIDV’s shares?
The Bank for Investment and Development of Vietnam (BIDV) has announced to cut lending rate for specific groups of borrowers upon a meeting between the central bank and Vietnamese commercial banks on banking targets for the coming year. The state-owned commercial bank has set the new lending rate at 14.5-15.5 percent, the fifth rate cut in the last 4 months and the 2nd within a month. The newly revised lending rate is targeting exporters, agro producers, small and medium enterprises, and those affected by natural calamities. The group of borrowers currently account for 40 percent of BIDV's total outstanding loan of VND270 trillion. It is an unusual move given the fact that all other lenders are maintaining the rate at 17-18 percent for the targeted groups, according to newswire Vneconomy. With a 2.5 percent difference in its lending rate, the newswire questions how BIDV makes a profit with only 0.5-1.5 percent to cover all the operational costs. Pham Quang Tung, deputy … [Read more...] about BIDV cuts lending rate to 14.5%