Sacombank, Southern Bank get approval for merger

The State Bank of Vietnam (SBV) has approved in principle the merger of Southern Bank (PNB) into Sai Gon Thuong Tin Bank (Sacombank).

The SBV affirmed that the merger is in line with the common orientation of the Government and the central bank on the restructuring of the banking system, which aims to provide the market with more powerful, safe and professional financial institutions.

After the merger, Sacombank is expected to become one of the top five largest banks in Vietnam with total assets of nearly VND291 trillion (US$13.5 billion). The bank will own a network of 567 transaction offices across the country as well as in Laos and Cambodia, with 15,500 employees.

The move will help the bank raise its competitiveness via service quality improvements while optimising capital sources and market potentials.