If approved at a meeting on July 21, the VND1 trillion (US$46 million) proceeds will be used to raise the Ho Chi Minh City-based bank's registered capital by 20% to VND6 trillion, Chief Executive Officer Tran Phuong Binh said in a report released to shareholders.

A file photo taken at a Dong An Bank branch in Ho Chi Minh City. Photo: Diep Duc Minh

"Kinh Do Corp is an investor who can meet all legal requirements to become Dong A Bank's strategic investor and the company is committed to buying all the shares" in the issue, Binh said in the report posted on the bank's web site. (dongabank.com.vn)

Officials at Kinh Do Corp, based in Ho Chi Minh City, were not immediately available for comment.

Kinh Do shares ended up 3.85% at VND45,800 on July 10.

Dong A Bank is the 16th largest among Vietnam's 33 partly private lenders by assets. The bank said its net profit last year plunged 92% from 2013 to VND26.98 billion (US$1.24 million) following lower revenues.

Vietnam's Dong A Bank may sell 100 mln shares to Kinh Do

Vietnam's Dong A Bank may sell 100 mln shares to Kinh Do

Vietnam's Dong A Bank may sell 100 mln shares to Kinh Do