The HCMC branch of the State Bank of Vietnam (SBV) is willing to pump VND28 trillion into Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) to help the lender deal with possible massive cash withdrawals after its chairman resigned.
This was informed by Pham Huu Phu, new chairman of Sacombank replacing Dang Van Thanh.
Speaking at a press conference in HCMC last Saturday, Phu said Thanh was summoned by the investigation agency last Thursday while Sacombank’s board meeting was taking place.
“On November 2, we decided to shuffle our management, and the board or directors agreed to let Thanh resign as board chairman and appoint me to replace him,” said Phu.
Previously, on July 10, Thanh asked for resignation while Sacombank was working with the inspectors of SBV, but the bank turned down his proposal.
After relieving Thanh of his post, Sacombank’s board of directors wanted to keep Thanh as a board member, but Thanh has submitted a letter of resignation from the board, Phu informed.
“I have not received any information from the investigation agency,” he told the media.
Nguyen Hoang Minh, deputy director of the central bank’s branch in HCMC, said his agency, Sacombank and relevant units had prepared a plan to cope with possible massive cash withdrawals at Sacombank.
“SBV has assigned me along with two executives and Sacombank leadership to follow the situation from November 1 to report to the governor and chairman of the city.
“Upon request of the governor, we have held a meeting with relevant departments to look for measures to support the bank and protect the interests of depositors,” he said.
Since last Friday when changes to Sacombank board were announced, the bank has been operating as usual, and even individual deposits have picked up, he remarked.
Phu said: “We have an amount of cash, foreign currency and gold available to meet the demand of citizens. Besides, SBV is ready to inject VND28 trillion into Sacombank to support the liquidity.”
“We believe we have sufficient resources to deal with crisis even if there were more problems with our staff in the coming time,” said the new chairman.
At an extraordinary meeting last Friday, Sacombank’s board of directors accepted Dang Van Thanh’s resignation as board chairman and named Pham Huu Phu the new chairman.
Such changes have been prepared since the shareholders’ meeting of Sacombank on May 26. At this meeting, Thanh said he would stay in his post for three more months only.
After the event, Thanh authorized Phu to administrate Sacombank. The shareholder’s meeting also decided that legal representative of Sacombank is its general director.
Therefore, Thanh’s resignation as board chairman does not disturb management and administration of Sacombank, said a press release of the bank.
Pham Huu Phu, new chairman of Sacombank, was born in 1959 in Thua Thien-Hue and graduated from the HCMC University of Economics. He joined Sacombank’s board of directors on May 26, 2012, after serving as vice chairman of Eximbank.
As per the report of Sacombank on its operation in the year’s first half, Dang Van Thanh and his son Dang Hong Anh, who is serving as vice chairman of the bank, owned a combined 80 million shares. Meanwhile, Pham Huu Phu did not have any share, but Saigon-Asia Financial Investment JSC, a company related to Phu, held nearly 25 million shares.
Thanh, aged 52, served as member of Sacombank’s board of directors from 1993 to 1994, and took the post of chairman of Sacombank from 1994 until his resignation last week.
The Saigon Times Daily