Viet Nam Post (VNPost) will sell Viet Nam Postal Savings Service Company (VPSC) to Lien Viet Bank as capital contribution.
"Then VNPost will own 18 per cent of stake at Lien Viet Bank," said the bank's spokeswoman Tran Thi Mai Anh. "The merge is expected to be done by the end of June."
The deal received approval at the bank's shareholder meeting. When it's completed, the Hau Giang-based bank will take advantage of VPSC's wide network, which has more than 1,300 units nationwide.
The bank's pre-tax profit in the first quarter reached VND180 billion ($9.47 million) with total assets worth VND21,000 billion ($1.1 billion).
In 2010, LienVietBank aims to have total assets worth VND60 trillion (US$3.15 billion) and pre-tax profits of VND900 billion ($47.3 million). The bank also hopes to raise its charter capital to VND5.160 billion ($271.5 million) and expand its total branches in the country to 70.
LienVietBank is also planning to establish securities companies, a debt and asset management company, and wants to become a financial corporation in 2010.