The Market Monitor Minding the Nation's Business
By Riza Lozada
Chinabank is infusing P2 billion into its saving bank unit, China Savings Bank Inc. (CSBI), to comply with the Bangko Sentral Ng Pilipinas (BSP)- mandated capital infusion prior to giving its final approval to the merger between CSBI and Planters Development Bank (PDB).
Chinabank’s executive committee approved the bank’s capital infusion into CSBI during a recent meeting.
Chinabank said the capital infusion will be done upon receipt from the Securities and Exchange Commission (SEC) of its approval of the merger of CSBI and PDB and the increase in authorized capital of CSBI.
“This latest capital infusion will bring the capital position of the CSBI and PDB to P6.1 billion. The enhanced capital position will support CSBI’s and PDB’s future business growth as it continues to expand in the consumer and SMEs sectors,” Chinabank reported.
Last November, Chinabank’s board authorized the acquisition of 2,452 common shares of CSBI (formerly the Manila Banking Corp.) through negotiated transaction with shareholders, subject to the proper verification of shareholdings and compliance of the shareholder to the bank’s other requirements.
PDB and CSBI recently met with clients from Iloilo and Bacolod to announce the developments in the proposed merger, as well as expansion plans in the region.
CSBI President Alberto Emilio Ramos announced that the bank will continue to focus on SMEs and promised more resources on tap for the sector, as well as the consumer market.
He added that clients can expect novel products and innovative services, including those to support Filipino small and medium enterprises (SMEs), ahead of the country’s entry into the Asean Economic Community in 2015. Ramos said the new CBS will be stronger in terms of capitalization with a network of 143 branches nationwide. He added that the new CBS plans to open more branches in the Visayas and Mindanao over the next few years.
“No matter how much bigger we become—in terms of branches and resources—we will remain committed to our customers. We will retain the focus and close partnership with SMEs, the handholding approach that has been a very important facet of Plantersbank’s corporate culture,” Ramos said.
“This we would like to continue and nurture in the new CBS, as we move ahead with optimism in our future and continue to work for the success of both the combined Plantersbank-CBS corporate family and our customers,” he added.