UOB seeks to double Vietnam bank stake to 20 pct

HANOI, Dec 31 (Reuters) - Singapore's United Overseas Bank (UOBH.SI) has sought permission to double its holding in Vietnam's Southern Commercial Bank to 20 percent, the Vietnamese bank said in a statement seen on Monday.

Singapore's second-largest lender last week finalised a deal to buy 10 percent of the unlisted Ho Chi Minh City-based bank. It had said in January the stake was worth S$44 million ($30 million).

"The two banks also signed an application to the State Bank of Vietnam asking for permission to raise UOB's investment in Southern Bank to 20 percent," the statement said.

Southern Bank, one of Vietnam's 10 largest partly-private banks, said in April it wanted to list in Singapore. It has yet to list at home, but its shares have more than halved on the unregulated markets to 36,000-37,000 dong ($2.23) from 82,000 dong in April, indicating its value at around $290 million.

Vietnam limits total foreign ownership in domestic banks to 30 percent, with a 10 percent cap for any individual investor. But the government has said that in exceptional cases it would allow a foreign strategic investor to own 20 percent.

Eight foreign banks, including Australia and New Zealand Banking Group Ltd (ANZ.AX) and Standard Chartered Plc (STAN.L), have bought stakes in Vietnamese banks as they look to benefit from the communist-ruled country's fast-growing economy.

HSBC Holdings Plc (HSBA.L) (0005.HK) has sought permission to raise its 15 percent stake in Vietnam's Techcombank to 20 percent. Oversea-Chinese Banking Corp (OCBC.SI), Singapore's third-largest lender, owns 15 percent of Hanoi-based VP Bank.

Deposits at Vietnamese banks grew more than 36 percent this year. Only 8.2 million of Vietnam's 85 million population have bank accounts, up from 5 million in 2006, industry reports show. ($1=16,114 dong) (Reporting by Ho Binh Minh; Editing by Ian Geoghegan)