* VietinBank assets surge 51 pct in 2010
* Sells 10 pct stake to IFC for $182 mln
* VietinBank has weak loan quality - Fitch
(Adds details on IFC loan, ratings, VietinBank's shares)
HANOI, Jan 26 VietinBank , Vietnam's top
partly private lender, expects its total assets to rise by 50
percent this year after a surge of 51 percent in 2010, a
state-run newspaper reported on Wednesday.
The Hanoi-based VietinBank would seek more loans over the
next decade to boost its equity after borrowing $125 million
from the International Finance Corporation (IFC), Chairman Pham
Huy Hung was quoted by the central bank-run Banking Times
newspaper as saying.
Hung's projection on the total assets in 2011 was higher
than the 20 percent rise that VietinBank, or the Vietnam Joint
Stock Commercial Bank for Industry and Trade, forecast earlier
Shares in VietinBank were trading up 0.9 percent at 22,800
dong ($1.17) at 0209 GMT on Wednesday.
The loan, extended by the IFC and the IFC Capitalization
Fund, lasts 10 years and two months and carries an interest rate
on par with 6-month LIBOR plus 1.5 percent per year, Hung said.
"At present this rate is very good for Vietnam," Hung was
quoted as saying in an interview with the newspaper.
"We expect (the total assets) continue to rise another 50
percent. That means we will need to increase equity to raise the
CAR," Hung said, referring to the capital adequacy ratio.
He was speaking as VietinBank signed on Tuesday an agreement
to sell 10 percent of stake to the IFC and its fund at a value
of around $182 million, based on a joint statement.
On Monday Fitch Ratings affirmed VietinBank's Individual
rating at 'D/E' and also affirmed Vietinbank's Support rating at
The ratings agency said "the affirmation reflected Fitch's
concerns about Vietinbank's weak underlying loan quality and
liquidity arising from excessively strong loan growth, and the
bank's still weak capitalisation."
For text of Fitch Ratings, click on
The IFC Capitalization Fund is a global equity and
subordinated debt fund founded by the World Bank's private
sector lending arm IFC and the Japan Bank for International
(Reporting by Ho Binh Minh; Editing by Muralikumar