Veterans Bank sets P2-B capital raising

Philippine Veterans Bank is raising as much as P2 billion through a fund raising exercise to beef up the bank’s working capital.

The country’s 25th largest bank in terms of assets said it has obtained the green light from its stockholders last Nov. 22 to undertake a capital fund raising activity.

The bank said it is initially looking at raising P1.5 billion but with an oversubscription of up to P500 million to be used to support its various business initiatives.

“Existing stockholders are encouraged to participate and will be given priority,” the bank said in a statement.

Philippine Veterans Bank is a private commercial bank owned by 384,000 Filipino World War II veterans, widows and their heirs.

It has 60 branches nationwide.

Data from the Bangko Sentral ng Pilipinas (BSP) showed Philippine Veterans Bank is the 25th largest in terms of assets with P49.46 billion and 28th in terms of capital with P3.66 billion as of end June.

As of end June, the bank’s deposit base stood at P43.67 billion while its loan book amounted to P15.22 billion.

Former finance secretary Roberto de Ocampo is the chairman of the board of Directors of Philippine Veterans Bank.

The bank was established in 1963 through Republic Act 3518. The bank was closed down by the central bank’s Monetary Board in April 1983 due to capital deficiency and was placed under liquidation in June 1985.

The bank was reopened and rehabilitated through the enactment of RA 7169 in January 1992 and was granted an authority to operate as a private commercial bank by the Central Bank of the Philippines in May 1992 during the term of former president Fidel Ramos.