SINGAPORE : UOB is planning to raise its stake in Vietnam's Southern Commercial Joint Stock Bank.

A UOB spokesperson told Channel NewAsia the lender wants to acquire another 10 percent interest in the bank, taking its shareholding to 20 percent.

UOB paid about S$44 million earlier this year for its initial 10 percent stake.

"This is the highest stake ratio a Singaporean bank can invest in a Vietnamese bank so far," the Vietnamese bank said on its website.

Under Vietnamese rules, foreign ownership in banks is capped at 30 percent, with any individual investor allowed to hold a maximum of only 10 percent.

UOB is reported to have applied for permission to make the additional investment. - CNA/ch