Shareholders in the Shenzhen-listed medium-sized bank rejected its compensation plan to convert non-tradable State shares into tradable stock in July. Opponents complained the offer was too low compared with those of other listed commercial banks.

"We can't predict the timetable," SDB Chairman Frank Newman told a press briefing yesterday, a day after the bank released a strong profit result for the first nine months of the year. He said that no matter whether they are "non-tradable shareholders, tradable shareholders or the regulatory departments, we cannot control anyone."

But he said the reform plan would be passed "sooner or later" since all parties want to get the reform done and see further growth, he added.

The failure of the first-round share reform has delayed the capital injection of GE's consumer financial arm that agreed to take a 7.3 per cent stake in SDB for US$100 million. It is still awaiting official approval a year after the deal was announced.

The deal could immediately boost the bank's core capital adequacy ratio to the required 4 per cent, which stood at 3.59 per cent on September 30, according to Newman, former deputy US treasury secretary.

"The bank intends to improve its capital adequacy ratio through internal capital generation and by raising new capital," SDB said in a statement.

Although its capital adequacy ratio has remained at a low level, the bank's net profit jumped 223 per cent to 427 million yuan (US$54 million) in the July-September quarter from a restated 132 million yuan (US$16.7 million) a year earlier, according to the latest financial results.

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