Non-performing loan ratios decrease

VietNamNet Bridge – The non performing loan ratio (NPL) of the banking system has decreased considerably since late 2008 and early 2009.

The Vietnam Foreign Trade Commercial Bank’s (Vietcombank) Chairman Nguyen Hoa Binh said that the NPL ratio of the bank is now three percent, while the figure was nearly four percent earlier this year.

 

“Though big difficulties still exist, business health and credit quality has been improved. The bank has recovered many bad debts in 2008, which also helped to reduce the NPL ratio,” Binh said.

 

Vietcombank’s outstanding loans had reached 137 trillion dong as of September 30, 2009. Binh said that Vietcombank plans to ask for an expanded “credit quota” to meet the increasing demand for capital, especially from rice exporters and petroleum importers.

 

The State Bank of Vietnam (SBV) had decided that the credit growth rate in 2009 must not be higher than 30 percent in order to curb high inflation

 

A senior executive of Eximbank also reported that their NPL ratio has decreased significantly to two percent from 4.71 percent in late 2008 and six percent in early 2009.

 

The bad debt ratio of the bank has improved too, thanks to a warming real estate market in the first three quarters of 2009, the executive stated. Meanwhile, the demand stimulus package has helped businesses survive difficulties and pay old debts.

 

Asia Commercial Bank (ACB) and Sacombank both have reported low NPL ratios at or below one percent of their total outstanding loans.

 

According to Le Xuan Nghia, Deputy Chairman of the National Finance Supervision Council, with an NPL ratio of 2.46 percent for the whole banking system, there is no need to worry about the health of the banks.

 

In related news, the SBV has released a report on the four percent interest rate subsidy program, concluding that 4,000 cases have been found to have problems in lending. This means that many banks have set easy conditions for borrowers, leading to misdirected preferential loans.

 

Deposit interest rates have been increasing steadily. Large, state-owned commercial banks raised the VND interest rate by 0.2-0.3 percent last week, while more than 10 joint stock banks raised the rate by 0.2-0.4 percent per annum. The US$ interest rate has been raised by 0.2-0.4 percent per annum.

 

Interest rates have also been increasing in the interbank market with an especially sharp increase on one-month loans by 0.9 percent per annum.

 

VietNamNet/LD, DT

Tags: Npl Ratio, Percent Per Annum, Physics games

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