Agribank bad debt ratio hit 6.67pct mark by Sept-end
Nguyen Ngoc Bao, Chairman of the member’s board of the Bank for Agriculture and Rural Development of Vietnam or better known as Agribank admitted on Thursday that Agribank’s bad debt ratio to date was correctly 6.67% of total loans as announced by the Vietnam Party Committees of Central Enterprises.
According to Bao, bad debts of the bank are mainly deposited in real estate credit in two major cities of Hanoi and HCM City, with the investment projects from 2008 and 2009. Meanwhile, the bad debt ratio for agriculture and rural areas now accounts for less than 2% of total loans.
However, the leader of the bank said that Agribank has set a risk provisioning to balance and offset nearly enough to the bad debt ratio.
Bao said that by the end of August, total assets of Agribank had reached approximately 540.5 trillion dong. Total outstanding loans were estimated at 416 trillion dong in which agricultural and rural lending accounted for 67.5% of total loans.
Also, this morning, the Agribank leader acknowledged that this bank has a number of existing issues emerged about funding, but has been disciplined. Next year, the bank’s plan is to bring agricultural and rural loans from 67% to 80%.
Tags: Agribank, Vietnam banking industry, Vietnam finance, Vietnam financial
Posted by VBN on Sep 23 2011. Filed under Banking-Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry
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Eventhough Agri Bank have enough a risk provisioning, it’s hard to solve some issues arising at Agri Bank pertaining to Real Estate Loan in HCMC and HN Capital.