HCM city credit growth +28%, deposit +22.9% yoy in May: gso

By late May, total outstanding loans and total deposits of the banking system in Ho Chi Minh city rose by 28% and 22.9% on year, respectively, the communal General Statistics Office said.

In May, total outstanding loans of HCMC-based banks were estimated at VND748.9 trillion, up nearly 2% on year and 7% from the end of 2010.

Of the total, dollar denominated loans were VND383.1 trillion, accounting for 29.5% and up 35.2% on year; while dong loans increased by 25.2% on year.

Medium and long-term loans accounted for 45.5% of total outstanding loans, up 27.5% on year; while short-term loans rose 28.4% compared to one year ago.

Total deposits reached VND792.2 trillion in May, edging up by 0.3% from April, in which deposits from the public fell by 5% on month and rose 30.9% on year.

Dong deposits rose 19.1%,in which savings deposits were estimated at VND281.4trillion, up 28.8%, said the GSO without giving figures of dollar deposits.

Commercial joint stock banks raised 59.2% of the total deposits, up 36.2% on year and lent 51.2% total loans, up 39.7%.

Dong deposit interest rates are capped at 14% p.a. but the effective rates are reported up to 18% through negotiation. Negotiable lending rates stayed as high as 26% p.a. while credit users are charged up to 28.8% p.a., local media reported.

Dollar deposit rates are capped at 3% for individuals and 1% for institutional depositors. The SBV’ branch in HCM city proposed to cut dollar deposit rate to 0% for institutions to fight dollar hoarding.

In the forex market, the dong continuously gained in the past days against the dollar after the rate cap move. The interbank midpoint reference exchange rate is VND20,698 today, lowest in April. Dollar in the grey market is lower than in banks. – Stoxplus.com

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial