Update – More Vietnam banks disclose their credit growth limits in 2012

More local commercial banks have recently unveiled their credit growth limits this year.

Specifically, Mekong Housing Joint Stock Commercial Bank (MHB) and Saigon Thuong Tin Commercial Joint Stock Bank or Sacombank (STB) are classified into Group I and assigned credit growth target of 17% in 2012.

Meanwhile, An Binh Commercial Joint Stock Bank (ABBank) and Southern Bank belong to Group II and are allowed to expand credits at maximum 15% this year. Southern Bank has charter capital of VND3.2 trillion, and total assets of over VND72 trillion. United Overseas Banks presently owns 15% stake in the bank.

To date, those classified in Group I include: Vietnam Commercial Joint Stock Bank for Industry and Trade (VietinBank), Vietnam Export Import Commercial Joint Stock Bank (Eximbank), Asia Commercial Bank (ACB), Military Commercial Joint Stock Bank (MB), Vietnam Maritime Commercial Joint Stock Bank (MaritimeBank), Vietnam International Bank (VIB), Vietnam Prosperity Joint-Stock Commercial Bank (VPBank) and Southeast Asia Commercial Joint Stock Bank (SeABank).

Nam A Commercial Joint-Stock Bank (NamABank), Dai A Commercial Joint-Stock Bank (DaiABank), Kien Long Commercial Joint Stock Bank (KienLongBank), Nam Viet Commercial Joint Stock Bank (NaviBank), Orient Commercial Bank (OCB), Lien Viet Post Joint Stock Commercial Bank (LienVietPostBank) and Saigon Hanoi Bank (SHB) were reported to be granted credit growth rate of 15%.

More and more banks in the two top groups revealed their credit growth limits this year on hope that their reputation will be enhanced and they can attract more customers.

Chairman of a Hanoi-based bank said his bank has no intention to reveal it later. “When banks in Group I and II are uncovered, it is easy to guess those in two bottom groups, which is not good for the market,” the source said.

Experts commented that it is not easy for Group I banks to attain credit growth target of 17% this year as high lending interest rates discourage borrowers.

Source Sophie/ StoxPlus

Tags: Vietnam banking industry, Vietnam banks, Vietnam finance

Posted by VBN on Feb 25 2012. 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