Agribank slashes bad debt ratio
Agribank slashes bad debt ratio
The Bank for Agriculture and Rural Development (Agribank) has reported an unexpected achievement in handling non-performing loans (NPLs) for the past three years.
By the end of October, Agribank's NPL ratio reduced sharply to only 2.41 per cent from 7.56 per cent in 2013.
It was surprising as Agribank accounted for the largest amount of NPLs of the entire banking system. In October 2013, the bank's bad debts hit nearly VND33.519 trillion (US$1.496 billion), equal to roughly one fourth of total NPLs of the whole banking system at that time.
According to the bank's preliminary report, the achievement was due to the bank's strenuous efforts in restructuring for the past three years. During the period, the bank issued nearly 300 regulations aimed at improving its governance, execution, supervision and performance.
During the restructuring, it has successfully retrieved total bad debts worth more than VND10 trillion ($446.428 million).
Besides actively setting aside provision funds, Agribank was also one of credit institutions that sold the largest amount of NPLs to the Viet Nam Asset Management Company.
By the end of October, Agribank's total capital mobilisation reached VND768 trillion ($34.285 billion), up 11.3 per cent, as against December 2014.
The bank's credit also grew 9.2 per cent, of which lending to agriculture and rural sectors accounted for more than 73 per cent.
Agribank this year targeted a pre-tax profit of more than VND3.5 trillion ($156.25 million), up against last year's VND3.222 trillion ($143.8 million).
