SHB to unload $47m in bad debts loans
SHB to unload $47m in bad debts loans
Sai Gon-Ha Noi Bank (SHB) announced plans to sell VND1 trillion (US$47.6 million) in bad debts to the Viet Nam Asset Management Company (VMAC) this month, following a previous VND400 billion ($19.05 million) sale of the bank's bad loans.
Speaking at the bank's anniversary event on Sunday, General Director Nguyen Van Le said the deal would help SHB reduce its non-performing loan ratio below 5 per cent of its lending by the end of 2013.
By the end of the third quarter, the bank's bad debts stood at 7.75 per cent, a slight decline from the second quarter. In the first nine months of this year, outstanding loans reached over VND65 trillion ($3.1 billion), up 15 per cent from last year.
SHB has been approved by the State Bank of Viet Nam to raise its annual credit growth quota to 20 per cent, allowing the bank to offer an average lending interest rate of 8 per cent to businesses.
The bank's chief said provisional funds of more than VND1.9 trillion ($90.48 million) had been reached this year with expectations to hit VND1 trillion in pretax profits for 2013.
SHB also has plans to open more overseas branches and convert Lao and Cambodia branches into affiliates to pave the way for future expansion.
"We are striving to become one of the leading retail banks in Viet Nam and the region," said Le.
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