Deposits rise in Dong Nai’s banks
Deposits rise in Dong Nai’s banks
Credit organisations in Dong Nai Province have mobilised VND153 trillion (US$6.8 billion) in deposits from early this year till date, which is 23 per cent higher than at end-2015.
Of this, Vietnamese đồng deposits touched VND143 trillion, the State Bank of Viet Nam’s (SBV) branch in Dong Nai said.
The branch also said that total outstanding loans from the early this year to now is VND133 trillion, 21 per cent higher than that at the end of 2015. This is also the first time in the past four years that credit organisations in the province have gained a year-on-year growth of 20 per cent in deposits and loans.
Loans related to construction and industrial sectors accounted for 43 per cent of the outstanding loans, amounting to around VND55 trillion, while loans of the agro, forestry and fishery sector stood at VND20.5 trillion.
Following the central bank’s preferential credit policy for priority economic sectors, banks in Dong Nai have lent tens of trillions of Vietnamese dong to 40,000 customers at a preferential interest rate of 7 per cent per year between early 2016 to date.
The priority economic sectors include agriculture, rural areas, exports, small- and medium-d enterprises, and the supply and technology industries.
Tran Quoc Tuan, director of SBV’s Dong Nai branch attributed the increase in deposits to the stability in deposit interest rates. During the same period, the lending interest rates was between 6 per cent and 11 per cent, so many organisations and individuals took money to expand production and business. Banks in the province have operated efficiently and have good liquidity, he said.
Many banks in Dong Nai have given short-term loans with interest rates of 4 per cent per year to customers whose financial affairs are healthy and transparent.
The push on inspection and supervision as well as correction of mistakes at some banks have reduced bad debts in Dong Nai’s banks. Bad debts account for 1.4 per cent of the total outstanding loans, a drop of 0.27 per cent compared to the end of 2015. Bad debts have been higher in the industrial, construction, trading and service sectors than in the agro, forestry and fishery sector.
