SME credit makes up 26 per cent of VietinBank’s credit balance
SME credit makes up 26 per cent of VietinBank’s credit balance
VietinBank is ramping up efforts to support small- and medium-sized enterprises by increasing growing credit available for them.
VietinBank is committed to help SMEs sail through the tough time
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The information was revealed by Tran Minh Binh, general director of VietinBank, at the seminar titled “VietinBank SME Stronger – Accompanying companies to sail through the tides” held in Ho Chi Minh City on July 7.
Accordingly, by the end of June 2020, outstanding loan balance of small- and medium-sized enterprises (SMEs) reached VND247 trillion ($10.74 billion), accounting for 26 per cent of total outstanding loans for corporate customers and maintaining credit growth of 2 per cent.
SMEs play an important role in the Vietnamese economy. Therefore, the VietSME customer segment has become a key focus area of VietinBank’s long-term development strategy.
Minh said that SMEs have been hit hard by the COVID-19 crisis and the disruption of cash flows has threatened SMEs’ survival. Since the outbreak of COVID-19, VietinBank has implemented a slew of financial measures to support SME customers during the tough times. The measures include flexible credit packages with fixed interest rates, a VND10 trillion ($434.78 million) loan package to support enterprises in Ho Chi Minh City as well as preferential loan interest rates for startups worth VND3 trillion ($130.43 million).
Between January 23 and June 19, VietinBank has disbursed loans worth VND180 trillion ($7.83 billion) to nearly 7,000 customers affected by COVID-19 pandemic with interest rates down 0.5 per cent per year compared to the period before COVID-19. Among them, there are 500 SME customers.
VietinBank also announced that its credit balance including foreign individuals reach VND946.1 trillion ($41.13 billion), up 0.4 per cent in the first half of 2020. At the end of the first quarter, VietinBank’s total assets reached VND1.2 quadrillion ($52.17 billion), down 2 per cent against the beginning of this year. Customer loans decreased by 1.3 per cent while customer deposits reached VND895.75 trillion ($38.95 billion), up 1 per cent. Bad debts stood at VND16.92 trillion ($735.65 million), a 55 per cent increase while the ratio of non-performing loans increased from 1.15 to 1.83 per cent.
