Illustrative image (Source: VNA) At a meeting on January 9, Vietinbank Chairman Nguyen Van Thang said that in2017 his bank would focus on settling bad debts and would buy all bad debtsthat it sold to VAMC.
In the context of fierce competition among banks, Vietinbank would completelysettle the bad debts in 2017 instead of 2018 as planned earlier, Thang said.
From 2007 to 2010, Vietinbank settled nearly 10 trillion VND (440.52 millionUSD) of bad debts through a provision of risk loans as well as recoupment andsales of bad debts.
By the end of 2016, Vietinbank’s bad debt ratio was kept under 1 percent. Thebank’s outstanding loans in 2016 reached 720 trillion VND, up 18 percentagainst 2015.
Vietinbank posted a profit of 8.25 trillion VND in 2016, up 12 percent against2015, while its total assets by the end of 2016 also surged by 22 percent to 947trillion VND.
Earlier, Vietcombank’s Chairman Nghiem Xuan Thanh also said that in 2017, hisbank would buy all 4.3 trillion VND of NPLs that it sold to VAMC, three yearssooner than as planned.
Thanh said that Vietcombank would settle bad debts itself through the use ofprovision, hoping that as and when the bad debts are recouped the bank’sfinancial capacity would improve, helping it continuously to cut lendinginterest rates.
At the meeting with Vietcombank last week, Governor of the State Bank of VietnamLe Minh Hung told Vietcombank to focus on settling NPLs through the sale ofmortgaged assets.
Nguyen Duc Kien, deputy head of the National Assembly’s Economic Committee,said that the move of buying back bad debts shows that the business performanceof the banks has been better.
With the move, Kien said, the pledge to settle bad debts of credit institutionswith the use of the State budget at a minimum is becoming a reality.-VNA
In the context of fierce competition among banks, Vietinbank would completelysettle the bad debts in 2017 instead of 2018 as planned earlier, Thang said.
From 2007 to 2010, Vietinbank settled nearly 10 trillion VND (440.52 millionUSD) of bad debts through a provision of risk loans as well as recoupment andsales of bad debts.
By the end of 2016, Vietinbank’s bad debt ratio was kept under 1 percent. Thebank’s outstanding loans in 2016 reached 720 trillion VND, up 18 percentagainst 2015.
Vietinbank posted a profit of 8.25 trillion VND in 2016, up 12 percent against2015, while its total assets by the end of 2016 also surged by 22 percent to 947trillion VND.
Earlier, Vietcombank’s Chairman Nghiem Xuan Thanh also said that in 2017, hisbank would buy all 4.3 trillion VND of NPLs that it sold to VAMC, three yearssooner than as planned.
Thanh said that Vietcombank would settle bad debts itself through the use ofprovision, hoping that as and when the bad debts are recouped the bank’sfinancial capacity would improve, helping it continuously to cut lendinginterest rates.
At the meeting with Vietcombank last week, Governor of the State Bank of VietnamLe Minh Hung told Vietcombank to focus on settling NPLs through the sale ofmortgaged assets.
Nguyen Duc Kien, deputy head of the National Assembly’s Economic Committee,said that the move of buying back bad debts shows that the business performanceof the banks has been better.
With the move, Kien said, the pledge to settle bad debts of credit institutionswith the use of the State budget at a minimum is becoming a reality.-VNA
VNA
