Binh Duong-based banking system well finalizes tasks

Clients at Ho Chi Minh City Housing Development Bank’s Binh Duong branch.

Despite difficulties of economic recession, Binh Duong-based banking system timely reached the 2014 credit growth as the set goals. Along with this result, operation of banking system showed positive signals in the past year. This was assessed by Tran Thanh Liem, vice chairman of the provincial People’s Committee at the 2014 summing up conference of Binh Duong-based banking sector held on Jan. 8.

Overcoming difficulties

In the context of difficulty of local and foreign economy made many enterprises dissolve or bankrupt, but with motivation and patience, Binh Duong-based banking system often launches measures of solving difficulties for enterprises. In addition, credit organizations seek out opportunities to win remarkable results.

Till Dec. 31, 2014, Binh Duong-based banking system won the total mobilized capital of nearly VND97,000bil, an increase 14.95% compared with 2013. Moreover, the total outstanding loan of the banking system reached more than VND79,800bil, a 19.86% increase from the set plan. Meanwhile, bad debt decreased significantly compared with the previous year and was at 1.6% of the total outstanding loan. This is an ideal figure for the sectoral operation.  

Bui Van Nu, director of the State Bank’s Binh Duong branch said that in the first months of 2014, Binh Duong-based banking system could not reach half of credit growth goal because domestic and local economy faced many obstacles.  

In the meantime, lending rates remained relatively high (12% per year). However, during the later months, decrease in lending interest rates plus recovery of enterprises helped companies shake hands with banks. During the 4 final months of 2014, Binh Duong’s credit growth was recovered and from Sept. to the end of Dec. the level of growth reached an increase of more than 1% per month. As such, the level of 12%-14% of the total lending outstanding loan was reached as the initial estimate.  

Positive support for economy 

Along with growth of the total outstanding loan, lending rates of banks plunged from 1.5% to 2% compared to the first months of the previous year.

Specifically, banks re-structured debts, decreased lending rates for enterprises. Besides, preferential loans on the 5 priority credit programs such as rural agriculture, export, supportive industry, small and medium enterprises were at 6-8% per year. These figures were highly appreciated by enterprises.  

Nguyen Thoi Hoa Binh, director of Dong Tay Co.Ltd. shared that for short-term interest rates, especially decrease in lending interest rates, enterprises enjoy more opportunities to expand production and business, purchase more facilities, apply tech- science development into production.  

Aside from the common achievements of the entire banking system, the State Bank’s Binh Duong branch in the past year recorded the leading role of the State-run banking units. At Agribank Binh Duong, the bank’s operational goals reached high results compared with plans in the end of the last month with VND15,000bil in the total mobilized capital, more than VND10,000bil in credit growth and so on. This achievement is a good premise for Agribank to map out plans for 2015. 

Facing many difficulties and challenges, BIDV Binh Duong reached and surpassed important business goals. Accordingly, the bank reached an increase of 113% in capital mobilization, a rise of 132% in loans, disbursed 300 individual files of buying social houses with the total value of nearly 70bil.  

Phan Trong Nghia, vice director of BIDV Binh Duong revealed that the bank in the past year continued to maintain relations with enterprises, actively approached new companies in the province. In terms of the VND30,000bil lending package of preferential interest rates of social housing purchase and the VND1,000bil lending package of supporting enterprises to overcome difficulties, the bank will continue to spur disbursement in a bid to help capital borrowers approach loans timely.  

Furthermore, in 2014 system of People’s Credit Fund reached many good results. Of this, An Thanh People’s Credit Fund was allowed to implement domestic money transfer service, improving capacity of service. Possibly speaking, with 55 branches of credit organizations and hundreds of transactional offices and funds in the province, these organizations well served for enterprises and the local key economic programs.  

New pressure in 2015

Estimatedly, banking sector will face difficulties while enterprises will encounter obstacles in consuming goods. In addition, settlement of bad debts has yet to be improved. Therefore, it requires credit organizations to carry out measures and pay attention to key and safe growth and improve quality of service to lure more clients.  

Bui Van Nu said that the State Bank’s Binh Duong branch will in 2015 map out plans on the common growth of the central bank with about increase of about 15%. The goal still pays attention to the Government and State bank’s biggest program of serving for agriculture, export production, difficult settlement for enterprises and more.  

Recently, the provincial administration set out a lending program worth VND1,000bil to help difficult enterprises.  

Tran Thanh Liem, vice chairman of the provincial People’s Committee said that Binh Duong now has 17,000 domestic enterprises, 92% of which are small and medium enterprises. In the coming time, local banks should pay more attention to learning difficulties of enterprises to meet their demand on capital.

Reported by T.HONG – Translated by A.C