Statistics of Nguoi Dong Hanh newspaper from 27 banks showed that in September, the highest interest rate on 12-month term is 8.5 percent per annum at An Binh Commercial Joint Stock Bank, without special conditions. In addition, the bank also offers 13-month deposit rate at 8.3 percent per annum, only after Viet Capital Commercial Joint Stock Bank (VietCapitalBank) of which the rate is 8.4 percent per annum (but its 12-month deposit rate is only eight percent per annum).
In the first six months of 2019, ABBank was the only bank with negative credit growth in the system (five percent) while it target is 17 percent. In addition, customer deposits of this unit also decreased by four percent compared to the beginning of the year, while the plan was set at 28 percent. Keeping deposit rates at the highest level in the system is perhaps a move to attract ABBank’s depositors.
After ABBank, Bac A Commercial Joint Stock Bank (BacABank) and Orient Commercial Joint Stock Bank (OCB) offer deposit rate at 8.1 percent per annum. In particular, BacABank raised all interest rates for terms from 12 months and more by two percentage points from 7.9 percent per annum. The bank also increased the six-month rate by one percentage point to 7.5 percent per annum and nine-month rate by two percentage points to 7.9 percent per annum, while the one to three-month rates are maintained at 5.5 percent per annum and non-term rate is one percent per annum. generally, BacABank still offers the highest short-term deposit rates in the system.
OCB also raised 12-month deposit rate by one percentage point from eight percent per annum in August. Other term rates remained unchanged.
Some other banks list 12-month term rate at eight percent per annum, such as National Citizen Commercial Joint Stock Bank (NCB), Bao Viet Commercial Joint Stock Bank (BaoVietBank) and VietCapitalBank for normal savings or some specific programmes. Particularly for Saigon Hanoi Commercial Joint Stock Bank (SHB), for customers depositing from 500 billion dong and more the rate is 8.9 percent per annum on one-year term, and nine percent per annum on 13-month term. With similar condition, Nam A Commercial Joint Stock Bank (NamABank) offers 12-month and 24-month rates at 8.3 percent per annum and 8.45 percent per annum, respectively.
State-owned banks and Military Commercial Joint Stock Bank (MB) keep 12-month deposit rate at 7.5 percent per annum, the highest level in the group. Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank) and Commercial Joint Stock Bank for Investment and Development of Vietnam (BIDV) continue to keep the rate at seven percent per annum.
In the first half of 2019, VietinBank’s credit and mobilisation growth rates were only 3.5 percent and 3.9 percent. The bank’s customer deposits, if including deposits and issuance of valuable papers, increased by 8.4 percent per annum compared to the beginning of the year. Since being unable to improve the Capital Adequacy Ratio (CAR) under Basel II, VietinBank is limited in mobilising capital and disbursing credit. The bank is still in the process of finding solutions to increase charter capital.
Meanwhile, BIDV recorded credit and mobilisation growth of seven percent, equivalent to nearly 64 percent of the year plan. Similar to VietinBank, BIDV also has the urgent need to increase capital. This problem will be solved in the near future, when the bank issues more than 603.4 million shares to KEB Hana Bank, equivalent to 15 percent of charter capital.
The two remaining banks in the Big 4 group Commercial Joint Stock Bank for Agriculture and Rural Development (Agribank) and Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank) offer deposit rate at 6.8 percent per annum on term of 12 months. State-owned banks still offer the lowest deposit rates in the system. Vietcombank, VietinBank and BIDV announce a rate of 0.1 percent per annum for non-term rate, while Agribank keeps this rate at 0.2 percent. For terms of one to nine months, the interest rates are popular at 4.5 percent to 5.6 percent per annum; while the popular rates at private commercial banks are 6.9-7.5 percent per annum on nine-month term, 6.7-7.4 percent per annum on six-month term, 5.3-5.5 percent per annum on one to three-month term, and 0.5-one percent per annum on overnight term.
Regarding certificates of deposits (CDs) for individual customers, VietCapitalBank still leads the system in deposit rate with 10.2 percent per annum for term of 60 months. In addition, the rate for terms from 24 to 48 months are 9.5-10 percent per annum. In addition, the bank also applies a deposit rate of 8.4-8.6 percent per annum for terms of 13 to 60 months.
Vietnam International Commercial Joint Stock Bank (VIB) and Viet A Commercial Joint Stock Bank (VietABank) also issued CDs at interest rate of 9.1 percent per annum for terms of respectively 61 months and 24 months for a minimum value of 10 million dong.
SHB also announced to issue CDs at interest rate of 8.9 percent per annum on 36-month terms with a minimum value of two billion dong, and 8.6-8.8 percent per annum on 12-24 month terms. NamABank issued seven-year CDs at interest rate of 8.9 percent per annum.
The issuance of CDs at high interest rates on long-terms of banks serves the target to supplement medium and long-term capital in the context when the ratio of short-term funds used for medium and long-term lending is tightened. In addition, some banks also issued a large amount of bonds from the beginning of the year to supplement Tier-2 capital and improve the CAR under Basel II standards, in addition to the mobilisation of long-term capital, such as BIDV, VietinBank, Vietnam Prosperity Commercial Joint Stock Bank (VPBank), Tien Phong Commercial Joint Stock Bank (TPBank), Asia Commercial Joint Stock Bank (ACB), etc. Particularly, VietinBank received approval of the SBV to issue 10 trillion dong of bonds and the bank has offered for sale over 5.6 trillion dong.
