While most credit institutions have made possible attempts to reduce their bad debt ratio to a safe level at below three per cent, VPBank and Sacombank remain cautious to be fairly high at 4.07 per cent and 3.74 per cent respectively.
Sacombank's bad debt ratio was reduced to a little over three per cent, which is considered the safety limit, in less than two years.
Fitch Ratings has upgraded Vietnam’s rating from "BB-" to "BB" proving the nation’s improvement on economic growth, foreign exchange reserves and government debt.
Instead of VietinBank, HDBank is taking requisite steps to acquire PG Bank and the strategic deal is expected to finalize in this September after a merger request to be submitted to the State Bank in this month.
An unknown future holds for PG Bank after the collapse of the merger between VietinBank and PG Bank.
Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) has sold collaterals for debt collection, but 90 per cent of this amount is deferred for seven years at an interest rate of 7.5 per cent per annum.
VPBank's profit in 2017 surpassed Agribank and was only lower than that of Vietcombank, Vietinbank and BIDV.
The amount of bad debt that the Vietnam Asset Management Company (VAMC) has to deal with this year accounts for nearly half of the total bad debts VAMC has bought from banks.