Mr. Kim Byoungho, Chairman of the Board of Directors of HDBank, speaking at the Conference – Photo: VGP/Nhat Bac |
This information was shared by Mr. Kim Byoungho, Chairman of HDBank, at the Conference of the Government Office with the Joint Stock Commercial Banks (JSCBs) on the afternoon of September 21st.
According to Chairman Kim Byoungho, in close adherence to the directions of the Government and the State Bank of Vietnam, HDBank has achieved a credit growth of over 15% since the beginning of the year, with outstanding loans exceeding VND 390 trillion. The bank maintains a low non-performing loan ratio of only 1.74%. Additionally, HDBank actively participates in the restructuring of the commercial banking system.
To support customers affected by storms and floods, HDBank plans to offer a preferential credit package of VND 10,000 billion with interest rates lower than usual by 1-2%. The bank will also reduce the interest rate by 1% for existing business production and trading loans. For new business production and trading loans, the interest rate will be decreased by 2% for the first three months compared to the current rate, or 0% for the first month.
Furthermore, HDBank’s employees and its subsidiaries and affiliated companies will donate one day’s salary, totaling VND 30 billion, to support people affected by storms and floods.
In parallel, HDBank has registered to disburse VND 7,000 billion for the forestry, fisheries, and social housing sectors. By 2030, the bank plans to disburse VND 100,000 billion for social housing projects, aiming to finance the construction of 200,000 new houses.
Closely following the Prime Minister’s directions on resolving difficulties and obstacles in mechanisms and policies to mobilize maximum resources for development, the leadership of HDBank puts forward several proposals.
Firstly, regarding credit growth, HDBank proposes that the State Bank of Vietnam, based on the balance of management objectives, continue to review the situation in the fourth quarter and consider assigning additional targets to credit institutions with good capital supply capacity.
HDBank also suggests reintroducing consumer credit programs to support the lives of workers in industrial parks and export processing zones, similar to the VND 20,000 billion package implemented in 2023, to assist people and businesses during the peak season at the end of the year.
Secondly, HDBank wishes to further facilitate the removal of legal and administrative procedural obstacles for businesses to expand their production and operations. Information shows that many enterprises are facing legal and approval procedural difficulties rather than access to capital issues, as interest rates have already decreased, and credit approval processes have been streamlined.
Thirdly, as the bad debt ratio in the system remains high, to support people and businesses affected by storms and floods, the Conference should consider extending the validity of Circular No. 06 on the classification of debt groups beyond December 31, 2024, with more specific guidance on debt rescheduling and postponement.
Finally, HDBank’s management hopes that the competent authorities will soon approve the proposal for the restructuring of commercial banks in association with bad debt handling, creating favorable conditions for these banks to complete their restructuring promptly, contributing to the stability of the commercial banking system.
“Despite the challenges ahead, we believe that the Vietnamese economy will continue to grow strongly and sustainably thanks to the close direction and practical solutions of the Government, ministries, and the State Bank of Vietnam,” said the Chairman of HDBank.
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