9:41:54 AM | 3/10/2013
Knowing the adverse impacts of economic slowdown on business operations of enterprises in recent years, the Nam Dinh Branch of Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank - Nam Dinh) has launched many credit support programmes in a bid to help enterprises in Nam Dinh province deal with difficulties.
Closely following the guidance of the State Bank of Vietnam, Vietinbank - Nam Dinh defined its primary task in 2013 as accelerating credit growth by facilitating customers to access low-rate loans. Besides, the branch powerfully and comprehensively deploys solutions to help customers to deal with difficulties, and thoroughly settles bad loans to improve the credit quality of the branch in particular and of the banking system in Nam Dinh province in general.
Since the start of this year, the branch has focused on attracting and utilising all sources of capital, both domestic and foreign, to meet the financial needs of enterprises. The branch has attached special importance to mobilising money from individuals and organisations, while deploying deposit promotion programmes for customers. It has also stepped up marketing programmes and promoted products with new utilities to attract more new customers. As of July 2013, the branch raised deposits of VND2,249 billion, fulfilling 74 per cent of the full-year plan.
The branch has also aggressively deployed lending activities, focused on short-term credit growth, especially in credits in local currency for industries and fields directed by Vietinbank, and increased the market share of corporate and personal customers. The branch has carried out five lending programmes guided by the State Bank of Vietnam and preferential lending programmes adopted by Vietinbank for corporate and individual customers in order to help them live through hardships. In addition, the branch has exerted a strong pull on new, potential customers.
The branch has also strengthened regular monitoring and examination of the financial health and business operations of customers. If customers are financially troubled by subjective causes, they must present their solutions to those difficulties. If they are unlikely to recover due to wrongful capital use, the branch is determined to take back loans for others to use in a more effective manner. As of July 2013, the outstanding loan reached VND2,481 billion, equal to 78 per cent of the yearly plan.
Leading rate-cut movement
The branch always takes the lead in lowering interest rates and bringing old high-rate loans to currently reasonable rates to help enterprises surmount difficulties. Since the beginning of 2013, the branch has seven times lowered interest rates, which dropped 14.5 per cent to 11.5 per cent per annum (for corporate borrowers). Presently, only 5.4 per cent of its total loans bear high rates (medium and long-term loans) while the rest carry 9-11 per cent rates.
The branch robustly implements Vietinbank’s preferential lending programmes for enterprises and facilitates them to access soft loan sources. It also, based on the situations of enterprises, reschedules payment terms and tariff policies to ease difficulties on them. This move will help enterprises to fully repay loans to the bank in return.
The branch is carrying out many preferential programmes like business support programme, 2013 credit target programme, 15-golden day programme, and customer connecting programme for potential customers, SMEs and big corporate customers, which are preferential interest rates of 7.5-9 per cent per annum.
With its right development orientations and relentless efforts, Vietinbank - Nam Dinh has provided invaluable support for economic development, mobilised and circulated capital sources, and unlocked potential for local development investment.