Sacombank plans to reduce NPL ratio to below 3 percent in 2018 (Photo: Sacombank)Hanoi (VNA) - Saigon Thuong Tin Commercial Joint Stock Bank(Sacombank) has successfully reduced its non-performing loans (NPLs) ratio to4.4 percent after operating for a year under a Government-approvedrestructuring scheme.
The bank plans to reduce the NPL rate, which stood at 6.68 percent early thisyear, to below 3 percent in 2018.
Under the restructuring scheme approved by the Government and theState Bank of Vietnam, Sacombank is allowed to settle its NPLs within 10years, starting from 2017. However, the bank has targeted to complete thedifficult task within five years.
Sacombank Chairman Duong Cong Minh said the bank’s restructuringscheme, including shaking up the bank’s organisation and human resources andre-arranging transaction networks and branches, was based on the strategy of“developing rural areas to support urban zones.”
Minh affirmed that his bank has taken drastic measures to implement therestructuring scheme. He believed that bad debt settlement will beeffective due to upbeat signs in the property market and the NationalAssembly’s legal provisions for bad debts.
Sacombank’s representative announced that the two major goals in the 2018-20period will be to speed up the bank’s restructuring process and the settlementof bad debts to improve its asset quality.
In addition, the bank will expand cooperation, aiming to reduce competitivepressure in the sector and become the top retail bank in the country and theregion.
By the end of this year, the bank’s total assets are estimated to rise 11.5 percent.Its credit growth and capital mobilisation have also risen by 12.9 percent and11.5 percent, respectively.
The bank currently has 566 transaction offices in 48 cities and provinces ofVietnam, Laos and Cambodia.-VNA
VNA
