HCMC’s bad debt ratio reduced to 2.2 percent

According to the State Bank of Vietnam – Ho Chi Minh City Branch, since the beginning of this year, the city’s banking industry has handled more than VND72 trillion of bad debts, reducing the amount of bad debts to VND49 trillion, accounting for 2.2 percent of total outstanding loans.

If excluding bad debts of three commercial banks, including GPBank, Ocean Bank and CBBank, which were bought for VND0, bad debt ratio in the city would be merely above 1.5 percent.

Mr. Nguyen Hoang Minh, deputy director of SBV-HCM Branch, said that bad debts of commercial banks have been handled fairly well this year. Commercial banks continued to handle bad debts by selling collaterals and recovering debts in cash.

In addition, the amount of new bad debts generated this year was also less than the amount of bad debts that was tackled. Clients were less reluctant when banks handled bad debts in accordance with the Resolution No.42 of the National Assembly so the result was fairly positive. Among 460 commercial bank branches in the city, there were up to 100 branches with profitable assets and no bad debts.