VCN- At the end of the year, to avoid bad debts, high debt-to-equity ratio and additional funding for other monetary operations, banks must eventually recover their debt by a variety of measures. This year, this issue has "leverage" for banks to enforce effectively.
|The investment project of complex building of Saigon M & C was seized by VAMC. Photo ST|
Bad debt declines
The report on the implementation of the socio-economic development plan was presented by the Prime Minister Nguyen Xuan Phuc at the opening session of the fourth session of the National Assembly XIV said that by the end of August 2017, the bad debt ratio was 2.46%. In the first eight months of 2017, the whole system has processed over 57 trillion dongs. According to the assessment of the National Financial Supervisory Committee, the bad debt has actually decreased compared to the end of 2016. Currently, the high bad debt ratio is mainly concentrated in some weak credit institutions, financial capacity and weak management in the restructuring.
Meanwhile, the business report of 9 months in 2017 of many commercial banks has shown satisfactory results. Besides the profits are up trillion, the bad debt ratio has also decreased significantly. In particular, at Saigon Commercial Joint Stock Bank (Sacombank), the cumulative first 9 months of the bank reported profit before tax of 1.026 billion, 5 times more than the same period last year and exceeded 75% of the plan. The bank's bad debt ratio dropped from 6.91% to 5.95%, although it remained high compared to the average level, it decreased the volume significantly. At Vietcombank, the bank's nine-month t interest income reached VND16,160 billion, up 18% compared to the same last year. this bank’s total of bad debt is 6.182 billion, down 10.8% compared to the end of last year. The bad debt ratio was 1.15%.
However, at some banks, the bad debt ratio is still high and it shows signs of increasing. Typically, Tien Phong Commercial Joint Stock Bank (TPBank) announced an after-tax profit of more than 711.6 billion dongs, double the same period of 2016. But the bank's bad debt ratio also increased sharply, the bad debt of TPBank was 505.5 billion, up 174.5 billion, equivalent to 52.7% increase compared to the beginning of the year. At LienVietPostBank, profit before tax in the first nine months increased by 60% over the same period, but the ratio of doubtful debts and the bad debts were higher than the end of the year. 2016 ...
Strengthening recovery and liquidation of asset
Facing with the above situation, commercial banks are looking for plans of the debt recovery or asset recovery to reduce the bad debt or doubtful debts to the lowest level, helping the results of the financial report of the year 2017 is more perfect. As a result, banks are expected to implement Resolution No 42 of the National Assembly on the handling of bad debts and the coming time, this resolution will be applied thoroughly when this Resolution increases the rights of banks, creating the initiative for banks
Recently, the Bank for Investment and Development of Vietnam (BIDV) - Branch Office Transaction 2 has released the property auction notice of 3 companies to recover the bad debts of nearly 1,091 billion. Specifically, the auctioned asset is the entire outstanding principal and interest of Vietnam Health Investment Joint Stock Company, Construction Investment and Transportation Joint Stock Company 584.
Prior to BIDV, many banks also seized assets to secure debt. Vietnam Maritime Commercial Joint Stock Bank (Maritime Bank) has announced the seizure of mortgaged assets of some enterprises and individuals on the grounds that the customer violates the debt repayment obligation under the signed credit contract. National Bank of Vietnam (NCB) also auctioned mortgaged land in Binh Duong with a starting price of over 11.6 billion. Vietnam Technological and Commercial Joint Stock Bank (Techcombank) has also issued a notice of seizure of collateral assets and the selection of collateral holdings to recover debts.
Along with the bank's operations, the companies trading debt have also been more active in recovering collateral and dealing with the bad debts. In particular, at the end of August, the Asset Management Company (VAMC) has seized the security assets of the Saigon M & C Apartment Complex at 34 Ton Duc Thang, District 1, HCMC to handle the debt collection. This is a security asset of the group of customers including Saigon One Tower Joint Stock Company (formerly Saigon M & C Real Estate Joint Stock Company), Lien Phat Investment Joint Stock Company, Private Joint Stock Company Minh Quan, New Super deck M & C Joint Stock Company with total outstanding debt (principal and interest) up to now is over 7,000 billion.
The experts of banker said that Resolution 42 would allow banks to speed up the recovery of collateral assets which would have taken many years before banks could recover assets. Assured due to regulations bound by many other relevant laws. Therefore, when the resolution 42 comes into effect, the banking system has added "leverage" to effective year-end debt campaign, so the balance sheet of finance in 2017 may be "brighter", Creating the premise for positive development in the coming years.
By Hương Dịu/Bui Diep