NCB applies the highest deposit rates in the market

20-Nov-2019 Intellasia | NDH | 6:02 AM Print This Post

Statistics of NDH showed that six out of the 23 surveyed banks have lowered deposit interest rates, including Viet Capital Commercial Joint Stock Bank (VietCapitalBank), Export Import Commercial Joint Stock Bank (Eximbank), Vietnam Prosperity Commercial Joint Stock Bank (VPBank), Nam A Commercial Joint Stock Bank (NamABank), An Binh Commercial Joint Stock Bank (ABBank), and Tien Phong Commercial Joint Stock Bank (TPBank).

VietCapitalBank reduced interest rates across the terms. In particular, the rates for loans from one to 11 months were cut by 0.1 0.2 percentage point. The rate for terms from one to five months is currently 5.3 percent per annum, while the rates for terms from six to 11 months are fluctuating around 7.3 percent to 7.7 percent per annum. The 12-month rate was kept unchanged at eight percent, while rates for longer terms fell by 0.1 percentage point, ranging from 8.2 percent to 8.5 percent per annum.

Pham Trung Kien, director of VietCapitalBank Thang Long branch said that the bank chooses some certain points of time to adjust interest rates because the capital demand and source are stable. In this phase, Ban VietCapital lowered all terms to ensure the output rates. Recently, the bank has received approval of the State Bank of Vietnam (SBV) to carry out Basel II on the capital adequacy ratio from November 1st. This shows that the bank’s capital base has met the conditions and complied with Circular 41.

Previously, VietCapitalBank is one of the banks once announced the highest interest rate in the market, reaching 8.6 percent per annum for terms of 24 to 60 months. In addition, the bank also launched an issuance of certificates of deposit with interest rate of 9.2 percent to 10.2 percent per annum.

VPBank also announced to cut six-month deposit rate by 0.1 percentage point to 7.2%-7.5 percent per annum. Meanwhile, NamABank lowered 16-month and 17-month rates by 0.3 percentage point to.4 percent per annum. Eximbank also cut medium-term deposit rates. In particular, the rates for terms of 12, 15 and 18 months declined by 0.2 percentage point to 7.7-8.1 percent per annum. The rates for terms of 13 months and more than 24 months were kept unchanged at 8.4 percent per annum.

For ABBank, the rates for terms from one to five months were cut from 5.5 percent to 5.4 percent per annum. At the same time, the six-month rate was lowered from 7.5 percent to seven percent per annum. The 12-month rate also fell from 8.5 percent to 8.2 percent per annum.

However, the bank raised medium and long-term rates. For terms of eight to 11 months, the rates increased by 0.6 percentage point from 6.8 percent to 7.2 percent per annum. Meanwhile, the rates for terms from 15 to 36 months were raised by 0.9 percentage point from 7.4 percent to 8.3 percent per annum.

After nine months, ABBank’s lending to customers still slightly declined compared to the beginning of the year, reaching 52.157 trillion dong. The provisions for loans increased by 70 percent to more than 1.147 trillion dong. ABBank is one of the few banks that recorded negative outstanding credit growth in the system (in addition to Bao Viet Commercial Joint Stock Bank (BaoVietBank).

According to the analysis centre of Saigon Securities Incorporation (HoSE: SSI), although some commercial banks announced to slightly cut deposit rates by 10-20 basis points on their interest rate table, the real rates did not see much change. In the short term from now until the end of the year, the interest rates in market 1 can hardly fall due to seasonal season.

In contrast to the interest rate reduction of other banks, National Citizen Commercial Joint Stock Bank (NCB) simultaneously raised the rates by 0.5 percentage point for terms of six to nine months, reaching 7.9 percent and eight percent per annum, respectively. Meanwhile, the rate for 12-month term increased by one percentage point to 8.1 percent per annum, and rates for 18 to 24-month terms increased by 0.7 basis point to 8.6-8.7 percent per annum. For deposits of 36-month, the rate rose to 8.8 percent per annum, up by 1.2 percentage points compared to the previous month, the highest in the system.

VietCapitalBank ranks the second with a rate of 8.5 percent per annum for terms of 24 to 60 months.

For terms of 12 and 13 months, Eximbank still takes the lead with 8.4 percent per annum; followed by ABBank with 8.3 percent per annum for 13-month term and 8.2 percent per annum for 12-month term. The following positions belong to Bac A Commercial Joint Stock Bank (BacABank) with 8.2 percent per annum and National Citizen Commercial Joint Stock Bank (NCB) with 8.1 percent per annum.

Across the terms, BacABank is still having the highest level in the system. The bank applies a rate of 5.5 percent per annum for terms of one to three months, while it is only 4.5 to 5.2 percent per annum at other banks. On terms of six to nine months, BacABank offers rates of 7.7-7.8 percent per annum. The rate for long-terms from 18 to 36 months is 8.3 percent per annum.

The big 4 banks still rank the last in the interest rate ranking. Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank), Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank) and Commercial Joint Stock Bank for Investment and Development of Vietnam (BIDV) announce to apply a rate of 0.1 percent per annum for non-term deposits, while it is 0.2 percent per annum at Commercial Joint Stock Bank for Agriculture and Rural Development of Vietnam (Agribank). For one-month term, Agribank, VietinBank and Vietcombank keep the rate at 4.5 percent per annum, while it is 4.3 percent per annum at BIDV.

 


Category: Finance, Vietnam

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