Thuy Trieu
SHB officially merged with Hanoi Building Commercial Bank (HBB) on August 28, 2012. The bank ascribed its high bad debt ratio to a number of syndicated loans provided by HBB and other lenders classified as overdue loans. Besides, many loans that Vinashin has taken from SHB are also transferred to the bad debt group in line with the debt classification regulation of the central bank.
As most companies whose debts classified as NPL are former clients of HBB and are active in the manufacturing industry, they have offered factories, immovable assets and machinery and equipment as collateral. These enterprises have incurred bad debts due to financial constraints, weak governance and tough business conditions.
SHB has handled the bad debts owed by Vinashin and its subsidiaries subject to the instruction of the Government and the central bank besides reviewing and making plans on dealing with collateral to recover the loans.
Bad debts of Groups 4 and 5 at SHB all have collateral and the lender is seeking to settle the loans by rearranging companies, handling collateral, considering lending rate exemption and reduction and restructuring debt payment schedules in sync with the borrowers’ incomes. The lender had taken back a combined VND2.9 trillion worth of bad debts in the first six months.
SHB as of July 31 has extracted total risk provision of more than VND2.1 trillion for bad debts and it will consider resorting to the provision to clean up credit risks in the year’s second half besides applying the aforesaid loan recovery solutions. The bank insisted that it would pull the bad debt ratio down to less than 5% of total outstanding loans later this year as planned earlier.
As of June 30, SHB was one of the credit institutions with NPL ratios topping the local banking system and was among the first four lenders required to sell bad debts to the Vietnam Asset Management Company (VAMC).
According to Thoi bao ngan hang newspaper under the central bank, VAMC from now to the year-end will issue special bonds totaling VND35 trillion in two phases, with VND10 trillion planned for the first phase from last Saturday until October 30 and VND20-25 trillion for the second phase from November 1 to the end of the year.
Total assets of SHB were around VND104.5 trillion as of June 30 and its deposits reached roughly VND92.6 trillion, with capital mobilized from residents and economic entities posting VND79.5 trillion and credits taken out by individuals and economic organizations totaling about VND58.4 trillion. The bank obtained more than VND400 billion in pre-tax profits in the year’s first half, slumping one third from the same period in 2012.
Đăng ký: VietNam News