Bad debt exceeds $11 bln at 29 commercial banks

Bad debt at 29 commercial banks stood at VND294.4 trillion ($11.3 billion) as of end-June, up over 13% over the end of 2024, their financial reports show.

Outstanding loans totalled nearly VND14,800 trillion as of June 30.

The rise of non-performing loans forced banks to increase total credit risk provisions by 10% to stand at VND86 trillion.

Among 29 commercial banks, 11 reported a decline in bad debt ratios in the second quarter, including National Citizen Commercial Joint Stock Bank (NBC) from 19.54% to 11.35% and Agribank from 1.68% to 1.43%. Other banks included An Binh Bank (ABBank), Viet A Bank, Saigon-Hanoi Bank (SHB) and TPBank.

Lenders with increases in bad debt ratios in Q2 included PGBank, Viet Capital Joint Stock Commercial Bank (BVBank), BIDV, HDBank, Saigonbank and Nam A Bank.

NCB continued to have the highest bad debt ratio in the banking system, but the ratio decreased significantly in Q2, highlighting the bank’s efforts to restructure its debts.

As of the end of June, 21 out of 29 banks reported bad debt ratios under 3% – the threshold deemed safe.

Of these, 12 banks reported ratios below 2%, including as Vietcombank (1%), Viet A Bank (1.11%), Bac A Bank (1.25%), Asial Commercial Joint Stock Bank (ACB) (1.28%), VietinBank (1.31%), and Techcombank (1.32%).