Agribank cut VND 5,500 billion in profit to support customers
In 2020, Agribank had 7 times reduced lending interest rates for priority areas and 9 times reduced service fees for customers in accordance with Circular 01 of the State Bank of Vietnam.
On January 12, 2021, in Hanoi, Vietnam Bank for Agriculture and Rural Development (Agribank) held a conference on implementing business tasks in 2021.
As of December 31, 2020, Agribank's total assets reached nearly VND 1.57 million billion; funding resources of over VND 1.45 million billion; total outstanding loans to the economy reached over VND 1.21 million billion, of which nearly 70% of outstanding loans are for agricultural and rural development investment.
Agribank is one of the best banks in handling and recovering bad debts according to Resolution 42 in the system, reaching 186% of the plan. Credit growth in 2020 reached over 8%, profit reached VND 12,869 billion, exceeding VND 369 billion (approximately 3%) compared to the plan but still lower than the same period last year (VND 14,000 billion).
The decrease in Agribank’s profit is due to the fact that the bank proactively reduced its income of VND 5,500 billion to restructure debt, lower interest rates and exempt interest and fees to support businesses and people according to the direction and instructions of the State Bank of Vietnam.
Specifically, Agribank has effectively implemented the Circular No. 01/2020/TT-NHNN of the State Bank of Vietnam with 7 times of reducing lending interest rates for priority sectors, 9 times of reducing service fees; implementing credit programs with loan interest rates 0.5% -2.5% lower than that before the COVID-19 pandemic.
In addition, Agribank has implemented cost savings, reduced staff salaries, supported nearly VND 50 billion in Covid-19 prevention and control and supported the central provinces to overcome the damage caused by storms and floods.
Entering the year 2021, the whole Agribank system to closely follow the leadership and direction of the Party, National Assembly, Government, SBV, actively coordinate with ministries, central and local agencies to successfully complete all assigned tasks; strive to be in the Top 100 largest banks in Asia by asset size towards digital banking in the context of the 4.0 technology revolution and the rapidly developing digital economy; and firmly maintain Agribank position in the agricultural and rural financial markets with a modern, innovative, dynamic, professional bank image with top quality services.
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