Agribank: Maintaining the leading role in the agricultural and rural financial market
Vietnam Bank for Agriculture and Rural Development (Agribank) has just celebrated the 32nd anniversary of its founding (March 26, 1988- March 26, 2020). Over the past 32 years, Agribank has been constantly striving to fulfill the political duties of a commercial bank entrusted by the Party and the Government, and to conduct business safely and effectively, constantly affirming the leading role in the agricultural and rural financial market with beliefs and aspirations to reach regional and global levels as Vietnam integrates more and more deeply into the global economy.
In the early days of its establishment with a low starting point, Agribank had total assets of less than VND 1,500 billion; total capital of VND 1,056 billion, of which 42% was mobilized capital, the remaining 58% was borrowed from the State Bank; total outstanding loans of VND 1,126 billion; NPL ratio of over 10%; Customers were state-owned enterprises and cooperatives, most of which were unprofitable, merged, dissolved, and disbanded themselves, etc.
32 years of development, to date, Agribank is the leading state-owned commercial bank in Vietnam, being the only commercial in which the State holds 100% of charter capital. Agribank has nearly 2,300 branches and transaction offices present in all regions of Vietnam, being the only commercial bank present in 9/13 island districts with nearly 40,000 employees.
As of December 31, 2019, Agribank total assets reached over VND 1.45 million billion; mobilized capital reached over VND 1.34 million billion; total outstanding loans and investments reached over VND 1.3 million billion, of which loans for the economy reached over VND 1.12 million billion. Outstanding loans in agriculture and rural areas always account for over 70% of total loans. Agribank loan capital accounts for a large proportion of the total outstanding loans of nearly VND 2 million billion in agriculture and rural areas in Vietnam.
Agribank has effectively implemented seven policy credit programs (lending under credit policies for agricultural and rural development; lending to households and individuals through loan/affiliate groups; lending under the support policy to assist in reducing agricultural losses; Lending for cattle and poultry farming; lending for coffee replanting; lending under fisheries development policies; Preferential credit for "Clean agriculture") and two National Target Programs (New Rural Construction, Sustainable Poverty Reduction).
Constantly simplifying lending procedures, improving credit lending models and methods, in cooperation with local authorities, Farmers' Association, Women's Union, socio-political organizations: Agribank has provided loans to more than 68,000 loan groups with nearly 1.5 million members; deployed 68 mobile transaction units using specialized vans equipped with the necessary means of transaction to ensure the provision of most banking products to customers with nearly 8,200 sessions, serving more than 800 thousand customers in over 400 communes across the country, creating favorable conditions for households and individuals in remote areas to access loans and banking services.
Agribank was honored to receive many highest and most prestigious awards of the Party and State of Vietnam for its contribution to the cause of national construction and for outstanding achievements in serving agriculture, farmers, and rural economic development.
In 2020, despite difficulties ahead, with a long 32-year tradition of development, a solid foundation fostered by the consensus, the collective efforts of generations of employees of the entire Agribank system, with the close attention and guidance of the Party, Government, the State Bank of Vietnam, Agribank strives to continue to maintain its leading commercial bank position in Vietnam that plays a key role in the agricultural and rural financial market, makes positive contributions to promoting socio-economic development of the country.
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