Though lending rates to corporate customers were eased significantly in the recent months, banks’ credit growth remains modest in the first seven months of 2012.
Credit just grew 1 per cent at the Orient Commercial Bank in the year ending July against its allocated full-year 15 per cent growth, said its chairman Trinh Van Tuan.
Orient Commercial Bank currently offers corporate clients operating in import-export area 12-13 per cent, per year lending rates. For US dollars, the rates range between 4.5-5 per cent, per year.
However, Orient Commercial Bank expected it could boost lending in later months of the year which is often firms’ peak trading season, hence it has proposed the State Bank hike its 2012 credit growth to 25-30 per cent.
TienPhong Bank was just green-lighted by the State Bank to reach 27 per cent credit growth maximally in 2012. The decision was rooted on the bank’s first six month performance.
TienPhong Bank’s slowing credit growth in the first quarter emanated from its focus on restructuring activities, according to its chairman Do Minh Phu.
The bank’s credit expanded 6.8 per cent in the second quarter.
“Our bank will step up lending to support firms and people in an effective manner in the year’s second half,” said Phu.
HDBank’s credit growth was 8-9 per cent in January-July period, according to its director Nguyen Huu Dang.
In hope the credit growth would inch up in later months, the bank asked central bank to hike its credit growth from current 10 to 17 per cent and now waits for feedback.
In the first seven months DongA Bank focused on restructuring and tackling bad debts in the face of slowing credit growth. At the end of July 2012 its credit just expanded 3-4 per cent against 15 per cent full year allocated target, said DongA Bank director Tran Phuong Binh.
“Our top focus is on credit quality, so the 15 per cent credit growth cap is enough for us,” said Binh.
Some industry experts commented banks, albeit asked for credit growth expansion for this year, might not use up their credit growth targets on the back of current slow credit growth pace.
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