TIẾNG VIỆT Agribank gets lawmakers’ support to add $150mln to charter capital
As of end-2019, Agribank’s total assets stood at VND1,451 trillion ($62.5 billion). Photo: Agribank
The increase is sought to be achieved by capitalizing part of the bank’s profits.
It is expected that if increasing charter capital for this bank, in 2021, it will help increase the revenue from VND900-1,000 billion of corporate income tax, so it is very effective.
The state-owned Agribank, one of Vietnam’s four biggest lenders, currently has a charter capital of VND30.5 trillion ($1.3 billion), the lowest among the four. The other three are Vietcombank, Vietinbank and BIDV of which the state holds the majority stakes.
The increasing charter capital is expected to help increase capital mobilization and credit extension for this bank when 70% of lending subjects are agriculture, farmers and rural areas.
In recent years, the Bank for Agriculture and Rural Development of Vietnam has performed remarkable improvements. Bad debt ratio is under control and profits continue to grow, Governor of the State Bank of Vietnam Le Minh Hung told lawmakers.
As of end-2019, the bank’s total assets stood at VND1,451 trillion ($62.5 billion). Between the 2014-2019 period, the assets increased by 13.7% per year.
Customer deposit was reported at VND1,351 trillion ($58 billion) as of December 31, 2019. Between the 2014-2019 period, deposit grew 14% per year. As of end-2019, bank’s outstanding loans reached VND1,150 trillion ($49.5 billion).
