VIETNAM - SCB Bad Debt Ratio Reaches 12.46pct by end-2010: VCSC

by lexie Fri Dec 09, 2011 12:08 pm

December 9, 2011

SCB Bad Debt Ratio Reaches 12.46pct by end-2010: VCSC

Bad debts at “old” Saigon Commercial Joint Stock Bank (SCB) were recorded at 12.46% of total loans as of end-2010, the highest level amongst three merged banks, the Saigon Economic Times reported, citing a report of Viet Capital Securities (VCSC)

Bad debts at Vietnam Tin Nghia Bank stayed at 1.7% of total outstanding loans as of Sept 30, 2011, of which about VND374 billion or 89.15% were irrecoverable. Meanwhile, bad debts at Ficombank accounted for 2.2% of total loans as at end-2010.

Earlier, the State Bank of Vietnam approved a plan to merge three troubled private commercial banks, namely SCB, De Nhat Commercial Joint Stock Bank, Vietnam Tin Nghia Bank. Charter capital of the merged bank totaled VND10.584 trillion ($508.8 million). The three unlisted lenders, as of September 30, had combined total assets of VND154 trillion. After consolidation, the merged bank will become the third biggest commercial joint stock bank in the local market, after Asia Commercial Bank and Techcombank.

Total loans and deposits in 9M/2011 of the newly-created bank were estimated at VND70.104 trillion and VND84.759 trillion, and accounted for 2.7% and 3.8% of market share, respectively.

http://www.vietfinancenews.com/2011/12/scb-bad-debt-ratio-reaches-1246pct-by.html#more