Agribank: maintaining the key role in the agricultural and rural financial market

09/10/2019

As of August 31, 2019, Agribank's total assets reached over VND 1.3 million billion, the total mobilized capital reached over VND 1.2 million billion, total outstanding loans to the economy reached over VND 1 million billion. Agribank outstanding loans for agricultural and rural areas account for 70% of its total outstanding loans and over 50% of total outstanding loans of the banking sector for these areas. Credit growth has been achieved since the beginning of the year and appropriately controlled to ensure operational safety, with priority given to agriculture and rural areas.

Performing the tasks of a commercial bank in which the State holds 100% of charter capital, Agribank has actively pioneered and prioritized operational activities for the effective implementation of seven policy credit programs and two national target programs (new rural construction, sustainable poverty reduction). Particularly with regards to loans for new rural construction, Agribank has implemented to 100% of communes nationwide. Thereby confirming the active role of Agribank together with the banking sector in contributing to the successful implementation of the goal of sustainable poverty reduction, restructuring agriculture, building new rural areas, etc.

Since the beginning of 2019, Agribank has provided loans to support the purchase of winter-spring rice with a turnover of more than VND 7,000 billion, outstanding loans of nearly VND 20,000 billion for the pig industry (accounting for 40% of the total loan turnover of the the entire banking sector for each program), accompanied with pepper farmers, etc. thereby timely meeting capital needs, supporting to solve difficulties for businesses, people and the agricultural sector in general.

For the purpose of supporting customers and for bank credit to continue promoting its role as a driving force for the country's economic growth, since the beginning of 2019, Agribank has proactively reduced interest rates for priority areas and government credit programs twice (agriculture and rural areas; business plan for export goods; small and medium enterprises; high technology application enterprises; supporting industries). Agribank’s lending interest rate for the Government priority areas is currently low (5.5% per annum), 1% lower than the State Bank's regulation (6.5%).

In order to timely provide capital to all types of customers, especially people in agriculture and rural areas, Agribank has actively and effectively implemented the mobile van banking facilities in all 62 provinces, providing group lending to 61,000 loan groups based on close cooperation with the Farmers' Association, the Women's Union, local socio-political organizations.

Contributing to restricting illegal usurious loans, Agribank implemented a consumer credit program of at least VND 5,000 billion for individual and household customers in order to meet the short-term consumption needs, shorten the time for bank appraisals, loan approvals, etc.
 
Agribank uses flexible lending and disbursement methods, applies reasonable lending interest rates, prioritizes same-day appraisal and disbursement. To date, disbursement amount of this program has reached over VND 1,400 billion. In addition, Agribank has put a strong focus on developing and providing convenient banking products and services, offering a multitude of convenient banking services to customers.

Kylie Nguyen

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