The bad debt ratio was classified among banks in the first quarter

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Vietcombank is appreciated as the best quality bank in the system. Photo: Huong Diu

Of which, the bad debt respectively increased 13% and 18% mainly in the third and fourth groups, up to 15,749 billion vnd and 7,941 billion vnd. Although irrecoverable debts declined by 0.1%, it still accounted for the largest ratio of total bad debts (53%) of 27,005 billion vnd.

Sacombank is the bank with the highest bad debt ratio among the currently listed banks with 4.89%. The second place is Eximbank with about 3%. BIDV is the large bank in the top 3 of bad debt with 2.14%, and up to 1.99% at the end of 2016. In the first quarter of 2017 Vietcombank, VIB and Kienlongbank were the banks which declined in the bad debt ratio.

According to BVSC, Vietcombank was still the best quality bank in the system when its bad debt ratio until the end of the first quarter was 1.48%, down 1.51% in the end of 2016. Meanwhile, Techcombank's bad debt ratio increased from 1.58% to 1.89%. The total bad debt of this bank increased nearly 16%, up to more than 2,600 billion vnd; Irrecoverable debts were estimated at 1,506 billion vnd, up 10% compared to the end of 2016. Another notable bank was MBB, its bad debt ratio until March 31, 2017, was 1.35% compared to the end of 2016.

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According to BVSC, the decrease and increase of the bad debt ratio reflected the difference in the process of dealing with bad debts as well as the ability of asset quality management among banks. This was also one of the important bases for the State Bank to consider granting credit growth ceiling rate for each bank.

At the present time, BVSC experts believe that the operators should not exchange the security of the system to run after "hot" credit growth, especially in the context where bad debt is still burdensome for the almost banks.