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Wednesday, June 26, 2024

Banks slash deposit rates further

The Saigon Times

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HCMC – Three State-run banks – BIDV, VietinBank and Agribank – further cut deposit rates by 20 to 40 basis points today, January 17.

BIDV and VietinBank reduced deposit rates by 30 basis points. They now offer an annual rate of 1.9% for tenors of one and two months, 2.2% for three to five months, and 3.2% for six to 11 months. Deposits of 12 months and beyond have interest rates maintained at 5-5.3% per year.

Agribank, on the other hand, has lowered interest rates by 20 to 40 basis points for terms under 12 months. Rates for one and two months are currently quoted at 1.8% per year, while those for three to six months are down to 2.1%. Loans with tenors from six to 12 months carry a rate of 3.2% per year, while rates for longer terms remain stable at 5-5.3%.

Among the four State-run banks, Vietcombank offers the lowest deposit interest rates, ranging from 1.7% to 4.7% per annum across various tenors.

Interbank rates remain low, indicating ample liquidity. As of January 15, the average rates were 0.15% for overnight loans, 0.32% for one week, 0.56% for two weeks, 1.24% for one month, and 3.11% for three months.

Despite woefully low interest rates, deposits at banks in 2023 expanded by a staggering 13.2% compared to the end of 2022 to VND13.5 quadrillion, according to the State Bank of Vietnam.

In related news, the central bank raised the Vietnam dong-U.S. dollar exchange rate by VND30 to VND24,070 per dollar today.

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