Banks continuously sell bad debts

Many banks are continuously selling bad debts worth hundreds of billions of dong with collateral such as stocks, real estate... Experts say that bad debts are increasing and there are still many challenges in handling them.

For sale bad debt hundreds of billions of dong

Bank Sacombank has just announced the auction of assets of Van Phat Real Estate Joint Stock Company as of April 27, 2021, worth more than VND 596 billion, of which principal debt is more than VND 188 billion and interest debt is nearly VND 408 billion.

Debt incurred under the credit contract dated November 23, 2012 and the amendment and supplement agreement dated November 20, 2013. Collateral is 40 million share DTR of Do Thanh Real Estate Joint Stock Company.

Although the debt value is up to nearly 600 billion VND, Sacombank The starting price of the debt is only 189 billion VND. The buyer of the debt will pay all taxes and costs related to the purchase and sale of the debt (if any).

Customers are responsible for carefully studying the legal documents of the debt, self-studying and being responsible for legal issues and information related to the auctioned debt before registering to participate in the auction.

Sacombank continuously sells "huge" debts.

Van Phat Real Estate Investment Joint Stock Company is the distributor. real estate famous in the southern region

In addition to the above "huge" debt, Sacombank is auctioning off a debt of more than VND473 billion of Kim Kim Hoan My Trading and Service Company Limited, according to a credit contract signed in 2010. The starting price of the above debt is just over VND108 billion. The debt is secured by real estate at 21-23 Nguyen Bieu, Ward 1, District 5, Ho Chi Minh City.

Kim Kim Hoan My Trading and Service Company Limited is a business operating in the field of real estate and office leasing.

This bank also continuously announced auctions of debts. hundreds of billions of Saigon TPP Investment Joint Stock Company, Ngoc Suong Joint Stock Company... with real estate as collateral.

Recently, Vietinbank announced the auction of the debt of SHC Vietnam Investment, Trade and Service Joint Stock Company with a total estimated value of more than 75 billion VND as of August 27, 2024. Of which, the principal debt is nearly 52 billion VND, the interest on time is more than 18 billion VND, and the overdue interest is more than 5 billion VND.

The above outstanding debt arises from 32 credit contracts, loan contracts with collateral of land use rights, apartments, cars, trademark rights, etc. The starting price of the debt is more than 54 billion VND excluding taxes and fees.

Bad debt risk increases

Talk to PV Tien Phong , economic expert Can Van Luc said bad debt banking sector increases and there are many challenges in handle.

Specifically, the ratio bad debt The total on-balance sheet debt of the entire system (excluding 5 commercial banks under special control) at the end of 2024 will be 1.93% of total outstanding debt, up from 1.69% at the end of 2023, of which group 5 debt (with the possibility of losing capital) of 27 listed commercial banks will be more than 131,000 billion VND at the end of 2024, up 43% over the same period last year).

Mr. Luc said that bad debt pressure remains high, while Circular 06/2024, State Bank The debt restructuring allowance expired at the end of 2024. In addition, with the risk of tariffs negatively affecting imports and exports, investment and domestic consumption, bad debt may increase, requiring banks to pay more attention to prevention and handling in the coming time.

Data from the fourth quarter 2024 financial report shows that bad debt continues to increase at many banks, including group 5 debt skyrocketed at many major banks.

Compared to the beginning of 2024, many banks have increased bad debt balance. They are SHB, PGBank, BVBank, MSB, Eximbank, SeABank and KienlongBank.

Group 5 debt at most listed banks increased sharply according to the financial report of the fourth quarter of 2024. Some banks with high group 5 debt ratio include: Saigonbank (72.41%), Bac A Bank (73.4%), ACB (74%), Sacombank (81.36%), KLB (82%)...

In this context, many banks aim to bad debt control below the threshold of 3% this year. Specifically, Bac A Bank (BAB) expects to maintain bad debt below 1.5%, ACB and PGBank (PGB) below 2%, VietinBank (CTG) below 1.8%, while banks such as MSB, ABBank, SeABank all set a target of below 3%.

According to the State Bank, by the end of 2024, the total group 2 debt (loans with warning signs of risk) at commercial banks was more than VND 211,709 billion, accounting for 1.25% of total outstanding loans. This figure has decreased by 7% compared to the end of 2023. Of which, the group of joint stock commercial banks accounts for the majority, with more than VND 118,756 billion, equivalent to 56.1% of the total group 2 debt of the entire system. The on-balance sheet bad debt of commercial banks by the end of 2024 was more than VND 733,904 billion, an increase of 3.4% compared to the end of 2023.

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