Banks accelerate year-end capital mobilization race

Entering November, interest rates continued to rise as a series of banks sharply increased deposit interest rates, with some banks exceeding the 6%/year mark, showing that the race to attract capital is heating up.

Customers transact at Vietnam Prosperity Joint Stock Commercial Bank ( VPBank ). Photo: VNA

Entering November, the deposit market continued to be active as many banks extended the interest rate hike that started in October.

The highest interest rate has now exceeded 6%/year for many terms, even reaching 9%/year in some special programs, clearly reflecting the pressure to mobilize capital before the peak credit season at the end of the year.

Interest rates increased sharply after a "hot" October

Statistics show that in October, 10 commercial banks increased their deposit interest rates - the highest number since the beginning of the year. While January saw 10 banks adjust their interest rates but there were still some reductions, in October no bank lowered their interest rates.

Banks that adjusted their rates up include Sacombank, GPBank, NCB, Vikki Bank, Bac A Bank, VCBNeo, HDBank, VIB, Techcombank andSHB . The increase ranged from 0.1 to 0.7 percentage points, with Sacombank attracting attention with the strongest increase in short terms from 1-5 months.

Entering early November, the general interest rate level continued to increase, especially at private banks. Bac A Bank - the bank that increased interest rates three times in October alone - currently maintains the highest level in the market, with many terms exceeding 6%/year.

Along with adjusting the listing schedule, a series of banks launched additional incentive policies to attract deposits: VietinBank, Vietcombank, Vikki Bank, MB, Techcombank, VietBank and LPBank all implemented programs to add interest or give gifts and bonus points to new customers.

Big 4 group still maintains low interest rates

Contrary to the increasing trend of the private sector, the group of state-owned banks including Vietcombank, VietinBank, BIDV and Agribank have kept the same interest rate table since the end of October until now.

Specifically, at Vietcombank, the interest rate for 6-9 month deposits is 2.9%/year, 12 month deposits is 4.6%/year and 24 months or more is 4.7%/year.

VietinBank and BIDV also maintain 3% for 6-9 month term, 4.7% for 12 month term and 4.8% for 24 month term respectively. Agribank is popular at 3-4.8%/year.

The fact that the Big 4 group continues to stay out of the interest rate hike race shows a stable policy orientation, prioritizing the goal of supporting the economy and keeping capital costs low.

The highest interest rate reaches 9%/year but has special conditions.

According to the update, the highest interest rate on the market currently ranges from 6% to 9%/year, depending on the term and accompanying conditions.

In the group of joint stock commercial banks, PVcomBank applies the highest rate of 9%/year for a term of 12-13 months, but only for customers depositing at the counter with a minimum balance of VND2,000 billion.

HDBank also offers interest rates of 8.1% for 13-month terms and 7.7% for 12-month terms, applicable to customers with balances of VND500 billion or more.

Vikki Bank currently pays 7.5%/year for deposits of VND999 billion or more; Bac A Bank lists the highest rate of 6.5%/year for 18-36 month terms, 6.3% for 13-15 month terms and 6.2% for 12 month terms. IVB applies 6.15%/year for 36 month terms with deposits of VND1,500 billion or more.

Meanwhile, Viet A Bank attracted attention with its "Savings for Wealth" product with interest rates up to 6.8%/year for an 18-month term.

Customers need to deposit at least 100 million VND at the counter and receive interest at the end of the term. LPBank also implements a flexible policy of 6.5%/year for customers depositing 300 billion VND or more.

Capital mobilization pressure will continue in the fourth quarter.

According to analysts, the increase in deposit interest rates in early November shows that banks' demand for additional medium- and long-term capital is increasing sharply, especially when lending activities at the end of the year begin to become more active.

However, the possibility of interest rates continuing to increase sharply in the fourth quarter is not high, as monetary policy still maintains an easing orientation and liquidity in the banking system is currently relatively abundant.

Interest rates are expected to remain around current levels until the end of 2025, before possibly cooling down slightly early next year.

According to VNA

Source: https://baohaiphong.vn/ngan-hang-tang-toc-cuoc-dua-huy-dong-von-cuoi-nam-525456.html