Agriculture and rural areas are one of the strategic segments that help HDBank promote high credit growth.
HDBank's (stock code: HDB) first-half 2023 report shows that the bank's credit growth reached 9.3%, more than twice the industry average. The bank's representative said that this result had a significant contribution from the agricultural - rural and secondary urban sectors - one of HDBank's strategic segments with good credit absorption and potential.
In recent times, this bank has focused on expanding its products and services, transferring capital to agricultural and rural markets. The bank has opened many new branches in remote areas such as Cao Bang, Dien Bien, Ha Giang... to meet the demand for access to credit and large financial products and services of households and small and medium-sized enterprises in these areas.
As of June 30, the SME segment at HDBank accounted for over 52% of total outstanding loans, equivalent to nearly VND 143,000 billion.
A transaction branch of HDBank. Photo: Minh Nhat
According to the bank representative, the merger with DaiABank more than ten years ago - a bank that has developed deeply in the Southeast region - has helped HDBank gain more advantages and resources to develop agriculture and rural areas, especially in the Mekong Delta region.
"The agricultural and rural segments have been firmly rooted for more than a decade, spreading their strength to increase their contribution to HDBank to date. Not to mention, agriculture and rural areas have always been pillars of the economy, associated with specific strengths," added the HDBank representative.
In addition to good capital absorption, this area also creates opportunities to develop solutions in cash flow management and chain lending, deploying technology and digital utilities. In the rural agricultural market, HDBank has successfully financed large-scale chains such as Loc Troi chain, CP chain, Unilever chain... This is the foundation file for the number of digital customers and transactions on the bank's digital channels to increase 4-5 times in the past few years.
In the first six months of the year, the number of customers using HDBank's digital channels increased by nearly 70% compared to the same period last year. The number of transactions on digital platforms increased by 116%, corresponding to a 132% increase in transaction value.
HDBank's strategy of focusing on agriculture and rural areas is also consistent with the priority policies of the Government and the State Bank. However, HDBank representatives said that in many localities, the balance of local mobilization sources is not enough to meet credit demand, so the bank has to transfer capital from areas with surplus.
In attracting capital to support the development of the agricultural and rural areas, over the years, the bank has cooperated with many large financial institutions such as the World Bank (WB), the Asian Development Bank (ADB), the International Finance Corporation (IFC), DEG - a development finance institution under the German Reconstruction Bank KFW, Proparco - a French development finance institution, the Affinity International Investment Fund...
"The focus of these funding sources is on the agricultural and rural areas, with SMEs, households and chain lending, with incentives and medium- and long-term capital structures. In the coming time, HDBank will expand cooperation and increase this connecting resource, further strengthening the strategic axis of agriculture, rural areas and second-tier urban markets," added a representative of HDBank's leadership.
An Nhien
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