2 banks increase interest rates
In October, 25 banks reduced deposit interest rates, of which 10 banks adjusted twice. VietBank, Viet A Bank, and Bac A Bank reduced up to 3 times.
On the contrary, two banks increased their rates: GPBank and MSB. Notably, MSB increased by 0.7 percentage points for terms of 15 months or more, all at 6.2%/year.
After 2 adjustments, LPBank has the largest decrease, up to 1.2%/year for 6-month term, 1.1%/year for 9-month term and 0.8%/year for 12-month term.
Coming in second are Dong A Bank and Nam A Bank. Interest rates on 6-month and 9-month deposits at these two banks both decreased by 0.7%/year. For 12-month deposits, Dong A Bank decreased by 0.7%/year, Nam A Bank decreased by 0.6%/year.
Next, banks also reduced interest rates on 6-9 month term deposits by 0.6%/year, including Bac A Bank, NCB, CBBank, VietBank, and Viet A Bank.
The above banks are also in the group with the strongest interest rate reduction for 12-month terms, with a reduction of 0.5 - 0.6%/year.
Meanwhile, Agribank, Eximbank, OCB, KienLongBank or OceanBank did not adjust deposit interest rates throughout October. Even MSB, one of the two banks that just increased deposit interest rates for 15-36 month terms, also kept the interest rates for 1-13 month terms unchanged throughout the past month.
October also saw a number of banks bring deposit interest rates for many terms below 6%/year.
Currently, only PVCombank maintains an interest rate of 6%/year for term deposits under 12 months.
By the end of October, only 6 banks maintained 6%/year for 12-month term, including CBBank, Viet A Bank, PVCombank, BaoVietBank, Sacombank and OceanBank.
In which, the highest interest rate for this term is 6.2%/year (PVCombank and Sacombank).
For 18-month term deposits, 18 banks maintain interest rates of 6%/year or higher. The highest interest rate is 6.5%/year (HDBank and PVCombank).
| DEPOSITION INTEREST RATE DEVELOPMENTS IN OCTOBER IN ORDER OF MOST DECREASE (%/year) | ||||||
| BANK | 6 MONTHS TERM | 9 MONTHS TERM | 12 MONTH TERM | |||
| October 31 | Compared to 9/30 | October 31 | Compared to 9/30 | October 31 | Compared to 9/30 | |
| LPBANK | 5.1 | -1.2 | 5.2 | -1.1 | 5.6 | -0.8 |
| DONG A BANK | 5.5 | -0.7 | 5.6 | -0.7 | 5.85 | -0.7 |
| NAMA BANK | 4.9 | -0.7 | 5.2 | -0.7 | 5.7 | -0.6 |
| BAC A BANK | 5.6 | -0.6 | 5.7 | -0.55 | 5.8 | -0.5 |
| NCB | 5.7 | -0.6 | 5.75 | -0.6 | 5.9 | -0.5 |
| CBBANK | 5.7 | -0.6 | 6.4 | -0.6 | 6 | -0.6 |
| VIETBANK | 5.4 | -0.6 | 5.5 | -0.6 | 5.8 | -0.5 |
| VIET A BANK | 5.6 | -0.5 | 5.6 | -0.6 | 6 | -0.5 |
| SAIGONBANK | 5.2 | -0.5 | 5.4 | -0.3 | 5.6 | -0.3 |
| PG BANK | 5.1 | -0.5 | 5.3 | -0.3 | 5.4 | -0.3 |
| SCB | 5.35 | -0.4 | 5.45 | -0.4 | 5.65 | -0.4 |
| TPBANK | 5 | -0.4 | 5 | -0.6 | 5.55 | -0.15 |
| SEABANK | 4.8 | -0.4 | 4.95 | -0.4 | 5.1 | -0.4 |
| VIETCOMBANK | 4.1 | -0.4 | 4.1 | -0.4 | 5.1 | -0.4 |
| HDBANK | 5.7 | -0.4 | 5.5 | -0.6 | 5.9 | -0.4 |
| VIB | 5.2 | -0.4 | 5.2 | -0.4 | ||
| PVCOMBANK | 6.1 | -0.3 | 6.1 | -0.3 | 6.2 | -0.3 |
| BAOVIETBANK | 5.8 | -0.3 | 5.9 | -0.4 | 6.1 | -0.4 |
| SHB | 5.4 | -0.3 | 5.6 | -0.2 | 5.8 | -0.3 |
| ACB | 5 | -0.3 | 5.1 | -0.2 | 5.5 | 0 |
| BVBANK | 5.55 | -0.2 | 5.65 | -0.25 | 5.75 | -0.3 |
| SACOMBANK | 5.3 | -0.2 | 5.6 | -0.2 | 6.2 | 0 |
| VPBANK | 5 | -0.2 | 5 | -0.2 | 5.3 | -0.2 |
| TECHCOMBANK | 4.95 | -0.2 | 5 | -0.2 | 5.35 | -0.1 |
| BIDV | 4.4 | -0.2 | 4.4 | -0.2 | 5.3 | -0.2 |
| MB | 5.1 | -0.1 | 5.2 | -0.1 | 5.4 | -0.2 |
| VIETINBANK | 4.6 | -0.1 | 4.6 | -0.1 | 5.3 | -0.2 |
| OCEANBANK | 5.8 | 0 | 5.9 | 0 | 6.1 | 0 |
| KIENLONGBANK | 5.4 | 0 | 5.6 | 0 | 5.7 | 0 |
| OCB | 5.3 | 0 | 5.4 | 0 | 5.5 | 0 |
| EXIMBANK | 5.2 | 0 | 5.5 | 0 | 5.6 | 0 |
| MSB | 5 | 0 | 5.4 | 0 | 5.5 | 0 |
| ABBANK | 4.9 | 0 | 4.9 | 0 | 4.7 | 0 |
| AGRIBANK | 4.7 | 0 | 4.7 | 0 | 5.5 | 0 |
| GPBANK | 5.45 | +0.3 | 5.55 | +0.3 | 5.65 | +0.3 |
Where will interest rates go in November?
Interest rates seem to have bottomed out after the number of banks decreased and the decrease in October was the lowest in the past 3 months. Deposit interest rates even showed signs of increasing in some terms such as at GPBank and MSB.
In September, the market recorded 33 banks reducing interest rates. Of these, 12 banks reduced their rates twice, two banks reduced their rates three times, and one bank reduced their rates four times.
In August, 34 banks reduced their deposit interest rates. Of these, 9 banks reduced their rates twice, 3 banks reduced their rates three times, 4 banks reduced their rates four times, 2 banks reduced their rates five times, and Eximbank alone reduced their rates six times.
It is likely that banks will no longer compete to reduce deposit interest rates this November because liquidity is no longer as abundant as before due to seasonal factors.
Especially when the State Bank continuously absorbs net through the issuance of treasury bills. In the past week alone, the operator continued to issue treasury bills with the volume increasing towards the end of the week in the context of stable system liquidity.
At the end of the week, VND25,500 billion worth of 28-day treasury bills were additionally issued at an interest rate of 1.45% (unchanged from the end of last week).
With VND73,800 billion maturing, the total volume of outstanding treasury bills decreased to VND193,300 billion from VND241,000 billion.
This week will record an additional 46,900 billion VND of maturing treasury bills.
As for interbank interest rates, overnight interest rates rose to 2.8% in the trading session last Wednesday and cooled down to 1.6% at the end of last week.
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