Recently, the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) and the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) announced to reduce deposit interest rates to the lowest level since the pandemic.
Specifically, for the term of 1-2 months, BIDV maintains the mobilization interest rate at 3%/year. For the term of 3-5 months, this bank officially reduced by 0.2 percentage points to the non-term deposit interest rate of 3.3%/year, equal to the previous reduction of Vietcombank.
With a term of 6 - 9 months, the savings interest rate at the counter is lowered to 4.3%/year, a decrease of 0.2 percentage points compared to the old interest rate schedule.
Meanwhile, long terms from 12 to 36 months were also adjusted down by 0.2 percentage points to 5.3%/year.
With VietinBank, the interest rate for 1-2 month term deposits is also kept at 3%/year. However, the interest rate for 3-5 month term deposits has just been reduced by 0.1 percentage point to 3.3%/year.
Interest rates for deposits with terms of 6-9 months decreased slightly by 0.1 percentage points to 4.6%/year. The sharpest decrease occurred for deposits with terms of 12-36 months, down 0.2 percentage points to 5.3%/year.
According to the latest interest rate schedule of the Vietnam Bank for Agriculture and Rural Development (Agribank), this bank has adjusted down 0.2 percentage points for terms of 3 months or more.
Specifically, interest rates for non-term deposits and terms of less than 1 month are kept at 0.1% and 0.2%; terms of 1-2 months still enjoy an interest rate of 3%/year.
Meanwhile, interest rates for terms from 3 to 5 months decreased from 3.5% to 3.3%/year; terms from 6 to 11 months decreased from 4.5% to 4.3%/year.
For terms of 12 months or more, Agribank is applying the highest mobilization interest rate of 5.3%/year, a decrease of 0.2 percentage points compared to before.
Previously, Vietcombank had anticipated the trend of reducing deposit interest rates with a reduction of 0.2 percentage points for most terms, and only kept interest rates unchanged for short terms from 1 month to less than 3 months.
Thus, the four state-owned banks VietinBank, Vietcombank, BIDV and Agribank have all adjusted their deposit interest rates down to historic lows, lower than during the Covid-19 period. Specifically, the Big 4 group had listed 12-month term interest rates at 5.5%/year throughout the period from July 2021 to July 2022.
Currently, the interest rates of these 4 banks are quite similar, there are only some differences in the form of online savings and at the counter deposits but they are not significant.
In its newly released strategy report, KB Securities (KBSV) believes that the banking industry will still face short-term difficulties from headwinds in the corporate bond and insurance markets, causing revenue from investment banking and insurance services to need more time to wait for the market to recover. However, there will still be bright spots in the industry's prospects in the second half of 2023.
According to KBSV, credit growth is unlikely to reach the target of 14% but will still reach the target of 10-12% based on expectations of a recovery in consumption by the individual customer segment at the end of the year; Credit demand for industries is more positive thanks to import-export activities; The real estate sector is gradually removing legal obstacles, although it will take more time for the market to reopen.
Meanwhile, lending interest rates have also decreased relatively compared to the beginning of the year following the Government's direction to support businesses. KBSV believes that lending interest rates will continue to decrease but at a slower pace and with a delay compared to deposit interest rates because lending interest rates are usually reset after 3-6 months .
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