BIDV leads as banks cut deposit rates after State Bank of Vietnam meeting

After the meeting with the State Bank of Vietnam, deposit rate cuts have continued to spread across Vietnam’s banking system, with most large and smaller banks participating. The adjustments range from 0.05% to 1% per year, mainly affecting tenors of 6 months and longer, and are more pronounced on online channels.

Deposit rate reductions announced by 30 domestic commercial banks

Following the meeting, 30 domestic commercial banks announced reductions in deposit rates, with typical cuts of 0.1–0.5 percentage points. Banks listed include VPBank, Techcombank, SeABank, BVBank, Sacombank, ABBank, KienlongBank, BaoViet Bank, LPBank, Nam A Bank, NCB, SHB, TPBank, Viet A Bank, Cake, Agribank, VietinBank, MB, Vietcombank, Eximbank, Bac A Bank, MSB, OCB, PGBank, Pvcombank, VietBank, BIDV, MBV, Saigonbank and Vikki Bank.

State-owned banks: cuts concentrated on medium and longer tenors

After the meeting, state-owned banks recorded notable adjustments, with reductions ranging from 0.5% to 1% per year.

• VietinBank: cut 0.5%/year for terms from 24–36 months at the counter.
• Vietcombank: cut 0.5%/year for 24 months, applied both at the counter and online.
• Agribank: implemented two rounds—first cutting 0.5%/year for terms 24 months and up; then reducing 0.4%/year for 6–11 months and 0.2%/year for 12–24 months.
• BIDV: the strongest cut among state-owned banks, at 0.8%–0.9%/year for tenors from 6–36 months, applied online. BIDV also reduced savings rates at the counter.

Large private banks: broad reductions across 6 months and longer

In the large private commercial banks group, the deposit rate reduction trend is widespread.

• VPBank: cut 0.3%–0.5%/year for 6–36 months online.
• Techcombank: adjusted 0.1%/year for 3–5 months and 0.5%/year for 6–36 months.
• MB: cut 0.1%/year for 6–18 months, 0.3%/year for 24 months, and 0.5%/year for 36–60 months.

Deeper cuts in longer tenors at some banks

• LPBank: reduced 0.4%–1%/year for 6–36 months, with the strongest reductions focused on 36–60 months.
• Sacombank: cut 0.3%/year for 6–11 months and 0.5%/year for 12–36 months.
• SHB: cut 0.2%–0.3%/year for 6–12 months and 0.4%/year for 15–36 months.
• Eximbank: cut 0.5%/year for 18–36 months.

Mid-sized and smaller banks join the adjustments

• SeABank: two consecutive reductions totaling 0.4%–0.5%/year for 6–36 months.
• OCB: cut 0.2%–0.5%/year for 6–36 months.
• PVcomBank: cut 0.5%/year for 6–36 months.
• MSB: two rounds of reductions, with the largest cut up to 0.5%/year for 36 months.
• Nam A Bank: cut 0.1%–0.2%/year for 6–12 months.

• BVBank: reduced 0.3%/year for 6 months and 0.5%/year for 15–36 months.
• BaoViet Bank: cut 0.3%/year for 6–36 months.
• Saigonbank: reduced 0.1%/year for 6–12 months and 0.5%/year for 24–36 months.

Other banks: smaller-margin adjustments

• ABBank: cut 0.05%/year for 6–13 months and 0.5%/year for 15–60 months.
• KienlongBank: lowered 0.2%/year across 1–60 months.
• NCB: reduced 0.1%/year for 6–60 months.
• PGBank and VietBank: both cut 0.2%/year for mid-to-long tenors.

Policy rationale and outlook from VCBS

According to Vietcombank Securities (VCBS), the central bank’s overarching policy remains to maintain macro stability and support economic growth. Lowering deposit rates is seen as a necessary condition to reduce lending rates, thereby supporting enterprises. VCBS also notes that credit growth continues to outpace deposit growth in the medium to long term, keeping loan-to-deposit ratios high in many banks. In addition, exchange-rate pressures require maintaining a reasonable VND–USD spread to stabilize capital inflows.

VCBS said deposit rates are likely to stay flat and not rise further, supported by decisive actions from the State Bank of Vietnam.

— Quang Hưng

Source: Nhịp sống Thị trường