As the apex institution supporting all the PCFs in the two provinces of Binh Thuan and Ninh Thuan, Co-opBank’s Binh Thuan branch made some significantly steady progress, reaching and exceeding many targets assigned by Co-opBank’s head office, hence creating a momentum for sustainable development of Vietnam’s economy in general and the banking industry in particular, actively integrating with the regional and global economic.
Co-opBank Binh Thuan branch’s Deputy Manager in charge Nguyen Huu Hien (second left) receive Best Branch Award from Co-opBank’s leaders.
Strictly following general direction of the banking industry and Co-opbank’s leaders, Co-opBank Binh Thuan branch has been active in analyzing and assessing the situation to control credit quality, handling old bad debts, controlling newly arising bad debts, strictly complying with the provisions of law on the use of non-cash payment means for loans disbursement, minimizing operating costs, utilizing financial resources on lending to members and liquidity reserve.
As of November 31st, 2020, Binh Thuan branch’s total operating capital increased by 3.35% year-on-year in which mobilized capital and intermediating capital from head office accounted for 36.71% and 56.59% respectively.
Due to widely negative impacts from the Covid 19 pandemic, global climate change and natural disasters, outstanding loans decreased by 5.61% since the beginning of the year, equivalent to 95.42% of the planned target.
In 2020, all local PCFs operated safely, stably and efficiently, promoting their own strengths in capital mobilization, lending and debts collection. By November 31st, 2020 total members of these PCFs reached 49,511, increasing by 4.86% compared to the start of the year. The average number of members per PCF was 1,768. Total operating capital was 2,659 billion VND, rising by 4.89%. Average operating capital per PCF was 94.96 billion VND. In which, PCFs’ equity, mobilized capital and loans from Co-opBank accounted for 5.75%, 84.77% and 6.84% respectively.
Co-opBank Binh Thuan branch’s Deputy Manager in charge Nguyen Huu Hien
Total loans to members were 2,223 billion VND, accounted for 83.60%; bad debts ratio was kept at below 2% of total loans. Total deposits at Co-opBank were 158 billion VND, increasing by 9.63% since the start of the year. Generally speaking, a good credit growth rate was maintained, bad debt ratio was low, PCFs have been able to gain even more trust from members, making a positive contribution to hunger elimination and poverty reduction, improvement of local livelihood quality and social security.
Promoting its role as the central bank of all local PCFs, over the years, Co-opBank Binh Thuan branch has increased the provision of modern banking services to PCFs, therefore creating new opportunities for PCFs to develop and enhance their status with members. In particular, the electronic money transfer payment service (CF-eBank) has helped PCFs’ members and local residents in rural and remote areas to gain access to modern and safe banking services conveniently at a reasonable cost. It has contributed to the implementation of SBV’s policy on the banking program serving the cause of agricultural and rural development, implementing the Government’s project of non-cash payment development for 2016 – 2020.
Currently, 25/28 local PCFs have joined the CF-eBank system. The volume of transactions increased in both number and value. The number of outgoing transactions was 18,867 with a total of 1,651 billion VND. The number of incoming transactions was 22,233 with a total of 1,835 billion VND. Of that, PCFs’ outgoing transactions was 15,804 and incoming transactions was 1,290 with a total value of 1,238 billion VND and 660 billion VND respectively. The transaction growth rate was estimated to be 15% per year.
Co-opBank Binh Thuan branch made some steady progress in 2020- Customers at Co-opBank Binh Thuan branch.
In addition, in order to ensure a smooth operation in money transfer, Co-opBank has implemented a bank overdraft facility to supplement temporary shortage of capital for PCFs. So far, the total overdraft limit granted by Co-opBank Binh Thuan branch in 2020 was 5.8 billion VND for 12 PCFs with a total of 17.26 billion VND has been lent.
In general, following the implementation of the CF-eBank money transfer service, most PCFs have fulfilled the requirements when participating in the payment system. Many PCFs have performed very well, with high and stable payment volume, hence strengthening their position in the locality, better serving members, increasing non-interest revenue, using available capital effectively and strengthening the network integration.
Promoting recent achievements and overcoming the existing weaknesses, in the coming time, on the basis of the assigned tasks and orientation of the whole banking industry, Co-opBank Binh Thuan branch will continue to perform its role as the Bank of PCFs, aiming to integrate and ensure the safety of local PCFs by providing financial support and supervising PCFs’ activities and hence contributing to Co-opBank’s overall development.
