The Bank for Foreign Trade of Vietnam (Vietcombank) announced on June 26 that its bad debt is still under control at 3 percent.

Deputy General Director of Vietcombank Nguyen Thu Ha attributed her bank's low bad debt ratio to a careful credit policy and the timely control of loans and strict lending policies.

By June 2012, the bank's total assets are estimated to reach more than 329 trillion VND (15.6 billion USD) or an increase of 6.5 percent against the same period last year.

Of this figure, capital mobilised from the entire economy, estimated to reach more than 260 trillion VND (12.3 billion USD), rose 7.5 percent compared to late last year. Capital mobilised from the people is estimated to stand at 137 trillion VND (6.5 billion USD), or a year-on-year increase of 12.2 percent.

The bank reports said in the first half this year, it has disbursed more than 2 trillion VND (95 million USD) to assist businesses to make a temporary reserve of paddy and rice for winter-spring crops and stabilise commodities for export.

Vietcombank has provided preferential loans worth 9 trillion VND (428 million USD) and 269 million USD to businesses involved in the processing and export sectors.

Currently, the bank's lending interest rate has decreased to a low rate of 12 percent while outstanding credit debt by the end of June is estimated to reach 215 trillion VND (10.2 billion USD), or an increase of 3.6 percent against late last year. The lowest lending rate earlier in February was 14.5 percent.

By the end of this month, the bank pre-tax profit is estimated to reach 2.6 trillion VND (123.8 million USD) or 15 percent lower than the same period last year.