Deposits increased sharply at the beginning of the year.

(Baonghean) - In the first quarter of this year, banks attracted a sharp increase in deposits. This is due to the increase in idle money among the population and the lack of diverse investment and business options.

Ms. Nguyen Thi Le from Nghi Phu commune, Vinh City, happily shared while conducting a transaction at the Agricultural Bank: “My husband and I both work for the government. At the end of last year, we received a considerable Tet bonus, and now at the beginning of the new year, we're depositing it into a savings account for good luck. We're also saving up to support our two children who are studying at university in Hanoi.”

Checking cash balances at the Agricultural Bank branch in Vinh City.

Ms. Nga, residing in Nghi Hai ward, Cua Lo town, whose son is working abroad and sending money home, confided: "Before my son went to work abroad, our family had to borrow money from relatives and friends. We just recently paid off all the debt. This is the first money he has saved, and I wasn't comfortable leaving it at home, so I deposited it in the bank. It's safe and I also earn interest."

After the Lunar New Year, inquiries at banks in the area revealed a significant number of residential customers depositing money. At the Saigon Commercial Bank branch, Mr. Phan Huu Phung, the branch director, stated: “In the more than 10 working days following the Lunar New Year, the Saigon Commercial Bank branch attracted over 50 billion VND in savings deposits from the public. At the end of last year, many people received their salaries and Tet bonuses, and many households received money from their children working far away, which they then deposited into savings accounts. The deposit mobilization at the beginning of the year increased by about 20% compared to the same period last year, partly due to the early Tet holiday this year, leading many customers to deposit money after the New Year. January (lunar calendar) always sees strong growth in mobilized capital. To date, the branch's total mobilized capital has reached nearly 2,100 billion VND, with loans exceeding 1,000 billion VND. At the beginning of the year, the branch implemented the "Harvesting Spring Fortune" savings program, which also contributed to attracting depositors, providing the bank with capital to invest in and lend to production and business projects.”

At the Nghe An Provincial Branch of the Agricultural Bank, from the very first day of operation after the Tet holiday, it attracted a large number of customers, mainly those coming to deposit money. The bank mobilized maximum staff to quickly and promptly serve customer needs. Mr. Phan Hoang Lan – Deputy Head of the General Planning Department of the Agricultural Bank of Nghe An province, said: After more than a week of work at the beginning of the year, the total amount of deposits mobilized by the branch increased by 557 billion VND from the public, with an average of 75 billion VND in deposits attracted each day in the first few days of the year. According to Mr. Lan, the strong increase in deposits at the beginning of the year was partly due to the branch's savings program with prize draws to celebrate the Lunar New Year 2014 and the savings program launched by the Vietnam Agricultural Bank, "Big Prize for the New Year, Twice Lucky". Regarding outstanding loans, as of January 31, 2014, the total outstanding loans of the Nghe An branch of the Agricultural Bank reached VND 11,131 billion. By February 14, the outstanding loans had decreased to VND 10,947 billion, due to businesses having the funds to repay loans to the bank as they had not yet commenced production and business activities at the beginning of the year.

In Do Luong district, currently in the peak season for spring crop production, the number of customers visiting the district's Agricultural Bank is lower than in previous years. In the more than one week of work after Tet (Lunar New Year), the bank mobilized approximately 20 billion VND in savings deposits from residents, and customers also repaid around 20 billion VND in loans. Ms. Nguyen Thi Thanh, Director of the Do Luong District Agricultural Bank, said: "Last year, the economy was difficult, businesses struggled to sell their goods, and farmers had unsold vegetables, so the number of customers visiting was only about 70% compared to the same period last year. At the beginning of the year, many customers came to transfer money, pay for goods, repay loans, and send money to their children studying far away."

At the Investment and Development Commercial Bank of Nghe An, in the nearly 10 working days after Tet, deposits from individuals increased by over 50 billion VND, and deposits from organizations and corporate customers increased by over 20 billion VND. Simultaneously, outstanding loans increased by nearly 300 billion VND compared to the beginning of the year, as the bank is focusing on disbursing funds for investment projects to upgrade and expand National Highway 1A from the southern end of Ben Thuy Bridge to the bypass around Ha Tinh City; and the Nghi Son – Cau Giat route project. At the beginning of the year, loans were mainly for road construction projects, while commercial lending was negligible.

In recent years, the economy has remained very difficult, the real estate market is frozen, the gold market is plummeting, and many gold investors have suffered heavy losses because they bought high and are now selling low. Stocks have also hit rock bottom. Choosing an investment option at this time is difficult, so many people with money still choose to deposit their money in banks, which both generates interest and ensures capital safety. This has contributed to a significant increase in bank deposits over the past period, helping credit institutions proactively secure investment capital for projects.

Text and photos:

Quynh Lan