Head office of BIDV in Tran Quang Khai Street, Ha Noi. — Photo Vnexpress

The information was given in the bank's meeting of investors representing investment funds and securities companies, held to update its operating results and plan.

The bank said the value of its bad debts has increased by another VND5 trillion ($222.2 million) since the beginning of this year, reaching 2.7 per cent of the total outstanding loans after re-checking its system and adding the additional bad debts inherited from the Mekong Housing Bank (MHB).

In May, the BIDV was merged with the State-owned MHB which has total assets of around VND40 trillion ($1.77 billion) and 2.71 per cent of bad debts. Calculating the total outstanding loan at VND30.6 trillion($1.36 billion) by the end of 2014, the bad debts of MBH amounted to VND832.3 billion ($36.9 million).

Following the merge, the bank's deputy general director, Tran Phuong, said its total assets increased by 11.5 per cent since the beginning of this year while the credit growth reached 16.3 per cent, reflecting an increase of 30.4 per cent from the same period of 2014.

The bank added that its total deposits increased by 20.66 per cent over the same term last year. The loan-to-deposit ratio was 84 per cent, well below the 90 per cent allowed by the State Bank of Viet Nam.

The bank estimated that it will achieve a pre-tax profit of VND6.5 trillion ($288.8 million), exceeding its plan. It also expected a growth rate of 20 per cent in the coming years.

The BIDV said except VND2.692 trillion ($119.6million) that the SBV paid to increase the tier 1 capital in the bank, it planned to issue VND3.5 trillion ($155.5 million) in bonds, as well as release a further 30 per cent of stake to a foreign strategic partner.

The bank's representative said unlike other banks which focused on the enterprise segment, the BIDV would focus on the retail segment which, as per plans, would account for 30-40 per cent of the total credit in 2016 - 2020.

Though it merged with the MHB, which was established with the objective to give credit for housing development in the south, the bank said it would not encourage real estate loans due to the risk involved. Instead, it would focus on textiles, footwear, seafood, agriculture, rural development, foreign direct investment and small and medium enterprises.

Deputy director Phuong said in the fourth quarter, the bank will list 337 million shares, a figure arrived at following the merger of the MHB which was never listed in the local stock after its IPO in 2011.

On September 9, the BIDV share price closed at VND25,900($1.15). — VNS