BIDV and VietinBank Cut Deposit Rates 50bps as SBV Directive Reaches All Big Four Banks

Overview

BIDV (HoSE: BID) and VietinBank (HoSE: CTG) cut counter deposit rates by 0.5 percentage points per year on terms of six months and longer on 21 October, lowering their highest listed rate to 5.5%/year. The two state-owned lenders follow Vietcombank and Agribank, which adjusted a day earlier, meaning all four of Vietnam’s state-owned banks have now complied with a State Bank of Vietnam (SBV) directive to reduce deposit rates.

Key Facts

• BIDV and VietinBank reduced deposit rates by 0.5 percentage points/year for terms of 6 months and above, effective 21 October.
• At BIDV, 6-month and 9-month rates fell to 3.0%/year from 3.5%/year.
• BIDV’s 12, 13, 15 and 18-month rates dropped to 5.4%/year from 5.9%/year; 24 and 36-month rates fell to 5.5%/year from 6.0%/year.
• VietinBank set 6-to-under-12-month rates at 3.0%/year, 12-to-under-24-month at 5.4%/year, and 24 months and above at 5.5%/year.
• Short-term rates were unchanged: both banks list 2.1%/year for 1-2 months and 2.4%/year for 3-to-under-6 months.
• The SBV had required credit institutions to cut listed deposit rates by at least 0.5 percentage points/year for terms of 6 months and above, alongside measures to lower lending rates.
• After the adjustment, the top rate at BIDV and VietinBank is 5.5%/year, matching Vietcombank and Agribank.

What Happened

According to the deposit rate schedules updated on 21 October, Ngân hàng TMCP Đầu tư và Phát triển Việt Nam (BIDV) and Ngân hàng TMCP Công Thương Việt Nam (VietinBank) lowered mobilisation rates across medium and long tenors. At BIDV, the 6-month and 9-month rates moved to 3.0%/year from 3.5%/year, while the 12, 13, 15 and 18-month rates fell to 5.4%/year from 5.9%/year and the 24 and 36-month rates dropped to 5.5%/year from 6.0%/year. VietinBank applied a comparable schedule, with 6-to-under-12-month terms at 3.0%/year, 12-to-under-24-month terms at 5.4%/year and tenors of 24 months or more at 5.5%/year.

The two banks left short-term rates untouched, keeping 1-2 month terms at 2.1%/year and 3-to-under-6-month terms at 2.4%/year. The cuts follow Vietcombank and Agribank, which adjusted on the prior day, and a broader wave of reductions among private-sector banks in recent sessions. The SBV had instructed credit institutions to reduce listed deposit rates by a minimum of 0.5 percentage points/year for terms of 6 months and above and to deploy measures to bring down lending rates in support of businesses and households.

Market Context

BID closed at VND 34,100 and CTG at VND 30,500 on 21 October, the day of the announcement. Both tickers trade on HOSE and sit within the state-owned commercial bank group that anchors the Vietnamese banking sector and the VN-Index. The coordinated reduction across the Big Four follows a period in which deposit rates had been edging higher, and the SBV’s directive effectively caps competition for term funding among the largest lenders. The policy backdrop is a broad easing push aimed at lowering the cost of credit for the corporate and household segments.

Strategic Significance

The immediate effect for BID and CTG is a lower cost of funds on medium and long tenors, which supports net interest margin if lending yields hold. The more important signal is policy coordination: the SBV has demonstrated it can move the entire state-owned banking bloc in unison, which narrows the deposit-rate competition that had pressured margins across the system. For long-term holders, the thesis rests on whether cheaper funding translates into faster credit growth and whether the mandated lending-rate reductions offset the funding benefit. The gap between the 5.5%/year top deposit rate and prevailing loan rates will determine how much margin relief actually reaches the two banks’ income statements.

What to Watch

• Third-quarter 2026 earnings releases from BID and CTG, including net interest margin and cost-of-funds disclosures.
• Monthly SBV credit growth and deposit growth statistics for October and November.
• Whether private-sector banks follow the Big Four with further deposit-rate cuts or hold rates to defend market share.
• SBV policy statements or meeting minutes on the lending-rate reduction programme.
• Foreign-ownership and block-trade filings for BID and CTG, given their weight in the VN-Index.