VietinBank (CTG) Reverses 50bp Deposit Rate Cut Within a Single Day

Overview

VietinBank (CTG), one of Vietnam’s four state-owned Big4 lenders, cut its over-the-counter deposit rates by 0.5 percentage points for terms of 6 months or more on the morning of Oct 20, then restored the previous levels the same afternoon. The reversal came as the State Bank of Vietnam (SBV) pushes banks to reduce listed deposit rates by at least 0.5 percentage points for 6-month+ terms, a directive that Vietcombank, Agribank and a long list of private banks have already implemented.

Key Facts

• VietinBank’s morning schedule on Oct 20 showed 3.0%/year for 6 to under-12-month terms, 5.4%/year for 12 to under-24 months, and 5.5%/year for 24 months and above.
• By the afternoon of Oct 20, the same terms were listed back at 3.5%/year, 5.9%/year and 6.0%/year respectively, a 0.5 percentage point restoration.
• Short-term rates were unchanged: 2.1%/year for 1 to under-3-month deposits and 2.4%/year for 3 to under-6-month deposits.
• The SBV directive requires banks to cut listed deposit rates by a minimum of 0.5 percentage points per year for terms of 6 months or more.
• On Oct 19, ACB, TPBank, Sacombank, SeABank, PGBank, LPBank, Bac A Bank, OCB, Nam A Bank, BaoVietBank, BVBank, NCB, VietBank and KienlongBank cut 6-month+ deposit rates by a common 0.5 to 0.7 percentage points.
• Vietcombank and Agribank applied 0.5 percentage point cuts to 6-month+ deposit rates effective Oct 20.
• The article does not disclose the total deposit volume affected or any funding-cost estimate.

What Happened

The article, published by An ninh tiền tệ, reports that VietinBank’s website rate schedule showed the 0.5 percentage point reduction for 6-month+ terms during the morning of Oct 20. By the afternoon, the bank had returned the listed rates to their pre-adjustment levels, effectively undoing the cut within hours. Short-tenor rates below 6 months were left untouched throughout.

The reversal unfolded against a market-wide deposit-rate reduction wave triggered by the SBV’s instruction that banks lower listed rates on 6-month+ deposits by at least 0.5 percentage points. Private lenders including ACB, TPBank, Sacombank, SeABank, LPBank, OCB, Nam A Bank and KienlongBank moved on Oct 19, with cuts typically between 0.5 and 0.7 percentage points. Among state-owned peers, Vietcombank and Agribank implemented 0.5 percentage point reductions effective Oct 20. The article does not state a reason for VietinBank’s intraday reversal, and no company filing or SBV statement on the specific move is cited.

Market Context

CTG closed at VND 30,500 on Oct 19 on HOSE, while Big4 peer BID closed at VND 33,650 and ACB at VND 20,250; VCB traded at VND 56 on Oct 20, down 0.53% on volume of 3.45 million shares. Vietnamese bank stocks have been sensitive to the deposit-rate cycle because lower funding costs support net interest margins, but a mandated cut compresses the spread lenders earn on deposits and can pressure margins if lending yields fall faster. The SBV’s coordinated push spans both deposit and lending rates, with the article noting a parallel wave of lending-rate reductions at BIDV, MB, ACB, Sacombank, LPBank, VietBank, Nam A Bank, VietinBank, SHB, TPBank and OCB.

Strategic Significance

For long-term holders, the key question is whether VietinBank’s reversal signals genuine resistance to the SBV’s directive or a temporary scheduling adjustment. As a Big4 bank with a large low-cost deposit base, CTG has more room than smaller private lenders to absorb a 50 basis point cut, but it also carries a heavy weight in the policy transmission chain: if the largest state-owned banks restore rates, the SBV’s target of lowering the system’s deposit floor becomes harder to enforce. The episode also matters for the net interest margin outlook across the sector, since a sustained 0.5 percentage point reduction in 6-month+ deposit costs would lower funding costs for lenders such as ACB, STB, TPB and LPB that compete for term deposits, while a reversal keeps the funding floor higher and delays any margin relief.

What to Watch

• VietinBank’s official rate schedule in the coming days to confirm whether the Oct 20 restoration holds or is reversed again.
• Any SBV statement or directive clarifying enforcement of the 0.5 percentage point minimum cut for 6-month+ deposits.
• Deposit-rate moves at BIDV, the remaining Big4 lender, and whether it follows Vietcombank and Agribank.
• Third-quarter earnings releases from CTG and peers, which will show funding-cost trends before the Oct 20 adjustments.
• SBV open-market operations and interbank rates as a gauge of liquidity pressure behind the deposit-rate wave.