VPBank (VPB) Among 30 Banks Cutting Deposit Rates After SBV Meeting

Overview

Following a directive from the State Bank of Vietnam (SBV), 30 domestic commercial banks have announced reductions in deposit interest rates, with cuts ranging from 0.05% to 1% per annum. VPBank (VPB) cut its online deposit rates by 0.3%-0.5% for terms of 6-36 months, part of a broad sector move that could pressure net interest margins in the short term but support loan growth.

Key Facts

• 30 domestic commercial banks announced deposit rate cuts after a meeting with the State Bank of Vietnam.
• Rate reductions range from 0.05% to 1% per annum, primarily affecting terms of 6 months and longer.
• VPBank (VPB) cut online deposit rates by 0.3%-0.5% for terms of 6-36 months.
• State-owned BIDV implemented the deepest cuts at 0.8%-0.9% for 6-36 month terms online.
• Other major banks like Techcombank (TCB) cut 0.1%-0.5%, while MB cut 0.1%-0.5% across various terms.
• The cuts follow SBV efforts to absorb over VND 71,000 billion from the banking system.
• Adjustments were more pronounced in online channels compared to traditional branches.

What Happened

According to banking sector reports, the State Bank of Vietnam convened a meeting with commercial banks that prompted a widespread reduction in deposit interest rates. Within a week, 30 banks announced cuts, with the most significant adjustments coming from state-owned banks. BIDV led with reductions of 0.8%-0.9% annually for 6-36 month terms through online channels, while other state banks like VietinBank and Vietcombank cut rates by 0.5% for longer-term deposits.

Among joint-stock commercial banks, VPBank reduced online deposit rates by 0.3%-0.5% for terms of 6-36 months. Techcombank implemented cuts of 0.1% for 3-5 month terms and 0.5% for 6-36 month terms. The article notes that many banks made deeper cuts for longer terms, with LPBank reducing rates by 0.4% to 1% for 6-36 month terms, and Sacombank cutting 0.3%-0.5% across similar maturities.

Market Context

VPBank (VPB) shares on the Ho Chi Minh Stock Exchange (HOSE) closed unchanged at VND 27 on April 15 with volume of 9.5 million shares, while other affected banks showed mixed performance. Techcombank (TCB) declined slightly to VND 32 on the same date, while BVB gained 1.6% to VND 13 on April 10. The banking sector has been under pressure from tightening liquidity conditions, with the SBV recently absorbing over VND 71,000 billion from the system, creating impetus for deposit rate adjustments.

Strategic Significance

The coordinated deposit rate cuts represent a strategic response to SBV guidance aimed at reducing banks’ funding costs and creating room for lower lending rates. For VPBank and other commercial banks, this could help preserve net interest margins if lending rates remain stable or decline more slowly than deposit rates. The move aligns with broader monetary policy objectives to stimulate credit growth while managing inflationary pressures, though intense competition for deposits may limit the sustainability of these reductions.

What to Watch

• Q2 2026 earnings reports from VPBank and peers for net interest margin trends
• SBV’s next monetary policy meeting and potential changes to policy rates
• Credit growth data for April-May 2026 to assess lending activity post-rate cuts
• Foreign ownership filings in banking stocks as international investors assess margin impact
• Further deposit rate adjustments if liquidity conditions tighten again