Oceanbank writes off $89m of bad debts

The Ocean Commercial Joint Stock Bank, known more commonly as Oceanbank, has written off VND 2 trillion (US$89.1 million) of bad debts since it was officially acquired by the State Bank of Viet Nam (SBV) with for zero dong in May this year.

The result was achieved mostly due to Oceanbank's intensive efforts to reduce bad debts to ensure its liquidity. The bank also established a special team of 40 people to concentrate on solving bad debts.

The bank has raised VND2.5 trillion ($111.4 million) in deposit over the last six months.

Deputy Chairman of the National Finanical Supervisory Commission Truong Van Phuoc told Vietnam Television that in the next period, the bank's capital deficit will be gradually offset its recovery if it is managed well.

SBV acquired Ocean Bank on May 8 because the bank had shown "fragile operations with serious mismanagement". However, the central bank has reduced special control of Oceanbank thanks to its improving liquidity and business performance.

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