Dai A bank accelerates its growth momentum

Dai A Bank is one of the banks awarded emulation flag by the provincial People’s Committee for its achievements in business activities

Dai A Rural J.S Commercial Bank has successfully increased its chartered capital from VND50 billion in 2005 to VND500 billion by the end of 2006. Thus, the bank has surplus capital of more than VND 252 billion and operating capital of over VND 1413 billion, an increase of 157.96 percent against 2005. Particularly, the bank posted total mobilized capital of over VND 664 billion at the end of 2006, representing more than a 49-percent increase over 2005. Under the roadmap on increasing chartered capital released on a meeting at the end of April 2006, the bank would have at least VND 150 billion by the end of 2006, VND 250 billion in 2007 and VND 600 billion by 2010 and its total mobilized capital would achieve VND 640 billion in 2006, VND 900 billion in 2007 and VND 2400 billion by 2010. However, the bank faced many changes in the second half of 2006 hence it was making active efforts to cope with the challenges presented by economic globalization. Accordingly, the bank has implemented a strategy to accelerate its growth in order to attract more customers so that it could stand firmly in competition and take further step towards international economic integration. As a result, the bank achieved its chartered capital of VND 500 billion by the end of 2006.

The bank also plans to upgrade itself from a rural commercial bank to a urban commercial bank in the coming time. The bank has issued its shares to strategic shareholders such as Asia Commercial Joint Stock Bank, Dong Nai 2 Development (D2D), Dong Nai Rubber Company, Truong Hai Auto Company, Bank for Investment and Development of Vietnam, Tin Nghia Company. The shareholders’ prestige helps the bank improve its image in the eyes of the public. In 2006, the bank’s loan turnover reached approximately VND1,065 billion and its profit hit VND23 billion (58 percent higher than that of 2005).     

Presently, Dai A Bank makes big efforts to be able to compete with others in the region. Accordingly, the bank plans to increase its charter capital to VND 1,000 billion this year from VND500 billion in 2006. It will strive to reach total mobilized capital of VND1,400 billion and before-tax profit of VND88 billion in 2007. Besides, the bank will open more branches in Dong Nai’s districts of Nhon Trach, Cam My, Dinh Quan, Tan Phu and Xuan Loc and other provinces such as Binh Duong, Da Nang, Can Tho, HCM city and Ha Noi. Dai A Bank currently has 7 branches and transaction offices across the province.  

Huynh Huu Nghia, chairman of the bank said that it is necessary to further invest in material facilities, expand its operation scale, offer new bank services, improve the quality of customer services and especially focus on training personnel at this time. Competition among banks for qualified banking staff has been tough and every bank tries to keep their skillful staff. To do that thing, the bank tries its best to make its professional staff feel comfortable with the bank’s policies and targets. Its staff is encouraged to participate in training classes held by the bank. The classes were taught by teachers from HCM city’s National Economic University. Besides, the bank also has its own solution to attract experienced and skilled staff.

To date, the challenges for Vietnam’s banking system are human resources for management, capital and technology at local banks in a fair competition with foreign credit institutions. Most of local banks are lack of high professional management, low capital and backward technology. Therefore, they will face various difficulties and be at risk of losing their customers. To overcome the challenges and to take advantage of the opportunities, the bank need make further efforts to affirm itself as a Vietnamese bank which is in a position to compete with others in the region.  

Knowing that the bank will invest about US$1 million to modernize its banking technology and US$2 million to construct 9 floors building in Vo Thi Sau street of Bien Hoa city in the next time.

Reported by K.Loan