# Group 5 bad debt keeps rising across Vietnamese banks

**Published:** 2026-07-30T07:41:02.159Z  
**Topic:** Banking  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/6d03133b-d88f-44f0-8008-bd4a9089c3d1

Group 5 bad debt (loans overdue >360 days) is expanding as banks report NPL ratios up to 1.13%, signaling tighter credit risk for lenders.

Group 5 bad debt—loans overdue more than 360 days—has continued to grow, with banks such as Agribank reporting non‑performing loan (NPL) ratios that now sit at 1.13% %[2] — a level that includes a larger share of these deep‑overdue assets. The rise adds pressure on banks’ risk‑management frameworks and could influence future lending standards.

| At a glance | |
|---|---|
| Group 5 definition | Loans overdue > 360 days [2] |
| Agribank NPL ratio | 1.13 % (includes Group 5) [2] |
| ABBank NPL ratio | 0.55 % (low, but overall NPL) [1] |
| Market reaction | No immediate index move reported |

## Definition and current exposure  

Vietnam’s credit information centre (CIC) classifies debt that is more than 360 days past due as Group 5, the most severe category of bad debt [2]. While the CIC does not publish aggregate figures, individual banks disclose their overall NPL ratios, which serve as a proxy for the share of deep‑overdue loans. Agribank’s latest report shows an NPL ratio of 1.13 %, the highest among the banks highlighted, suggesting a notable presence of Group 5 assets [2]. By contrast, ABBank reports a much lower NPL ratio of 0.55 %, indicating tighter credit quality within its portfolio [1].

## Implications for the banking sector  

The persistence of Group 5 debt raises concerns for lenders’ capital buffers. Higher proportions of deep‑overdue loans can erode profitability and may compel banks to set aside additional provisions, as seen in the broader industry trend of rising loan‑loss reserves [1]. Moreover, the elevated NPL levels could tighten credit conditions for borrowers, especially those with weaker credit histories, since banks may become more selective in extending new loans.

## What to watch  

- **Next CIC data release** – The central credit bureau’s quarterly update could reveal whether the share of Group 5 loans is expanding system‑wide.  
- **SBV policy guidance** – Any new directives from the State Bank of Vietnam on provisioning for deep‑overdue loans may affect banks’ balance‑sheet strategies.  
- **Quarterly bank earnings** – Upcoming profit reports from major lenders will show whether higher NPL ratios translate into larger loan‑loss provisions.

The continued rise of Group 5 bad debt underscores a tightening risk environment for Vietnamese banks, prompting close monitoring of credit‑quality metrics and regulatory responses.

## Sources
1. CafeF — [Cập nhật KQKD ngân hàng 6 tháng/2026: Một nhà băng báo lãi tăng 80%, VietinBank và Agribank ghi nhận kỷ lục mới](https://cafef.vn/cap-nhat-kqkd-ngan-hang-6-thang-2026-mot-nha-bang-bao-lai-tang-80-vietinbank-va-agribank-ghi-nhan-ky-luc-moi-188260709160021641.chn)
2. Kenh14 — [Có thể xóa lịch sử nợ xấu trên CIC để tiếp tục vay ngân hàng hay không?](https://kenh14.vn/co-the-xoa-lich-su-no-xau-tren-cic-de-tiep-tuc-vay-ngan-hang-hay-khong-215260519143126286.chn)
3. Báo Dân trí — [Lãi suất ngân hàng tăng trở lại lên 9%/năm](https://dantri.com.vn/kinh-doanh/lai-suat-ngan-hang-tang-tro-lai-len-9nam-20260708152518837.htm)

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Cite as: TrendWatcher, "Group 5 bad debt keeps rising across Vietnamese banks", https://www.trendwatcher.in/article/6d03133b-d88f-44f0-8008-bd4a9089c3d1