MICROCAPITAL BRIEF: Vietnam Bank for Social Policies (VBSP) Deploys Intellect Core Banking Solution of Indian Software Firm Polaris

The Vietnam Bank for Social Policies (VBSP), a government-owned bank that offers microfinance and other services in Vietnam, recently has deployed the Intellect (R) Core Banking Solution (CBS), an enterprise platform offered by India-based Polaris Financial Technology Limited (Polaris) [1]. Intellect is expected to help VBSP improve its operational efficiency as well as assess the impact of the bank’s lending programs. Additionally, the system allows the bank to monitor credit lines, manage collateral, track repayments and evaluate delinquencies. VBSP is using Intellect to manage operations at all its 692 branches and approximately 11,000 “transaction points.”

As of December 2012, VBSP reported to US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 5.9 billion, a gross loan portfolio of USD 5.5 billion outstanding to approximately 7 million borrowers, USD 194 million in deposits from 4.3 million depositors, return on assets (ROA) of -1.99 percent and return on equity (ROE) of -10.73 percent.

As of March 2014, Polaris reported total assets of INR 16.6 billion (USD 271 million) and has offices in 30 countries [2].

By Nisha Koul, Research Associate

About Vietnam Bank for Social Policies (VBSP): The Vietnam Bank for Social Policies (VBSP) is a government-owned bank that was established to provide credit and deposit services to poor people in Vietnam. The bank is also mandated to increase financial inclusion, promote microfinance and implement other programs for “poverty reduction and social stability.” As of December 2012, VBSP reported to US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 5.9 billion, a gross loan portfolio of USD 5.5 billion outstanding to approximately 7 million borrowers, USD 194 million in deposits from 4.3 million depositors, return on assets (ROA) of -1.99 percent and return on equity (ROE) of -10.73 percent.

Sources and Additional Resources:

[1] Polaris, Media Release, Vietnam Bank for Social Policies goes live with Polaris’ Intellect®Core Banking Solution

[2] Polaris, Annual Report 2014

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