Organizational Structure and Management of Agribank Ha Nam Province Branch

general operations of the bank such as: Directing, guiding, urging, inspecting the implementation of work, implementing policies and viewpoints of the Party and State, of the industry related to the business activities of the bank. The management organization structure of Agribank Ha Nam Branch is in Diagram 2.1.

Diagram 2.1: Organizational and management structure of Agribank Ha Nam Branch

(Source: Agribank Ha Nam Province Branch)

a. Vertical system organizational structure:

According to Consolidated Document 2058/VBHN-HDTV-TCTL dated December 31, 2016 of the Board of Members, Agribank Ha Nam Province Branch is a Type I Branch; District and City Branches are Type II Branches and transaction offices under Type II Branches. At Agribank Ha Nam Province Branch, there are:

- Head office, 3 type II branches.

- 04 transaction offices of Type II Branch.

b. Horizontal organizational structure:

At Agribank Headquarters, Ha Nam Province Branch, there are 8 specialized departments with the following tasks:

- Corporate Customer Department: Develop strategies for corporate customers, classify customers; Appraise loan proposals; Submit to the appraisal department loans exceeding the authority according to regulations; Classify debts, analyze overdue debts; Manage risks in the field of corporate customer credit.

- Department of Household and Individual Customers: Develop strategies for household and individual customers, classify customers; Appraise loan proposals; Submit to the appraisal department for loans exceeding the authority according to regulations; Classify debts, analyze overdue debts; Manage risks in the field of personal customer credit.

- Planning and Capital Department: Directly manage the balance of capital to ensure the structures of terms, currencies, and deposit types; Focal point for advising the Director on developing short-term, medium-term, and long-term business plans; Collect and monitor business plan indicators.

- Accounting and Treasury Department: Directly accounting, statistical accounting and payment according to Agribank's regulations; Building financial targets and salary fund of the Branch.

- Computer Department: Manage and operate information technology infrastructure systems, application systems, and database management at the Branch according to regulations. Manage and use information equipment for business operations and maintain and repair machinery, IT equipment, and software of the Branch. Ensure information technology safety and security at the Branch.

- Internal Inspection and Control Department: Organize and implement inspections according to the outline and program of inspection and control work; Keep confidential records, documents, and information related to inspection and control work according to regulations.

- Service and Marketing Department: Marketing and introducing banking products and services, accessing customer feedback; Proposing and consulting on new products and services; Deploying marketing and information dissemination plans.

- General Department: Develop monthly, quarterly and annual work programs; supervise the implementation of tasks approved by the Director; Implement salary and insurance regimes, labor management; Carry out personnel planning work.

Set up, propose, and store staff; Carry out construction, purchase, and repair of fixed assets and labor tools.

2.1.5. Recent business performance results

2.1.5.1. Capital mobilization activities

In recent years, in the face of complicated developments in the capital market and fierce competition among commercial banks in the period of global economic integration, the Board of Directors of Agribank in general and Agribank Ha Nam Branch in particular have thoroughly understood throughout the system that capital mobilization is one of the top priority tasks throughout the development process. In addition to maintaining capital mobilized from enterprises, Agribank Ha Nam Branch has paid more attention to the retail customer segment.

Despite fierce competition among banks in attracting deposit customers through deposit interest rate policies and promotional programs, customer care, capital mobilization activities of Agribank Ha Nam Branch in recent years have achieved impressive results in terms of scale and growth rate.

Table 2.1: Capital mobilized by Agribank Ha Nam Branch

Unit: Billion VND

Target

2017	Proportion (%)	2018	Proportion (%)	2019	Proportion (%)
I. By economic sector
Residential deposits	5,753	94.9	6,731	94.9	8,530	94.5
Deposits at Treasury and other credit institutions	46	0.8	77	1.1	0.9	0.0
Deposits of economic organizations, investment funds, other	263	4.3	284	4.0	494	5.5
II. By term
No term	531	8.8	612	8.6	715	7.9
Term under 12 months	2,617	43.2	2,597	36.6	2,785	30.9

Maybe you are interested!

Target

Year	Ratio	Year	Ratio	Year	Ratio
Term of 12 months or more	2,914	48.1	3,883	54.8	5.525	61.2
III. By currency
Local currency	6.022	99.67	7,047	99.37	8,983	99.53
Foreign currency	40	0.33	45	0.63	42	0.47
Total mobilized capital	6.062	100	7,092	100	9,025	100

(Source: Business performance report 2017 - 2019 Agribank Ha Nam Branch)

Chart 2.1: Capital mobilized by Agribank Ha Nam Branch

Unit: Billion VND

9000

8000

7000

6000

5000

4000

3000

2000

1000

5225

3883

2914

2617

2597

2785

531

612

715

2017 2018 2019

KKH Deposit

Term under 12 months

Term over 12 months

(Source: Business performance report 2017 - 2019 Agribank Ha Nam Branch)

Through the above table, we can see that the bank's mobilized capital in recent years has increased relatively steadily. Total capital in 2018 reached 7,092 billion VND, an increase of

1,030 billion VND compared to 2017, corresponding to an increase of 116.9% compared to 2017. In 2019, total capital reached 9,025 billion VND, an increase of 1,993 billion VND compared to 2018. In general, the recovery of the world economy in general and Vietnam in particular in the period 2017-2019 is one of the factors positively affecting the capital mobilization activities of commercial banks in general and Agribank Ha Nam Branch in particular. The recovery of the economy helps increase the amount of goods in circulation.

Information, inventory reduction, surplus value increase create abundant idle capital in society, help banks create many capital mobilization channels, so capital growth is high over the years.

In terms of economic sectors, we see that: According to general assessment, the largest source of deposits is residential deposits, which is a stable and indispensable source due to the saving habits of Vietnamese people. Although having to compete on interest rates with commercial banks, however, due to advantages in capital mobilization activities due to wide coverage, long-standing brand reputation as well as effective directions and measures in capital mobilization activities, the Branch's residential deposits still achieved high growth over the years. In 2017, residential deposits were 5,753 billion VND, accounting for 94.9% of total mobilized capital, in 2018 it increased by 978 billion VND to 6,731 billion VND, accounting for 94.9% of total mobilized capital and in 2019 it reached 8,530 billion VND, accounting for 94.5% of total mobilized capital. Deposits of economic organizations account for a small proportion of total mobilized capital, and have seen good growth over the years. In addition, deposits of economic organizations are often a source of demand deposits with low mobilization costs, so they are very effective when banks lend: in 2016 they accounted for 9.67%, in 2017 they accounted for 4.54% and in 2018 they were 3.12%.

In terms of mobilized currency, mobilization in domestic currency accounts for a large proportion of total mobilized capital: 99.67% in 2017, 99.37% in 2018 and 99.53% in 2019. In general, capital mobilization in foreign currency often accounts for a low proportion because Ha Nam does not have many advantages for trade, import and export activities, foreign currency mobilization interest rates at 0% according to the State Bank's policy on tightening foreign exchange management make it difficult for banks to mobilize foreign currency deposits from customers. On the other hand, in recent years, although VND deposit interest rates have decreased, they are still many times higher than foreign currency deposit interest rates. Therefore, people tend to switch from foreign currency deposits to VND to enjoy higher interest rates.

In terms of deposit term, long-term deposits (over 12 months) account for the largest proportion of the total deposit resources of the entire branch and tend to increase over the years. In 2017, long-term deposits reached 2,914 billion VND, equivalent to 48.1% of total resources.

mobilized capital, in 2018, reached 3,883 billion VND, equivalent to 54.8% of total mobilized capital. By 2019, long-term deposits increased sharply to 5,525 billion VND, equivalent to 61.2% of the Bank's total mobilized capital. In general, the high proportion of long-term mobilized capital helps the Bank have a highly stable source of capital, limiting liquidity risks to focus on serving lending activities. However, this source of capital has the characteristic of the highest mobilization cost, so it can affect the cost of capital in the Bank's lending activities.

In recent years, the branch has applied many positive measures to enhance capital mobilization with many programs applied such as: "Save to reap the spring fortune at the beginning of the year"; Saving for prizes "On the occasion of Hung King's death anniversary" and promotional programs, ... so it has created attraction for depositors, especially individual customers. Thanks to that, the branch has made breakthroughs in capital mobilization and at the same time created great competitiveness with other commercial banks in the area.

2.1.5.2. Credit activities

It can be said that capital mobilization is the springboard and capital utilization is the decisive force for the bank's business efficiency. The stability in capital mobilization has partly created a solid foundation for the branch's credit activities.

By closely following the local economic development orientation and the business orientation of the superior bank, Agribank Ha Nam Branch has introduced reasonable policies with the motto: quality, efficiency and safety are paramount, taking customer efficiency as the business goal of the bank. Under the direction of the Vietnam Bank for Agriculture and Rural Development, Agribank Ha Nam Branch has focused all resources and time on resolving overdue debts and investing to meet capital needs in the area in order to increase outstanding loans to meet capital needs in the area and contribute to promoting regional economic development.

The branch was established in the context of our country's economy entering a period of innovation, so the economy is still facing many difficulties, capital mobilization and credit expansion are extremely difficult. However, the branch has stood firm, gradually integrating and developing both in terms of capital mobilization work.

capital and credit activities. As our country's economy has shifted to a market economy, economic entities are in great need of capital to expand production and business. With the advantage of being one of the first commercial banks established in the province, whose main target is rural agriculture, the branch has built a reputation in the market despite the many fluctuations in the economy. There are many other competitors in the area, but the branch has made efforts to promote lending activities and has achieved significant results.

Specifically, the branch's outstanding debt situation is as follows:

Table 2.2: Outstanding loan situation of Agribank Ha Nam Branch

Unit: Billion VND

Target

2017	Proportion	2018	Proportion	2019	Proportion	Compare
						2018/2017		2019/2018
						+/-	%	+/-	%
I. By customer target
HSX, Individual	2,361	45.0%	3,044	45.7%	3,474	46.8%	323	11.87%	430	14.1%
Cooperative, Enterprise	3,685	55.0%	3,613	54.3%	3,944	53.2%	288	8.66%	331	9.2%
II. By term
Short term	3,400	56.2%	3,699	55.6%	4,274	57.6%	299	8.8%	575	15.5%
Medium term	1,416	23.4%	1,492	22.4%	1,641	22.1%	76	5.4%	149	10.0%
Long term	1,230	20.3%	1,466	22.0%	1,503	20.3%	236	19.2%	37	2.5%
III. By loan currency
VND	5,925	98.0%	6,611	99.3%	7,357	99.2%	686	11.6%	746	11.3%
Foreign currency	121	2.0%	46	0.7%	61	0.8%	-75	-62.0%	15	32.6%
Total outstanding credit use	6,046	100.0%	6,657	100.0%	7,418	100.0%	611	10.1%	761	11.4%

(Source: Business performance report 2017 - 2019 Agribank Ha Nam Branch)

Chart 2.2: Outstanding loan situation of Agribank Ha Nam Branch

Outstanding loan situation of Agribank Ha Nam Branch

8000

7000

6000

3994

3613

3474

2017

2018

2019

Individual Economic Organization

Unit: Billion VND

5000

3325
4000
3000
2000	2727	3044
1000
0

(Source: Business performance report 2017 - 2019 Agribank Ha Nam Branch)

Through table 2.2 and chart 2.2, we can see that the credit balance growth rate is quite good. The outstanding balance at the end of 2018 was 6,657 billion VND, increasing to 611 billion VND (an increase of 10.1%) compared to 2017. At the end of 2019, the branch's total outstanding balance was 7,418 billion VND, an increase of 791 billion VND, an increase of 11.93% compared to 2018. The branch's credit balance grew mainly in the personal loan segment with growth rates in 2018 and 2019 reaching 11.87% and 14.1% respectively.

By economic sector, in 2017, outstanding loans to Enterprises and Cooperatives reached 3,325 billion VND, accounting for 55%. Outstanding loans to HSX and individuals reached 2,721 billion VND, accounting for 45%. In 2018, outstanding loans to individuals increased by 323 billion VND to

3,044 billion VND, equivalent to a growth rate of 11.87%, accounting for 46.8% of total outstanding loans. Outstanding loans to economic organizations increased by 288 billion VND, equivalent to an increase of 8.66%, reaching 3,613 billion VND at the end of 2018, equivalent to 54.3% of total outstanding loans. In 2019, outstanding loans for each type of customer also grew, outstanding loans to Enterprises

Comment