Krungsri Targets 2-3% SME Loan Growth in 2023, Adjusts Criteria and Focuses on ESG and Digital Services
Krungsri, Thailand's fifth-largest bank by total assets, is optimistic about growing its small and medium-sized enterprise (SME) loans by 2-3% this year.
The bank expanded its SME loans by over 2% in the first quarter and aims to maintain this growth rate, contributing to the country's economic recovery.
In 2023, Krungsri recorded significant SME loan growth of 11%, reaching 340 billion baht.
However, achieving a more conservative target of 2-3% growth this year is challenging due to the lingering economic slowdown.
The text discusses the Thai bank's anticipation of a 2.7% GDP growth in 2024.
Despite the slow economic growth, the bank is keeping its SME loan standards unchanged but will selectively offer loan products to maintain asset quality.
SMEs are encouraged to focus on financial restructuring to improve liquidity, cash flow, and debt repayment capacity.
Financial restructuring can also help SMEs manage funding costs with elevated interest rates.
Ms. Duangkamol from Krungsri identified inefficient financial structures as a contributing factor to non-performing loans (NPLs) among Small and Medium Enterprises (SMEs).
The bank intends to help vulnerable clients through financial and debt restructuring measures.
Krungsri aims to limit SME NPLs to 2.5% of SME outstanding loans, projected to reach 350 billion baht by year-end.
Additionally, the bank is focusing on Environmental, Social, and Governance (ESG) loans for SMEs in 2023.
Krungsri anticipates issuing approximately 4.5 billion baht in new ESG loans to SME customers this year, an increase from the previous year's 4 billion baht.
ESG loan products include solar energy, electric vehicle charging stations, transformation loans, and initiatives promoting gender equality.
The text discusses the bank's focus on expanding its digital banking services for Small and Medium Enterprises (SMEs) in 2021.
The digital platform, Krungsri Biz Online, has seen a 40% increase in digital transactions among SMEs last year, and the bank expects this trend to continue.
Therefore, the bank aims to prioritize digital banking services to fuel business growth.
In 2023, Krungsri recorded significant SME loan growth of 11%, reaching 340 billion baht.
However, achieving a more conservative target of 2-3% growth this year is challenging due to the lingering economic slowdown.
The text discusses the Thai bank's anticipation of a 2.7% GDP growth in 2024.
Despite the slow economic growth, the bank is keeping its SME loan standards unchanged but will selectively offer loan products to maintain asset quality.
SMEs are encouraged to focus on financial restructuring to improve liquidity, cash flow, and debt repayment capacity.
Financial restructuring can also help SMEs manage funding costs with elevated interest rates.
Ms. Duangkamol from Krungsri identified inefficient financial structures as a contributing factor to non-performing loans (NPLs) among Small and Medium Enterprises (SMEs).
The bank intends to help vulnerable clients through financial and debt restructuring measures.
Krungsri aims to limit SME NPLs to 2.5% of SME outstanding loans, projected to reach 350 billion baht by year-end.
Additionally, the bank is focusing on Environmental, Social, and Governance (ESG) loans for SMEs in 2023.
Krungsri anticipates issuing approximately 4.5 billion baht in new ESG loans to SME customers this year, an increase from the previous year's 4 billion baht.
ESG loan products include solar energy, electric vehicle charging stations, transformation loans, and initiatives promoting gender equality.
The text discusses the bank's focus on expanding its digital banking services for Small and Medium Enterprises (SMEs) in 2021.
The digital platform, Krungsri Biz Online, has seen a 40% increase in digital transactions among SMEs last year, and the bank expects this trend to continue.
Therefore, the bank aims to prioritize digital banking services to fuel business growth.
