The rise contrasts with NPLs in other sectors that have been falling steadily due to debt-restructuring by commercial banks.

Total non-performing loans in the banking system were Bt472.6 billion, or 7.97 per cent of total loans, compared to 8.16 per cent in the previous quarter.

According to the Bank of Thailand (BOT), non-performing loans in the property sector made up 18.75 per cent of total loans in the first quarter, compared to 12.97 per cent in the fourth quarter of last year. The value of NPLs was Bt62.4 billion, a rise of 52 per cent from the previous quarter.

Bad loans in the construction sector increased from 19.74 per cent of total loans in the fourth quarter last year to 20.87 per cent in the first quarter of this year.

Of this rise, new NPLs totalled Bt7 billion, and re-entry bad loans totalled Bt3.3 billion. In the fourth quarter of last year, new NPLs and re-entry NPLs rose from the previous quarter by Bt5.3 billion and Bt2.1 billion respectively.

Agriculture, fishery and forestry-sector NPLs made up 12.7 per cent of total loans, slightly higher than 11.92 per cent in the previous quarter.

In the public-utilities sector, NPLs was just 2.46 per cent of total loans compared to 2.26 per cent in the fourth quarter.

New and re-entry NPLs were Bt2.9 billion and Bt3 billion respectively, compared to Bt2.4 billion and Bt2.2 billion in the fourth quarter. The ratio of bad loans to total loans in the commerce sector had declined from 9.24 per cent to 9.21 per cent.

Samart Buran, BOT assistant governor, said bad-loan reserves at commercial banks had reached 140 per cent, indicating they were in a strengthened position to bear any losses.

Anoma Srisukkasem

The Nation