KTB not likely to hit loan target
Deputy Prime Minister and Industry Minister Kosit Panpiemras recently chaired a ceremony for Krung Thai Bank’s third SMEs-KTB awards, which honour small and medium-sized enterprises. He also spoke on the topic of ‘Government Policy: Where Will Thai SMEs G
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State-owned Krung Thai Bank (KTB) expects to miss its new-loan target of Bt70 billion for the year, mainly because some of its major customers have not availed themselves of the bank's credit facilities.
Thai Beverage, the producer of Chang Beer, is one such customer, having raised funds by listing on the Singapore Stock Exchange. KTB president Apisak Tantivorawong yesterday said the bank was likely to miss its targeted 7-per-cent growth in loans. He did not reveal how much the bank had advanced, but said next year's target had been lowered to Bt60 billion. Apisak, however, said the bank's loan growth of about 6-7 per cent was acceptable as it is in keeping with the industry trend. Apisak expects the bank's loan expansion policy to be boosted by the government's infrastructure mega-projects, which are expected to start next year. These will increase the syndicated loans of the banking sector, although project disbursement is likely to be delayed until the second half of 2007. Although the country's economic outlook is still good and investor confidence has been revived, political uncertainty will remain a risk factor for businesses next year, he said. Meanwhile, the bank's government loans have decreased, accounting for about 30 per cent of the total portfolio - a ratio that is unlikely to change next year. The precise ratio will depend on economic circumstances, Apisak said. KTB is also planning to boost its retail-banking businesses with more aggressive marketing strategies. It aims to increase fee income by 15-30 per cent next year, but its fee base income will be unchanged at 10 per cent. Meanwhile, Bangkok Bank president Chartsiri Sophonpanich yesterday said he expected loan expansion in the banking sector to be as high as 8-10 per cent, as economic growth is expected to be 4.5-5 per cent next year. The country's biggest bank, however, has not yet finalised its loan-growth target for next year. Chartsiri believes the bank will achieve targeted loan growth at Bt40 billion, or 4-5 per cent this year. In the first 10 months, its loan portfolio grew by 3-4 per cent.
Somreudi Banchongduang The Nation
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