KTB Leasing aims to diversify its client base
To diversify its customer base and reduce risk, KTB Leasing will expand its leasing products beyond individuals seeking car loans to niche markets, particularly in the manufacturing sector, KTB president Phinyavat Chantrakantanond said.
There are many customers in the manufacturing sector that lack access to funding. Most are small and medium-sized enterprises. Phinyavat said this provides an opportunity for the company, though this opportunity is highly dependent on market conditions at a particular time. When the country's mega-projects start, KTB will approach potential customers in the logistics industry, and the agricultural business is another interesting market because of its large base, he said. The company yesterday signed a memorandum of understanding with Kamol Industry on loans for tractor leasing, worth Bt200 million. Kamol supplies tractors and equipment under the John Deere brand. Under the loan contract, KTBL will charge between 12 and 13 per cent per year, compared to a market rate of about 15 to 16 per cent. Phinyavat also said that although the company plans to widen its customer base, individuals would remain the bank's key target group. The loan proportion between the manufacturing sector and individuals is targeted at 50:50. "With several groups in our customer base, the company will be able to diversify risks, while the margin between the two customer groups is equal. Debt-instalment conditions for the two groups are different, depending on their cash flow," he said. Customers in the agricultural industry would repay debts to the company on a quarterly or half-yearly basis, while consumer loans would be monthly. KTBL's outstanding loans stand at Bt3.5 billion and this is expected to increase to Bt14.20 billion by year-end. Somruedi Banchongduang The Nation
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