The Small and Medium Enterprise Development Bank of Thailand will propose the sale of Bt20 billion worth of non-performing loans (NPLs) as part of its recovery plan.
The new board of directors at SME Bank has also appointed five new subcommittees to manage operations.
Salinee Wangtal, the newly appointed board chairwoman, said the bad-debt sale would reduce the percentage of NPLs to its total loans from 38 per cent to 14 per cent.
Currently SME Bank carries Bt34 billion worth of bad debts out of a total loan portfolio of Bt88 billion.
The proposal to sell the NPLs will have to be approved by the State Enterprise Policy Office by a deadline of August 21 before the full recovery plan can be finalised by the Finance Ministry, which is the major shareholder of SME Bank.
Another recovery proposal is to support clients whose borrowing is for business expansion.
It also hopes to reshuffle its credit processes through five new subcommittees covering management, inspections, risk management, and two responsible for recruiting top executives and managing directors.