Bangkok Bank (BBL), the country's largest lender by assets, aims for 5-7% loan growth for small and medium-sized enterprises (SMEs) this year, with a focus on term loans.
"SME loan expansion from the beginning of this year is on target, though it has not shown significant growth," said senior executive vice-president Virasak Suthanthavibul. "Loan demand is expected to improve in the second half due to seasonal factors."
The non-performing loan (NPL) ratio of SMEs at the end of this year is expected to be lower than last year, he said.
According to Bank of Thailand data, commercial banks' bad-loan ratio for SMEs fell to 4.37% at the end of last year from 4.63% at the end of September.
BBL has helped SME operators adopt automation systems to improve their productivity, in line with the digital era and the Thailand 4.0 economic model, Mr Virasak said.
With the technology, labour expenses and business losses will also decline, subsequently boosting profitability, he said.
In the meantime, the bank is supporting online sale channels, both the e-marketplace and e-commerce platforms for SME customers.
BBL, in collaboration with the Commerce Ministry, has set up Thaitrade.com to let SMEs sell and display their goods and services online.
Mr Virasak said the bank is in talks with global e-commerce and e-marketplace giants such as US-based Amazon to expand SMEs' online sales channels globally, with BBL acting as a payment gateway to support financial services for customers.
Initially, the bank's e-commerce platform is available only to business operators under the business-to-business platform, focusing mainly on international trade. The bank will expand to the business-to-consumer platform and pay more attention to the local market at a later stage.
BBL shares closed yesterday on the Stock Exchange of Thailand at 197 baht, down one baht, in heavy trade worth 1.08 billion baht.
