The economic recovery, which seems to be gaining traction in the second half, will be the main driver to achieving the full-year target, said Sayam Prasitsirigul, head of SME banking.
BAY targets expanding its SME loan portfolio by 13% to
Similar to its industry peers, BAY's SME loan portfolio grew by a mere 4.64% to
BAY's SME customers are seeking loans to add to their working capital, as they need fresh funds to build up their inventories to cope with potential rising demand.
It has cut this year's GDP growth forecast to 2% but is maintaining its 13% SME loan growth target on hopes that the economy will turn around now that the military takeover has ended political tensions.
The 13% goal for SME loans was originally set based on an assumption that economic growth would come in at 3-4% this year.
"The Thai economy is expected to recover fully next year, led by government spending, but sentiment has already started to improve significantly,"
"The positive sentiment is restoring SME customers' confidence. They're more willing to honour their debts, which in turn leads to a decline in non-performing SME loans."
BAY shares closed yesterday on the Stock Exchange of
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