BANGKOK, 14 January 2013 The SME Bank has reported a loss of 6 billion baht, accumulated from last year’s non-performing loans (NPLs).
According to the Small and Medium Enterprise Development Bank of Thailand (SME Bank), the bank will, beginning in 2013, be stricter checking borrowers’ credit histories before granting loans. In 2012, it said, the bank made many sub-prime loans to applicants struggling to recover from the devastating flood, led to the loss; in the meantime, the bank did not receive any compensation from the government’s low-interest rate policy.
By the end of 2012, the bank suffered a 6-billion-baht loss. 33% of all loans at the bank were NPLs, accounting for 30 billion baht. It is targeting to reduce the percentage of the NPLs this year to 28%.
Nonetheless, the bank is expected to continue to extend more loans this year; while assistance will be offered to existing customers facing the effects of the 300-baht minimum wage policy.
