More SMEs seeking loans from BBL's overseas branches: Kosit
BANGKOK Bank has witnessed |a growing number of local custo-mers seeking lending services from its overseas branches, executive chairman Kosit Panpiemras has said.
Kosit said this was the result of the bank encouraging small and medium-sized enterprises to explore new business opportunities overseas.
He said that SMEs should look for offshore business opportunities, with the bank boasting a strong overseas network, especially in Asean. The idea was to challenge SMEs who want to expand abroad but lacked capital.
At a recent seminar hosted by the bank, he said most SMEs in the audience admitted that they had no idea how to develop their products to tap international markets.
“They know that research and development is essential for them but after R&D they don’t know what the next step is,” he said.
Kosit said that the bank having branches overseas was crucial for SMEs who were not familiar with a foreign market, as its branches were able to act as a facilitator in terms of knowledge and lending.
And unlike large companies that could expand abroad with various sources of funds, SMEs needed loans.
“SMEs that are not strong enough, we will suggest to them |to start doing business in border areas, while we will suggest |that strong SMEs should set up |a presence overseas, and our |branches will take care of them,” he said. Kosit said that each SME required loans of between Bt1 million and Bt2 million.
He said the amounts were not that great because SMEs that go aboard had enough capital. What they required most from the bank was non-financial support.
The bank had been especially proactive in steering businesses towards Cambodia, Laos, Myanmar and Vietnam.
Last month it was given a preliminary licence from Myanmar authorities to provide loans to corporations and SMEs doing business in the country.
The bank is also opening a branch in Cambodia soon and a sub-branch in China.
Kosit said that loans from its international branches accounted for 17 per cent of its total loan portfolio of Bt1.74 trillion. Outstanding loans to SMEs represented 17 per cent of total outstanding loans.
According to a research by Phillip Securities (Thailand), Bangkok Bank is increasing its focus on SMEs in a bid to raise its yield.
Its branches overseas help strengthen the growth of the bank in the small business sector.
