GSB cuts loan growth target
GOVERNMENT Savings Bank has revised down its loan-growth target for this year to 2 per cent from 3 per cent because of massive repayments by state customers.
However, in the remaining months of this year, GSB will try to push its growth above the new target, president Chartchai Payuhanaveechai said yesterday.
The bank also expects its non-performing-loan ratio to improve to 2-2.2 per cent from 2.4 per cent currently because during the past two to three months, GSB sent staff to offer debt restructuring to borrowers.
On World Savings Day yesterday, Chartchai commented on the situation in Thailand.
Deposits in the financial system are anaemic in line with the reduction in people’s incomes following the economic slowdown.
The ratio of savings to gross domestic product is now 11 per cent, compared with 16 per cent seven years ago. However, the decline is not raising concerns yet, as the savings rate in Thailand is higher than the investment rate – 33 per cent to GDP versus 25 per cent to GDP. This indicates that liquidity in the country is high.
GSB held Bt2 trillion in deposits in the third quarter of this year, down by Bt30 billion to Bt40 billion from the first half.
Even though saving in general is weaker, GSB is aiming for deposit growth of 1.5-2 per cent this year by gradually launching deposit products. Tomorrow, GSB will offer a five-year deposit product with a special lottery. It expects to raise about Bt50 billion.
