Bankers see less rivalry in 2018 as they focus on growth in loans to SMEs

Meanwhile, Krungthai Bank (KTB) has conceded that its SME (small to medium-sized enterprises) loans would likely grow less than its target of 7 per cent, as business operators had not regained economic confidence yet. 
Predee Daochai, TBA chairman, said: “Although there could be competition for deposits next year, it will not severe, because liquidity in the (financial) system is still sufficient for loan extensions and government infrastructure investment. Banks have their own direction for liquidity management, including the issuance of bonds or debentures.”
He said he expected the Bank of Thailand’s monetary policy committee to leave the policy rate unchanged at 1.5 per cent.
In the fourth quarter of this year, demand for loans continues to grow because the country’s economic recovery has ignited investment, said Preedee, who is also president of Kasikornbank (Kbank). 
So far, Kbank’s loan growth was 4 per cent, with expectations that it will meet its target of 46 per cent within this year, he said.
In this quarter, the bank would probably see higher expenses than other quarters, he said, but its loan-loss provision and non-performing loans remained within its targets.
Next year’s loan-growth target is 57 per cent, which could be driven by government investment, particularly in mega infrastructure projects, Preedee said. However, he was cautious about micro SMEs.
Pativate Santavanond, first executive vice president at KTB, said that the bank’s SME loan portfolio this year was expected to grow less than its target of 67 per cent, as business operators had not yet gained enough confidence in the economy and had adopted a wait-and-see attitude.
Next year’s lending situation is expected to improve thanks to the government’s measures to support and assist grassroots people and SMEs to which the bank has extended its loans, he said.
SME loans are expected to rise again early with the bank targeting loan growth in this sector to no less than 7 per cent, he said.
Next year, KTB will focus on loan extension by region and specific areas in the Eastern Economic Corridor (EEC). An EEC team has been set up to work with local people in the corridor to match specific business loans in the area. 
In regard to bad debts, the bank was concerned with about micro SMEs with sales  less than Bt200 million. However, he said the bank was ready to help them to manage debt quickly. 
“The bank attempts to help in both debt restructuring and extended debt payment periods. Although the groups we’ve already helped have seen bad debts again, we will continue to give help,” he said.