BANGKOK, 8 May 2015 – A local commercial bank has slashed credit growth target following a slower expansion of the Gross Domestic Product. The bank is however confident that they have enough reserve for the rising Non-Performing Loans (NPLs).
Krung Thai Bank has recently adjusted its credit growth projection from 4.0 – 4.5 percent to 3.5 – 4.0 percent. The bank’s NPLs have increased by 10 billion baht during the 1st quarter with the largest expansion seen in housing loans.
Kasikorn Bank said it would soon hold a meeting to revise the growth target of its new credit. Initially KBank expected the growth would reach 8-9 percent, but the figure seemed less likely following a local economic slowdown and the underperformed export sector. KBank also seeks to control its Non-Performing Loans to be in the range of 2.4-2.5 percent this year.
Meanwhile, CIMB Bank also decreased the annual new credit growth target from 10-15 percent to flat 10 percent or 18 billion baht of the 180 billion baht credit in 2014. The bank expects growths from all types of credit, except personal loan.