The Thai Bankers' Association (TBA) looks set to discuss additional measures to improve access to funding for retailers and small and medium-sized enterprises (SMEs), in response to the government's requirements.
According to Kattiya Indaravijaya, chief executive of Kasikornbank (KBank), the discussions among banks align with the government's demand following Finance Minister Pichai Chunhavajira's call for banks to accelerate loan approvals and reduce financial costs for businesses in need of credit.
However, Ms Kattiya noted that banks are awaiting further details from the government regarding additional measures, such as SME loan support, relaxation of the loan-to-value (LTV) ratio for mortgage loans, and the existing "You Fight, We Help" debt relief scheme.
The TBA is scheduled to hold a board meeting on Tuesday, with the Finance Minister indicating that he will attend. Mr Pichai recently mentioned that the economy is beginning to rebound, making it an ideal time to grow loans.
Regarding SME loans, Ms Kattiya said KBank is prepared to support existing clients with additional credit lines and assistance in debt restructuring, rather than focusing on new clients. Given the softer economic growth forecasted at 2.4% for this year, according to the Kasikorn Research Center, the bank plans to grow new loans selectively and cautiously.
KBank, the country's third-largest lender by total assets and a leader in SME lending, has set a flat loan growth target for 2025 after posting a marginal growth rate of just 0.57% last year. The bank also anticipates a higher non-performing loan ratio of up to 3.25% this year, compared to 3.18% in 2024.
In the first quarter of this year, KBank expects to achieve flat loan growth year-on-year. Under its selective lending strategy, mortgage and credit card loans are expected to be the key contributors to loan expansion. Meanwhile, corporate loans are expected to show growth from the second to third quarter, she added.
If the Bank of Thailand relaxes the LTV ratio, as requested by property developers, it could partially help homebuyers gain access to housing loans. However, KBank will await further details on the potential relaxation before assessing its impact on mortgage loan growth.
Additionally, Ms Kattiya emphasised that the bank is making every effort to assist customers in restructuring debt through the You Fight, We Help programme.
According to Ms Kattiya, although the number of qualified clients registering for the programme remains below target, it has shown signs of improvement.
In a related development, KBank on Monday informed the Stock Exchange of Thailand that it will propose a special dividend payment for approval at an extraordinary general meeting of shareholders on May 7, with a payout of 2.50 baht per share.
"The bank's shareholders are more focused on receiving an appropriate return on investment rather than just loan growth. Additionally, the bank is considering adjusting its dividend payout ratio, which was 25% in the past, to 37% in 2024," she said.