TBank loan strategy set to take SME portfolio past target - The Nation

Home ? business ? TBank loan strategy set to take SME portfolio past target

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Sucheera Pinijparakarn
The Nation May 6, 2013 1:00 am

Thanachart Bank's lending to small and medium-sized enterprises this year has a good chance of exceeding the target of Bt90 billion thanks to its business plan for the remaining months of the year to finance university student apartments and aggressively pursue auto-related business.

After targeting outstanding SME loans of Bt90 billion for the entire year, the figure in the first four months alone reached Bt84 billion, said Jiratchayuth Amyongka, head of SME banking.

TBank adjusted its SME portfolio last year by moving some customers to corporate loans to set a strategy to advance the SME segment.

He said the board had given the green light to the SME banking division to provide loans for university-student apartments in the country's education hubs.

TBank conducted a study in this field and found that the supply of student apartments was insufficient, he said. The number of new university students increases by 10 per cent a year, and new accommodation for them is not keeping pace.

"We will provide loans to apartment developers based in education hubs. In the northern region, potential locations are around Chiang Mai University and Payap University. In the Northeast, apartments near Khon Kaen University are the focus," he said.

The lending will be divided into two types. First is project financing to apartment developers, for which sales teams from TBank in Bangkok will help teams in provincial branches. Second is working capital, for which provincial sales teams can approve loans themselves through the scorecard system.

Working-capital loans will provide a credit line of up to Bt10 million, while the figure will be above Bt10 million for project financing, for which apartment developers will require annual turnover of Bt600 million.

Jiratchayuth said the bank would add two business-centre branches from five currently to support lending to SMEs in the provinces.

Another key strategy this year is auto-related business, which also will help strengthen SME lending. TBank is already the leader in instalment lending, and other auto-related businesses such as garages will be the focus as well. He said such businesses had good potential to service vehicles purchased under last year's first-car tax-break scheme.

TBank has 400 garage partners nationwide, which might require more capital to support their growing business.

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Source: http://www.nationmultimedia.com/business/TBank-loan-strategy-set-to-take-SME-portfolio-past-30205440.html

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