SCB affirms it is ready to extend loans to the industrial sector

BANGKOK, July 29 (TNA) – Siam Commercial Bank (SCB), Thailand’s largest bank in terms of market capitalisation, affirms it is ready to extend loans to the industrial sector.

Shrugging off mounting criticism that most commercial banks are reluctant to lend to the industrial sector, SCB president Kannikar Chalitaporn said the bank had provided loans to its clients continuously.

Still, she allowed that each commercial bank is taking more care in its lending practice although each had set a loan growth target.

Mrs. Kannikar said SCB had extended two kinds of loans to the industrial sector, including low-interest loans and working capital loans.

Low-interest loans provided by the bank increased by over Bt5 billion, but granting working capital loans is more sluggish because some bank clients returned the loans as they needed not use them.

She said the bank had attempted to locate new clients, but to no avail since most industrial borrowers count on the low-interest loan rather than working capital loans.

The SCB chief said the bank is ready to provide loan support to the industrial sector as it set a target for the loan growth in the industrial sector of over Bt30 billion or 3-5 per cent of its total loans.

Asked to comment on the baht’s movement, Mrs. Kannikar said the bank’s currency analysis division projected the baht would strengthen marginally from its current level.

She added that Thailand’s export plunge did not stem from the appreciation of the baht, but from the economic meltdown that the country’s trade partners are experiencing. (TNA)