Bangkok Bank (BBL) will focus on extending more loans to small businesses next year to tap growth opportunities from stronger demand amid an improved economic outlook.
Targets include start-up companies, executive chairman Kosit Panpiemras said yesterday, adding that their credit lines would start from hundreds of thousands of baht to 10 million.
He said loan demand from small and medium-sized enterprises (SMEs) was increasing as they sought fresh funds for expansion.
SME loans account for 28% of the bank's outstanding loans of 1.61 trillion baht, with medium-sized companies comprising 17% and small operators making up 11%.
Corporate loans make up 44% of BBL's loans, while international and retail banking make up for 16% and 12%, respectively.
Despite the bank's plan to lend more aggressively to small businesses, the loan proportion is expected to remain unchanged next year.
To prepare for more SME borrowers and riskier business, the country's largest lender by assets has developed an information technology (IT) system, infrastructure, risk management and SME teams.
The focus on small business could help to offset subdued loan demand from corporate customers that prefer a conservative approach amid economic uncertainty.
"Part of the bank's SME customers are in agriculture and related businesses," Mr Kosit said.
"However, the bank is not concerned about tumbling farm product prices and high volatility in commodity prices due to the strength and ability of their business adjustment."
Moreover, agriculture is among the country's strongest sectors.
The bank now ranks as the leading lender in agricultural SMEs, propelled by its Progressive Agriculture Project.
BBL shares closed yesterday on the Stock Exchange of Thailand at 195.50 baht, up three baht, in trade worth 407 million baht.