The state-owned GH Bank is branching into loans for operators of residential rental projects in Bangkok and the vicinity, targeting low- and middle-income markets.
The new business will also serve strong demand for rental properties near the government's special economic zones in five provinces, said Deputy Finance Minister Wisudhi Srisuphan.
GH Bank made new loans worth 140 billion baht last year, of which 77% went to those who bought a home for less than 2.5 million baht and 23% went to borrowers who paid more than 2.5 million baht.
In terms of numbers, 93% of the bank's borrowers last year secured a mortgage loan of less than 2.5 million baht.
To reflect rising residential prices, the state-run mortgage lender wants to increase its credit line to borrowers.
A rise in the credit line would also help the bank retain its housing-loan market share of 28%, down from 35% in 2008.
President Angkana Pilun-Owad Chaimanat said GH Bank would propose five lending products to comply with the government's policy of helping low-income earners and narrowing economic disparity.
The five loan products include 2.5 billion baht for home renovation, 2 billion baht for mortgage loans to the Ua-athorn low-income housing project and 5 billion baht for cheap loans to low-income earners.
In the meantime, the state-run Export-Import Bank of Thailand aims for 5% growth in new loans this year.
Exim Bank's loans outstanding in 2014 rose by 8% to 73.1 billion baht, with 27.48 billion baht in new loans disbursed.
Business turnover in Exim Bank's export credit and investment insurance reached 86.3 billion baht, of which 9.3 billion baht was from small and medium-sized businesses.
Acting president Suthanai Prasertdan urged retail exporters and importers to enter forward contracts to mitigate risk from the baht's expected volatility this year.
Exim Bank aims for turnover in its export credit and investment insurance to rise by 3-4% in 2015.
The bank's non-performing loans jumped to 4.08 billion baht or 5.58% of total loans by the end of last year, up from 2.94 billion baht or 4.36% a year earlier.
The increase stemmed from a major borrowing with principal of 900 million baht that turned sour. Exim Bank expects the bad loan to turn around this year.
The bank's provision for loan loss is a relatively high 4.72 billion baht, good for a coverage ratio of 116%.
Full-year net profit is estimated at 1.51 billion baht, in line with last year's showing.