Srisawad files for banking agent licence
SET-listed Srisawad Corporation Plc (SAWAD) expects to acquire a banking agent licence this year, aiming to offer banking agent services via its 2,500 branches nationwide.
Srisawad managing director Thida Kaewbootta said the company filed to obtain a banking agent licence with the Bank of Thailand last year and its approval is expected this year.
The licence will allow Srisawad customers and subsidiaries to easily pay bills and access related services, said Ms Thida.
Becoming a banking agent is an addition to the company’s core business of insurance brokerage, which has been operating for about two months.
She said Srisawad plans an expansion to 2,800 branches nationwide this year to support the company’s new services.
Srisawad also completed its business restructuring process in this year’s first quarter, said Ms Thida.
Under the restructuring plan, Srisawad Corporation is a holding company mainly receiving income from Srisawad Power 2014, which was established in May 2017 with a registered capital worth 2 billion baht.
The company will provide loans larger than 10 million baht, while Bangkok First Investment and Trust Public Co Ltd (BFIT), which Srisawad has invested a 36% stake, will be tasked with offering loans below 10 million.
Motorcycle loans and housing loans are supervised by BFIT, while nanofinance and loans offered to small and medium-sized enterprises are under Srisawad Power 2014.
The company has also set up Srisawad International Holding for global investments, in which existing overseas investments are clustered in Laos and Vietnam. The Myanmar market is being studied for a possible business expansion.
Ms Thida said Srisawad will use the single lending limit method to control credit risk for loans provided to customers, which is similar to a method adopted by financial institutions.
The single lending limit will be adopted in order for the company to improve risk management, whereby the target is to limit loans by a 10% maximum of Srisawad’s equity or no more than 300-350 million baht per single loan, she said.
“The company’s non-performing loans [NPLs] increased to 7% in the first quarter because of one SME loan worth around 700 million baht missing a scheduled repayment,” said Ms Thida.
“This subsequently caused NPLs to rise to 7% from 3-4%. However, this customer has already withdrawn the asset and repaid the loan amount in full.”
SAWAD shares closed yesterday on the SET at 36.25 baht, up 1.25 baht, in trade worth 408 million baht.