Deja Tulananda, executive chairman at Bangkok Bank

Customer assistance and risk management are still key components for next year’s business operations, said Deja Tulananda, executive chairman at Bangkok Bank (BBL).

The prolonged outbreak will continue to take a toll on t he country’s economy, especially with regard to higher unemployment, said Mr Deja.

Several business sectors, especially the tourism industry, will still be reeling from the heavy impact from the pandemic.

With this scenario prevailing, the bank will continue to pay attention on helping customers, both commercial and retail clients, on debt restructuring to ease their financial burdens amid the difficult situation.

BBL will further provide debt restructuring in several instruments to borrowers, who cannot repay debts normally, on a case-by case basis in line with the central bank’s requirement.

“In some cases, we offer them [SME customers] financial aid at a higher rate than the central bank’s basic requirement in a bid to help them overcome the crisis. For instance, the bank gave debt relief measures to some SME customers until the end of 2021,” he said.

The Bank of Thailand requires financial institutions to provide debt relief measures to SME borrowers, whose credit line is no more than 100 million baht, until June 2021.

BBL, the country’s second largest commercial lender by total assets and ranks in the top spot in international banking business among Thai financial institutions, is also focusing on containing nonperforming loans (NPLs) in 2021 despite a rising trend in bad debts during the poor economy. The bank expects to manage higher NPL prospects through its capital buffer. BBL has a BIS ratio of 17.64% in terms of financial consolidation with subsidiaries as of September 2020.

Mr Deja said the bank plans to continue its business expansion plan in 2021, but expects flat growth for marginal loans, assuming there is a gradual economic recovery. BBL will also pay closer attention to digital banking services in response to customer needs in the digital age and social distancing measures to prevent infections.

For the international banking business, BBL will continue its growth trajectory depending on the economic situation.

The bank will continue strengthening banking infrastructure at all overseas networks in preparation for business opportunities post-pandemic, he said.

BBL completed an acquisition deal in Indonesia’s Bank Permata in October. The bank’s international loan portion represents 25% of the bank’s total outstanding loans.