BAAC sets aside B50bn for government use
Mar 18, 2013 (Bangkok Post - McClatchy-Tribune Information Services via COMTEX) --
The Bank for Agriculture and Agricultural Cooperatives (BAAC) has earmarked 50 billion baht to serve the government's special programmes during the bank's fiscal 2013 starting this April 1.
Boonthai Kaewkhuntee, a senior executive vice-president, said the BAAC has set a loan growth target of 10% or about 100 billion baht.
He emphasised that the target excludes the government's pledging schemes.
But half the amount will be set aside for the government in case it needs to borrow to finance its special programmes, while the other 50 billion baht will be lent to regular clients, said Mr Boonthai.
The government has a number of special programmes that need to be funded such as farmers' credit cards.
That scheme has set a goal of quadrupling the number of cardholders to 4 million this year.
Spending via these cards has totalled 2.6 billion baht to date.
Mr Boonthai said the BAAC will expand its loan portfolio by financing the entire farm production chain _ from farmers to commodities traders to food processors and exporters.
It will also extend credit to agricultural cooperatives that buy farmers' output in order to facilitate these organisations' cash liquidity and help them to be as healthy as the business sector.
The BAAC also expects to increase its deposits by 100 billion baht this year.
However, Mr Boonthai cautioned that overheated competition among banks could affect interest rate levels.
Last year, the BAAC posted a net profit of 8 billion baht.
Outstanding loans stood at 950 billion baht, an increase of 100 billion from 2011, with deposits at 90 billion.
Non-performing loans stood at 4.5% last year, down from 6.2% in 2011.
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