The state-owned Government Savings Bank (GSB) enjoyed loan growth that surpassed goals by a triple-digit percentage in the first 10 months of the year, says first senior executive vice-president Tachaphol Kanjanakul.
A big pink moneybox, a symbol of the Government Savings Bank stands in front of the bank's headquarters on Phaholyothin Road. CHANAT KATANYU
New lending in the year through October surged by 129 billion baht over year-earlier levels and exceeded the bank's target by 75 billion or 172%.
The state-owned bank's strong showing contrasts with nearly all of its commercial lending peers, which saw loan growth of less than 5%.
Commercial banks were reluctant to lend during the politically turbulent first half for fear of incurring bad loans.
The GSB's booming loan growth may owe to stepped-up lending for government projects.
But retail loans remain the bank's biggest contributor at 93% of loans outstanding, while corporate loans make up the rest.
The GSB recently lent 75 billion baht to finance the Yingluck Shinawatra government's failed rice-pledging scheme.
A source at the bank who asked to remain nameless said the GSB set a relatively low target for loan growth this year, resulting in the dramatic outperformance.
At the end of October, the GSB's loans outstanding totalled 1.807 trillion baht, up 145 billion baht against the year-earlier period. Deposits surged 168 billion baht on the corresponding period to 1.919 trillion baht.
The bank recorded net interest income of 46.4 billion baht during the first 10 months, up 988 million baht on the year-earlier period.
Non-performing loans (NPLs) accounted for 1.61% of total credit at the end of October.
The GSB expects NPLs to decline to 1.5% by the end of 2014.