Krungsri (Bank of Ayudhya PCL) revealed its strategies for SME banking group in 2021 in which the Bank will continue to move forward to become the main bank for SME customers by enhancing efficiency in carrying out the SME banking business and providing several relief measures to help together with cooperation from MUFG. This is aimed to leverage the global business network for the benefit of SME customers and to harmonize benefits of each customer group under the value chain, while adding value to customers' business. In addition, more agility in transaction will be realized via the use of a digital platform in managing business ecosystem to meet all demands of the customers.
Ms. Duangkamol Limpuangthip, Krungsri Head of SME Banking Group, said that "In the past year, Krungsri has implemented the policy to continuously help small and medium-sized SME customers affected by the spread of Coronavirus 2019 or COVID-19 via several proactive assistance measures. In 2020, the SME Banking Group was able to help more than 28,000 customers with over 151,000 million baht of loan. This has resulted in the SME loan growth of more than 4% compared to last year while the asset quality was still strong. At the end of 2020, non-performing loan (NPLs) of small and medium-sized SME customers was at 3.3%, a decrease from last year thanks to several relief measures and efficient asset management of the bank. The continuous growth reflects Krungsri's strength and MUFG global network that help open up business opportunities for the customers under the current situation.
"This year, SME Banking Group will continue to move forward to become the main bank for SME customers in medium-sized enterprises (Medium SME) and small-sized enterprises (Small SME) by continuously helping the customers in different industries who have been affected by the situation of COVID-19. Recently, we are prepared to promote the 2 new relief measures implemented by the Bank of Thailand to provide supports to the entrepreneurs who have been affected by the outbreak of coronavirus 2019 (Rehabilitation Measures) which tends to be prolonged and highly uncertain. There are also measures for promoting the grant of loans to entrepreneurs (Rehabilitation Loan) and measures for promoting the acceptance of asset transfer for repayment of debt with the right of redemption. For customers who have not been directly affected, the Bank has made use of MUFG global network to effectively synchronize the benefits of customers across different groups in the business chain while adding value to their business. In addition, flexibility in transaction is enhanced with the implementation of the digital platform to the ecosystem to accommodate customer demands. SME Banking Group for small and medium-sized enterprises (SMEs) expects growth in quality loan in 2021; the revenue from fees will mainly come from the sales of cash management products relevant to different types of businesses and industries. The loan will be targeting all industries to help entrepreneurs with the potential to be able to sustain their businesses and grow in the future.
In addition to the complete range of financial services, Krungsri continues to constantly add values to customers through Krungsri Business Empowerment. It is committed to sharing knowledge via different channels including digital channels which have been created specifically for commercial customers. In the first quarter, we have the special project "THE CHANGE MASTER" in which we had an honor to have 4 leading CEOs sharing their ideas and points of view on the global change as well as advices for business adaptability. This project is aimed to encourage customers and entrepreneurs to create change in response to disruption and uncertainties. Several seminars will also be organized throughout the year. However, taken into consideration the outbreak situation of coronavirus or COVID-19 which must be still monitored, we continue to organize intensive 7 Krungsri Business Virtual Seminars. In addition, the Bank has also organized annual business matching events to increase business opportunities both domestic and overseas to the customers. This year, the business matching events will take place online under the names of Krungsri Virtual Business Matching 2021 and Krungsri-MUFG Virtual Business Matching 2021 in June and December respectively. These events will serve as an intermediary between SMEs and corporate customers under the network of high potential and reliable MUFG affiliates." Ms. Duangkamol added.
Krungsri (Bank of Ayudhya PCL and its group companies) is the fifth largest financial group in Thailand in terms of assets, loans, and deposits, and one of Thailand's five Domestic Systemically Important Banks (D-SIBs) with 76 years of history in the country. Krungsri is a strategic member of the Mitsubishi UFJ Financial Group (MUFG), Japan's largest financial group and one of the world's largest financial organizations. Krungsri provides a comprehensive range of banking, consumer finance, investment, asset management, and other financial products and services to individual consumers, SMEs, and large corporations through 665 domestic branches (626 Banking Branches and 39 Auto Business Branches) and over 32,216 service outlets nationwide. The Krungsri Group is the largest card issuer in Thailand with 9.5 million credit cards, sales finance, and personal loan accounts in its portfolio; a major automobile financing service provider (Krungsri Auto); one of the fastest growing asset management companies (Krungsri Asset Management); and a pioneer in microfinance (Ngern Tid Lor).
Krungsri is strongly committed to the highest level of integrity in conducting its business. All Krungsri Group companies have been awarded accreditation from the Private Sector Collective Action Coalition Against Corruption (CAC) in collaboration with industry peers and stakeholders on a zero tolerance approach to corruption.
About MUFG (Mitsubishi UFJ Financial Group, Inc.)
Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world's leading financial groups. Headquartered in Tokyo with over 360 years of history, MUFG is a global network with over 2,700 offices in more than 50 markets. The Group has over 180,000 employees, and offers services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. The Group aims to "be the world's most trusted financial group" through close collaboration among our operating companies and flexibly respond to all of the financial needs of our customers, serving society, and fostering shared and sustainable growth for a better world. MUFG's shares trade on the Tokyo, Nagoya, and New York stock exchanges. For more information, visit
Source: Bank of Ayudhya