29 September 2023
BANGKOK (29 September 2023) –
Krungsri (Bank of Ayudhya PCL and its business units) has fine-tuned the strategy concerning its consumer financing offered in Lao PDR while pledging close assistance to customers in light of economic challenges. Adjustments take place though lending activities in the country shows an improvement from the COVID-19 era.
Mr. Wanchairabin Jitwattanatam, Krungsri Head of Regional Business Division, said: “Krungsri Leasing Services (Lao PDR) Co., Ltd. has witnessed an increase in consumer financing demand. Until August, new loan volume has gone up around 36% from the same period last year, following an adjustment in the lending strategy in line with volatile market conditions and changing customer behaviors. Our emphasis is placed on the lending products that bolster liquidity and satisfy financial needs, so that customers can move forward and overcome the current situations.”
“At the end of August 2023, the auto loans under the Car4Cash flagship product doubled from the corresponding period in the previous year, showing a consistent increase since the launch in 2020. Now the most preferred product, Car4Cash is outstanding in terms of interest rates and lending amounts. Other auto loans also enjoyed an increase from last year. Krungsri has also transferred its expertise in the areas of sales management, communications, analytic and digital marketing. Remarkably, applications for 12% of new loans were filed through the digital channel and we see a growing trend given changing customer behaviors.”
After the easing of the COVID-19 pandemic, Lao PDR is experiencing a recovery, albeit fragile. Investors from Thailand and other countries, like those in retail and clean energy sectors, which earlier shelved investment plans have resumed the operations in 2023. Meanwhile, inflation eased in August, from more than 40% earlier this year. Krungsri Research forecasts expansion in economic activities in the short term, driven by the service sector that recovered from the pandemic period. Still, the GDP is expected to grow at 4.0%, compared to the 6.4% annualized growth rate before the COVID-19 outbreak.
“Amid economic vulnerability, Krungsri maintains a prudent risk management and closely monitors on the asset quality, to keep them at appropriate levels. Most importantly, we will closely assist customers and uphold responsible lending practices by taking into account customers’ ability to pay. At end-August, the non-performing loan (NPL) ratio of Krungsri’s business in Lao PDR stayed below 1% while the overall operations were satisfactory. Looking forward, Krungsri will continue working on lending products and services for retail customers and the development of technology, personnel capabilities as well as strategic partnership, to satisfy customer needs in Lao PDR, conquer challenges and achieve sustainable growth,” concluded
Mr. Wanchairabin.
For further information relating to the business and network of Krungsri in ASEAN, please visit
https://www.krungsri.com/th/asean. In Lao PDR, contact Bank of Ayudhya, Vientiane branch in via Facebook: Krungsri Bank Laos, Phone Number 021 218777 ext. 1113 or Facebook: Krungsri Leasing Laos.