Tisco Bank expects NPLs to reach 3.5%

Tisco Bank expects the non-performing loan (NPL) ratio to climb to 3-3.5% of total outstanding loans this year under a worst-case scenario where a third-wave of Covid-19 occurs in Thailand.

Given the spate of rising economic uncertainties, especially the second outbreak, the bank has formulated its 2021 business plan based on the worst-case scenario of a prolonged outbreak where a third-round spread of the deadly virus emerges and vaccination is delayed from the government’s existing timeline.

Under this scenario, Tisco Bank forecasts the NPL ratio will increase to 3-3.5% this year, but the existing loan loss reserves already provide a buffer for rising bad debts, said Suthas Ruangmanamongkol, chief executive officer of…