MTC and SAWAD Fall 2.5% amid Rising Concerns of BOT’s Stricter Lending Requirements

The share price of Muangthai Capital Public Company Limited (SET: MTC) and Srisawad Corporation Public Company Limited (SET: SAWAD) edged lower on Thursday in concerns that the new policy from the Bank of Thailand to put more restriction on lenders could slow down loan growth.

MTC closed the morning session at THB36.75 per share, decreased THB1.00 or 2.65%. Meanwhile, SAWAD dropped THB1.25 or 2.55% to THB47.75 per share.

Kasikorn Securities (KS) stated that the Bank of Thailand is expected to deliver a measure to solve household debt for good through a Responsible Lending Program starting January 2024. The measure could impact the overall outlook of loan growth as the current procedure for non-bank companies who provide loan services does not consider borrowers’ credit bureau status.

KS noted that SAWAD has positive short-term loan growth, while having stronger financial performance than MTC, which has higher NPL and lower demand from the agricultural sector.