SME Bank sees NPLs dropping to 15% by year-end

Source From (The Star Online): http://biz.thestar.com.my/news/story.asp?file=/2012/6/20/business/11510656&sec=business

Published: Monday June 20, 2012

KUALA LUMPUR: SME Bank Bhd expects its non-performing loans (NPLs) to decrease to 15% by year-end from 17% last year, given the bank’s good collection rate.

Managing director Datuk Mohd Radzif Mohd Yunus said the bank was also collaborating with Bank Simpanan Nasional (BSN) to help customers make their monthly payments according to schedule.

“There are issues and challenges facing Malaysian small and medium enterprises (SMEs) in spite of all the recognition and assistance given. Many still lament the difficulty in obtaining financing while some face an uphill task accessing markets,” he said after the signing of a memorandum of understanding between SME Bank and BSN to facilitate a payment gateway collaboration.

Radzif said the tie-up would enable SME Bank to tap BSN’s vast network of 392 branches in Malaysia, especially in rural areas.

Meanwhile, Deputy Finance Minister Datuk Dr Awang Adek Hussin, who witnessed the ceremony, said it was vital for financial institutions to explore areas of cooperation locally and internationally besides competing in the open and globalised world.

“This collaboration is an illustration of good synergistic efforts whereby BSN’s extensive branches nationwide can be leveraged by SME Bank customers to service their loans,” he said. — Bernama