SME Bank sees loan growth at 7pct

 

KUALA LUMPUR: SME Bank Bhd expects to see its total financing portfolio grow at seven per cent this year, versus the 12.5 per cent recorded last year. 

The decrease in loans growth projection, according to its group managing director Datuk Mohd Radzif Mohd Yunus, isn’t necessarily a bad thing as it is reflection of an improving economy.

 “As a development financial institution (DFI) focusing on assisting local small and medium enterprises (SMEs), it is expected for us to step in and assist the unserved and underserve when the commercial banks are not ready to do so,” he said in a recent interview with NST Business.

“Our projection of a seven per cent loan growth for this year is a good thing as it is a reflection of the economy. We feel that when the economy gets better, commercial banks would step in and people in need of financing would then shift to commercial banks instead of coming to us.”

Radzif said the recovery would come on the back of increasing crude oil and palm oil prices.

“There are external challenges of course, especially with the volatility from the West, but we are blessed as we have plenty of natural resources, like palm oil.

“With this, hopefully the corporate sector

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