Krungsri set to reach portfolio target early

Bank of Ayudhya (Krungsri) expects to be able to achieve its social and sustainable finance (SSF) portfolio target of 100 billion baht ahead of schedule, driven by strong demand for these kinds of financial services.
Driven by strong demand across all local customer segments — retail, small and medium-sized enterprises (SMEs) and large corporate clients — the bank expects to surpass its SSF portfolio target of 100 billion baht ahead of the 2030 deadline, according to the bank’s chief strategy officer Pairote Cheunkrut.
As of June 2023, Krungsri reported its SSF portfolio had grown to around 76 billion baht since the programme’s inception in 2021.
Krungsri, Thailand’s fifth-largest bank by total assets and a leading player in sustainable finance, is revising its SSF targets under its 2025-27 business plan.
The bank is also committed to becoming a net-zero carbon organisation while supporting clients in their sustainability transitions.
In 2021, Krungsri launched its Net Zero Vision, pledging to decarbonise its operations by 2030 and its financial services by 2050.
These include upgrading chiller plants, installing solar panels, replacing bank vehicles and messenger motorcycles with electric alternatives, and implementing enhanced waste management systems.
Additionally, the bank aims to support customers in their transition to sustainability by collaborating closely with its major shareholder, Mitsubishi UFJ Financial Group (MUFG). Together, they develop and launch sustainability-linked financial solutions that meet international standards and are tailored to the needs of domestic customers.
Aligned with the Bank of Thailand’s taxonomy initiative, according to Mr Pairote, Krungsri has also been supporting local business operators in the energy sector to transform into sustainable organisations in the first phase, with plans to focus on the transportation sector in the second phase.
Currently, Krungsri holds a 20% market share in environment, social and governance (ESG) bonds and continues to pioneer sustainable financial products, such as sustainable loans, sustainability-linked bonds and sustainable deposits.
Krungsri was the first commercial bank to introduce a sustainable deposit programme in the Thai market, partnering with Toyota Thailand.
Through this programme, the bank offers a lower deposit rate to corporate clients, enabling it to strengthen its capacity to provide sustainable loans to other customers at competitive rates as part of its funding cost management and partnership strategy.
Krungsri also partners with public and private sectors to foster a robust ecosystem to support the transition to a sustainable economy.