K-Research: Bad loans set to spread in 4 sectors

Debt repayment weakness has already affected larger hospitality firms

- SOMRUEDI BANCHONGDUANG

Kasikorn Research Center (K-Research) expects four key industries to face weaker debt repayment capabilities, with the challenge likely to extend to larger business operators.

The sectors comprise manufacturing, hospitality, retail, and construction/real estate, with small enterprises particularly vulnerable.

Grid Kaewhiran, senior researcher at K-Research, said weakened debt repayment capabilities are also spreading to larger businesses, especially in the hospitality sector.

In the first quarter of 2025, special mention (SM) loans (debt overdue by more than 30 days but not exceeding 90 days) and nonperforming loans (NPLs) (debts overdue more than 90 days) in the hospitality sector tallied 2.23% and 3.95% of total outstanding loans, respectively, according to National Credit Bureau (NCB) business loan data.