# NCB reports a 15% increase in non-performing loans during the first quarter

- Link: https://www.thailand-business-news.com/banking/140756-ncb-reports-a-15-increase-in-non-performing-loans-during-the-first-quarter
- Published: 2024-05-15T08:03:00+07:00
- Author: NNT

BANGKOK (NNT) – **The National Credit Bureau (NCB)** has announced it recorded a**
15% rise in non-performing loans (NPLs) in Q1 2024**, driven by defaults on auto
and mortgage loans. NPLs reached 1.09 trillion baht, with auto NPLs surging by 32%
to 240 billion baht and housing NPLs increasing by 18% to 1.99 billion baht.

According to the NCB, **loans categorized as special mention (SM), with a debt default
period between 30 and 90 days, also rose to 644 billion baht, a 7.3% year-on-year
increase.** Housing SMs grew by 15% to approximately 187 billion baht, and auto 
SMs rose by 7.1% to 204 billion baht.

ADVERTISEMENT

Credit card SMs surged to 11.7 billion baht, a 32.4% increase, partly due to a recent
adjustment in the central bank’s minimum payment regulation from 5% to 8%.

## Thailand’s uneven economic recovery

**The rise in NPLs and SMs reflects Thailand’s uneven economic recovery**, characterized
by a K-shaped trajectory. Many individuals are struggling with higher living expenses
and reduced capacity to repay debts. Given the current economic conditions and elevated
[household debt](https://www.thailand-business-news.com/economics/127476-as-household-debt-skyrockets-thailands-economy-worsens),
the agency said there is a risk that SMs may transition into NPLs.

### Related**Posts**

###  󠀁[Thailand Business News — Morning Briefing | Tuesday, 3 November 2026 | Thailand, ASEAN and Global Markets](https://www.thailand-business-news.com/news/338217-thailand-business-news-morning-briefing-tuesday-3-november-2026-thailand-asean-and-global-markets)󠁿

###  󠀁[Thailand Business News — Morning Briefing](https://www.thailand-business-news.com/banking/337929-thailand-business-news-morning-briefing-5)󠁿

###  󠀁[Bank of Thailand Raises Growth Forecasts but Warns Recovery Remains Concentrated](https://www.thailand-business-news.com/banking/337755-bank-of-thailand-raises-growth-forecasts-but-warns-recovery-remains-concentrated)󠁿

###  󠀁[Bank of Thailand Joins Singapore and Malaysia in Cross-Border Digital Money Initiative](https://www.thailand-business-news.com/banking/336432-bank-of-thailand-joins-singapore-and-malaysia-in-cross-border-digital-money-initiative)󠁿

Financial institutions have extended financial assistance and implemented debt restructuring
measures to help borrowers. [Major local banks have also announced six-month reductions in loan interest rates](https://www.thailand-business-news.com/banking/138179-six-state-owned-banks-cut-their-loan-rates)
to assist vulnerable clients. However, similar measures have not been widely implemented
for auto loan services.

## Stricter loan approval criteria

Banks have become more stringent in approving new loans to control credit risk. 
In Q1 2024, total household debts amounted to 13.6 trillion baht, with new loans
growing by 2.9% year-on-year. Housing loans increased by 3.8%, while auto loans 
declined by 1.5%. Commercial and overdraft loans related to business operations 
contracted by 5.7% and 5%, respectively.

NCB data also shows approximately 84.4 million household debt accounts in Q1 2024,
a 1.2% year-on-year increase. Housing, auto, and personal loan accounts contracted
by 1%, 2%, and 0.9%, respectively, while credit card accounts grew by 1.5%.