Thai Military Bank (TMB) reached agreement to transfer its Non-Performing Assets (NPAs) worth approximately 19.8 billion baht to Bangkok Commercial Asset Management Co., Ltd. (BAM), the bank’s chief executive officer Boontak Wangcharoen said.

Mr. Boontak said the deal is part of the bank’s plan to effectively cut its total NPL to 13.2 percent from 16.0 percent in the first quarter of 2009.

“The transaction will help us to be able to better controlling our non-performing loans, as well as improving our loans management,” he said.

TMB in late 2008 had sold similar non-performing loans worth 3.4 billion baht to Sukhumvit Asset Management Co., Ltd. (SAM).

BAM said it will be beginning to notify borrowers to get the loan terms modification as soon as it has authority.