Jan 23, 2014

Krung Thai Bank: No Loans For Rice

Net Income increased by 21% from 2012, gross NPL ratio down to 2.6%, snippets from Analyst Meeting on the 22 Jan 2014.

And today, KTB president Worapak denies the bank will approve 160 billion baht in government loans to pay the farmers. It seems there are a million rice-pledge receipts waiting to be paid to rice farmers. Currently, the Bank of Agriculture and Agricultural Cooperative (BAAC) is being arm-twisted to finance the payment but it has still refusing. The next state-owned bank that the government may turn to is the Government Savings Bank (GSB) which the PDRC have probably already shut down to prevent this from happening.

KTB is likely on the list of potential targets being a state-owned bank, however it is 45% owned by retail and institutions and listed on the exchange, so it probably will be further behind in line. KTB has closed more branches than any other bank during these period, which has also seen it warned by the PDRC against lending to the government.

Source here