Kbank refocuses on corporate lending

       Kasikornbank is refocusing on coporate lending to boost fee-based income, with a plan to increase corporate loans by 3-4 per cent next year.
       Vasin Vanichvoranun, first senior vice president, Corporate Busniess Division, said that this year the bank expected to expand corporate lending to Bt290 billion from Bt280 billion at present, and that next year's level would be in line with the country's economic-growth forecast of 2.5-3.5 per cent.
       With growth of 3-4 per cent, the porfolio will rise to Bt301.6 billion.
       "Income from corporate-banking business this year will be Bt11 billion, and this will rise 12 per cent next year. While the fee and interest income ratio is 45:55 this year, it will be balanced next year," he said.
       A bank survey of 10,000 corporations found that 20 per cent were Kasikornbank clients. The companies' annual sales range from Bt400 million to more than Bt5 billion.
       Vasin said the percentage was more satisfactory than the bank's market share in the corporate-loan market, as it reflects corporate customers' satisfaction with its services. In the previous survey, the Kasikornbank percentage was 16-17 per cent.
       He added that the bank's strategy next year was to continue being in partnership with customers, but it would try to be an adviser rather than simply a lender in order to develop long-term relationships that could establish the bank's position in their minds.
       Corporate clients are now offered a veriety of services, including transaction financing such as cash management, trade solutions and supply-chain assistance.
       Meanwhile, as interest rates may start to rise next year, along with inflation and oil prices, some customers may take the opportunity to adjust their financial structure. The bank is ready to serve this development through syndicated loans and advice on bond issuance, said Vasin.
       Besides, it will provide a merger-and-acquisition service in order to satisfy customers who would like to expand their business in line with economic expansion.
       Among the major constituents in Kasikornbank's corporate business are companies in the electrical, construction, construction materials and export-oriented industries, including those making electrical appliances and electronics, agricultural products and machinery.