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Chatchai Payuhanaveechai has been picked by the board of directors of Government Savings Bank as the bank’s new president.

Somchai Sujjapongse, director-general of the Customs Department, who is the chairman of the GSB’s board, said the nomination would be sent to the Finance Ministry for approval, with the new president expected to start working next month.

Chatchai said he intends to make the bank a financial institution for grass roots people.

Chatchai will succeed Worawit Chailimpamontri, who resigned in February this year after facing pressure over his decision to lend Bt20 billion to the previous government’s troubled rice-pledging scheme that led to a rash of withdrawals by customers.

He is an executive vice president at Kasikornbank who in charge of mortgage and unsecured loan. He is also secretary general of the Housing Finance Association.

ready to launch tax

The director-general of the Fiscal Policy Office, Kritsada Jinavijarana, said the Ministry of Finance is more than ready to introduce the land and construction tax once it has been approved by the government and the National Legislative Assembly (NLA).

“The ministry is ready to introduce the land and construction tax and the progress would depend on the NLA. However, the land and construction tax would be introduced only after the inheritance tax,” he said.

Finance Minister Sommai Phasee had said earlier this month that the draft for the inheritance tax would be given to the NLA to consider by September this year.

BAAC loan growth slips

The Bank for Agriculture and Agricultural Cooperatives (BAAC) may see loan growth of 8 per cent this fiscal year (April 1, 2014 to March 31, 2015), below its target of 10-11 per cent due to farmers becoming more cautious about becoming indebted following Thailand’s economic slowdown and the drop in crop prices.

In the first six months ending September 30, 2014, the bank recorded new loans of Bt32 billion, BAAC president Luck Wajananawat said.

“BAAC will be able to pay subsidies for rubber growers and rice farmers, as planned. Subsidy for rice farmers will end in November and that for rubber growers will start in mid-November and finish within December,” he said.

The bank expects to extend Bt40 billion to Bt50 billion in new loans in the latter half of its fiscal year. Now, it has 1,202 branches, servicing 7.5 million farming households. The bank also plans to open new branches to have full coverage of 50 districts in Bangkok. Currently, it has 41 branches in Bangkok.

BAAC’s deposits totalled Bt1.05 trillion. Of the total, Bt699 billion came from farmers and people, Bt312 billion from public agencies and state enterprises, and Bt46.2 billion from juristic persons.

Its total assets amounted to Bt1.25 trillion and liabilities totalled Bt1.14 trillion. Net profit was Bt4.9 billion in the first six months ending September 2014.

Non-performing loan stayed at 4.6 per cent of total loans, lower than the 5.6 per cent in the same period of last year. Capital adequacy was 12.51 per cent, higher than the Bank of Thailand’s requirement of 8.50 |per cent.