KBank wary of financing upcountry
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KASIKORNBANK has seen the need for caution when financing the property and agricultural sectors upcountry, while noticing a rising trend of Japanese acquisitions of agricultural-industrial businesses from Thai operators who have been affected by the downt
Chongrak Rattanapian, executive vice president and head of KBank’s corporate business division, said developers that in the past few years invested a lot in new condominium projects had seriously reviewed their plans, as many consumers no longer have the confidence to buy homes.
“High household debt has had an impact on purchasing power, making people in the provinces reluctant to buy residential projects,” he said.
KBank has been wary of financing property developments in the provinces for two years, especially expensive ones.
Meanwhile, lower prices for agricultural products have affected the ability of some businesses to survive in this sector, making them attractive for acquisition by stronger Thai and Japanese companies, said Sammit Sakulwira, first senior vice president of KBank.
KBank has engaged in collaborations with 27 or 28 Japanese banking partners. It has also supported Japanese companies financially seeking joint ventures in food-related businesses in Thailand. Sammit said KBank was the bank of choice for such firms because its partnerships with Japanese banks made it a familiar name.
On the issue of the digital-television industry, Suwat Techawatana-wana, another first senior vice president, said KBank was not too worried about it so far, even though it has provided loans and guarantees to five digital-TV operators.
Still, the bank is keeping an eye on the situation after one broadcaster has made attempts to get out of the digital business and return its licences to the regulator.
Chongrak said 40 per cent of KBank’s large corporate customers had been facing volatility as the sluggish economy affects revenue in the construction, automotive, electronics, hardware and transport sectors. The bank has encouraged these corporates to adopt its “K-Value Chain Solutions” to enhance business efficiency.
