The Islamic Bank of Thailand (IBank) plans to expand its financial services to the upper southern provinces to support Muslim communities affected by recent flooding, according to president Dheerasak Suwannayos.
The bank will focus on Surat Thani, Nakhon Si Thammarat, Phatthalung and Trang provinces for its business expansion, which is scheduled for the second quarter this year after the flooding eases. (full story)
IBank's operations currently cover Narathiwat, Yala, Pattani, Satun and Songkhla.
"There is business potential in the upper south because of rising farm prices," said Mr Dheerasak.
Prices of key regional products including rubber and palm are likely to keep rising, he added. Shrimp farms will also contribute handsome income to farmers.
With IBank's niche market of only Muslim clients, it will face less competition than other financial institutions in the area, he added.
Mr Dheerasak said that mortgages and related financial products would be the bank's initial offerings. Loans will be focused mainly on those affected by recent flooding that require home renovation.
Later on, the bank plans to offer hire-purchase options to its customers.
Existing clients of the bank affected by the flooding receive extended debt repayment periods and special credit lines lasting until July.
IBank, a state-owned institution, is in the process of recapitalising to 9.87 billion baht from 3.43 billion after it receives approval from the Finance Ministry.
The new funds raised will be used to facilitate loan expansion. It expects total outstanding debt will rise to 100 billion baht this year from around 90 billion.
Moreover, the recapitalisation will help maintain the bank's strong capital adequacy under its business expansion plan for this year. IBank's Bank for International Settlements ratio is currently 12%.ratio
The bank also plans to launch around 50 billion baht worth of Islamic bonds in local and overseas markets in the second quarter this year.
Source : http://www.bangkokpost.com/business/economics/231886/islamic-bank-sees-market-potential-in-upper-south - April 14, 2011
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