Bangkok Bank may open branches in India, Dubai : China, Vietnam growing quickly

Bangkok Bank may open branches in India, Dubai : China, Vietnam growing quickly.

DARANA CHUDASRI

Market leader Bangkok Bank has posted booming loan growth exceeding 50% for its foreign branches, and now may expand to India and the Middle East.

BBL's foreign branches last year recorded loan growth of $1.32 billion, according to Prasong Uthaisaengchai, a senior executive vice-president of the bank.

Foreign outstanding loans stood at $3.975 billion at the end of 2006, or about 15% of the bank's total assets.

Mr Prasong said 80% of the growth came from five markets: China, Vietnam, Hong Kong, Singapore and Taiwan.

He credited efficiency gains and staff improvements in marketing and internal controls over the past three years as helping to boost international operations.

Bangkok Bank expects its foreign outstanding loans to rise to $6.5 billion at the end of this year, primarily focused on China and other East Asian markets.

"Economic growth in China is expected to remain strong. Although there is some risk in the property sector, the overall outlook remains strong, with inflation moderate and infrastructure investment still in need," Mr Prasong said.

Foreign capital flows into China are projected to reach a record high this year at $80 billion. Bangkok Bank plans to increase its overseas staffing by recruiting 25 new executives for its 19 branches, including four in China. It is looking at opportunities to open a new branch in Danang, Vietnam, to complement its existing operations in Ho Chi Minh and Hanoi.

"Vietnam has shown rapid growth for several years thanks to growing foreign investment. Commodities such as coffee and rice or garments and fisheries, are all growing strongly," Mr Prasong said.

Two new markets being looked at are Mumbai in India and possibly Dubai.

Mr Prasong said the bank was keen to expand to the Middle East to tap its huge pool of petrodollars. Hospital operator Bumrungrad International, a Bangkok Bank affiliate, already operates in the Emirate, which is a plus, he added.

"Dubai certainly is one area that we are looking at in our plans to expand outside of Asia," he said, adding that the bank had not set any targets for expansion.

"One key factor for success, based on our long experience in operating abroad, is to make sure that we have a strong base of local customers, as well as the staff to support expansion."

Bangkok Post
Monday January 15, 2007