Banks start new round of rate hikes
Other large banks followed in Siam Commercial Bank's footsteps yesterday and announced interest rate hikes after the central bank's raised its official to 4.75 per cent on Monday.
The commercial banks' rate hikes are the sixth since September 2005. They were triggered by the SCB's announcement, on the heels of the Bank of Thailand's official rate hike, that it would increase both its lending and deposit rates by 25-basis-points starting today. Kasikornbank said it would increase its deposit rates 25 or 50 basis points today, while its lending rates would be increased 25 basis points. Kasikornbank's three-, six-, 12-, 24-, and 36-month time-deposit rates will be 3.25 per cent to 4.25 per cent, 3.5 per cent to 4.5 per cent, 4 per cent to 4.75 per cent, 4.75 per cent and 4.75 per cent, respectively depending on the amounts on deposit. Its minimum lending rate (MLR), minimum overdraft rate (MOR) and minimum retail rate (MRR) will be 7.5 per cent, 7.75 per cent, and 8 per cent, respectively. Officials from Bangkok Bank and Krung Thai Bank said their banks would consider rate hikes after the Songkran holiday. A source at the Bank of Ayudhya said the bank would soon consider increases to maintain the competitiveness of its deposit rates. A source at Siam City Bank said his bank would raise lending and deposit rates by 25 basis points on Monday. SCB's three-, six-, 12-, 24-, and 36-month deposit rates will be 3.25 per cent to 4 per cent, 3.5 per cent to 4.25 per cent, 4 per cent to 4.75 per cent, 4.5 per cent and 4.5 per cent, respectively depending on the amount deposited. The bank's MLR, MOR, and MRR will be 7.5 per cent, 7.75 per cent, and 8 per cent, respectively. Subhak Siwaraksa, president of TMB Bank, said his bank would raise all lending rates another 25 basis points today. The bank's prime lending rate will be 7.75 per cent, while the minimum overdraft rate and minimum retail rate will be 8 per cent and 8.25 per cent, respectively. TMB Bank has made no change to its deposit rates. It recently launched a special-deposit campaign, which has drawn substantial interest, Subhak said. On March 22, the bank launched an eight-month time deposit offering 4.5 per cent per annum. At the time it was above the average 12-month fixed rate of 3.75 per cent to 4.25 per cent being offered by other major banks. The new campaign has attracted between Bt13 billion and Bt14 billion in deposits so far, he said. But, TMB Bank will review its deposit rates next week after the Songkran holiday, Subhak said. Somruedi BanchongduangThe Nation, Dow Jones Newswires
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