Krung Thai Bank (KTB) plans to boost its asset-management and leasing subsidiaries this year, according to the bank's president Apisak Tantivorawong.

He said the bank wanted its affiliate Krung Thai Asset Management (KTAM) to expand its mutual-fund business, though the company had performed well with its provident fund.

"We need KTAM to be more active in the mutual-fund business. The company's margin is narrow. It can utilise the bank's customer base better than this," he said.

KTB has a deposit base of about seven million accounts, ranking it the country's second largest bank in terms of asset size at Bt1.2 trillion as of the first quarter of this year.

Another subsidiary of the bank, KTB Leasing Ltd (KTBL), is also undergoing a business-model adjustment process to shed its conventional image, Apisak said.

The leasing firm has offered two products, car loans and factoring loans, since it was established in October last year and recently expanded into motorcycles, machinery, aircraft and office accessories.

KTBL will on Tuesday announce its business plan for the second half of this year and its new managing director.

Apisak said the bank still intended to buy about 30 to 40 per cent of another securities company. "We are in talks with several, but the bank hasn't set a specific time frame. We can wait for good conditions," he added.

The bank has several alternatives , he said, including buying a securities licence, forming a new subsidiary, and raising its shareholding in an existing securities company.

It holds a 19-per-cent stake in Trinity Securities Plc.

The bank's goal is to become a full financial-services provider, a concept it calls Convenience Bank.

KTB also plans to open its busiest branches seven days a week.

It expects 80 to 90 per cent of branches, located in prime areas, to be open throughout the week by the end of the year.

It currently has 669 branches and plans to open a further 60 nationwide.

Somruedi Banchongduang

The Nation