Sompol said there were disagreements between the board and Arun over business strategy, so Arun resigned in order to allow a new leader to take over.

A report to the Stock Exchange of Thailand said the resignation will be effective from Friday, with Tasna Rajatabhothi named as acting president. She also serves as director, executive director and director of SCIB's nomination and remuneration committee.

Sompol said the board and Arun had some differences of opinion over the second-quarter results, in which several items showed growth rates lower than the industry level.

SCIB, Thailand's seventh-largest bank, posted a net profit of Bt743.29 million in the second quarter, 53.25-per-cent down on the Bt1.59 billion achieved in the corresponding period last year.

"Arun showed spirit as the bank's management chief, although differences of opinion are a normal thing. Meanwhile, he is an honest man and he supported the bank during his tenure," Sompol said.

He said the bank's board of directors has always supported management policy, and in particular a universal banking concept, but in some cases it requires the bank to have influence over the management of its affiliates.

Take Ratchathani Leasing Plc, for example, he said. The bank's board urged management to increase its shareholding in the leasing firm and it now owns 40.33 per cent, up from 22.82 per cent.

Sompol said the bank's selection committee will be responsible for naming a new president, but he doesn't know how long it will take.

"The bank's new president should be both capable in the banking business and an honest person. That means finding him or her will not be easy," Sompol said.

The resignation of the bank's president is not expected to have any impact on the bank's business or its plans for next year because the acting president will manage affairs, he said.

The bank estimates the country's gross domestic product will grow by about 4-4.5 per cent next year. This will be driven by exports that the bank forecasts will grow by 20 per cent over this year's figures.

Moreover, acceleration in government spending in the first quarter, following the formation of the next government, will be another driving force.

Based on these assumptions, the bank believes an increase in lending is possible next year. It also plans to boost its foreign businesses, as well as expanding its provincial outlets.

Somruedi Banchongduang

The Nation