Although market-observers still believe that Thailand's largest state-owned bank is still influenced by politicians, Apisak said he had had enough independence to run the bank over the past two years.

In November, Apisak will begin the second half of his four-year term, which will end in November 2008. He is quite satisfied with his job.

Apisak stepped into Viroj Nualkhair's shoes as Krung Thai Bank's president after Viroj's second term was blocked by the Bank of Thailand, which instructed Krung Thai Bank to classify Bt46 billion worth of loans made under Viroj's leadership as sub-standard loans. There was strong criticism that the bank under Viroj had been used as an important source of funding for the Thaksin administration's populist policies.

Given that the bank was state-owned, Apisak acknowledged that it had extended some loans in response to extra demands from politicians but these loans had been issued based on an analysis of the results.

"We can't be imprudent on loan extensions, and I will not be part of that. My reputation has been built up over my entire life, and there's no way I will let it be damaged," he said.

His steady hand has brought the bank success in both business results and internal management structure. KTB in the third quarter had the highest net profit among its industry peers. Bt5.07 billion, up 9.95 per cent year on year.

Meanwhile, the bank's non-performing loans as of September 30 were 10.33 per cent of its total loans, down from around 14 per cent in the past two years. KTB's effort to become the industry leader in innovative products is likely to pay off. The bank early this year shook the industry by becoming the first mover in offering special deposit rates.

It also did well by launching US$220-million (Bt8.2-billion) hybrid bonds in overseas markets, a move not seen since the financial meltdown of 1997. KTB also plans to restructure its retail loan collection department by establishing a new call-centre unit as an instrument to decrease the bank's bad debts.

"Right now KTB is quite okay, particularly the bank's fundamental base, though there are several things to be improved. When I leave it, I'm quite confident the operations will run smoothly," Apisak said. "As the state-owned bank, KTB should be the clean bank, and I think it already comes halfway," he added.

Apisak has no elaborate phrase to describe his working philosophy. He only insists on common sense and "doing it in the right way".

Meanwhile, two bank directors, Somchai Wongsawat and General Wichianchot Sukchotrat, have resigned from the board.

Somchai is ousted prime Minister Thaksin Shinwatra's brother-in-law while Wichianchot was criticised because he was one of the National Counter Corruption Commission members cited by the court as abusing their power by awarding themselves pay rises.

Somruedi Banchongduang

The Nation