"If the investment situation in the stock market doesn't improve, the bank will propose to the central bank that the share-sale schedule for ACL be reviewed. The planned stake reduction might start next year, when the stock market environment will likely be better," Bangkok Bank chairman Chatri Sophonpanich said yesterday.

Bangkok Bank needs to comply with the BOT's one-presence rule by which banks are not allowed to hold shares in another bank.

Bangkok Bank must reduce its stake in ACL to 10 per cent this year and complete the divestment next year. It now holds 19 per cent of ACL.

Institutional investors would be the likely buyers, as retail investors would not pay attention to ACL stocks due to its poor trading liquidity.

Chatri would maintain his personal holding in ACL at around 1.4 per cent.

ACL received its commercial banking licence last year after it was upgraded from finance company Asia Credit Plc, in which Bangkok Bank was a major shareholder.

The country's biggest bank is likely to be the only one to miss the deadline for the one-presence rule.

According to stock analysts, BBL's cost of holding ACL shares is Bt5.6 per share. However, ACL securities yesterday closed at Bt4.04, a 15.43 per cent improvement from the Black Tuesday.

Earlier ACL announced its plan to focus more on provincial business, covering

corporate loan to Small and Medium Enterprise and high network business

operator.

Somruedi Banchongduang

 The Nation