He said the volume of currency trading had increased in January compared with December. That is partly a result of the central bank's 30-per-cent withholding measure, which was introduced on December 19, while the baht has been volatile.

"When the baht is volatile, it's an apparent trading opportunity [both for the bank and its customers]. With higher trading volumes, the bank expects fee income from the treasury business in January will be better than in December," he said.

He said the bank could realise higher income from its cash-management business, particularly from exporters who  hedge foreign currency earned from exports to comply with the measure.

The 30-per-cent measure had been relaxed when the BOT waived it for Thai companies borrowing foreign funds on condition that they fully hedge them.

Prasarn said KBank had no plan to provide multipurpose loans at the bank's branches as that would count as the selling of goods by a bank as if it were a commercial business, which the 2005 Banking Act does not allow.

KTB Leasing, a subsidiary of Krung Thai Bank (KTB), has recently introduced consumer-loan products, which are also offered at KTB's outlets as "Shop at Bank", which has been approved by the central bank.

Prasarn said his bank's consumer-loan business was growing well, particularly the credit-card business, as the bank ranked No 1 in terms of monthly spending at around Bt9,000 per card, though its total card base was lower than those of its competitors.

Meanwhile, the bank's auto hire-purchase, operated by Kasikorn Leasing, is aiming for a top-three ranking in terms of loan portfolio over the next three years. The company's outstanding loan is Bt10 billion and is expected to increase to Bt30 billion by the end of this year.

KBank's mortgage loans are also showing such good prospects for the year, he said, that it was looking at upping them by Bt17 billion-Bt18 billion this year, a growth of 10-12 per cent year on year.

Somruedi Banchongduang

The Nation