As of last April, the Finance Ministry held 20.88 per cent of the bank, DBS Bank 18.48 per cent, the Royal Thai Army 3.50 per cent, Thai Life Insurance 2.21 per cent, RTA Entertainment 1.03 per cent and the Government Savings Bank 1 per cent, said the Stock Exchange of Thailand.

Finance Minister Chalongphob Sussangkarn has not yet decided whether the ministry will increase its holding in TMB Bank.

It is expected to send its capital-raising plan to the ministry soon, and the ministry will examine it, Chalongphob said yesterday after meeting with executives of the bank about the planned fund-raising.

The ministry wants TMB Bank to increase its capital. It needs to improve its efficiency because the ministry will have to use public funds to increase its holding, Chalongphob said. It must consult with the central bank about its capital and management, he said.

TMB plans to issue up to Bt35 billion in bonds for business expansion, the state-controlled bank said yesterday. It did not indicate the timing of the issuance but said it needed to raise additional funds to enlarge its customer base and to expand its business.

The proposal is subject for shareholder approval at the bank's annual meeting on April 27.

Subhak Sivaraksa, the bank's president and chief executive officer, said the bank would consider how much compensation it would receive from Airports of Thailand after it terminated its contract with King Power to rent retail space in Suvarnabhumi Airport.

TMB is one of two banks with foreign exchange booths in the international airport.

"King Power would receive compensation from the contract nullification. We have already paid the rental according to the contract and such booths generate attractive income to the bank," Subhak said.

He admitted that the bank might give more consideration to the higher risk of loans extended to companies which do business with the government sector.

Somruedi Banchongduang

Witchit Chaitrong

The Nation