"With our own strength in operations, capital base and networks, SCB doesn't need a foreign strategic partner. And we believe that without an overseas partner we can grow our banking business by ourselves. However, the bank needs to particularly strengthen business scale expansion to cope with tougher competition," he said.

At the end of last year, SCB's capital adequacy ratio was 14.4 per cent, of which 11.4 per cent was tier-one capital, while its outstanding loans stood at Bt748 billion.

The bank currently has 810 branches.

Vichit said SCB had been adjusting itself for several years in preparation for tougher competition, particularly with large global banks. This is in line with the global market trend, in which many giant international banks such as Citibank have set a strategy to increase their business by acquiring the market share of local banks.

Recently, HSBC acquired Household Bank, the UK-based institution that has already been rebranded as Beneficial Finance.

In Thailand, many have speculated that major banks in Thailand would be affected by intensified competition caused by the US financial giant GE, which has bought a major stake in Bank of Ayudhya. There has also been an acquisition deal between Thanachart Bank and Scotiabank (Nova Scotia Bank) of Canada. In addition, BankThai is in the process of a share-stake sale to TPG Newbridge, the Asian investment arm of the US-based Texas Pacific Group.

Most Thai banks have found it difficult to expand overseas operations as they have limited capital. Moreover, Vichit said, it was not worth opening local bank branches overseas. As a result, the bank will mainly focus on foreign-exchange business in the overseas banking arena.

For business expansion in China, Vichit said SCB had built up relationships with local businessmen as it expected Chinese business expansion in the Kingdom.

Somruedi Banchongduang

The Nation