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Published on April 26, 2008

Siriporn Chanjindamanee

The Nation

"We are now in the process of searching for a new CEO. The bank needs to upgrade its management because most other banks have already strengthened their executive team," chairman Sathit Limphongpan said yesterday.

While declining to identify the candidates, he said they were all outsiders and included bankers and non-bankers.

At the bank's shareholders' meeting, some proposed that the bank should wipe out its retained losses of Bt100 billion once and for all by reducing the par value of its shares from Bt10 to Bt1.

Subhak, who recently submitted his resignation as CEO to pave the way for management restructuring, admitted that the bank is now saddled with Bt70 billion in non-performing loans, of which only half are in the process of debt negotiations and debt restructuring with the bank.

Subhak said it would be impossible for him to get reappointed again now that ING of the Netherlands has become the second largest shareholder of the bank after the Finance Ministry.

Now the bank needs to overhaul its management and organisation to strengthen its business, he said.

ING has brought in its representatives to run the bank and will be adding more key personnel in retail banking and risk management, he added.

Stock analysts have recommended "buy" for TMB Bank, citing high upside potential with an expected turnaround in earnings.