ACL Bank looks to more large clients for 10% growth

Thongchai Ananthothai, president of the small bank, said that despite the economic slowdown, he was confident that the bank remained competitive with a capitaladequacy ratio of 24.12 per cent - the highest among Thai banks.

ACL Bank aims to extend new credit of Bt4 billionBt5 billion this year. Outstanding loans totalled Bt50 billion at the end of last year.

Of the additional lending, Bt1.5 billion will be for corporate customers, boosting loans in that segment to Bt28 billion.

Thongchai said the bank would focus on customers that previously raised funds from the equity market but found it difficult to do so in the current climate. These companies' fundraising problems present an opportunity for the bank.

Besides, the bank wants to focus on customers in lowrisk sectors, including agriculture.

ACL Bank has 11 provincial branches, which are expected to extend up to Bt3.5 billion of new loans this year, increasing its upcountry portfolio to Bt19.5 billion.

It will lend to businesses such as hotels in tourist destinations in the provinces of Phuket, Krabi and Phang Nga, which are likely to recover sooner than other tourism areas.

The bank aims to boost its deposit base to Bt60.5 billion this year, from last year's Bt55 billion, by focusing on customers with deposits of Bt1 millionBt50 million.

It plans to issue new deposit products to serve this group, which needs good bank accounts for savings amid the low interestrate environment.

"The 10percent target for lending growth is quite a challenging one in the current economic situation. The bank will review its business plan on a quarterly basis," Thongchai said.

If future economic indicators point to a recovery, the bank might increase its lending growth to 1520 per cent, he said.

ACL Bank's nonperforming loans fell from 6.96 per cent in 2005 to 3.14 per cent last year.