The rumour circulating was that the bank had concluded a merger deal with GE Money's local unit. This pushed BAY's share price on Thursday to Bt17.60, a rise of Bt0.40 - or 2.3 per cent - over the previous day's close. Yesterday, the stock price continued climbing, closing at Bt18.30, up Bt0.70, or 3.9 per cent.

Analysts think the bank's strong fundamentals make it a good investment prospect, which is another factor likely to boost the share price, according to Charlotte.

She said the bank had had talks with a number of potential foreign players interested in buying a stake in the bank. However, no decision has been made on how to proceed.

Also, BAY does not need any foreign strategic partners because the bank already has a strong capital base, she said.

"We can grow our business independently with our existing plan. The bank doesn't need to increase capital because it is already adequate," she said.

While the bank's foreign shareholding is limited to 49 per cent, overseas investors currently hold a 32-per-cent stake in the country's sixth largest bank.

Charlotte said the bank had not been affected by the current political turmoil and that BAY would meet its business growth target in the first quarter.

"The political factor could affect the bank's business in the second quarter, so we may have to reconsider our targets. If there are any adjustments, they would occur in the third or fourth quarter," she said.

Somruedi Banchongduang

The Nation