Due to the country's uncertain environment, Bank of Ayudhya is keeping its operating plans conservative this year, even though it has already welcomed GE as its key strategic partner.

"We will take around a year waiting for the country's situation to clear up and for the bank to adjust [after the BAY-GE acquisition deal is completed]. As a result, the bank won't be aggressive in expanding business this year, as we need to be more prudent, despite our capital base being quite strong," chairman Veraphan Teepsuwan said yesterday.

BAY will focus on consumer finance with the goal of becoming the leader in retail banking. But with the economy slowing down, it will also stress risk management and loan quality, particularly by monitoring borrowers' repayment ability, he said.

The bank will try to maintain its market share in consumer finance amid greater competition especially in home and auto loans, in which both BAY and GE are major players.

The bank provides a full range of financial services, but it has no presumptions to be tops in corporate lending.

Rather, it wants to grow the wholesale side with sustainability.

CEO Tan Kong Khoon said the bank targeted its retail banking business to expand at four to five times the rate for gross domestic product this year. GDP is forecast to increase by 4-4.5 per cent.

The bank's corporate and SME (small and medium-sized enterprise) loan portfolios are expected to rise by two and 1.5-2 times GDP growth, respectively.

He said the bank would follow a four-point strategy this year - business expansion, product development, risk management and operational standardisation.

"With strengths in our customer base and network, we believe the bank will grow steadily.

"Under the universal banking concept, the bank is ready to provide services in all categories - wholesale, SME and retail banking," he said.

Somruedi Banchongduang

The Nation