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Published on November 2, 2007

Kasikornbank executive vice president Boontuck Wangcharoen said the bank would not bid for a large amount as the margin on lending to the project was quite low due to the low risk.

Several banks have been invited to take part in the bidding this month for a total credit line of Bt18 billion, which is to be used to refinance the Airport Rail Link's existing debts.

"As the project is for public benefit, the bank wants to support it. However, the lending rate is quite low compared with private projects, so the bank won't offer a large loan amount," Boontuck said.

Krung Thai Bank first executive vice president Preecha Phukham said earlier the bank would bid for half of the amount sought because, as a state-owned bank, it should support the project.

The country's largest state-owned bank showed poor lending in the first nine months this year, with the total amount falling by Bt2.13 billion, or 0.22 per cent, from the same period last year.

Meanwhile, Boontuck said Kasikornbank had set a target of 10-15 per cent for lending growth next year, up from this year's target range of 9-13 per cent.

The country's fourth-biggest bank raised its lending target for this year from 8-13 per cent earlier after recording growth of 7.7 per cent in the first nine months - the highest among the six largest banks.

Boontuck said the bank had still not yet set a target for lending to small and medium enterprises next year, though this would be the main contributor to the bank's loan growth.

Somruedi Banchongduang

 The Nation