KBank unveils capital branch
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Kasikornbank (KBank), one of the largest banks in Thailand, officially unveiled its first branch in Phnom Penh with the aim of offering financial services to local businesses as well as corporate and retail customers.
KBank entered the Cambodian financial market in November and initially, the branch’s objective was to facilitate Thai businesses in Cambodia in the area of corporate finance and fund mobilization for investment in infrastructure projects towards the production of garments and processed food.
KBank services are available in Thai baht, US dollars and Cambodian riel for bilateral trade activities and other transaction services.
KBank president Predee Daochai said the bank’s first injection of investment capital into Cambodia was $50 million and it will increase, based on bank performance and demand.
Mr. Predee said recently that KBank’s loan portfolio was $2 million with a small amount of deposits. However, the bank expects to expand its loan portfolio to about 1.5 billion baht ($43 million) to corporate customers, local businesses and retail customers, both Thai and Cambodian, in the next three to five years.
“We have to grow in terms of loans and deposits. Our loan portfolio is $2 million, but we have targeted that within the next three to five years, it should rise to two billion baht [$57 million] and we aim to have 800 million baht [$22.8 million] in deposits,” he said.
“We can grow faster than that because there are many big Thai customers here since they came here many years ago. Most of them use our services in Bangkok so they are pleased to use our services here.”
“KBank president Predee Daochai said the bank’s first injection of investment capital into Cambodia was $50 million and it will increase, based on bank performance and demand.”
Mr. Predee said that KBank is not only looking to serve the financial sector in Cambodia, but also wants to help boost investment and trade between Cambodia and Thailand.
He said if the first branch performs well, the bank will look to open a second branch in the country.
Nattavudh Photisaro, Thai ambassador to Cambodia, said that KBank opened its representative office in Cambodia in February 2015, and had a soft opening of its Phnom Penh branch in November.
He added that although KBank just officially unveiled its branch, it was no stranger to the Thai embassy in Phnom Penh as the bank had worked closely and has strong ties with the Thai diplomatic staff in Cambodia for the past couple years.
“With KBank, Thailand has a total of four banks in Cambodia including Bangkok Bank, Krungthai Bank and Cambodian Commercial Bank. Now KBank has brought another Thai business to Cambodia,” he said.
Mr. Nattavudh added that bilateral trade between Thailand and Cambodia reached $5.6 billion last year. He said several Thai companies have expanded their operations in Cambodia and more will follow.
“I have always encouraged Thai businesses here to operate on three principles: mutual trust, mutual respect and mutual benefit. I think that Kasikornbank has taken these principles to implement here,” he said.
Questions & Answers
Q.What is the initial investment KBank made in Cambodia, and what are its plans for increasing this capital?
What is the initial investment KBank made in Cambodia, and what are its plans for increasing this capital?
KBank's first capital injection into Cambodia was $50 million. The bank stated that this investment will increase in the future, with the exact amount dependent on its performance and market demand within the country.
Q.What specific financial services does KBank offer, and in which currencies are these services available?
What specific financial services does KBank offer, and in which currencies are these services available?
KBank offers financial services to local businesses, corporate clients, and retail customers. These services are available in Thai baht, US dollars, and Cambodian riel, supporting bilateral trade activities and other transaction services.
Q.What are KBank's targets for its loan portfolio and deposits in Cambodia over the coming years?
What are KBank's targets for its loan portfolio and deposits in Cambodia over the coming years?
KBank aims to expand its loan portfolio to about 1.5 billion baht ($43 million) in the next three to five years, potentially rising to two billion baht ($57 million). It also targets having 800 million baht ($22.8 million) in deposits.
Q.How many Thai banks now operate in Cambodia following KBank's official unveiling?
How many Thai banks now operate in Cambodia following KBank's official unveiling?
With KBank's entry, there are now a total of four Thai banks operating in Cambodia. The other three mentioned are Bangkok Bank, Krungthai Bank, and Cambodian Commercial Bank, adding to the financial presence.
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