Thailand
Bank of Ayodhya (Krungsiri) sees potential in regional markets, especially Cambodia
Bank of Ayudhya (BAY), branded as Krungsri, is focusing on regional markets for its medium-term business plan as it seeks S-curve growth.
In Asean, Krungsri has a presence in Cambodia, Laos, Myanmar, Vietnam, the Philippines and Indonesia under different business models and strategies.
Krungsri is Thailand’s fifth-largest commercial lender by total assets, has conducted its next-phase business plan for 2021-23 using strategic agility and sustainability to cope with new norms and megatrends in the post-pandemic period.
The economic and banking landscape worldwide will change significantly with the pandemic, and one megatrend is the shift from globalisation to regionalisation, said Pairote Cheunkrut, Krungsri’s chief strategy officer.
The bank has expanded into Asean markets in the past three years under a collaboration with Japanese major shareholder Mitsubishi UFJ Financial Group (MUFG).
Amid continuing coronavirus outbreaks, the bank has maintained its existing business plan and adjusted some strategies in line with changing circumstances, Mr Pairote said. But regional business is still a key strength and offers greater opportunities for the bank’s megatrend vision.
“With the high growth potential of Asean economies, global megatrends, including the Japanese supply chain and investment base, could shift more towards the region in the post-pandemic period,” Mr Pairote said.
“Therefore, the Asean market could be Krungsri’s new S-curve growth.”
The bank has yet to complete its business plan for the next three years, with about 40% of the plan still to be finalised.
Apart from the focus on regional markets, digitalisation is a key area contributing to new business growth in the digital age, Mr Pairote said.
Digital services and products will serve every customer segment of the bank, including retail, small and medium-sized enterprises, wholesale and Japanese corporate banking, and multinational companies.
About 6.3 million users under Krungsri Group are on the mobile banking platform. The bank will continue to adopt digital infrastructure and systems to improve business potential, reduce operating cost and generate higher revenue, Mr Pairote said.
Krungsri will pay further attention to risk management for the next three years. Under the existing cushion with a coverage rate of 166% and non-performing loans at 2.2% of total outstanding loans, the bank expects to handle higher risks and limit the bad-debt ratio to 2.5% by year-end. https://www.bangkokpost.com/business/1995863/bay-sees-potential-in-regional-markets