Malaysian Investors Among Potential Partners for Islamic Bank of Thailand

By Mohd Haikal Mohd Isa BANGKOK, Aug 4 (Bernama) – An Islamic fund and a commercial bank from Malaysia are said to be among the potential investors to enter into a partnership with the Islamic Bank of Thailand. Local English daily, The Nation, in its report Friday, said the unnamed Malaysian investors were among four parties currently in talks with the state-owned bank. Another daily, Bangkok Post, said the bank, which has been asked by the government to accelerate its efforts to find suitable partners, was negotiating with three potential suitors. "The bank's executives have reported (to the State Enterprises Policy Commission) that it was in talks with three potential partners, but are unable to disclose names at this point as some were listed companies. "What we can reveal now is that they are local and foreign investors," said the Director of State Enterprise Policy Office Ekniti Nitithanprapas. Thursday, Prime Minister, General Prayut Chan-o-cha, instructed the loss-making Islamic Bank of Thailand to complete its long-delayed efforts in finding suitable partners by year-end. He called upon the bank's executives to accelerate talks and seal the deal within the stipulated deadline. Finding a new partner for the beleaguered bank was crucial in its rehabilitation plan prescribed by the State Enterprises Policy Commission, as the loss-making bank was saddled with high non-performing financing and accumulated losses, quoted a local media. Efforts to find a partner for the bank hit a snag previously, as potential suitors requested the bank to finish recapitalising and raise its capital adequacy ratio to be in line with the 8.5 per cent minimum requirement of Bank of Thailand. The Finance Ministry holds a 48.5 per cent stake in the bank, with the Government Savings Bank owning 39.8 per cent and Krungthai Bank 9.83 per cent. Other shareholders hold less than two per cent stake in the bank. -- BERNAMA