Bangkok Bank (BBL) aims to expand its Indian customer base throughout Thailand and its Southeast Asia network to capitalize on the increasing outbound investments from India.
Chaiyarit Anuchitworawong, senior executive vice president at BBL, noted that Indian outbound investments in the region are on the rise, driven by the strong growth potential of both Indian and Southeast Asian economies.
As a regional bank, BBL is enhancing its international loan portfolio through offshore clients, particularly in Thailand, Indonesia, Hong Kong, and China, he stated.
Although BBL lacks a physical presence in India, its regional network is well-positioned to serve Indian customers and generate revenue from this segment.
In Thailand, foreign investors primarily target the petrochemical and garment sectors, while BBL’s overseas client base and business exposure continue to expand, according to Mr. Chaiyarit.
“We have a keen interest in India and have been exploring the market for some time, given its robust economic growth of approximately 7-8% per year,” he remarked.
While BBL serves Indian clients in Thailand, it has not yet committed to establishing a branch in India.
If the bank chooses to expand into India, it will likely start with a representative office to gradually establish its presence in the market, Mr. Chaiyarit explained.
In the coming years, BBL plans to concentrate its international banking operations on Indonesia and Vietnam due to their high growth potential and strong foreign direct investment trends.
Additionally, the bank anticipates positive trends in the Philippines, Cambodia, and Laos.
However, Mr. Chaiyarit mentioned that BBL will reduce its growth in China over the next year or two in light of the current economic climate.
This adjustment represents a rebalancing of its portfolio, but BBL intends to maintain its existing international banking business proportions in the upcoming years.
As Thailand’s largest lender by total assets, BBL leads the industry in international banking, with 25% of its total loan portfolio attributed to international business, 12% of which originates from Indonesia.
BBL also holds a 98.71% stake in Indonesia’s Bank Permata.
Another senior executive vice president at BBL, Kobsak Pootrakool, highlighted that China recorded only 0.3% year-on-year import growth in September, indicating weaker demand and purchasing power.
The rise in non-performing loans signals economic risks for China, with businesses anticipating government intervention to address bad debt, which could prove pivotal for the nation’s economy, he added.
Mr. Kobsak also noted that the impact of US-China tensions and conflicts in the Middle East, Ukraine, and Taiwan, especially in the final quarter of 2024 and into 2025 following the US presidential election, could influence the Chinese economy.
Long-term changes in the global economic landscape are anticipated, he stated.
Looking ahead, China is projected to surpass the US as the world’s largest economy, with India and Southeast Asia expected to rise to the third and fourth positions, respectively, within the next 20 years, according to Mr. Kobsak.
