Thai banks KTB and SCB raise rates

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Thai banks KTB and SCB raise rates 
The Nation: 4 Dec 2010
KTB, SCB raise interest rates

Krung Thai Bank (KTB) and Siam Commercial Bank (SCB) raised their lending and deposit interest rates yesterday after the Bank of Thailand increased its policy interest rate.

Both banks' new rates come into effect today.

The central bank on Wednesday unexpectedly hiked the one-day bond repurchase rate by a quarter of a percentage point to 2.00 per cent per annum, boosting borrowing costs.

The country's second-largest lender, state-run KTB, increased its lending rates by 0.125 percentage point and its fixed deposit rates in the range of 0.15-0.45 point. SCB, the country's third-largest lender, raised its lending rates by a range of 0.12-0.15 percentage point, while its deposit rates on fixed accounts and promissory notes increased by as much as 0.40 percentage point.

"The rates were increased in response to the authorities' monetary policy. The bank increased rates of both lending and of all fixed deposits accounts and promissory notes," said SCB president Kannikar Chalitaporn.

After the rate rises, SCB's minimum lending rate stands at 6.12 per cent per annum, the minimum overdraft rate at 6.40 per cent and the minimum retail rate at 6.65 per cent.

SCB's rates for three-month fixed deposits stay in the range of 1-1.25 per cent per annum and those for six-month fixed deposits in the range of 1.25-1.45 per cent. The bank's rates on 12-month fixed deposits are in the range of 1.40-1.65 per cent, those for 24-month fixed deposits at 2.25-2.50 per cent and those for 36-month fixed deposit at 2.65 per cent.

In a separate statement, KTB said it would offer hybrid debentures worth no more than Bt9 billion to the general public. Its fixed coupon is 5.5 per cent. The bond will be offered at a par value of Bt1,000 per unit. The subscription period is scheduled for December 14-16.

http://www.nationmultimedia.com/2010/12/04/business/KTB-SCB-raise-interest-rates-30143764.html