BAY likely to acquire HSBC retail loans pending approval

UK-based HSBC is reported to have succeeded in divesting its retail banking business here _ worth 30-40 billion baht _ to the Bank of Ayudhya (BAY).

According to a source in the banking industry, BAY is seeking approval from the Bank of Thailand to acquire HSBC's retail business.

The deal is expected to be complete early next year, said the source.

The pact is not a surprise in the banking industry as HSBC's global policy is to restructure, reducing its focus on retail banking business.



Previously HSBC Thailand reported it was continuing retail banking business as http://www.blogger.com/img/blank.gif
usual amid speculation it might sell some units for global restructuring.

HSBC's retail loan portfolio contains total debt outstanding worth 30-40 billion baht. After approval, HSBC will transfer the loan portfolio, including personal loans and around 500,000 credit cards, to BAY.

BAY's head of consumer finance, Philip Tan, refused to comment, saying the bank is unable to discuss the matter.

He stressed BAY's policy is to search for opportunities in retail business expansion to maintain market leadership in credit card and personal loan business. BAY has 4 million credit card holders, tops in the industry.

"Inorganic growth will be the bank's method of expanding in the retail banking sector, and such opportunities could occur next year," Mr Tan said