Mar. 3--Despite the global economic crisis, Siam City Bank hopes to attract a foreign partner at a "good price", according to bank president Chaiwat Utaiwan.

"Thailand's banking industry has not been really impacted by the global financial crisis. We are one of not many countries that can say this," he said.

"Several foreign investors have expressed interest in investing in the bank as a strategic partner, including ScotiaBank. But we've stopped talks with the global crisis and are just waiting to see how the situation ends."

Mr Chaiwat said recent mergers and acquisitions in the sector had come at relatively good prices, a testament to the health of Thai banks.

Canada's ScotiaBank recently raised its stake in Thanachart Bank to 49 percent in a deal priced at 1.5 times the Thai bank's book value. The ING Group, meanwhile, paid 2.6 times book for its 30 percent shareholding in TMB Bank, while Malaysia's CIMB Group paid 2.9 times for a majority shareholding in BankThai.

The central bank's Financial Institutions Development Fund is soliciting bids for the 47.85 percent stake it holds in Siam City Bank. Phatra Securities and Merrill Lynch Securities are financial advisors for the sale.

Mr Chaiwat said SCIB now had a book value of 19.26 baht per share. SCIB will also issue new debentures to raise its tier-two capital.

SCIB has a capital adequacy ratio of 11.73 percent, of which 10.95 percentage points is tier-one capital or equity. The Bank of Thailand requires banks to maintain a ratio of at least 8.5 percent.

The bank reported 2008 profits of 4.1 billion baht, compared with losses of 2 billion in 2007, largely attributed to lower provisioning expenses.

Credit advances at the end of 2008 were 263.3 billion baht, with net assets of 415 billion.

Mr Chaiwat said political uncertainties last year also affected the bank's efforts to bring in a partner.

SCIB yesterday meanwhile announced a partnership with American International Assurance, the country's largest life insurer, to offer bancassurance services. The bank will offer two AIA products through its 407 branches.

Shares of SCIB closed yesterday on the Stock Exchange of Thailand at 7.2 baht, down 30 satang, in trade worth 7.7 million baht.

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