IslamicFinance.de

Islamic Bank of Thailand plans to set up an asset management team to handle its Bt48 billion in non-performing loans. The bank also plans to invite 35 financial firms to invest in the bank to restructure its business and boost its new loans, which stand at Bt30 billion. Chairman Chaiwat Utaiwan said Islamic Bank aimed to sell its 74.5% stake in the bank, the remaining stake is owned by Finance Ministry. According to its restructure plan, the bank needs new capital of Bt20 billion in order to adhere to Bank of Thailand standards. The bank has outstanding loan worth Bt95 billion.

The Finance Ministry has set up a committee to investigate the past work of former president of Islamic Bank of Thailand, Thanin Angsuwarangsi. Finance Permanent Secretary Areepong Bhoocha-oom said that the investigation will focus on employees’ petitions, which must be clarified though Thanin already resigned. Thanin's resignation after only six months in office followed employees' pressure. Over 1,400 employees signed the petition to the board, saying that a number of the president's decisions caused damage to the bank.

Thanin Angsuwarangsi has tendered his resignation as the president of Islamic Bank of Thailand, only after six months in office. The bank’s board of directors announced that his resignation has been approved. Thanin’s decision followed employees’ pressure. Over 1,400 employees signed the petition to the board, saying that a number of the president’s decisions caused damage to the bank. Among the allegations, Thanin was alleged of ordering bank executives to cancel a lending and loan disbursement procedure, which affected borrowers financially and resulted in higher non-performing loans. The employees pointed out that the bank’s NPLs rose from Bt24 billion in November 2012 to over Bt38 billion in April 2013.