Chatchai Payuhanaveechai, an executive vice-president of Kasikornbank (KBank), has been appointed president of the Government Savings Bank (GSB).
He takes over from Worawit Chailimpamontri, who resigned from the state-owned bank in March to take responsibility for the bank's controversial decision to extend a 5-billion-baht loan to the Bank for Agriculture and Agricultural Cooperatives (BAAC).
Chatchai: Matches GSB's mission
The loan, which the BAAC was to use to help finance overdue payments to farmers under the rice-pledging scheme, triggered strong public outcry and a temporary deposit run of 110 billion baht at the GSB.
The GSB board picked Mr Chatchai because he has shown good leadership and outstanding vision, the latter matching the bank's mission, said Somchai Sujjapongse, GSB's chairman of the board.
"Even though he is an outsider, he is expected to be able to rein in the bank. I don't know Mr Chatchai personally, but I think he is the right man," Mr Somchai said.
The GSB's selection committee nominated Mr Chatchai as the sole candidate for the bank's top post.
Eight applicants vied for the presidency, and half of them had been chosen to present their visions.
The other three besides Mr Chatchai were GSB acting president and first senior executive vice-president Tachaphol Kanjanakul, GSB senior executive vice-president Pisit Serewiwattana and Krungthai's senior executive vice-president Parinya Patanaphakdee.
The bank's remuneration committee will discuss with Mr Chatchai about his salary and benefits today before forwarding the details to the Finance Ministry for final approval, Mr Somchai said.
The GSB's designated president is expected to start work in mid-November.
Mr Somchai recently said the bank's new president must push the GSB to achieve its original mission to offer individuals and small and medium-sized entrepreneurs easier access to financial sources.
The bank's target customers must be individuals and they must dominate the bank's lending and deposit portfolio at 90%. The GSB should not compete with commercial banks by focusing on wholesale business.
Mr Chatchai started working in KBank's business development department in 1983.