The state-owned Bank for Agriculture and Agricultural Cooperatives (BAAC) is waiting for a clearer trend in domestic interest rates before introducing a new batch of long-term savings products.
The delay is aimed at locking in low interest costs.
If the BAAC rushes to raise deposits by unveiling long-term savings products, it may have to shoulder higher interest costs if domestic rates fall further, executive vice-president Suraphong Nillaphan said.
Moreover, the farm bank is in no need of raising long-term deposits at the moment, as loan demand remains thin with the growing season just started.
The BAAC plans to raise 68 billion baht in deposits for its fiscal 2015 after mobilising 90 billion in deposits last fiscal year. The fiscal year begins on April 1.
The bank plans to introduce new long-term savings products soon to maintain its deposit base, but the product offerings will be less ambitious than those launched before last month's policy rate cut.
The Bank of Thailand's Monetary Policy Committee (MPC) last month unexpectedly cut its policy rate for the first time in a year — by a quarter-percentage point to 1.75% — in a bid to gain economic traction amid weakening growth prospects.
Market participants are keeping a close eye on the policy rate call scheduled for next Wednesday. Finance Minister Sommai Phasee has urged the MPC to reinforce the downward trend in interest rates by cutting the policy rate further to help turn around the economy.
In a related development, Mr Suraphong said the BAAC might launch new savings products to attract companies that practised corporate social responsibility (CSR).
The bank would set aside money to hold CSR activities in the name of depositors.
The BAAC is also one of two state-run banks offering deposits under Islamic law, the other being the Islamic Bank of Thailand.
The BAAC's Wadiah deposits have surged to 1.9 billion baht thanks to a campaign to reward lucky depositors with a haj pilgrimage.
