Kasikornbank (KBank) has spent 1.2 billion baht to open a full-service branch in Vientiane, its first in another Asean member, after receiving a licence from the Laotian central bank.
The move is part of preparations ahead of greater business opportunities expected under the Asean Economic Community due to kick off late next year.
The bank on Thursday announced the establishment of Kasikornbank Ltd (KBank in Lao PDR), located in Vientiane with registered capital of 1.2 billion baht, meeting the US$40-million requirement of the Bank of the Lao PDR.
KBank owns 90% of the subsidiary, while the other 10% is owned by another financial subsidiary, Kasikorn Asset Management.
Predee Daochai, president of the parent company, said KBank in Laos offered a full range of financial services, the same as local banks, to both Thai and local clients in the commercial and wealth customer segments.
The neighbouring subsidiary will focus on transactional banking areas, particularly trade finance, cash management and investment banking.
It already supports project finance for large Thai corporations investing in Laos, particularly in the energy sector.
Local high-net-worth clients also receive wealth management services at KBank's border branches. Mr Predee said that meant greater opportunities for expansion in the neighbour thanks to both existing and new customers.
"We also have a Wisdom Lounge in KBank Laos offering wealthy customers greater convenience, the same as they would enjoy here in Thailand. Normally, these clients would need to fly here to receive the same level of service," he said.
KBank's Wisdom Service customers, be they Thai or Laotian, must have minimum assets under KBank management of 10 million baht.
Mr Predee said KBank also planned to upgrade its representative office in Cambodia to become its second international branch in Asean.
Elsewhere in the region, it also has two representative offices in Vietnam and one in Myanmar. KBank stands ready to upgrade these to full branches once it is allowed to do so under the regulations of each country.
It recently applied for a branch licence from the Central Bank of Myanmar, but so far Bangkok Bank is the only Thai institution to receive one there.
KBANK shares closed yesterday on the Stock Exchange of Thailand at 238 baht, up one baht, in trade worth 710 million baht.