Kasikornbank (KBank) is encouraging its customers to raise cash through infrastructure funds and newly approved real estate investment trusts (REITs) instead of borrowing from banks, which incurs higher costs.
The country's fourth-largest lender by assets expects to help raise a combined 10 billion baht in fresh funds for its customers by setting up two infrastructure funds this year, said executive vice-president Vasin Vanichvoranun.
He said one of its customers also plans to set up a REIT in the second half of this year, pending clear regulations by the Securities and Exchange Commission.
The move will strengthen the bank's fee-based revenue.
"Fee-based income contributed 45% of our corporate banking revenue last year, and we'll maintain that ratio this year," Mr Vasin said.
Transactional banking is another key area to support the bank's fee income, especially through electronic and online channels in line with the country's growing internet access and smartphone use.
KBank plans to increase its fee income by 20% for cash and liquidity management this year by improving electronic transaction services.
It projects corporate loans will grow by 4-6% this year despite the marginal 2% year-on-year growth rate to 426 billion baht in the first quarter.