Although Banthoon Lamsam's resignation from all management roles and the board at his family-run Kasikornbank (KBank), effective April 3, stunned the banking industry, the market believes that the 75-year-old bank will remain calm amid serious challenges from the coronavirus pandemic and digital disruption.
Mr Banthoon, who took over the top job from his father Bancha 28 years ago, has paved the way for his departure for years by appointing four co-presidents to oversee business. Kattiya Indaravijaya, who is one of the four, has been his successor as chief executive and marked the bank's first leader outside the Lamsam family.
Handing over the reins to non-family member was not a surprise. Mr Banthoon had occasionally said that a commercial bank listed on the stock market should not be a family business, so KBank's next leader need not be someone from the same clan.
A source in banking circles said the 67-year-old banker's resignation was consistent with his life's timeline, which has been planned for many years.
Mr Banthoon's stepping down as KBank chief executive and chairman could be due to a desire to dedicate more time to his philanthropy, particularly in Nan province, where he has played a large role in preserving and rehabilitating forests.
He initiated the social project called the Nan model in 2009. The project's original aim was to preserve forests in Nan province, but its objectives were later extended to the improvement of people's lives and coexistence with the forests.
Tanadech Rungsrithananon, an analyst at UOB Kay Hian Securities Thailand, said the succession plan has been in the making for several years, and such a transition will have little impact on the bank, given that it is ahead of the industry's curve in adapting to the digital world and its capital is ample to cushion against economic shocks.
Ms Kattiya has extensive experience in banking industry, he said, and at age 50 still has a long time to run the bank.
"The current difficult situation amid the economic downturn and the pandemic is the key challenge for the new CEO, but all executives from all corners of the world also face the same challenge," Mr Tanadech said. "Sound fundamentals and strong teamwork will support KBank's business operations to overcome the difficulties.
"Without a management position at the bank, he [Mr Banthoon] can contribute to something that he wants because there is no question about conflict of interest anymore. He could have anything else to do in the social area."
Throughout his 40-year working career at KBank, Mr Banthoon made his mark in the banking industry.
Pushed by Mr Banthoon, KBank in 1994 pioneered a re-engineering strategy that changed the landscape of front office service and prompted other banks to followed suit.
His main achievement was steering the bank through the 1997 financial crisis that wiped out scores of financial institutions in Thailand, though the Lamsam family's shareholdings, in turn, were diluted to below 10%.
KBank is now the country's largest lender with assets of 3.29 billion baht at the end of last year and the biggest mobile banking service provider with more than 10 million users.
Another source close to KBank's former chief said that it was Mr Banthoon's intention to step down when he turned 67 or 68.
Despite his resignation from executive positions, Mr Banthoon will still support the bank as an adviser, particularly for sustainable growth, the source said.
KBank is a signatory to the UN Principles for Responsible Banking of the United Nations Environmental Program Finance Initiative, or UNEP FI. It is the first and only Thai bank to join more than 170 banks worldwide in signing the principles.
The UNEP FI provide the framework for a sustainable banking system and align the banking industry with society's goals as expressed in the UN Sustainable Development Goals and the Paris Agreement on Climate Change.
The philosophy of sustainable development is instilled in all of the bank's operations as part of its Green DNA, ensuring maximum benefit for all stakeholders and paving the way for sustainable growth, Mr Banthoon has said.
Mr Banthoon, who has been named by the bank's board as chairman emeritus, is expected to take a full-time role in the Nan project after leaving KBank.
He told reporters at his 60th birthday celebration held at his home in Nan province that he would stay there for the rest of his life.
Without Nan, life would be very boring, he said, adding that he wanted to do meaningful things there.