BAAC deposits edge higher on state aid

BAAC deposits edge higher on state aid

Farmers queue at a branch of the BAAC to open savings accounts and receive aid from the government. (Photo by Somchai Poomlard)
Farmers queue at a branch of the BAAC to open savings accounts and receive aid from the government. (Photo by Somchai Poomlard)

Savings deposits at the Bank for Agriculture and Agricultural Cooperatives are edging up because of the government's relief measures during the coronavirus crisis, says a BAAC executive.

This is the first time in many years that the amount of savings deposits at the bank has steadily increased, a result of the state's 5,000-baht cash handout for three months to those affected by the outbreak, said executive vice-president Nicha Auipornrungrat.

Some farmers have yet to withdraw their cash handouts deposited at the BAAC, and there has been an increase in savings deposits by government officials as well, Mrs Nicha said.

In a move to ease the suffering of Thailand's 3 million informal workers, the government handed out 5,000 baht a month in cash from April to June.

The cash handout was intended for temporary employees, contract employees and self-employed individuals who were not otherwise covered by the social security system.

Those eligible to receive the money had to register with state-owned banks or online via the Nobody Will Be Left Behind website.

Payments were made either via direct transfers or through electronic wallet platforms such as PromptPay.

The BAAC aims to have net savings deposits of 65 billion baht, up from the existing 30 billion baht, for the fiscal year that started on April 1 and will end on March 31 next year, Mrs Nicha said.

The bank expects to be able to raise more deposits to meet its target this year, she said.

At the end of fiscal 2020, the BAAC had total deposits worth 160 billion baht, up from 55 billion baht in fiscal 2019.

In addition to savings deposits, the bank has another savings product called the BAAC savings lottery.

The bank aims to generate sales value of 100 billion baht from the latest savings lottery.

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