GH Bank, GSB cut rates

GH Bank and Government Savings Bank (GSB) have jumped on the ratecutting bandwagon, slashing their prime rates by 12.5-13 basis points, effective from Aug 16.

GH Bank’s new minimum lending rate (MLR) will be trimmed to 6.125% from 6.25%, the minimum overdraft rate (MOR) to 6.875% from 7% and the minimum retail rate (MRR) to 6.625% from 6.75%, according to the bank’s announcement.

The state-owned mortgage lender’s move came after the four biggest commercial banks passed on the central bank’s 25-basis-point policy rate cut almost in full, chopping their MRR and MOR but keeping MLR steady.

GH Bank’s rate cut is aimed at alleviating the burden on customers and the public and boosting economic growth, said president Chatchai Sirilai.

After the rate reduction, the bank’s mortgage rate will be the lowest among industry peers, he said.

GSB cut its MOR and MRR by 0.13 percentage points to the same rate at 6.87%. The bank’s MLR remains unchanged.

Kasikornbank, Krungthai Bank and Bangkok Bank cut their MOR and MRR by 25 basis points, while Siam Commercial Bank lowered its MRR by 25 basis points but trimmed its MOR by a smaller amount of 12.5 basis points.

The Bank of Thailand’s rate-setting panel last week unexpectedly cut the benchmark rate to 1.50% from 1.75% to shore up the country’s tepid economic growth.

Apart from spurring the economy, the benchmark rate cut could lessen the baht’s shine in attracting offshore funds, given the lower return.