Reuters: Hot Stocks: STOCKS NEWS THAILAND-Banks up after cabinet delays cut in deposit protection limit

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STOCKS NEWS THAILAND-Banks up after cabinet delays cut in deposit protection limit Jun 27th 2012, 05:57 Wed Jun 27, 2012 1:57am EDT Banking shares climbed 2 percent to one-week high after the cabinet's decision to postpone a plan to reduce the amount of deposit protection helped ease concerns of rising competition in fundraising and pressure on profit margins. At the midsession break of 0530 GMT, the bank subindex was up 2 percent, led by a 2.8 percent gain to 145 baht ($4.56) by Siam Commercial Bank Pcl and a 2.6 percent rise to 29.25 baht by Bank of Ayudhya Pcl. Maybank Kim Eng Securities said the move was positive for liquidity of Thai banks and their deposit transaction costs as they would enjoy lower funding costs and can avoid raising funds through bond issuance. "The smaller banks are expected to receive a higher benefit than the big banks as they have many under 1 million baht deposit accounts," the broker said in a report. The cabinet decided on Tuesday to keep the deposit guarantee limit at 50 million baht ($1.57 million) per person per bank for three more years, putting off a plan to cut the amount to 1 million baht per customer per bank starting August 11. (Reporting by Viparat Jantraprap in Bangkok; viparat.jantraprapaweth@thomsonreuters.com)

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