GSB buying into vehicle title lender

The Government Savings Bank (GSB) will allocate a 1.5-billion-baht investment sum to purchase shares of a vehicle title loan company in a bid to lower loan interest in this loan segment through market forces.

The GSB’s board of directors on Tuesday approved the bank’s plan to operate a vehicle title loan business by entering into a joint venture with a subsidiary of an SET-listed company, said Vitai Ratanakorn, GSB’s president and chief executive.

The bank will hold a 49% stake, valued at 1.5 billion baht, in the new vehicle title loan business, according to Mr Vitai.

The name of the company that the GSB is forming a joint venture with cannot be disclosed until the board of directors’ grant approval, he said, adding that further details will be disclosed today.

The GSB has two main conditions for the joint venture.

The first condition is to reduce the car title…