1998 - 1999 Weathering the Storm

In 1997 the Asian Financial Crisis hits Thailand and the region. Siam Commercial Bank found its NPL, figure rising from 4.9 percent in 1995 to 42.4 percent in 1998. Some poor-quality loans were from troubled accounts and others derived from new and stricter loan classifications announced by the Bank of Thailand. This was a difficult period for the Bank, which implemented several measures to deal with its most pressing problems. The Bank decided to sell new shares to existing shareholders and overseas investors.

In 1999, SCB's issue of shares offered between 31 March and 10 May is oversubscribed and, with matching funds from the Thai government per its economic recovery measure of 14 August 1998, raises capital amounting to 65 billion baht. SCB is the first Thai commercial bank to have successfully recapitalised by selling preferred stock, and the capital raised is the largest in Thailand and Asia (excluding Japan).

With the robust capital fund and strong investor base, Siam Commercial Bank had survived the crisis and was primed to stride on toward future greatness.