MUFJ makes a play for Thailand's Bank of Ayudhya

Japan’s largest banking group intends to take over Thailand’s fifth largest bank.

Mitsubishi UFJ Financial Group Inc has entered exclusive talks with GE Capital to buy its 25% stake in Bank of Ayudhya but red tape is extending negotiations. Sources said MUFJ and GE Capital have signed a memorandum of understanding.

MUFJ is bent on expanding overseas since loan demand at home remains sluggish following two decades of economic stagnation. The Thai banking sector is one of the fastest-growing in Asia due to loan growth, healthy spreads between banks' funding costs and lending rates.