Krung Thai Bank expects 2009 lending up 5 pct

BANGKOK, Dec 24 (Reuters) - Krung Thai Bank KTB.BK, Thailand's second biggest lender, on Wednesday forecast 2009 loan growth of 5 percent, down from the 8-9 percent increase expected for this year, due to a slowdown in economic growth.

The state-run bank expected demand for loans from big companies, which would seek funding in domestic markets rather than in overseas markets hit by global financial crisis, Krung Thai President Apisak Tantivorawong told reporters.

"Companies which sought loans from aboard in the past should turn to seek domestic markets," Apisak said adding the 2009 loan growth target was in line with projected overall economic growth.

The government has cut its 2009 economic growth forecast to between zero and 2 percent due mainly to a global economic slowdown that is likely to get worst next year. [ID:nBKK160411]

Loan growth is normally 4-5 times higher than the country's economic growth.

Krung Thai Bank's loan growth target is in line with other major banks. Earlier this month, top lender Bangkok Bank BBL.BK said it expected 5 percent growth in lending next year, while third-ranked Kasikornbank KBAN.BK also expected the same rate.

At 0820 GMT, Krung Thai Bank were up 2.6 percent at 3.94 baht, while the main Thai index .SETI was down 0.1 percent. (Reporting by Manunphattr Dhanananphorn; Writing by Khettiya Jittapong; Editing by Lincoln Feast)