Thailand's Kasikornbank gets approval for $40 mln stake in Myanmar lender

BANGKOK, April 11 (Reuters) - Thailand’s Kasikornbank said on Saturday it plans to invest up to $40 million in a 35% stake in Myanmar’s Ayeyarwaddy Farmers Development Bank after receiving approval from Myanmar’s central bank.

Kasikornbank, the country’s No. 2 bank by market capitalisation, said in a statement the investment will be done through its unit Kasikorn Vision, which has a budget of 14 billion baht ($428 million) for overseas business opportunities.

Thai banks, grappling with sluggish economic growth in a crowded home market, have been keen to expand abroad.

On Friday, Siam Commercial Bank said it was looking to issue loans worth up to 7 billion baht over the next five years in Myanmar after receiving a preliminary approval to set up a subsidiary there.

Rival Bangkok Bank took a controlling stake in Indonesia’s PT Bank Permata for $2.7 billion in December last year. ($1 = 32.71 baht) (Reporting by Orathai Sriring; Editing by Edwina Gibbs)