Thailand's second-biggest lender Kasikornbank Public Company Limited (SET:KBANK) is in talks to buy consumer finance provider Home Credit Vietnam Finance Company Limited in a deal of up to $1 billion that would further its push to expand in Vietnam, two sources said. The news comes at a time when Vietnamese banks are under pressure as a slowing economy and protracted turmoil in the real estate sector have stoked an uptick in bad loans and triggered broad rate cuts. A potential deal would underscore a trend of consolidations in Asia's finance sector and make KBank's the second-largest M&A transaction in Vietnam's financial industry this year after the sale of a $1.5 billion stake in Vietnam Prosperity Joint Stock Commercial Bank (VPB.HM) to Japan's Sumitomo Mitsui (8316.T) in March, according to Refinitiv data.

KBank has talked to financial advisors to explore the potential acquisition, according to the two sources, although deliberations are still ongoing and no final decision has been made. The sources declined to be named as the matter is private. KBank and Home Credit Group did not respond to Reuters' requests for comments.