Moscow’s PROBUSINESSBANK has selected a third Russia’s region for expansion. The Moscow bank has chosen IVANOVO REGIONAL BANK owned by local authorities. The deal is evaluated at R55 million. Local authorities are very delighted not only to strike a favourable deal but also have new partner for other projects. The Ivanovo bank is to continue operations under its present brand. In the long term, the bank which now acts as limited liability company will be reorganised as a joint-stock company, with at least 10% of shares to be transferred to the regional administration.

According to the INTERFAX CEA economic analysis centre, as of October 1, 2006, PROBUSINESSBANK had R20.9 billion in assets, ranking 65th among Russian banks, and R1.8b in capital (87th). The PROBUSINESSBANK group unifies the Yekaterinburg VUZ BANK and the Saratov EXPRESS VOLGA bank. Four bank managers are beneficial owners of 99% of shares. Third-quarter assets and capital of IVANOVO REGIONAL BANK stood at R348.7m (751st) and R63.3m (753rd), respectively. More than 87% of its capital is controlled by the Ivanovo regional government.

Source: VEDOMOSTI, November 14, 2006