Russian Post, through its subsidiary, has purchased 50% minus one share in the future Post Bank. The deal received approval from the Central Bank, the Federal Antimonopoly Service and the Ministry of Communications and Mass Communications of the Russian Federation.
The new bank will carry out the operation through the branches of Russian Post, which has around 42,000 offices across the country.
The bank is expected to begin the operations in the first quarter of this year.
Around 20,000 Post bank windows are planned in 15,000 post offices in the first three years of operation, while around 65,000 windows will be opened in 3,500 post offices in this year.
Russian Post general director Dmitry Strashnov stated that creating Post Bank is an opportunity to bolster accessibility of financial services to people. It is also a feasible way to attract funds that people have has cash.
VTB 24 president and chairman Mikhail Zadornov said that Russian Post has the largest branch network in the country and several years of experience in providing financial services.
"With the establishment of Post Bank, these services will be transformed into a modern banking format."
While VTB will be able to widen its customer base and the number of points of sales, and the Russian Post would be able to raise additional funds for modernization and development of its infrastructure.
Image: VTB 24 and Russian Post to open a new retail bank. Photo: courtesy of Stuart Miles / FreeDigitalPhotos.net.
