KOMMERSANT. Moscow-based SB Bank, which ranks 90th by assets among Russian banks, bought into Buryatia-based BaikalBank, a source familiar with the course of the transaction told Kommersant business daily, and SB Bank confirmed this.
“In May following an additional share issue we acquired over 19% of BaikalBank," said SB Bank management board member Andrey Egorov noting that the acquisition of a controlling stake is part of the bank’s interests. Based on the stock placement price of Rub 67.00 apiece and the amount of the additional share issue (1.2 mln shares), the transaction price equaled roughly Rub 80 mln, the newspaper calculated on the basis of data disclosed on the bank’s web site.
According to Egorov, BaikalBank is an alluring asset as the bank is No. 1 in the Republic of Buryatia with a broad network (according to the Bank of Russia, the bank operates 3 branches, 21 additional offices, 13 operating offices and 2 operating cash desks). BaikalBank has a transparent business model as primary liabilities are retail deposits (Rub 4.66 bln, nearly 60% of the obligations), and assets involve credits granted to households and regional concerns, he pointed out. BaikalBank’s acquisition could enable SB Bank to enter a new region. Apart from the bank and its divisions only branches of ten federal banks do business in the Republic of Buryatia.
A trend when regional banks decrease in number has been since 2010. In May 2010, as the Bank of Russia’s reports showed, there was only one regional bank in 5 of 83 regions, and there was not a single regional bank in 5 constituent entities of Russia. As of May 2012 as many as seven constituent entities of Russia have one regional bank, and seven regions have no regional bank at all.
