As a source close to a deal to sell Absolut Bank told Banki.ru, the buyers needed a strong bank, which may be used to roll out retail operations so that the merger with KIT Finance will lead to the formation of a large universal lending institution. Absolut Bank eventually became an asset of this kind.
For the record, the media wired on Monday that Belgian group KBC is to sell Absolut Bank to private pension fund Blagosostoyanie for €300 mln.
According to a source, both banks are planned to fully merge under the ABsolut Bank brand by mid-2014.
KIT Finance, which ended up on the books of Russian Railways at the end of 2008, is close to completing its rehabilitation program. For the record, in September 2009 the Deposit Insurance Agency (DIA) provided Rub 46 bln for a term of three years to rehabilitate KIT Finance. The bank received Rub 22 bln as a loan from Russian Railways. The bank was assigned to private pension fund Blagosostoyanie, which increased its capital and launched rehabilitation activities. KIT Finance fulfilled its obligations to the Deposit Insurance Agency (DIA) ahead of schedule a year ago.
