Rossiyskiy Capital, which is controlled by the Deposit Insurance Agency (DIA), would wrap up the takeover of under-rehabilitation Ellips Bank within 2014, Rossiyskiy Capital management board chairman Dmitry Eropkin told journalists on Tuesday.
On Tuesday morning the Bank of Russia announced its decision to rescue Ellips Bank, which is one of the largest in the Nizhny Novgorod region. The Bank of Russia will provide the Deposit Insurance Agency (DIA) with a Rub 5.36 bln credit facility for the bank’s rehabilitation.
“The temporary administration team will work for six months. After this we’ll enter the active phase of a merger, namely Ellips Bank’s takeover by Rossiyskiy Capital. <…> The experience shows that this can be done within a year. I think there will be no problems with Ellips Bank and within 2014 we’ll turn the bank into a full-fledged branch of Rossiyskiy Capital," Eropkin said.
According to him, the operating structure of the would-be branch would change, in particular, the bank’s assets, which are presently focused on corporate clients, would be diversified in favor of households. “We’ll format it based on what we think about the operation of a future branch network," Eropkin noted, adding the rehabilitation plan would be worked out within two months.
As of October 1, 2013 Ellips Bank accumulated retail deposits for around Rub 10.93 bln. The financial institution ranks 193 in terms of assets in Russia. The bank faced difficulties while providing clients with cash in December 2013. Gennady Komissarov, head of the Nizhny Novgorod directorate of the Bank of Russia, said that in the past two weeks the bank’s clients withdrew over Rub 600 mln from deposit accounts.
