Otkritie Takes Over A Bank

Investment bank Otkritie said Thursday that it had agreed to buy 100 percent of Russky Bank Razvitia and that it would take on all of the lender's obligations.

The deal will result in a financial holding with assets worth more than 100 billion rubles ($3.7 billion), Otkritie said in a statement, without disclosing the terms of the agreement. The acquisition was backed by the Central Bank and the Deposit Insurance Agency, the statement said.

The purchase is the latest in a series of mergers and buyouts in the country's banking sector as it struggles to cope with the liquidity crisis.

Russky Bank Razvitia -- ranked by Interfax as the country's 78th-largest bank, with assets of 34.8 billion rubles -- said Oct. 31 that it would "in the near future" eliminate payment delays caused by "the current financial situation."

The bank has 25 branches in Moscow and 16 regional offices.

Otkritie plans eventually to "fully integrate" Russky Bank Razvitia, which will operate under the Otkritie brand, chief executive Vadim Belyayev said.

"The entrance of Russky Bank Razvitia into financial corporation Otkritie will give a new impulse to the development of the bank. All of its obligations to depositors and corporate clients will be met," Otrkirtie chairman Boris Mintz said in the statement.

Otkritie financial director Vitaly Milke will be appointed to head Russky Bank Razvitia's board, it said.