5 Apr 2010 11:49

Promsvyazbank merges Volgoprombank and Nizhny Novgorod Bank

MOSCOW. April 5 (Interfax) - Promsvyazbank has decided to reorganize its subsidiary banks OJSC Volgoprombank and OJSC Nizhny Novgorod Bank through a merger with the parent bank, Promsvyazbank said in a statement.

The statement said that the necessary decision was made at an extraordinary shareholder meeting on April 2.

A decision was also made to confirm the new version of the bank's charter.

Volgoprombank and Nizhny Novgorod Bank joined the Promsvyazbank group in 2008. The acquisition of the former bank was completed in autumn 2007 as part of Promsvyazbank's regional development strategy. Nizhny Novgorod Bank was acquired in autumn 2008 following that bank's financial bailout.

Promsvyazbank was 10th largest Russian bank by assets at the end of 2009 according to the Interfax-100 rating, Volgoprombank came 292nd and Nizhny Novgorod Bank placed 311th.

According to the ranking, as of January 1, 2010, Promsvyazbank's assets came to 461.6 billion rubles with capital standing at 31.9 billion rubles.

Volgoprombank's assets came to 5 billion rubles with equity standing at 1.5 billion rubles. Nizhny Novgorod Bank's assets and equity came to 4.4 billion rubles and 381.4 million rubles, respectively.