Promsvyazbank completes merger with Moscow Industrial Bank

MOSCOW. May 3 (Interfax) - Promsvyazbank (PSB) completed the merger with Moscow Industrial Bank (MINB) on May 1, according to the Unified State Register of Legal Entities.

"All of MINB's clients will be transferred to PSB services," Promsvyazbank's website said.

The Central Bank reported last year that PSB would incorporate MINB prior to May 2023. The reorganization was then completed as planned.

The regulator designated MINB for bailout in January 2019 due to the credit institution's inability to overcome the financial difficulties it has faced on its own over the past few years. Then in 2020, the Central Bank decided to transfer MINB to Promsvyazbank.

In 2021, a special law was passed prescribing the procedure for MINB's transfer to PSB. In accordance with it, the Central Bank contributed 100% of the shares of MINB as an asset contribution to the property of the Deposit Insurance Agency (DIA) at a price of 1 ruble, and then the shares would be transferred to the Russian state treasury. In November 2022, the government decided to transfer the shares of MINB into the charter capital of PSB, and the process was completed in January.

Promsvyazbank is owned by the state through the Federal Property Management Agency. A bank for servicing major government contracts and state defense orders has been created on the basis of PSB. At the end of 2021, PSB was the 6th largest bank in terms of assets in the Interfax-100 ranking prepared by Interfax-CEA.