Promsvyazbank completes the acquisition of controlling stakes in Yarsotsbank and Nizhny Novgorod Bank

Promsvyazbank (PSB) has acquired 51.3% of the share capital of JSC “Yarsotsbank” (Yarsotsbank) and 85.1% of the share capital of JSC “Nizhny Novgorod Bank” (Nizhny Novgorod Bank). PSB had received the prior approval of the Central Bank of the Russian Federation for the acquisition of controlling stakes in both banks.

PSB has provided funding to both banks, in order to restore their financial solvency. At present, the liquidity at both banks is restored and operations have returned to normal.

As reported earlier, the acquisition of the stake and the financial rehabilitation measures in Nizhny Novgorod Bank were undertaken with the assistance and support from the state corporation Deposit Insurance Agency.

General Shareholders' meetings at Yarsotsbank and Nizhny Novgorod Bank, which will decide on the banks’ integration into the Banking Group Promsvyazbank, are scheduled for February-March 2009.

Preliminary agreements on the integration of Yarsotsbank and Nizhny Novgorod Bank into the Banking Group Promsvyazbank were reached in the autumn 2008.  The resolution on the establishment of the Banking Group Promsvyazbank was adopted by the PSB Annual General Shareholders' Meeting in June 2008, and was followed by the inclusion of Volgoprombank in the Group (Promsvyaz Capital B.V. holds 95.07% of Volgoprombank voting shares as of autumn 2007).

Yarsotsbank, founded in 1990, is one of the biggest banks in the Yaroslavl region. The bank’s network includes 1 branch in Rybinsk, 8 sub-branches and 2 points of sale.

Nizhny Novgorod Bank was founded in 1990. Its network consists of 10 sub-branches in the city of Nizhny Novgorod and the region.