Russia’s state-controlled bank Sberbank intends to add 300 million euros to Volksbank International (VBI) this year to recapitalize its newly acquired Austrian asset, Austria’s Der Standard newspaper reported, quoting VBI Board Chairman Friedhelm Boschert.
The bank’s recapitalization will help Sberbank develop its business in Central and Eastern Europe and Austria.
Sberbank acquired 100 percent of Volksbank International (VBI), an Eastern European subsidiary of Austria's Oesterreichische Volksbanken AG banking group, for 505 million euros in early 2012 in order to further expand into Europe.
Excluding VB Romania, VBI has 295 branches and over 600,000 clients. VBI’s subsidiaries are within the top ten financial institutions by total assets in Bosnia and Herzegovina, Croatia, the Czech Republic, and Slovakia, and within the top 15 financial institutions by total assets in Hungary, Serbia and Slovenia.
Sberbank plans to develop VBI as a banking institution to provide services to corporate customers, which requires permission from the Austrian regulator.