Intesa to put $209 mln into Hungary unit CIB

BUDAPEST, June 22 (Reuters) - CIB Bank, one of Hungary's four biggest commercial banks by assets, will increase its capital by 42.181 billion forints ($208.6 million) to 105 billion forints, it said in a statement on Monday.

A shareholder meeting decided on the hike on Friday and CIB's sole owner, Italy's Intesa Sanpaolo (ISP.MI) is entitled to buy all the new shares for 42.33 billion forints, CIB said on the Budapest bourse's www.bet.hu home page.

Intesa was one of the parents of Hungary's six largest foreign banks, who pledged in a joint statement last month to support local subsidiaries to help them weather the financial crisis, including ensuring "prudent capitalisation".

The crisis has strained the financial systems of some eastern and central European states as risk-averse investors dumped emerging market assets and recession cut the revenues of households while repayments on their foreign currency borrowing increased.

Hungary relies on International Monetary Fund-led aid of $25.1 billion, secured in October, and financing from foreign parent banks also helps maintain stability in the country's markets.

CIB said in March it would lay off 300 staff or 8 percent of its local work force. ($1=202.20 Hungarian forints) (Reporting by Sandor Peto; Editing by Greg Mahlich)