Russia VTB says second share issue may be needed

MOSCOW, June 29 (Reuters) - Russia's second largest lender, state-run VTB (VTBR.MM), which is planning to issue shares in October to top up capital, may require a second issue next year if the economy worsens, its chief financial officer said on Monday.

"It is hard to estimate the size of provisions for 2010. If we see improvements in the market, there won't be any need (for additional capital)," CFO Nikolai Tsekhomsky told the bank's annual meeting.

"If the situation worsens then we don't exclude a new share issue."

He said the bank had no more use for subordinated loans as it was in need of Tier 1 capital. (Reporting by Dmitry Sergeyev; writing by Melissa Akin; editing by Dmitry Zhdannikov)