January 28, 2016 / 12:26 PM / 3 years ago

Russia's VTB launches new bank with Russian Post

MOSCOW, Jan 28 (Reuters) - Russia’s second-largest bank VTB on Thursday launched Postal Bank, a joint venture with state-run Russian Post, and said it wanted to start accepting deposits and giving out loans at 3,500 postal branches this year.

As part of launching the bank, VTB will sell 50 percent minus one share of its subsidiary Leto Bank to Russian Post for 5.5 billion roubles ($71.9 million), VTB 24 head Mikhail Zadornov told a news conference.

Zadornov, a former finance minister, said VTB would invest around 16-20 billion roubles in Postal Bank, although that figure could be amended.

VTB said in September it could invest 16 billion roubles in the project.

Zadornov added that Postal Bank could break even in 2016 and that VTB wanted the project to attract at least 15 million new clients over eight years. ($1 = 76.4750 roubles) (Reporting by Oksana Kobzeva; Writing by Alexander Winning, editing by Jason Bush)

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