Russian VTB Bank is going to put additional resources into the capital equity of its subsidiary in Kazakhstan. The procedure will be finished once all the legal requirements are implemented, the bank said.
VTB Bank Kazakhstan is going to use this money to increase its capital equity. This is necessary to meet the legal requirements of the regulator in Kazakhstan before any expansion of the banking activity in the country. However, the bank is reluctant to reveal the exact amount of the capital increase.
According to Dmitry Zabello, head of the VTB Kazakhstan, the Russian stakeholder does not doubt the bank and is ready to support it.
«We have a clear vision of the way VTB can develop its business in Kazakhstan and currently we are transforming our business model. The capital increase will let the bank improve the sustainability of its business. This is necessary to implement all those tasks we and our shareholders have defined,» he said.
VTB Bank JSC (Kazakhstan) is a part of the international financial group VTB. The only stakeholder of the bank is Bank VTB (PAO) in Moscow, Russia. In February 2022, the bank became a subject of international financial sanctions. They have been imposed due to the Russian invasion of Ukraine.
In March, VTB Kazakhstan said that it is not going to leave the country unless the shareholder takes such a decision. At the same time, the bank noted that the group has not stopped providing its financial support to the bank. That is proof that the group sets a high value on our bank, Zabello said at that time.
Also, in March VTB Group confirmed its plan to support its subsidiary in Kazakhstan and provide it with additional financial resources.