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28 Jan, 2016 15:04

Russian Post launches bank with VTB

Russian Post launches bank with VTB

Russian Post and state-owned VTB-24 have signed a deal to create a new bank. The Post Bank will start working at post offices around the country in March 2016.

"If we are talking about Post Bank providing services directly in the offices, we expect to have the first clients in early March," said the head of VTB 24 Mikhail Zadornov.

Russian Post will control 50 percent minus one share in the future Post Bank which is based on VTB 24 subsidiary Leto Bank. Dmitry Rudenko, President of Leto Bank is going to head the new institution.

READ MORE: VTB becomes first Russian bank to access Chinese bond market

The new bank's first customers will be the 250,000 employees of Russian Post who will receive their salaries through the bank.

The first attempt to create a postal bank was made more than 15 years ago, according to Russian Post CEO Dmitry Strashnov. “The Post Bank is a chance to make financial services more available to people all over the country, to boost the economy and improve competition in the financial services market,” he said.

At least 3,500 post offices are planned to have banking windows this year, with the number climbing to 15,000 within three years.