The Moscow Bank for Reconstruction and Development is a medium-sized bank in Russia having 166 branches in 34 regions in Russia. India’s largest private sector bank, ICICI Bank, is in talks with the bank, an arm of Sistema, for selling its mortgage loan products in Russia.
Giving comments regarding talks with ICICI bank Sergey Ya Zaytsev, chairman of the executive board, Moscow Bank for Reconstruction and Development (MBRD) said, “We have held discussions with ICICI Bank for possible cooperation in mortgage lending and trade finance. ICICI Bank may design the mortgage products and we will sell them in the Russian market through our banking network”.
MBRD has a retail loan portfolio of $800 million, as on January 1, 2008, and total assets of $3 billion.
In Russia ICICI Bank is having a subsidiary, ICICI Bank Eurasia LLC, but it has a very small branch network. ICICI bank is very positive about the tie-up with MBRD as it will enable the Bank to enter many Russian regions which will offer good opportunity to lenders in mortgage financing. In Russia at present, mortgage financing is less than 3 per cent of Russia’s GDP, while it is more than 100 per cent in western countries.
The tie-up with ICICI Bank will be clearly on revenue-sharing basis. The mortgage products will be designed by ICICI, and will be sold by MBRD. ICICI bank will buy the mortgage portfolio for a fee from MBRD.
Furthermore MBRD following the footsteps of its parent Sistema has plans to open its representative office or branch office in India.
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