The Hindu Business Line : Russia’s MBRD in talks with ICICI Bank

Moscow, April 10 Moscow Bank of Reconstruction and Development (MBRD) is in talks with ICICI Bank for jointly marketing the Indian bank’s mortgage loan products in Russia. The scope of collaboration could also include ICICI Bank taking MBRD’s products into the Indian market at a later stage.

Speaking at a media event in Moscow, sponsored by MBRD’s parent company Sistema Group, Mr Sergey Ya. Zaytsev, Chairman of the Executive Board, said, “We are discussing the possibility to co-operate with ICICI Bank in Russia. This will be beneficial to both because we know the Russian local market and ICICI Bank is one of the leading players in mortgage loan solutions in India.”

Mr Zaytsev said that the partnership will mean that MBRD will market ICICI’s mortgage loan under its own brand.

ICICI Bank had formally launched its operations in Russia after the takeover of a small Russian credit bank in 2006.

ICICI is the second Indian bank to set up shop in Russia after State Bank of India and Canara Bank opened their joint venture, Commercial Bank of India, in 2004. However, the Commercial Bank of India operates in the corporate sector only, servicing big Indo-Russian business projects. ICICI Bank plans to target the Russian corporate and retail sectors, as well as Indo-Russian trade.

Mr Zaytsev said that MBRD was also open to the possibility of partnering with ICICI for selling some of its products in the Indian market, especially the corporate sector. “We are open to providing our expertise to Indian multinationals that want to enter the Russian and CIS market. We have the expertise in providing local financial support in these countries.”

Mr Zaytsev said that the talks with ICICI Bank were in the initial stages and, therefore, it was difficult to give a fixed time frame as to when the agreement will be sealed. Sistema Group, which recently forayed into the Indian telecom sector, is also a majority stakeholder in MBRD.

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Russia’s MBRD in talks with ICICI Bank