VTB Sells Rosbank Shares
News : Russian financial services provider VTB is to sell off its 10% stake in the Russian division of French banking firm Société Générale , according to the Financial Times. The company's stake will be taken up by the French bank ' s core unit. VTB acquired the stake in the unit, which operates under the name Rosbank, in 2010. The disposal of shares follows the arrest of its chief executive on bribery charges in May 2013.
BMI View: The Central Bank of Russia's recent move to lower borrowing costs will avert a more rapid pace of deceleration in credit growth, and is underpinning our modestly pessimistic view on the banking sector in 2013 and 2014. Looking beyond this time horizon, however, we would have to see deeper structural reforms before revising upward our loan and asset growth forecasts.