Russian lender VTB is planning to set up a new retail bank in a joint venture with the country’s national postal operator Russian Post.
The new bank will offer retail banking for the mass market and is expected to operate with 15,000 branches.
While announcing the plan, VTB CEO Andrey Kostin said that the bank intends to invest RUB16bn ($235m) to acquire a controlling stake in the new lender.
Kostin however refused to divulge details on how much the state-run postal service would invest in the bank.
VTB is more focused on lending to businesses and primarily targets high end middle class consumers for retail banking business.
The partnership with the postal service is expected to extend the bank’s reach to even remote parts of Russia by leveraging the post office’s customer base.
The new bank will be created through Leto Bank, which is a part of the VTB Group.