Industra Bank takes over most of PrivatBank's assets and liabilities
Industra Bank and PrivatBank have concluded a credit institution’s business transfer agreement, which provides the transfer of PritvatBank's customers’ servicing, most of assets and liabilities to Industra Bank. Currently, application has been submitted to the Financial and Capital Market Commission for receiving permission to execute the transaction.
The business transfer agreement provides that Industra Bank will take over customer relations from PrivatBank, including the management of accounts of private individuals and legal entities, credit and leasing portfolios, deposits, as well as securities owned by the bank.
Raivis Kakānis, Chairman of the Board of Industra Bank, states: "In the medium term, we aim to become the bank of the first choice for Latvian entrepreneurs and therefore we are purposefully increasing the scale of the bank's operations. Our growth goals include both organic development of the existing business and increasing market share through acquisition of other banks' assets and customer service opportunities. This transaction is an example of the consolidation of the Latvian financial market, which follows several years of changes in the industry.”
“Our main task for the coming months will be the integration of PrivatBank's operations with Industra Bank and addressing PrivatBank's customers to proactively tell about the advantages we offer. At this point, customers do not need to do anything," says Kakānis.
Una Jansone, board member of PrivatBank: "We are grateful to our customers for their loyalty over many years! Customers have been and continue to be our greatest asset. That is why PrivatBank, going through the transformation process, has put their interests first, taking care of a stable and perspective partner who will take over PrivatBank's obligations. The selection of the acquiring bank has been a strategic process in which PrivatBank's board and management board have carefully evaluated potential candidates, paying increased attention to the candidates' business model, customer service standards and culture. Evaluating potential partners according to various criteria, Industra Bank was recognized as the most reliable, sustainable partner that will ensure continuity of service for our customers."
Both banks are committed to ensure as smooth transition of services as possible. Once the FCMC issues its approval, we will individually inform each client about the practical side of the transition. Both banks will also post the information on their websites. It is expected that clients transfer will take place within couple months after approval.
All concluded agreements that will be transferred to Industra Bank, including deposit agreements and credit agreements, will remain valid until the end of their maturity in accordance with their current conditions.
Within the transaction, Industra Bank will take over cooperation with approximately 5,900 clients from PrivatBank, 400 of them legal persons and 5500 private individuals. The amount of loans to be transferred in the transaction is approximately twenty-five million euros, while the deposit portfolio exceeds fifty million euros.
About Industra Bank:
Industra Bank is a Latvian credit institution founded in 1994 with more than 18 thousand customers - over a thousand legal entities and 17 thousand private individuals. The bank is owned by the local entrepreneurs, and it focuses on servicing Latvian small and medium-sized enterprises. For the convenience of customers, the bank offers eight service centers - four of them located in Rīga, while the rest in Daugavpils, Liepāja, Ventspils and Jelgava. More information: https://industra.finance/