VTB Group has announced that total loans made by the group to corporate Russian customers and households exceeded Rb144bn (US$4.75bn) in August.
VTB Bank, the parent bank of VTB Group, has provided Russian companies Rb101.8bn (US$3.36bn) in loans.
State-owned VTB is one of the main lenders in Russia. Its importance in the market has grown in light of reduced foreign appetite for investment and lending in Russia and the surrounding CIS region. Russian private banks are also grappling with their balance sheets and high volumes of non-performing loans, and tend to be conservative in their lending practices.
VTB has received billions of state funding, including a dual-tranche subordinated loan from Vneshconombank (VEB) for a combined total of Rb300bn at the end of 2008. State funding comes with the provision that it be directed at supporting Russian industries of strategic importance.
The largest loans from VTB Group made in August have been directed at the metals industry (over Rb31.6bn), oil and gas industry (over Rb23.9bn), retail companies (over Rb8.8bn), coal and mineral resources (about Rb6.4bn) and to construction and construction material companies (over Rb5bn).
Despite posting losses this year, and faced with bad loans on its own balance sheet, VTB's state backing has ensured that the bank has maintained its position as one of the preferred counterparties for foreign bankers, including those in the trade finance markets, when looking to do business in Russia.
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