An article about opening of the new Vozrozhdeniye Bank’s branch in Tula-city was published in the leading edition of the Moscow Region

21 October 2003

Tula’s Meridian.

The history of developing by Vozrozhdeniye Bank of the Tula’s land began in the post-crisis year 1999. At that time Gennadiy Bykov, General Manager of the agri—industrial enterprise “Verkhovya Dona” having in their disposal 200,000 hectares of plowed land applied to the Bank for preferential loans for the purposes of manufacturing and processing of agricultural products.

"As you know, there were hard times. Vozrozhdeniye turned out to be the most confident bank, and we are very grateful for that. We didn’t betray their trust. At the moment, the Bank has extended worth of RUR 2 billion loans to our agri-industrial complex. They were used for replenishing working funds, purchasing of equipment and fuel. This is a real help to the Tula’s farmers. Gennadiy Bykov: “Vozrozhdeniye has firmly settled in Tula and in the Tula’s Region. The Bank has performed a huge work on crediting of the real sector of economy. However, there are a lot of problems lying ahead, and it would be impossible to solve them without support from Vozrozhdeniye. This Bank differs advantageously from many other banks. Here is no bureaucracy, all issues are being solved efficiently up to the modern standards and — what is essential — in a friendly manner with genuine interest in the results of the matter”.

The branch of Vozrozhdeniye Bank has opened. The Bank holding sound positions in the Moscow Region has also good connections in the regions adjoining to the Moscow Region. Vozrozhdeniye is not new in Tula. Connections with the Region have been developing for a long time.

It would be hard to overestimate the Bank’s contribution to development of agri- industrial complex of the Tula’s Region. It is recognized by the Region’s community as well. Vasiliy Starodubtsev, the Governor of the Region emphasized this contribution at the opening ceremony of Vozrozhdeniye’s branch in Tula.

Vozrozhdeniye is the Bank of the federal level. Being founded twelve years ago in the period of initiating radical reconstruction of the banking system, Vozrozhdeniye started developing branch network throughout major industrial regions of the country. Judging by the results of the Bank’s activities and by their position held in the financial system and in the banking community, Bank of Russia places Vozrozhdeniye among socially significant and system-originating credit and financial institutions of Russia. Relying on the solid positions in the financial system, on their profound practical experience, extended branch network and advanced financial technologies, the Bank not only ensures their own interests, but solves general government tasks as well. Modern technologies require advanced telecommunication infrastructure, so Vozrozhdeniye develops new communication lines and improves the old ones. By efficient introduction of clearing settlement systems the Bank enhances transparency, fosters legalization of financial flows and tax collection, as well as functioning of the total government financial system.

As before, the Bank renders assistance to the regional and local administrations in solving their social and economic tasks. This activity has always been familiar to Vozrozhdeniye. In addition, the Bank implements their own projects which are of great social and economic value.

Offering financial services to the household sector is an important area of the Bank’s activities. A range of banking products and services for individuals is continually renewed and diversified in retail business. In can be clearly seen on the example of active issuing in circulation of bankcards and so called payroll projects tied to them in the major regions of the country. It should be noted, that in the passed year the volumes of retail deposits have doubled. It indicates that trust in the Bank is growing and there is a significant progress in promoting high technology services on the market. Sufficient inflow of financial resources built new prospects for crediting industry. So, depositors of Vozrozhdeniye can say, that their savings are added to the growing economic potential of Russia. In the process of the initiated pension reform the Bank became an agent on transfer of the pension funds of individuals who transfer their pension savings to the management companies for the purposes of efficient accumulation of their pension funds.

In his address to the audience Dmitriy Orlov, president of Vozrozhdeniye underlined the following:

“The goal of each eligible Russian bank is compliance of its activities with national economic interests, close cooperation with principal government institutions regulating the Russian economy, contribution to expansion of the national economy and growth of well-being of Russian citizens, as well as active support of national business”.

Precisely such issues are facing the new Bank’s branch in Tula, which intends to service the total region. This region adjoining the Moscow Region now has completely entered the Bank’s sphere of interests and become its “satellite”. So, with the help of the branch in Tula business partners, government enterprises and small businesses will sooner find each other. Tula’s ties with the Moscow Region will also strengthen.

This is the essence of the Vozrozhdeniye’s economic policy including the branch policy, which the Bank follows continuously.

Dmitriy Orlov, President of Vozrozhdeniye Bank:

“We will continue to render a real assistance to the Tula’s enterprises and agricultural sector, also we will remain the Governor’s assistance bank. Our Bank and the Tula’s Region are the longstanding partners. We used to have a lot of customers here before this branch was set up. And now we are quite near them. In Russia the banks which are close to their communities will always be of great importance. So, we focus on developing the branch network, which is a priority in our strategy. At the moment we have over a hundred of branches and additional offices throughout the country. Today in our Bank individuals hold worth of RUR 8.5 billion deposits. It should be noted, they are ordinary people rather than the elite category of customers. We value the trust of an ordinary customer. So, the Bank finds resources for lending to individual borrowers. That, for example, will enable to originate consumer lending.

In our relationships with corporate customers we focus our activities on middle-sized and small businesses. In all the regions, where our Bank is present, it has a lot of customers from this environment. However, the prospects of this business development are very promising. Of course, the legislation base is not perfect, the risks are high, original capital is not adequate in this type of business, but that can be overcome.

With respect to the bankcards business, development in this field is going on in geometrical progression. At the moment, the Bank issued over 400,000 cards, which means there are in reality over 400,000 customers. Of course, we naturally do not forget about developing the adequate infrastructure. In Tula alone we have installed 5 ATMs, and in total there are 225 units across in the Federal network”.

Mark Nakhmanovich, Deputy Chairman of Vozrozhdeniye Bank:

“As practice shows, in the course of the last four years the customer base has been doubling annually. By the way, we have issued 250,000 so called chip cards under the terms and conditions set by the international payment systems Visa and MasterCard. They help us to build up our business. And chip is required for enhancing the level of settlements security by means of bankcards. I should say, that a chip card can become a bearer of a new package of services in demand with population. There are similar projects in Russia confirming correctness of such an idea. In competition for the client, high quality products and services will be the priority. We stand for competition and development of competitive environment because only that can ensure a real possibility of choice.

During the fourth quarter we intend to open for our customers the mode of conducting deposit operations and utility payments through ATMs. So, a bankcard gradually is becoming an instrument for providing the widening package of services in the 24 hours’ on-line mode. And in the nearest future a bankcard is going to be an electronic key which can provide access to Internet”.

Andrey Tsitsinov.

Photo-report. Opening of the new branch of Vozrozhdeniye Bank in Tula.

Opening of the new branch of Vozrozhdeniye Bank in Tula
On October 15th 2003 Vozrozhdeniye Bank entered into agreement on cooperation with the Pension Fund of RF aimed at realization of the Federal Law as of 24.07.02