OTP to expand in Romania
Sunday, September 25, 2005, 00:00
OTP Bank Rt hopes to increase its market share in neighboring Romania in the future, and to do so, not only will it invest heavily in its subsidiary, OTP Bank Romania SA, but it will bid for Casa de Economii si Consemnatiuni (CEC), the country's fourth largest bank. OTP Bank Romania's subscribed capital will more than double from Euro 20 million to Euro 50 million, according to a decision by the financial institute's General Meeting last week. After OTP Bank purchased the small RoBank, now OTP Bank Romania, for USD 47.5 million, the Hungarian financial institute promised a USD 100 million investment of capital. As per CEC, several financial institutes have showed an interest in the Romanian savings bank, including the National Bank of Greece, Société Generale, Erste Bank and Raiffeisen Zentralbank, amongst others. Should OTP acquires CEC, it may have a realistic goal to reach a 10% market share in the neighboring country. (NG 7) P.O.