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OTP Bank injects €35m into unit in Montenegro

OTP Bank on Monday said it decided on a €35m capital raise at its unit CKB in Montenegro. The decision on the raise was made on Thursday, the bank said.

The increase brings registered capital at the bank to €96.88 million. OTP Bank last raised capital at the unit, by €15 million, in December.

Montenegrin paper Dan reported that the country's central bank had asked the management to recapitalize the bank and start lending again after a review, but this “led to no results”. Afterward, the central bank asked for the bank's CEO to be removed and measures to be taken in the interest of “restoring” the bank's capital.

CKB Bank's board appointed Inabat Torok as the bank's new CEO, OTP Bank said on Monday.

CKB Bank had a first-quarter loss of HUF 6.6 billion as the quality of its portfolio worsened.

OTP Bank bought CKB for €104 million in 2006. (MTI-Econews)