VTB makes India debut

The 2nd largest Russian lender plans $100 mn investment in '09.

VTB Group, Russia's second biggest lender, today became the country's first bank to open a branch in India as part of plans to establish a global presence.

State-owned VTB, the trade bank of the former Soviet Union, opened its New Delhi branch today in a ceremony attended by Russian Prime Minister Viktor Zubkov and bank chief executive officer Andrei Kostin.

"The opening of the Indian branch is part of our plans to expand our global footprint,'' VTB Bank deputy chairman Vasily Titov told reporters.

"The faster economic growth presents a good business opportunity to the bank," he added.

VTB became Russia's first bank to open a branch in China in January.

The bank aims to establish a chain encompassing much of the former Soviet Union, with acquisitions or branch openings in Ukraine, Kazakhstan, Uzbekistan and Azerbaijan, Kostin told Bloomberg last month.

The bank aims to invest $50 million this year and $100 million in 2009 in India and plans to open a branch in Shanghai in two weeks, Titov said.

The Indian branch will lend to companies, he added.