The Reserve Bank of India (RBI) decides to exit the Belarusian market.
Raiffeisen Bank International (RBI) is calling it quits in Belarus. The bank has sealed a deal to offload its 87.74% share in Priorbank JSC and its subsidiaries to Soven 1 Holding Limited, based in the UAE. RBI made this announcement. The deal is set to close in the last quarter. However, RBI expects this move to dent its consolidated earnings, with a predicted hit of around €300 million, mainly due to the disparity between the sale price and Priorbank JSC's equity's book value. An additional anticipated negative impact of roughly €500 million is anticipated. Under its new owner, Priorbank JSC will operate independently.
Following Russia's attack on Ukraine, RBI has also been considering ways to depart from Russia. The bank, which has been operating in Russia for close to three decades, is under intense scrutiny from investors and regulatory bodies due to its Russia-related business.**
In Belarus, RBI recorded a post-tax profit of €112 million in 2023. Priorbank caters to corporate clients, small and medium-sized enterprises, and individual customers.**
Despite the successful sale of its majority stake in Priorbank JSC, RBI may face challenges in its earnings due to the substantial disparity between the sale price and the bank's equity's book value. Consequently, RBI, considering the geopolitical situation, is also evaluating potential exit strategies from its operations in Russia.
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