Released on = July 23, 2007, 2:46 am

Press Release Author = Shushmul Maheshwari

Industry = Marketing

Press Release Summary = Russian banking sector is rapidly gaining the attention of
foreign investors, who are showing their willingness to invest in it. It’s
expected that the inflow of foreign capital in this sector would exceed US$ 70
Billion mark this year.

Press Release Body =
As per RNCOS report on “Russia Banking Sector Analysis (2006-2009)\", it has
been found that foreign capital is rapidly increasing its presence in to the various
sectors of Russian economy. In 2005, there were about 51 credit institutions in the
banking sector in Russia that were controlled by foreign capital, whereas the number
was 42 in 2003.

Inflow of foreign capital in the country reached US$ 60 Billion in the initial five
months of this year (2007), Sergei Ignatyev, Bank of Russia’s Chairman told
the sixteenth International Banking Congress held in St. Petersburg on June 7, 2007,
as reported by RBC news on the same day.

Auctions for the insolvent oil company Yukos’ asset, initial public offerings
by the state run retail saving-bank Sberbank, and govt. controlled foreign
trade-bank VTB (Vneshtorgbank) remained the key contributors to the sharp spike in
capital inflow in Russia, added Ignatyev.

Alexei Koudrine, Finance Minister of Russia, said that he estimated the overall
capital inflow would hit a record US$ 70 Billion mark this year, whereas it was just
US$ 42 Billion last year (2006).

In its recently published market research report on “Russia Banking Sector
Analysis (2006-2009)\" RNCOS has found, “Russia is being viewed as a highly
lucrative economy by foreign investors. Financial indicators in the country have
further strengthened with the timely reimbursement of foreign debt by the state.
Foreign controlled banks’ assets grew by almost 49.3% in 2005 and their own
capital expanded by around 56.4%. Consequently, foreign controlled banks’
share in the assets of aggregate banking sector grew from nearly 7.6% in 2004 and
reached about 8.3% in 2005. And, their own funds increased from about 7.8% to almost
9.2% during the same period.”

The report provides an objective analysis of the various aspects of banking sector
in Russia. Key issues addressed in this report include: how competitive is the
market landscape of banking industry in Russia, what are the various opportunities &
challenges that exist in this industry, what are the prospective areas of investment
for the banks in the near future, and so on.

About RNCOS E-Services Pvt Ltd.:

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of
industry experts who analyze data collected from credible sources. They provide
industry insights and analysis that helps corporations to take timely and accurate
business decision in today\'s globally competitive environment.


For more information visit: http://www.rncos.com/Report/IM120.htm
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Web Site = http://www.rncos.com

Contact Details = RNCOS E-Services Pvt Ltd.
Shushmul Maheshwari
Head of Business Development
29, 1st Floor, Patparganj Industrial Area, Delhi 92
91-11-4214-1229
info@rncos.com