Central Bank of Uzbekistan reissues UzKDB Bank’s license due to reorganization

Business Materials 26 March 2013 16:41 (UTC +04:00)

Uzbekistan, Tashkent, March 26 / Trend, D.Azizov /

The Central Bank of Uzbekistan reissued a license to conduct banking operations to the Uzbek-Korean CJSC UzKDB Bank due to accession of CJSC Royal Bank of Scotland Uzbekistan MB to it, as well as renaming of CJSC UzKDB Bank as CJSC KDB Bank Uzbekistan, the Central Bank of Uzbekistan said.

As reported earlier, in December 2010 KDB acquired the share of British Royal Bank of Scotland (RBS) in the Uzbek Royal Bank of Scotland Uzbekistan (RBS Uzbekistan) constituting 82.35 per cent. The cost of the acquired package has not been disclosed.
According to KDB, the South Korean bank paid an amount almost equal to the residual value of the fixed assets of RBS Uzbekistan.

In December last year, stockholders of the Uzbek-Korean UzKDB Bank confirmed the reorganisation of the bank in the form of its accession to the Royal Bank of Scotland Uzbekistan (RBS Uzbekistan), also approved the merger agreement and the deed of conveyance for integration of the two banks.

The government of Uzbekistan has recommended that the Central Bank assists closed joint-stock company UzKDB Bank in resolving organisational and procedural issues related to the accession of CJSC Royal Bank of Scotland O'zbekiston MB to CJSC UzKDB Bank, according to an order of the cabinet 'on the organisational issues of the CJSC Bank UzKDB, adopted in early March 2013.

It is expected that the merger of UzKDB Bank and Bank RBS Uzbekistan will create the largest foreign bank in Uzbekistan. According to estimates of KDB, after the merger the assets of the bank will increase by about 2.5 times and reach 670 million.

Established in 1996 as a closed joint-stock company, RBS Uzbekistan is currently the largest joint bank in Uzbekistan. The shareholders are KDB (82.35 per cent of shares) and the National Bank for Foreign Economic Activity of Uzbekistan (17.6 per cent).
The bank serves more than 500 enterprise customers, mostly international companies trading with Uzbekistan.

CJSC UzKDB Bank (until February 2006 - UzDEUbank) was established in 1997. The authorised capital of UzKDB Bank reached $12.27 million. The bank's shareholders are KDB - 88.8 per cent, the National Bank for Foreign Economic Activity of Uzbekistan and the Uzbek bank Turon with 5.6 per cent each.