VTB Bank Armenia: Number of borrowers with accident insurance has grown two-fold

ArmInfo. The number of VTB Bank (Armenia) clients who have obtained credit disability insurance when getting consumer and lombard loans with reduced interest rates has increased two-fold, Director of Retail Business Development Department of VTB Bank (Armenia) Ivan Telegin has told ArmInfo.

"The percentage of borrowers on reduced interest rates did not exceed 20%, now this indicator has increased almost two-fold, reaching 37%", he said noting that such a growth has been registered in just 1.5 months. According to him, such a growth of insured borrowers was ensured due to efficient work of the Bank with clients aimed at raising awareness on this issue. "Thus, client is interested in the bank product for two reasons: first client will get insurance against personal accidents and secondly, will get loan at reduced interest rate", he noted.

Touching upon the Russian market Telegin noted that in Russia the number of clients, who have received loans on reduced interest rates when obtaining insurance has reached 65%.

Earlier in July VTB Bank (Armenia) announced that interest rate on consumer and lombard loans will be reduced by 1-1.5% if accident insurance is obtained. Thus, the client will not only be insured from unexpected circumstances but will also get a loan with reduced interest rate. The matter concerns Universal consumer loan without collateral and gold-secured loan. VTB Bank (Armenia) provides "Universal" loan for 100,000- 4 million drams at the annual interest of 17%-24% and up to 5 years maturity.   The Bank also offers gold-secured lombard loans at a nominal interest rate of 22%, the maximum amount of the loan is 3 million AMD. The loan is provided within 20 minutes by just one visit to the bank.

According to the Financial Rating of Armenian Banks by the Agency of Rating Marketing Information (ArmInfo), VTB Bank (Armenia) is traditionally among the leaders of the Armenian banking system in terms of key parameters. As of 1 July 2016, the Bank's total capital amounted to 41.2 bln AMD (5th position), assets - 278.3 bln AMD (4th position), lending - 186.4 bln AMD (5th position), personal time deposits - 92 bln AMD (4th position), corporate call liabilities - 39.7 bln AMD (3rd position). The Bank holds the 5th position in terms of corporate lending - 107.4 bln AMD, and the 3rd position in terms of retail lending - 78.8 bln AMD. The share of NPLs (unrecoverable loans inclusive) in the total loan book of VTB Bank (Armenia) grew from 16.9% to 29.14% over year, while the share of NPLs in the consumer lending segment in the total loan book dropped from 3.5% to 3.1%. The Bank has the largest branch network (67 branches) in Armenia. VTB Bank (Armenia) joined VTB Group in April 2004. VTB Bank OJSC, the second largest bank in Russia, is the sole owner of VTB Bank (Armenia).