OREANDA-NEWS. October 03, 2013. Sberbank and BNP Paribas Personal Finance completed a deal under which Sberbank increased its stake in Cetelem Bank up to 74%.

As previously announced on July 18, 2013, Sberbank and BNP Paribas Personal Finance agreed to expand the activity of their joint venture (Cetelem Bank) after its good performances in the Russian car financing market. Sberbank has strengthened its strategic positions in the car loan market by transferring its car loan business, generated through partnerships with car manufacturers and car dealers (9 programs in total), to Cetelem Bank.

In accordance with the terms of the transaction, Sberbank had to increase its stake in Cetelem Bank in 2013 from 70% up to 74% leaving the governance unchanged. After three years, Sberbank has an option to increase its stake in the Cetelem Bank up to 80% subject to achieving certain agreed business performance metrics.

The transfer is a part of a large-scale internal reorganization within Sberbank Group. Sberbank will continue issuing car personal loans at its branches. The car loan partnership programs with car manufacturers and car dealers are being transferred from Sberbank to Cetelem Bank. This specialization is part of the bank’s retail strategy and will allow Sberbank Group to improve its presence in the car loan market, an important market for Sberbank.

The transfer started in July 2013 and continues smoothly in accordance with expectations. Before the end of this year Cetelem Bank will transfer all Sberbank’s car partner activity with concentrated effort to assure a personalized relationship with each of them. In parallel, Cetelem develops its car loan business using its own sales potential and has already started 4 new programs with car manufacturers on top  of what is transferred from Sberbank.