TAIF will give an impetus for further development of Tatfondbank
Multisectoral holding and TFB came to an agreement on a deal at 4bn rubles
TAIF Group of Companies put a subordinated deposit in Tatfondbank. The agreement was signed during a meeting of the TAIF director general Albert Shigabutdinov and Tatfondbank PJSC head Robert Musin. The subordinated deposit will enable Tatfondbank to increase its equity and the volume of loans granted to enterprises and people. It also will help the financial institution to widen its range of activities, provide a stable growth of the business effectiveness and increase its financial stability.
TFB will increase its assets up to 300bn rubles
As Robert Musin told Realnoe Vremya, the subordinated deposit at 4bn rubles will be deposited in Tatfondbank by Kazanorgsintez.
Apart from 1,5bn rubles as an increase of net assets, which were received by the shareholders of the bank at the end of June, it is planned to get additional money equal to 2,5bn rubles. So, the equity of the bank will grow by 8bn rubles in total, including the subordinated deposit, to 29,4bn rubles that correspond to the strategy on the additional capitalisation in 2016, which was adopted by the board of the directors of the bank.
'This deposit gives us an impetus for further development and confirms the support of the regional authority,' the head of Tatfondbank tells. 'If today Tatfondbank's assets total 202bn rubles, the equity at about 30bn rubles will enable to reach 300bn rubles. These are big opportunities to grant loans to the real sector of the economy, small and medium-sized business and population. Ildar Khalikov, PM of Tatarstan, is the chairman of the board of director of the bank. About 30% of the joint-stock capital directly belongs to the republic. It guarantees the reliability of Tatfondbank and demonstrates we have serious plans and are going to stay for a long time'.
'The republic works on strengthening and raising the financial power of the regional enterprises. This strengthening is impossible without the participation of banks. President and the government support this work,' Albert Shigabutdinov told. 'We united our efforts with Tatfondbank in this programme. I think our cooperation will provide us with a synergetic effect. Tatfondbank will be able to augment its financial assets, TAIF GC will have an opportunity to fulfil new projects. Small and medium-sized business will be given room for development. This synergy will result in an increase of the volume of tax payments in the budget of Tatarstan. It means a respectable salary level in state organisations, creation of new working places and general stability of the regional economy.'
Fulfilment of TAIF-NK projects will add 1,5tr rubles to GRP
Speaking about the possibilities that TAIF will have as a result of the deal, Robert Musin noted TAIF, in fact, put a deposit on good terms. In addition, the cooperation between TFB Banking Group and TAIF Group of Companies will continue. 'It is important to have partners and friends who can work basing on trust not only in everyday life but also in the world of business,' the banker supposes.
Robert Musin stressed how important it is to support projects in petrochemistry and oil refinery fulfilled by TAIF Group of Companies. He reminded the gas and petrochemical complex are the key growth point of the regional economy: 'The Soviet Union was in the top 3 in petrochemistry. We need to return these positions'.
This task was also set by President of Tatarstan Rustam Minnikhanov on Big Chemistry forum in Ufa in May 2015. So, he presented the following data: 'The chemical complex of industrially developed countries accounts for 9% of GNP, in Russia – for 1,6%. In the USSR, the share of the chemical and petrochemical goods used to reach 10-12% of GNP. Our country has everything to become one of the leading petrochemical countries of the world. Russia is the leader in oil extraction and takes the second position in gas extraction'.
Now oil is at $45-50 per barrel. Multiply it by 7,3 to calculate the price of a tonne. Russia extracts over 500m tonnes of oil per year,' Robert Musin explained his point of view. 'If we estimate the price of an oil product after processing, we get $3-4,000 per tonne. Increasing oil refinery volumes, we could be in top 10 countries with the highest GNP. If we fulfil projects like TANECO, TAIF-NK and NKNKH, we can earn 1-1,500tr rubles more to GRP in petrochemistry and oil refinery only.'
It should be reminded that according to the results for 2015, GRP of Tatarstan maintained its level, compared to 2014, and surpassed 1,8tr rubles. On a recent oil summit, President of Tatarstan stated if now TANECO and TAIF-NK refine 15-16m tonnes, the republic will increase the capacity to 22-23m tonnes in a year (after the opening of the second stage in TANECO in 2017).
Supported by Bank of Russia, Tatfondbank is developing partner banking
The head of Tatfondbank also told Realnoe Vremya about the areas the bank is developing now. Particularly the development of partner or Islamic banking is Russia is one of them.
Let's remind that a Memorandum of Understanding between Tatfondbank PJSC and Islamic Bank Development Group was signed during 'Russia – Islamic World' Strategic Vision Group on 27 May 2016. Robert Musin represented Tatfondbank and President Dr Ahmad Mohamed Ali Al-Madani represented IDB Group.
But nowadays only Sberbank and Vnesheconombank signed such agreements in Russia besides Tatfondbank. The first Partner Banking Centre in Russia opened during a visit of a working group chaired by deputy chairman of Bank of Russia Aleksey Simanovsky on 24 March 2016 in Kazan due a cooperative work of Tatfondbank and Tatagroprombank.
Partner banking is an alternative type of financial services offered according to the traditions of OIC countries. No interests, no risky transactions, no indefinite deals are the basic principles of partner banking.
'We elaborated a detailed road map of this project,' Robert Musin noted. 'Why did we call the project a 'partner banking'? Because financial transactions based on the canons of Islamic banking can be used by Orthodox Christians and people of other religions too. Small and medium-sized business will also appreciate these opportunities. Indeed, it is a partnership when a bank not only earns on interests but also is interested in its client's life. Here development and success of the clients of the project are important for the bank. And a businessman does not need to seek for money to pay interests. These relationships are more honest.'
