Bank Constanta Focusing on Agro Business

2 mins read

The FINANCIAL — Bank Constanta increased its credit portfolio by 19% in the first quarter of 2012. In 2011 the Bank issued 118 million GEL worth of loans while the first quarter of 2012 ended with 140 million GEL.


Bank Constanta is currently oriented on financing agricultural businesses. The share of agro loans out of its total loan portfolio is 40%.

“We carry the responsibility not to give out more loans than our customers really need. Aggressive crediting has been a global problem and while avoiding it, we want to support our clients,” Levan Lebanidze, the General Director of Bank Constanta, told The FINANCIAL.

“We are oriented at business development and try to support it. We are not only focused on the benefits, we carry a huge responsibility to support our citizens,” Lebanidze said.

Bank Constanta is continuing to increase its chain. The Bank plans to open 15 new branches by the end of 2012. At present the Bank is operating with 9 branches.

“The success of our company is reflected in our financial conditions. The total deposit portfolio for December 2011 was 13 million 600 GEL. This figure almost doubled during the first quarter of 2012 where the deposit portfolio counted 21 million 300 GEL,” he said. 

In the first three months of this year the number of the Bank’s customers reached 5,000.

The capital of Bank Constanta increased to 3 million GEL.

Throughout 2011 Bank Constanta witnessed 77% growth in its assets and 71% growth in its credit portfolio, thereby getting into the ten most successful Georgian banks in 2011. The amount of loans issued by Bank Constanta in 2011 exceeded 168 million GEL, an 89% increase compared to the same parameter of the previous year.

The entry of TBC Bank into Bank Constanta’s capital is considered a key event of 2011. TBC Bank now holds a controlling stake; 83 percent of shares in Bank Constanta. “TBC is one of the leading banking institutions in Georgia. It has high level service, high professional ethics and is well experienced in the Georgian financing market. TBC reinforces Bank Constanta’s position on the Georgian financial market and promotes its faster growth. At the same time it is important for TBC to be oriented on a new segment. Bank Constanta gives the possibility to achieve exactly this goal,” Lebanidze said.

“Big competition is being created in the banking sector in Tbilisi and other cities of Georgia. Bank Constanta’s strategy is linked to our interest to operate in the regions as well,” said Vakhtang Butskhrikidze, the General Director of TBC Bank. “The sphere where Bank Constanta operates is medium-sized cities and large villages. The competition there is very low. It was almost impossible to enter this market with our brand and branches. Bank Constanta was a good way for us to expand our outreach via micro financing,” he added.

As well as TBC Bank, Constanta obtained new shareholder Oikocredit, an international investor which holds 11% percent of shares.

Bank Constanta introduced new banking products in 2011, such as consumer deposits, the portfolio of which had reached 14 million GEL as of the end of 2011. On top of that Bank Constanta introduced a plastic cards system, equipping its outlets with automated teller machines.



Leave a Reply