Russian bank shares are worth less than earlier this year because access to funds has been cut and credit quality may deteriorate, Renaissance Capital said.
The Moscow-based investment bank, which focuses on emerging markets, cut its price estimate for OAO Sberbank to $2.70 (69 rubles) from $4.08 a share. Russia's biggest bank advanced 8.3 percent yesterday to close at 43.69 rubles on the Micex Stock Exchange.
``Slowing growth, less access to credit and higher lending rates should naturally lead to deterioration in asset quality,'' Renaissance analysts David Nangle and Svetlana Kovalskaya said in a report today.
RenCap initiated coverage of VTB Group (VTBR), Russia's second- biggest bank, with a ``neutral'' recommendation and a price estimate of $4.60 a global depositary receipt. Sberbank is the only Russian bank with a ``buy'' recommendation at Renaissance.
Russian banks are charging domestic companies interest rates of as much as 20 percent on short-term ruble-denominated loans, Renaissance Capital said.
Bank Vozrozhdenie's price estimate was cut to $41.70 from $65, while Bank Saint Petersburg's estimate was cut to $4.25 from $7.22.
Billionaire Mikhail Prokhorov agreed to buy 50 percent minus one voting share of Renaissance Capital for $500 million last month.
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