August 25, 2017 / 10:20 AM / a month ago

UPDATE 1-Shares in Russian bank Otkritie sink to 20-month low

(Updates with context)

MOSCOW, Aug 25 (Reuters) - Shares in Otkritie bank , one of Russia’s largest private lenders, fell as much as 10 percent on Friday after a newspaper reported the country’s central bank was considering taking it over.

The Vedomosti newspaper, citing unidentified sources familiar with the matter, said the central bank was looking into the move among other possible options as part of its drive to clean up the Russian banking sector.

Otkritie and the central bank did not immediately respond to requests for comment. The newspaper quoted Otkritie’s main shareholder, Vadim Belyayev, denying there were any talks to hand Otkritie over to the central bank.

According to Fitch ratings agency, depositors took 620 billion roubles ($10.5 billion) out of Otkritie in July, or a third of deposits held by the bank.

It was one of several banks to suffer a drop in liquidity after the central bank withdrew the licence of Yugra bank, causing market concerns about the stability of the Russian banking sector.

At 0930 GMT, Otkritie shares were down 6 percent at 1,307 roubles after touching their lowest since early January 2016. They have lost 21 percent in value over the past two weeks.

$1 = 59.1410 roubles Reporting by Andrey Ostroukh, Zlata Garasyuta, Katya Golubkova; Writing by Maria Tsvetkova and Christian Lowe; Editing by Mark Potter

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