Servicing of the small companies requires an individual approach and flexibility. When exercising a proper attitude all efforts produce adequate result: it is due to such qualities that Texbank significantly expanded its business in 2012. Leon DUDOV, president-chairman of the board of CJSC JSCB Texbank, told NBJ about this in an interview.

NBJ: Leon Sultan-Muratovich by what means did Texbank manage to increase net assets by 63% in 2012?

L. DUDOV: Balanced growth of assets, improvement of their structure and improvement of quality are necessary conditions of stable bank development. Thus Texbank has closed 2012 with 63% increase in net assets, which was reached at the cost of the main bank activities development: building-up of the funding and client base, increase of the credit-investment portfolio and increase of its quality by means of readily obtainable asset growth, stiffening of client service. Placement of a subordinated deposit by one of the shareholders of a credit organization had a great influence on increase in net assets. The profit resulting from this was used for further enhancement of bank work.

NBJ: Please, tell us about the business directions having become your priority in 2013.

L. DUDOV: Texbank has been operating since 1994. At the present moment our credit organization is a large regional bank of the Karachay-Cherkess Republic, which has its branches in Moscow and Nalchik, and an additional office in Stavropol.

Texbank is a universal financial and credit organization providing a wide range of bank products and services. Its business priority is servicing of small and medium enterprises. We also work in the retail market. The bank performs all types of cash management service on favourable terms providing growth of account balances of corporate customers. Being efficient in responding to any market changes Texbank establishes and handles accounts of individuals and legal entities in rubles and foreign currency on favourable terms, provides an entire range of exchange operations services, and performs calculations in real time.

Development strategy of the credit organization is aimed at providing and strengthening of its financial stability, improvement in the competitiveness, appropriateness of the accepted risks management system in order to strengthen protection of interests of bank investors and creditors.

Therapeutic and ski tourism is developing and all necessary basic infrastructure is being created in the Karachay-Cherkess Republic in the framework of the Sochi 2014 Olympic Games. In this connection Texbank is working at creation of effective processes for attraction of investors and interactions with them, offers an entire range of bank services on mutually beneficial conditions. Bank clients include energy industry enterprises.

The main source of our profit is small and medium business lending.

NBJ: Please, tell us about the peculiarities of the Karachay-Cherkessia banking market.

L. DUDOV: The banking market of the Karachay-Cherkess Republic is represented by five independent credit organizations with the authorized capital of more than RUR 1,5 billion, four branches of out-of-town banks, 34 additional offices, three operational and three lending and cash services offices. As of January 1, 2013 the banks of the republic have raised more than RUR 16 billion, including deposits of individuals (more than RUR 11 billion). More than RUR 42 billion were lent to the economy of the region, where more than RUR 14 billion were lent to small and medium business.

Overdue debt is only 4% of total amount of credit investments. For the first quarter of 2013 non-cash turnover was about RUR 63 billion, cash turnover was more than RUR 19 billion which underlines noticeable dynamics of bank industry development in our region.

NBJ: What are the main sources of funding of the bank?

L. DUDOV: The main sources of funding of Texbank are current accounts and term deposits of legal entities and individuals.The bank offers higher rates on deposits, than many all-round players. Small number of sources of funding forces us to pursue a less risky policy, than large banks, as the cost of a mistake is very high. Texbank has stable branches, good client base, has both feet on the floor and is not short of cash. In 2012 the bank purposefully worked at cost reduction and extension of terms of funding.

NBJ: What is the advantage of regional banks over federal banks?

L. DUDOV: The advantage of a regional credit organization over a federal one is based on the fact the former knows its clients better. A local structure of a federal bank can't pay individual attention to each client. Being a regional bank we are ready to work closely with each borrower: to reduce our rates in one case, to change terms in another, and to change requirements to the presented documents in the third. It is important to help a client, and it is possible to do it effectively only in case of custom-tailored service providing.

The staff of Texbank has a long prior experience working with corporate customers. We know almost all problems arising in the course of business and ways of their effective prevention. We are always ready to meet the needs of a client and to provide additional banking services if necessary. Only regional banks can effectively work with the entities of small and medium business, as they know all infrastructure of the region and all possibilities of small and medium business development, implementation of the system industry projects aimed at the development of entrepreneurial business.

NBJ: There is a lot of talk about the fact that banks shall be high-tech. Do you agree with this point of view?

L. DUDOV: Yes, indeed. Any modern credit organization shall constantly upgrade such high-tech services as remote channels of access to the account, Internet bank. The bank having high-powered technologies will provide its clients with new opportunities quicker. Texbank strives to be maximum interactive so that each client could easily contact us and be provided with all necessary services. The possibilities of our "Client-bank" allow each user to manage the accounts almost from anywhere in the world, where there is an Internet connection. Our primary objective is to help our client with all financial issues handling using the most comfortable method.

There is no doubt that remote banking service is convenient from any point of view. But there is one important factor: a person needs a face-to-face contact. A client periodically has questions the solving of which would be more convenient in a bank office. That is why our model is a symbiosis of modern features of remote banking service and our own branches.

NBJ: What role does a close-knit team play in success of a credit organization from your point of view?

L. DUDOV: A team provides a lot of value. A close-knit team helps to keep the highly competent specialists, able to find efficient problem-solving ways in any situations and to provide speed and accuracy of the made decisions execution.

NBJ: What tasks are facing Texbank in 2013?

L. DUDOV: Client business is a basis of Texbank development, and it makes the bank less dependent upon a situation in the capital markets. The branch network, positioning as a private regional credit organization, long-term and strong relations with the customers, as well as well-defined strategy and competitive banking products allow the bank to be sure of maintenance and further growth of resource base. Our priority tasks are growth of our credit and deposit portfolio, improving of our cash management service, expansion of the client base, plastic business development, increase of foreign currency transactions.