Russian lender Vozrozhdenie Bank is exploring the possibilities to merge with Moscow-based Absolut Bank.

The bank said in a statement: "It was decided that the management board should explore the option of merger of Vozrozhdenie Bank and Absolut Bank."

Vozrozhdenie Bank chairman of the board of directors Otar Margania said that the management of the bank was instructed to thoroughly analyze and investigate the proposal. The final decision will be taken on one of the next meetings of the board of directors.

The merger between Vozrozhdenie Bank, which is Russia’s 41st largest by asset, and Absolut Bank, which ranks 40th, will create the 20th largest lender in the country, according to a Bloomberg report.