Otkritie Financial Corp. Bank, which was bailed out by the Russian central bank in August 2017, plans to transfer at least $10 billion worth of distressed assets to a "bad bank," CEO Mikhail Zadornov told Bloomberg TV on Feb. 23.

A decision on dividing the group's assets will be made within two to three weeks, and it will take three or four months to set up a "bad bank" that will take over the bad assets, Zadornov said, adding that the toxic assets unit will have a separate banking license and a special regimen for capital requirements.

Reuters earlier reported, also citing Zadornov, that the "bad bank" could be established through one of Otkritie's existing units, National Bank Trust PJSC or JSC Rost Bank, while Rost Bank's parent, B&N Bank, would be merged with Otkritie.

Zadornov also said a development strategy for Otkritie Group, which also includes insurer PAO Rosgosstrakh and several pension funds, will be ready in April or May.