Hungary’s small Szechenyi Commercial Bank (SZKB) would acquire the Hungarian unit of Austrian-owned Raiffeisen Bank International for a toke sum of EUR 1 but would take over the unit’s bad loans. A spokesperson for Austrian-owned Raiffeisen Bank International declined to comment on whether a report that Raiffeisen’s board would decide on Tuesday about an offer for its Hungarian unit was accurate. Such a transaction would make the acquisition of the much bigger Raiffeisen unit by Szechenyi possible but would make the loss-making loan stock a state burden, the financial website portfolio.hu commented, as the state of Hungary acquired a 49pc stake in SZKB in June 2013. Last June the state of Hungary raised the bank’s registered capital from HUF 3.1bn to HUF 6.1bn, giving it an at least HUF 3bn capital injection. The bank’s majority owner is T&T Ingatlanforalmazo es Vagyonkezelo, a company tied to Government Debt Management Agency (AKK) head Istvan Torocskei (on the photo). Szechenyi Bank’s shareholders’ equity was HUF 2.8bn, still below its registered capital even after a capital raise carried out by the than full owner last April, a supplementary report to the bank’s 2012 report on its website revealed. That-time financial market regulator PSZAF asked the bank to meet the regulations regarding net assets and registered also in June, days before the capital raise by the state took place. The bank had registered capital of HUF 6.122bn, and ended 2012 with a net loss of 1.211bn.