"We plan in the near future to rebrand the subsidiary bank, and rename it Bank VTB (Azerbaijan)," the VTB press office said.
AF Bank holds 39th place among Azerbaijan's 46 banks in terms of assets. It has charter capital of around $9.65 million and assets of $15.3 million.
VTB's Azerbaijan subsidiary will support inter-state programs and participate in the implementation of large-scale Russian-Azerbaijani projects with the involvement of Russian capital, the press office said.
"The decision to acquire a controlling stake in AF Bank was made in accordance with the strategy to expand VTB's presence on the markets of CIS countries [former Soviet republics, except the Baltic states of Lithuania, Latvia and Estonia] ," the press office said.
VTB has subsidiary banks in Ukraine, Belarus, Armenia and Georgia, and also in some European and Asian countries.
The credit portfolio of VTB Group, which includes VTB Bank, has grown 65% so far this year to 2 trillion rubles ($71.4 billion), VTB CEO Andrei Kostin said on Tuesday.
"The credit portfolio of VTB Group in Russia grew 65% in the first eleven months and 24% in September-November," Kostin said during a meeting with Prime Minister Vladimir Putin.
He also said VTB paid on Monday the first 3.5 billion rubles ($125 million) of a loan to Russian aircraft engine manufacturer NPO Saturn.
"We paid the first tranche of 3.5 billion rubles yesterday, which will let the enterprise settle its liabilities on previously secured loans," Kostin said.
"The second and the third tranches are to follow, and the loan will total 11.5 billion rubles [$410 million]," he added.
