Crédit Agricole, one of France's largest banking institutions, said on Wednesday that it will sell its Greek banking arm Emporiki to Alpha Bank for €1 ($1.3), and that its bottom line will take a hit of €2bn as a result of the sale.

The French bank said that, as previously announced, prior to completion it will increase its recapitalisation of Emporiki to €2.85bn, having already injected €2.3bn in July 2012. In addition, it will subscribe to €150m of convertible bonds to be issued by Alpha Bank, redeemable in Alpha Bank shares.