China's ICBC reports rise in off-take of new loans in January

06 February 2009

China's top lending bank, Industrial and Commercial Bank of China (ICBC), has reported an increase in total off-take of new loans in January to 252.1 billion yuan (US$36.9 billion), in response to the government efforts to boost the economy.

The bank extended 117.1 billion yuan in new loans, 69.3 billion yuan  to railways, roads, power grid and nuclear power stations projects and 135 billion yuan in discounted bills to small and medium firms and new loans to individuals, including mortgages, amounted to 16 billion yuan., said the bank in a statement.

China's economy fell to a 7-year-low of 9 per cent in 2008 after a steep fall in the last quarter of 2008 at 6.8 per cent year-on-year, following which major measures were initiated by the government starting with the 4 trillion yuan ($584.8 billion) stimulus package to boost the economy. (See: China pumps $586 billion to bolster economy) and successive reduction of interest rates (See: China cuts interest rate fifth time in three months) resulting in robust requirement for mortgage borrowing in the beginning of this year.

The bank's plans for 2009 is to advance 530 billion yuan new loans, nearly same as that of last year, as reported by the 21st Century Business Herald.

The bank has disbursed around 252.1 billion yuan from the planned 530 billion yuan which is about 52-percent after padding up high risk management control measures while expanding its business shows that government measures have yielded positive results and bank on its part is increasing its lending programme to support the government's plan.

The bank has mobilised 271.2 billion yuan of deposits in January, equivalent to a quarter of the total increase in 2008, according to bank's statement.