China's Industrial Bank plans to significantly boost its retail banking business by using part of the $2 billion it plans to raise from its Shanghai initial public offering. The mid-sized bank, partly owned by Hong Kong's Hang Seng Bank Ltd. , aims to derive 30 percent of its total profits from retail banking in four years, its president Li Renjie said.

"The key to grow our retail business is to grow our sales power and to build a bigger service network," Li said. "First, we will focus on growing our personal loan business, which will help us grow wealth management services and payment business," he said.

Both foreign and Chinese lenders are scrambling to boost retail services such as credit cards and mortgages in an effort to get a slice of the country's roughly $2 trillion of personal savings.

Tang Bin, the bank's board secretary, said the bank planned to open more than 150 new outlets by 2010 through acquisitions of smaller rivals or building up branches on its own. The bank currently operates about 300 outlets across the country. The bank plans to use proceeds from its IPO to support network expansion, improve the lender's information technology system and boost its capital adequacy ratio, Li said.

The bank, a mid-sized but fast-growing institution based in the prosperous southeastern province of Fujian, said it would issue A shares at 15.00 to 15.98 yuan apiece, the low end of market expectations of roughly 15-20 yuan, to raise $2 billion in what would become mainland China's fourth-largest domestic IPO.

The bank also said it would issue fewer shares than the market expected.