SHANGHAI Pudong Development Bank said yesterday it is considering to raise eight billion yuan (US$1.04 billion) this year to boost capital.

The bank plans to rake in the capital either through selling additional shares in the yuan-denominated A-share market, selling more shares to partner Citigroup Inc, or getting listed in overseas market like Hong Kong, the bank said at its shareholders' meeting yesterday in Shanghai.

The bank hasn't made the final decision, it said.

The move aims to provide funds needed to support the bank's development and help to boost its capital adequacy ratio from nine percent now to 10 percent this year.

New York-based Citigroup, which owns 3.78 percent of the bank, is yet to begin "official negotiations" with the Chinese partner about raising its stake to 19.9 percent, the maximum allowed under Chinese law. It may cost Citigroup more than 10 billion yuan to do this.

The bank also forecast profit to jump 30 percent this year on growing lending and fee-based income services. The net profit of the Shanghai-based lender grew to 3.35 billion yuan in 2006.

Pudong Bank was established in 1992 by the local government to finance development of Shanghai's Pudong financial district into China's Wall Street. The lender now has 370 branches nationwide.

Shares of the bank were suspended from trading yesterday.