China’s biggest bank halted 11 approved but undisbursed loans and bond investments during the 2017 India-China border crisis, according to the internal ICBC records reviewed by The Indian Express.
China’s state-owned Industrial and Commercial Bank of China (ICBC) suspended the disbursement of 11 approved loans and bond investments worth $185 million at its Mumbai branch during the 2017 Doklam border standoff, as reported by The Indian Express.
The documents show that the bank reduced its exposure to loans and investments as tensions between India and China rose during the 73-day standoff, the report said.
The findings are part of China Capital, a global investigation led by the International Consortium of Investigative Journalists (ICIJ).
What happened at ICBC’s Mumbai branch?
The Doklam standoff began in June 2017 after Chinese troops started building a road in an area disputed by China and Bhutan. Indian troops intervened, leading to a prolonged face-off between Indian and Chinese forces.
The standoff ended in August 2017 after diplomatic talks and an agreement by both sides to disengage.
The impact was also felt at ICBC’s only branch in India, located in Mumbai. According to a confidential ICBC work summary from January 2018, the Mumbai branch faced both internal and external challenges because of the border situation.
The report said the branch had “proactively reduced” its exposure to loan and investment risks. It suspended the disbursement of 11 loans and bond investments that had already been approved but had not yet been released.
More from BusinessThe total value of these transactions was $185 million.
The move also affected the branch’s income. The internal report estimated that the suspension reduced operating revenue by about $6.36 million.
The Mumbai branch achieved only 57.7 per cent of the profit target set by ICBC’s headquarters in Beijing that year, according to the document.
Party members stayed in contact with embassy
The internal report also describes how the Mumbai branch responded to the political tension.
It said Communist Party members across departments were organised to remain at their posts during the border crisis. They also maintained communication with China’s embassy and consulate.
The branch reported to relevant departments at ICBC headquarters and prepared contingency plans to reduce its credit and investment exposure, according to the report.
The document described the period as a tense time for the branch.
ICBC also organised meetings between its chief executive and employees. These included tea sessions and one-on-one discussions with local staff. Social activities were also arranged to address concerns among employees, the report said.
The details come from ICBC’s own internal report. They are not an independent assessment of the bank’s activities during the standoff.
What is China Capital?
The China Capital investigation is based on about 4.8 million confidential records from ICBC’s London branch and a UK subsidiary.
The records cover the period from 2005 to 2024. They include internal reports, emails, confidential client files, meeting records and documents related to the bank’s Communist Party committee.
The records were obtained after a hacking group accessed ICBC data and later leaked the material to the ICIJ. The ICIJ then shared the documents with media organisations in several countries, including The Indian Express.
The investigation involves 75 journalists from 24 newsrooms across 24 countries.
ICBC is one of China’s largest state-owned banks and has more than $8 trillion in assets. It is the world’s largest bank by assets, according to the ICIJ.
The investigation examines how the bank operated across international markets and how its activities intersected with Chinese state and political interests.
