An investigation by The Indian Express, part of the global China Capital project led by the International Consortium of Investigative Journalists (ICIJ), has brought to light internal details of how the Industrial and Commercial Bank of China (ICBC) managed its operations in India, particularly around the 2017 Doklam crisis and a major loan involving Vedanta.
ICBC Mumbai Branch During the Doklam Standoff
ICBC’s only branch in India, located in Mumbai, faced “internal and external challenges” during the 2017 India-China Doklam border standoff.
According to a confidential internal work summary from January 2018 reviewed by the investigation:
The branch proactively reduced its exposure to loan and investment risks.
It suspended the disbursement of 11 approved but undisbursed loans and bond investments totalling $185 million.
This action impacted operating revenue by approximately $6.36 million.
The branch achieved only 57.7% of the annual target set by its headquarters in Beijing.
The document noted that the branch maintained “normal operations” despite the challenges linked to the border impasse.
Vedanta Loan on Internal Watchlist
In a related finding, ICBC had placed a $500 million four-year syndicated loan facility extended to Welter Trading Ltd — a Cyprus-incorporated, wholly owned subsidiary of Vedanta Resources Plc — on its internal watchlist in 2016.
Falling commodity prices
Multiple ratings downgrades
Requests for relaxation of financial covenants
Restricted access to group cash and gaps in information for compliance checks
Records show that the exposure was fully repaid in 2017, with no credit loss to the bank.
The revelations form part of a larger examination of how China’s largest state-owned bank operates overseas and responds to geopolitical tensions. ICBC is the world’s biggest bank by asset size.
The findings highlight how border tensions between India and China in 2017 had direct commercial implications even for banking operations located far from the border, in Mumbai.
No official comments from ICBC or Vedanta on the specific internal documents were immediately available in the reports.