Dec. 19 (Bloomberg) -- China Minsheng Banking Corp., the nation's first privately owned bank, said it's splitting its corporate banking operation into five specialized units including real estate and energy to boost loans to targeted customers.

Minsheng Bank will focus on lending to industries that also include transportation, metallurgy and institutions, the Beijing- based company said in a statement today. Employees in its 298 outlets nationwide are being regrouped based on customers, products and industries, rather than on geography, the bank said.

Minsheng wants to specialize its risk assessment further and boost sales of financial services to the targeted industries in the two-year reorganization to help sustain its average 40 percent annual profit growth since 2002. China's economy may expand 11.5 percent this year, fueling loan demand and luring foreign competitors such as Citigroup Inc.

Chinese banks have raised $23.3 billion selling stock this year, allowing them to extend more credit. Domestic banks extended 3.5 trillion yuan ($474 billion) of new loans in the first 10 months, a 16 percent increase from loans outstanding at the end of last year, according to central bank data.

The stock rose 1.4 percent to 14.48 yuan as of 11:12 a.m. in Shanghai, the biggest gain in three weeks. Minsheng's shares have gained 69 percent this year, lagging behind the 142 percent gain of the benchmark CSI 300 Index. The company was founded in 1996 by 59 investors, including pig-feed tycoon Liu Yonghao.

The bank agreed in October to buy as much as 20 percent of UCBH Holdings Inc., the biggest bank serving the Chinese community in the U.S., marking its first acquisition overseas. Both banks specialize in lending to small and mid-sized companies.

To contact the reporter on this story: Luo Jun in Shanghai at jluo6@bloomberg.net

Last Updated: December 18, 2007 23:10 EST