This French bank is stepping up to the plate

Paris: French state-owned Banque Postale plans to step up its mortgage lending to low-income borrowers next year and says it will hire hundreds of staff from rescued rival Credit Immobilier.

Shrugging off a dire 2012 for new mortgage production amid a flatlining French economy, the bank said it was targeting 1 billion euros (Dh4.84 billion, $1.31 billion) in housing loans to low-income borrowers in 2013.

Citing partnerships with local-government housing cooperatives, Banque Postale said its expansion would also be backed with around 300 hires from Credit Immobilier over the next two years.

Credit Immobilier, best known as a lender to low-income borrowers that could not get housing loans elsewhere, faces being broken up and wound down after receiving a state lifeline in September. The fate of its 2,500 staff hangs in the balance despite promises by rival banks to do their part in hiring.