Russia’s retail lender VTB 24 will shut down over 50 offices and reduce staff by 5% to 7% in a cost cutting drive.

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VTB 24, owned by state-owned VTB, will also slash issuing of new loans this year in a bid to boost profitability, reports The Moscow Times.

The bank chief Mikhail Zadornov said that the bank will give out 30% to 40% fewer new loans this year than in 2014 and reduce its loan portfolio by 3% to 4% owing to lower demand and tighter risk policy.

Zadornov added that VTB’s consumer lending portfolio will shrink by 10% to 12% over the year.

The bank will also reportedly cut down its mortgage lending by 60% unless the state comes to support the sector.

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VTB will receive RUB250bn ($4bn) from the government, under the RUB1 trillion ($15bn) pledged by the government to major Russian banks to improve their balance sheets.

VTB is currently facing Western sanction, which has cut it off from the US and EU capital markets.