(Photo : Alibaba.com)

China's e-commerce giant continues to further widen its reach in the country's online market. This time, Alibaba is reportedly planning to establish the first ever Internet bank in China, state-owned media reported on Monday, quoting the China Business Journal.

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Quoting sources that have knowledge about the plan, the report said Alibaba is filing a petition to the country's financial supervision department in order to put up the proposed virtual bank, a first in China.

The bank will have a registered capital of CNY1 billion, or $163.5 million and will provide services such as deposits, transfers, and loans, the report said. The bank, sources said, will be handled by Alibaba Finance.

Alibaba has not issued an official statement regarding the planned Internet bank and company officials interviewed by state-owned media said they were not aware of such plan.

Alibaba Gears Up For $60 Billion IPO

Last year, Alibaba was reported to have presented the idea of establishing an Internet bank to the People's Bank of China and the China Banking Regulatory Commission but the plan did not materialize.

While Alibaba Group Holding Ltd gets ready for one of the biggest Internet IPO, the company is also looking into how to profit in the mobile-Internet market.  Tmall and Taobao, the online marketplaces of China's e-commerce giant, reportedly manage more dollar dealings than any e-commerce platform.

Although over 90% of those deals are generated from personal computers, the market is becoming more dependent on mobile devices for online activities, and Alibaba seeks to stay on top of China's e-commerce market.

The Financial Times, however, reported that Alibaba could scrap plans for a $60 billion HK IPO and instead switch its listing to New York. Immediately analysts said if Alibaba decides to list in New York instead of Hong Kong, it will become a big disappointment because Hong Kong has been considered as the natural home of China's biggest private e-commerce firm.