America’s multinational banking and financial services group Citigroup (Citi Group) is preparing to fold its bag from India. Citibank on Thursday announced its exit from the consumer banking business in India. The bank says it is part of its global strategy.
The bank’s consumer banking business includes credit cards, retail banking, home loans and wealth management. Citibank has 35 branches in the country and employs about 4,000 people in its consumer banking businesses.
The bank on Thursday announced its exit from the consumer banking business from 13 countries. Citi Bank’s global CEO Jane Fraser attributed the decision to lack of scale in competition in these areas.
Regulatory approval needed to exit consumer banking business
However, the framework of exit from this section is not known at the moment and the proposal to exit the consumer banking business will require regulatory approval. City India Chief Executive Officer Ashu Khullar said, “With this announcement there will be no change in our operations and there will be no immediate impact on our colleagues. During this time, we will continue to serve our customers as before.
Citibank entered India in 1902 and in 1985 entered the consumer banking business. Apart from the institutional banking business, Citi will continue to focus on global business from its Mumbai, Pune, Bangalore, Chennai and Gurugram centers. The city had a net profit of Rs 4,912 crore in the financial year 2019-20, which was Rs 4,185 crore in the previous financial year.