Citibank has become the first foreign bank to cross balance sheet size of Rs 1 lakh crore and revenues of Rs 10,000 crore in India. Citibank, which overtook British bank Standard Chartered as the largest foreign bank in the country in terms of financials during 2007-08 continued to grow its business last year despite facing tough situation in its home market the US.
Citibank India reported total revenues of Rs 10,423 crore for the year ended March 31, 2009, up 24% from Rs 8,410 crore for the same period the previous year. The growth in revenues was attributed to higher interest income as well as significant growth in fee and trading income. But Citibank’s revenue growth moderated from 44% increase during FY08. The balance sheet grew 26% from Rs 83,851 crore to Rs 105,264 crore.
Net profit after tax grew 20% to Rs 2,173 crore for the year after having doubled the previous year. As per a company statement, “Despite industry-wide challenges in unsecured consumer credit impacting profitability of the retail banking segment, the increase in net income reflected strong growth in corporate/commercial banking and treasury.”
Citibank has 40 branches in 28 locations in India and also operates two non-bank finance companies, two brokerage companies and two other companies undertaking capital markets activities. Citibank has disclosed that all of these units remained profitable during the year, with the exception of Citifinancial Consumer Finance India Limited (impacted by the challenges of deterioration in unsecured credit quality) and Citi Wealth Advisors Private Limited (which is yet to reach full scale of operations).
The reasonable growth in Citibank India comes as a sharp contrast to its ultimate parent Citigroup which saw revenues shrink by a third to $52.79 billion and net loss of $23.12 billion (of continuing operations).