Citigroup said it is exiting the retail banking business in India and 12 other countries as it has not been able to scale up in order to compete. Simply put, the bank has not been able to ramp up its business in order to compete with other domestic players.
Why did Citibank move out of India?
According to the reports, Citibank is facing scalability issues in these countries including India, and hence the decision to cut down the costs and strengthen their business in more developed countries was made.
Is Citibank shutting down in India?
“Citi is not closing down consumer business in India. … We will focus on the institutional business,” said an official of the bank. While scaling up the consumer banking business has been an issue, profits were not an issue for the bank as it reported a net profit of Rs 4,918 crore in the year ended March 2020.
Why is Citibank closing?
US banking major Citigroup, a leading foreign bank in India, on Thursday announced its exit from the consumer banking business in the country (along with 12 other countries) as part of a global strategy to focus on institutional business.
When did Citibank leave India?
On 16 April, global banking behemoth Citibank said it will exit consumer/retail operations in 13 countries across Asia and Europe, including India.
What happened to Citigroup?
In July 2009, the firm was effectively nationalized, with billions of dollars in bailout money converted into a 34% ownership stake for the U.S. government. Citigroup was worth less than $16 billion, having lost more than $250 billion in value from its peak.
Who is going to buy Citibank India?
Axis Bank, IndusInd Bank, and DBS India are likely to bid for businesses Citi is exiting in India, it added. The US-based banking major is seeking over $2 billion, the bidders are likely to be wary given Citi lost significant market share in its retail and credit card businesses.
Is Citibank safe in India?
Yes, of course. They are quite safe. Thanks to strong regulation and supervision by Reserve Bank of India and system of internal control of banks, they are well capitalized, well managed and effectively regulated.
What will happen to Citibank employees in India?
Citi Bank India: No Employee Will Be Fired, No Banking Customer Will Be Impacted; New Buyer Will Takeover. Citibank announced on Thursday that it will be exiting 13 international consumer banking markets, including India and China as part of its global strategy.
What country owns Citibank?
Citigroup Inc. or Citi (stylized as citi) is an American multinational investment bank and financial services corporation headquartered in New York City.
Who is going to buy Citibank?
New Delhi: Kotak Mahindra Bank, Axis Bank and IndusInd Bank have made binding offers to buy Citi’s consumer business in India, valued at about $2 billion, the Economic Times mentioned in a report citing sources aware of the matter. The offers were submitted on Friday.