Citi India FY16 net profit down 5.55 percent

Citibank is one of the largest foreign banks in India, with 44 branches in India

Salil Panchal
Published: Jul 11, 2016 07:20:11 PM IST
Updated: Jul 11, 2016 07:34:28 PM IST

Life is not a template and neither is mine. Like several who have worked as journalists, I am a generalist in my over two decade experience across print, global news wires and dotcom firms. But there has been one underlying theme in each phase; life gave me the chance to observe and tell a story -- from early days tracking a securities scam to terror attacks and some of India's most significant court trials. Besides writing, I have jumped fences to become an entrepreneur, as an investment advisor -- and also taught the finer aspects of business journalism to young minds. At Forbes India, I also keep an eye on some of its proprietary specials like the Rich list, GenNext and Celebrity lists. An alumnus of Xavier Institute of Communications and H.R College of Commerce and Economics in Mumbai, I have worked for organisations such as Agence France-Presse, Business Standard, The Financial Express and The Times of India prior to this.

Citi India FY16 net profit down 5.55 percent
Image: Robert Galbraith/ Reuters

Citibank’s India business reported a 5.55 percent dip in its net profit for the year ended March 2016, in a tough business environment. Net profit for India operations fell to Rs 3,233 crore in FY2016, against Rs 3,423 crore in the previous fiscal. During the period, the bank’s deposits grew 12.7 percent, and net interest income rose 10 percent.

As on March 31, 2016, Citi India's total assets stood at Rs. 154,117 crore. For Citi India as a whole, total assets including credit extended to Indian corporate clients from offshore branches stood at Rs. 202,723 crores for the full fiscal year. The net non-performing asset ratio stood at 0.5 percent for the same period.

Citibank is one of the largest foreign banks in India, with 44 branches in India, compared to Standard Chartered Plc’s 99 branches in India. Another prominent foreign bank, HSBC, has announced this year a plan to shut down 24 of its 50 branches in India, as more banking processes turn digital.

Niraj Parekh, Citi India’s chief financial officer said: “During the period, our focus on superior asset quality as well as our ability to service our institutional and retail clients through the full suite of our banking propositions translated to high quality earnings, despite the macro economic pressures,” in a media statement.

In the fiscal year to March 2016, Citi India extended loans of Rs. 7,789 crores to agriculture, weaker sections and micro and small enterprises as well as Rs. 10,401 crores towards export credit as on March 31, 2016, as part of its priority sector lending obligations. It also announced deals worth approximately Rs. 57,300 crores during this period, through its investment banking operations.

Citibank India has 2.3 million retail customers with 1.2 million bank accounts and 2.3 million cards nationally.

During this period Citi India held a 14.5 percent market share of retail credit card spends in the country, while average spends per card per year is 38 percent higher than the industry average.

In the fiscal year to March 2016, Citi India added 1,700 employees, bringing the total number of employees to 13,457.

Click here to see Forbes India's comprehensive coverage on the Covid-19 situation and its impact on life, business and the economy​

Show More
Post Your Comment
Required, will not be published
All comments are moderated
Reinventing retail banking
Shah Rukh Khan, Akshay Kumar among world's 100 highest-paid celebrities