Not to worry, it’s good news, says Citi India | business | Hindustan Times
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Not to worry, it’s good news, says Citi India

business Updated: Nov 24, 2008 20:35 IST
HT Correspondent

The local unit of Citibank says that the US government’s capital support 0f $306-billion to Citigroup is providing the Indian operations further solidity.

Citigroup India has been constantly communicating with its corporate clients and high net worth individual customers of its wealth management business, through meetings and messages, updating them on developments in the bank’s operations in the United States.

The capital support without granting any equity stake to the US government and without a change in the management is being sold to customers as “a vote of confidence” in the bank.

“The announcement sends a strong signal to all our clients here in India about our continued commitment to serve them as we have been doing for more than 106 years,” said Sanjay Nayar, CEO South Asia at Citigroup, in a statement.

Nayar is on his way out and will soon be joining global private equity firm, Kohlberg Kravis Roberts.

Citigroup India had reported a net profit of Rs 1,800 crore in 2007-08, up almost 50 per cent from a year earlier.

Citibank, the commercial banking business, had capital and reserves of Rs 9,351 crore at the end of March 31.

Citibank also has significant amount of deposits but, unlike ICICI Bank, has not seen any panic withdrawals by customers.

At the end of March 2008, the total deposits with Citibank amounted to Rs 46,125 crore.