By Gopika Gopakumar and Krupali Pandit Yadav, CNBC-TV18

Citigroup does not intend to sell its non-banking finance company Citi Financial, the world's largest bank, is facing tough times in some segments of its consumer finance business. But overall there is no question of downsizing its India operations.

The ‘Citi’ which never sleeps, is having sleepless nights, thanks to all the illiquid investments and writedowns of the past one year. But the bank's Indian operations seems to be weathering the tide.

Sanjay Nayar, CEO, Citigroup India says that there is no intention of selling the bank's subsidiary, Citi Financial. Through offers and consumer finance products, Nayar says it is repositioning parts of its consumer finance business as the segment has seen large amount of defaults.

“It is an industry issue where there was over leveraging coming in with no great underwriting standards, poor pricing products and poor collection standards," said Sanjay Nayar.

Citi's global parent announced last week that it would sell $400 billion of its non-core assets. But it isn't downsizing in India. In fact, it has only recently brought in $250 million into India by way of capital. "We have above 22,000  people in India and are not withdrawing from our commitment here. The returns that we make on the whole are huge and more than satisfactory. The economic story is so strong as you look ahead. So, there is no question of downsizing," he said.

Nayar was, however, non-committal when asked if Citi would look to shed its near 13% stake in HDFC. "We don't comment on this," he said.

In fact, the mood in Citi appears to be to strengthen its performance in India and regain the top slot among foreign banks here.