Citibank has begun looking for a buyer for its consumer business in India after it exited the segment as part of a global business strategy in 13 markets. Till the time the sale happens, there will be no impact on existing customers and staff in India, said a Citibank official to Moneycontrol on Thursday.
“Citi is not closing down its consumer business here, but only exiting. There will not be any impact on the existing customers and staff in India due to this decision. We will now look for a buyer for the Indian consumer business segment and will also seek necessary regulatory approvals,” said the official on condition of anonymity.
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Citibank will continue to focus on the wholesale business in India, the official said. “We will invest more in this segment,” the official added. Citigroup announced on April 15 that it will shutter retail banking operations in 13 countries including India and China.
The American multinational investment bank and financial services company has said that it will exit consumer/retail operations in 13 countries across Asia and Europe. The 13 nations Citibank will pull out from are Australia, Bahrain, China, India, Indonesia, Korea, Malaysia, the Philippines, Poland, Russia, Taiwan, Thailand, and Vietnam. Notably, investment banking operations will continue in markets where the company is ending consumer operations.
As on March, 2020, Citibank in India has 2.9 million retail customers with 1.2 million bank accounts and 2.2 million credit card accounts. Citibank has 35 branches in India which employs over 19,000 people.
In a separate statement, Ashu Khullar, CEO of Citi India said that Citi has been "a deeply imbedded institution in India and the sharpened strategy announced today will strengthen our ability to bring the full global power of Citi to our institutional clients, reinforcing our leading positions across Corporate, Commercial and Investment Banking, Treasury and Trade Solutions, as well as Markets and Securities Services."
"We will continue to tap into the rich talent pool available here to continue to grow our five Citi Solution Centers which support our global footprint. There is no immediate change to our operations and no immediate impact to our colleagues as a result of this announcement. In the interim, we will continue to serve our clients with the same care, empathy and dedication that we do today,” Khullar said.
(This is a developing story. Please check back for details)