Over the years, Citibank has built one of India’s most profitable and valuable consumer banking businesses with a combination of aggressive marketing strategies and innovative use of technologies.
Citigroup Inc trounced first-quarter profit expectations, thanks to a rebound in the broader economy and a jump in investment banking activity, and said it will exit some overseas businesses as new chief executive Jane Fraser starts to make her mark on the country's third-largest lender.
The bank reported $7.94 billion in profit, triple the $2.54 billion it made a year earlier, as it released funds set aside to cover pandemic loan losses and cashed in on a boom in listed shell company deals which has boosted underwriting income across Wall Street.
Analysts said back of the envelope calculations show the Citibank consumer business in India could be worth $2 billion. It includes 2.9 million retail customers, 2.7 million credit card subscribers, 1.2 million bank account holders and 35 branches with $23 billion in deposits.
That makes it India’s sixth largest card issuer. But where it scores over its larger rivals is in the quality of its cards business. Media reports suggest that Citibank has built a very high-quality cards portfolio with several high net worth customers whose average card spend exceeds the industry average.