Strong financial performance, bank's focus on emerging markets may convince global bosses not to cut jobs here
The strong financial performance of the India businesses and the lender's focus on emerging market economies is likely to convince the global bosses not to reduce headcount here, senior executives of the bank said.
"There is no change to the business strategy for India. India remains an integral part of Citi's global growth strategy. We have been investing and growing our franchise in India in a disciplined manner consistent with our business model, brand position and overall strategy, and will continue to do so," a spokesperson from the bank's India office said in an e-mailed response.
In 2011-12, Citibank's profit after tax from India operations expanded by 35 per cent from a year ago driven by growth in assets across businesses. Total assets increased by 15 per cent to Rs 128,428 crore at the end of March, 2012.
"Citi India has recruited 1,900 professionals in 2012 till date and will continue to be a net recruiter of talent in India," the spokesperson said. The bank currently employs over 7,700 employees in India.
Citigroup on Wednesday revealed its plan to pare roughly four per cent of its global workforce to cut costs. The move comes after the bank's chairman Michael O'Neill took charge oustering former chief executive Vikram Pandit in October, 2012.
Senior executives of the bank also confirmed that the scope of job cuts in India was limited and any retrenchment will be restricted to a few employees based after evaluating their performance.
They also pointed out that there is a time lag before the impact of a global decision is felt on the bank's regional operations.
For instance, in December, 2011 Pandit announced that the bank will lay-off 4,500 employees or around 2 per cent of its global workforce at that time. In India, the lay-off started a month later and around 100 employees were asked to resign in January, 2012.
Senior executives at Citi said it was difficult to estimate the number of jobs that are at risk in India at this point of time.
Since last year, a number of global banks and financial services firms have dismissed scores of employees in their India unit as slowing growth in home markets and worsening macro-economic environment forced them to cut costs.
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