Citi India's FY13 net profit rises 41.4%

Operating expense to income ratio improved to 40% at end of March, 2013 from 44.5% a year earlier as bank re-engineered its cost base

Citi India on Wednesday said its net profit for the year ended March 31, grew 41.4 per cent to Rs 2,718 crore as the bank cut costs and increased its revenues.

“During the financial year 2012-13, we have seen sustained expansion in the commercial banking segment, high off-take of trade loans by global banking customers and growth in our mortgage business,” Abhijit Sen, chief financial officer of Citi India, said in his post-earnings comments.

The operating expense to income ratio improved to 40 per cent at the end of March, 2013 from 44.5 per cent a year earlier as the bank re-engineered its cost base. The bank's corporate and consumer banking businesses in India were profitable during the year, contributing to the overall growth in earnings.

Citibank India's total assets were Rs 1.28 lakh crore at the end of the last financial year. Its advances increased 10 per cent year-on-year to Rs 52,036 crore. The mortgage book expanded 16.7 per cent to Rs 9,949 crore. In consumer banking, Citi refocused its target market for credit cards that allowed it to reduce delinquencies. The bank had 18.4 per cent market share in cards spend and 26 per cent market share in the e-commerce volume.

The deposit base grew by three per cent to Rs 66,559 crore at the end of March.

The share of low-cost current account savings account (CASA) deposit was 53 per cent.

The net non-performing asset ratio of the bank was 1.47 per cent at the end of the last financial year primarily because one of its corporate clients did not repay its dues.

Citi India closed the financial year with a capital adequacy ratio of 15.9 per cent. “Our capital position remains robust as it supports a larger balance sheet. It is critical for us to maintain focus on being a stable, efficient and strong institution,” Sen said.