Citibank India's FY14 net profit rises 6.4%

Citibank on Monday said the net profit of its India business for the year ended March 31, increased 6.4 per cent to Rs 2,893 crore. Improved income from retail banking operations, growth in commercial banking segment and tight control on expenses aided the foreign lender's earnings.

"We are pleased to have delivered another set of quality earnings amidst a very challenging external environment, both in India and globally. During the financial year ended March 31, we saw consistent improvement in our retail bank earnings, maintained the profitability of our institutional client business and saw growth in the commercial banking segment, with a clear focus on managing our expenses. We are well poised to support the growth needs of our clients in the months ahead," said Pramit Jhaveri, chief executive officer of Citi India.

Citibank India's total assets were at Rs 144,981 crore at the end of March with advances growing nine per cent during the year. Deposits were up 18 per cent and the share of low-cost current account savings account deposits was at 48 per cent.

The net non-performing asset ratio improved by 23 basis points to 1.24 per cent. The operating expenses to income ratio reduced to 34 per cent from 40 per cent earlier. The foreign lender closed last financial year with a capital adequacy ratio of 16.5 per cent.

For Citi India, total assets including credit extended to Indian corporate clients from offshore branches were at Rs 196,075 crore at the end of last financial year. Citi also added to its India headcount during the year and currently has 9,800 employees.

"Citi India helped raise Rs 64,500 crore of equity and debt capital for clients while maintaining its top position in completed M&A (merger and acquisition) deals worth Rs 80,400 crore," it said in a statement. Citi held a 5.7 per cent market share of India's domestic payment flows and an 8.7 per cent market share of the country's trade flows during the year. Citi India also had a 12.6 per share of foreign exchange market as on March 2014.

In the cards business, Citibank said its spend per card was twice the industry average, while its total market share in cards spend was 17 per cent.