Citi India net slips 6 pc to Rs 3,233 cr in FY16

Citigroup India, the largest foreign lender by assets in the country, today reported a 6 per cent dip in net profit to Rs 3,233 crore last fiscal as against Rs 3,423 crore a year ago, mainly due to lower treasury income in a falling interest rate regime.
Describing the numbers as "a reflection of responsible and sustainable growth", Citi India chief financial officer Niraj Parekh said, "During the period, our focus on superior asset quality and ability to service institutional and retail clients translated to high quality earnings, despite the macroeconomic pressures. Our balance sheet is in very good shape now, even in a challenging year."

Parekh said the marginal dip in net income is partly reflective of market conditions, wherein interest rates have been falling leading to lower gains from treasury operations in the reporting year, while in the previous year, interest rates were higher and the resultant higher treasury gains.
Citigroup India's profit before tax marginally fell by 2.5 per cent to Rs 5,777 crore from Rs 5,923 crore in 2015-16, while the core net interest income rose 10 per cent, driven by a marginal rise in advances.
Citi's domestic banking assets stood at Rs 1,54,117 crore while Citi India as a whole, total assets including credit extended to domestic corporate clients from offshore branches, stood at Rs 2,02,723 crore, as of March 31, 2016.

While deposits grew 12.7 per cent, advances inched up to Rs 61,550 crore during the fiscal from Rs 60,896 crore a yaer ago, Parekh said but declined to offer a break-up of the advances.

The asset quality remained stable with gross NPAs remaining almost flat at 1.4 per cent for the year, while net NPAs inched up by 10 bps to 0.5 per cent. Its operating expense to net income ratio stood at 36 per cent.
The bank also reported a Casa of 49.7 per cent, which is amongst the highest in the industry, and also met its PSL obligations by extending loans worth Rs 7,789 crore to agriculture, weaker sections and micro and small enterprises as well as Rs 10,401 crore towards export credit.

The capital adequacy ratio stood at 15.8 per cent.
The bank serves 2.3 million retail customers in India with 1.2 million bank accounts and 2.3 million cards through its 45 branches across 28 locations.
The bank is not looking at expanding its physical reach as the focus is on branchless banking, Parekh said. Citi is amongst the leaders in credit cards and holds 14.5 per cent market share in retail credit card spends.
Citigroup added 1,700 employees over the fiscal year, bringing the total number of employees to 13,457. Of the total employees, its global KPO centre under the name of Citi Service Centres housed under Citicorp Services India, engages around 7,450 professionals across five locations.