Retail unit sale propels Citi India FY23 net profit to Rs 13,614 crore

American lender Citi's FY23 net profit from India operations zoomed to Rs 13,614 crore on the back of the retail unit's sale to Axis Bank.

Excluding the Rs 8,914 crore one-time gain of the unit, the lender reported a net profit of Rs 4,700 crore, which was a 26 per cent growth over the Rs 3,727 crore it reported for FY22. 

Its revenue net of interest expense grew 16 per cent, a Citi statement said on Tuesday, without disclosing the exact figure.

The net interest margin expanded to 5.15 per cent during the reporting fiscal, as against 4.65 per cent in the previous fiscal, proving to be an important driver of profit growth, it said.

On the asset quality front, the bank reported an improvement with the gross non-performing assets ratio coming down to 0.41 per cent as against 1.07 per cent in the year-ago period.

Citi concluded the sale of its consumer banking business to Axis Bank during the fiscal in a Rs 11,603-crore deal. Citi said in the statement that the gain of Rs 8,914 crore is after tax expense.

The American lender sold the consumer business as part of a global strategic call to exit the business in multiple countries.

Its total assets stood at Rs 2,17,302 crore as on March 31, 2023, the statement said.

Citi's India Chief Executive Ashu Khullar attributed the strong numbers to the disciplined execution of a new strategy and added that it is leveraging the capabilities in our Institutional Clients Group business to support clients needs.

Citi India added 2,061 employees during FY23, bringing the total staff to 29,232 as on March 31, 2023. A majority of the workforce -- 26,994 people -- were in the global capability centre, engaged in overseas operations.

It has hired 591 freshers for analyst programmes from business and graduate schools, and technical institutes who will join it through 2023.

Its commercial banking unit serves over 3,500 mid-sized organisations looking to grow rapidly and expand internationally, the statement said, adding that this includes emerging and mid-tier corporates, multinational subsidiaries and digital disruptors.

As part of its priority sector lending mandate, it has extended loans of Rs 35,001 crore to agriculture, affordable housing, renewable energy, and micro, small and medium enterprises as of March 31, the statement said.

The amount includes Rs 1,218 crore to economically weaker sections, it added.