Citi India FY23 profit jumps threefold Rs 13,614 crore on retail arm sale

Citi's total assets stood at Rs 2,17,302 crore as at March 31, 2023. Citi concluded the deal with Axis Bank in March this year

Citi India on Tuesday reported a more than threefold increase in its net profit for financial year 2022-23 (FY23) to Rs 13,614 crore, boosted by the sale of its consumer banking business to Axis Bank.

The bank had reported Rs 3,727 crore net profit in FY22.

“Citibank India had a strong financial performance for FY23 with an underlying 16 per cent year-on-year (Y-o-Y) growth in revenue (net of interest expense) and 26 per cent growth in profit after tax (PAT), excluding the one-time gain on sale of consumer banking business in India to Axis Bank,” the foreign lender said in a statement.

The net profit includes a post-tax one-time gain on the sale of consumer banking business of Rs 8,914 crore and underlying profit of Rs 4,700 crore.

Citi’s total assets stood at Rs 2.17 trillion as on March 31. Citi concluded the deal with Axis Bank in March this year.

Citi India’s net interest margin for FY23 swelled to 5.15 per cent from 4.65 per cent in the previous financial year. The bank said its asset quality remained strong with gross non-performing asset (NPA) ratio at 0.41 per cent as compared to 1.07 per cent and zero net NPA ratio as compared to 0.39 per cent last year.

As on March 31, Citibank India has extended loans of Rs 35,001 crore to agriculture, affordable housing, renewable energy, and micro, small and medium enterprises, of which Rs 1,218 crore has been extended to economically weaker sections, as part of Citibank India’s priority sector lending obligations. 

The lender said it helped raise Rs 40,770 crore of equity capital and Rs 14,382 crore of debt capital for clients.

“Citi India is also a leading investment bank in mergers and acquisitions, with announced deals worth $67,556 million during this period,” the statement added.