Citibank PAT doubles, provisions rise 65%

1,804 100 Total revenues

4,033

6,09951 Operating expenses1,8532,17918 Advances32,86138,37717 Deposits37,87546,125

22

Net NPAs(%)1.021.23   Citi India, which comprises all the group entities in the country, reported a 65 per cent rise in profit after tax at Rs 2,596 crore, with revenues rising 44 per cent to Rs 10,586 crore.  The bank is relying on an organic growth strategy, according to Citi India Chief Executive Officer Sanjay Nayar.  Citigroup invested Rs 1,000 crore in Citibank and Rs 500 crore capital into non-banking finance companies last year.  The group's prominent non-banking finance companies include Citi Financial, Citi Wealth Advisors, Citigroup Global Markets and CitiCorp FinanceIndia.  Nayar said there was no slowdown in lending to the corporate sector despite the rise in interest rates, but added that investment borrowing could drop in the days ahead.  While reiterating that Citi would remain in the consumer finance business, he said the interest rates were unlikely to dip in the near future.  Moreover, the overseas mergers and acquisition plans of Indian companies could be impacted by the capital constraints in the global financial system.