As Citibank decides to exit consumer banking business in India, know its impact on existing customers, employees
New Delhi | Jagran Business Desk: After almost three decades of providing consumer banking services in India, American banking major Citibank on Thursday announced that it will be exiting the high visibility consumer banking business in the country along with 12 other countries, mostly in Asian sub-continent, as a part of its global strategy.
The consumer banking business comprises credit cards, retail banking, home loans and wealth management. The bank has 35 branches across the country and employs approximately 4,000 people in the consumer banking business.
With the banking major announcing the big move to shift its focus to wealth management, a big question arises about its possible impact on the bank’s existing customers and workforce in India.
According to a Moneycontrol report, Citibank has started looking for a buyer to take over its consumer business. Till it happens, there will be no impact on the existing customers and staff in India.
The report quoted a Citibank official saying that the bank was only exiting the consumer business in India and not closing it down.
“There will not be any impact on the existing customers and staff in India due to this decision. We will now look for a buyer for the Indian consumer business segment and will also seek necessary regulatory approvals,” he was quoted as saying.
He said that the banking major will continue to focus on the wholesale business in India and will continue investing more into it.
Citi had entered India in 1902 and started the consumer banking business in 1985. From a social perspective, the consumer bank had extended loans of Rs 27,911 crore to agriculture, affordable housing, renewable energy and MSMEs (Micro, Small and Medium Enterprises) as of March 2020.
Of that amount, Rs 4,975 crore was extended to weaker sections as part of Citibank India's priority sector lending obligations, as per a release issued by the bank last year.
Apart from the institutional banking business, it will continue to focus on offshoring or global business support rendered from centres in Mumbai, Pune, Bengaluru, Chennai and Gurugram.
Posted By: Abhinav Gupta