Citibank Attempts To Come Back By Targeting Emerging Affluent
Mumbai – Citibank, who burnt its hand in 2008 India’s retail play, is trying to come back through restoring its customer banking operations. Consumer banking business’s new leader Anand Selvakesari is gambling big on the developing rich segment, containing individuals with yearly revenue of three to fifteen lakh.
Global consumer group, business manager, Citibank NA, said that CITI estimates to capture fifteen per cent of market share of this section over the coming 2 to 3 years. In the coming 2 to 3 years, eighteen to twenty per cent of our incomes would also come through this section.
Mckinsey India predicts that the developing rich segment of India has sixteen million households along with thirty seven per cent in top fourteen cities.
The sector is estimated to develop at nine per cent yearly. But, this will not be a simple task for US based bank as private competitors such as HDFC Bank, Axis Bank, and ICICI Bank continue to race the similar segment.
The national players have the benefit of huge branch networks and profounder diffusion. Citibank contains forty two branches in the whole country. In 2008 September, hit by the stoppage, banks such as ICICI, HSBC, and Citi were bound to scale back trade business as non-performing credits mounted.
In personal loan and credit card market banks had introvert. Citi, that had a base of credit card of 3.2 million during 2007, shrivelled its book to around 2.2 million cards. The retail assets of bank has shriveled by 17.87% to 17,836 crore at March 2011 end, from 21,718 crore at March 2008 end. The benefits through consumer banking business also jumped from 59095% to Rs. 328 crore at March 2011 end as against Rs. 819 crore at March 2008 end.
He said that we have made our credit card book in correct size. The bank is also obtaining new cards through the open market. We wish to have wider play in the space of credit card, are going out to get correct consumers.
Citi is also putting it efforts on the Universal banker concept, which will be seeing in all forms of consumer requirements and constructing a sales power of such worldwide bankers. The bank has employed around three hundred fifty to four hundred executives, which source business.