What will happen to the account holders and employees of Citibank? Bank is consolidating retail business in India
Citibank Exit: American bank Citibank is going to consolidate its retail banking business in India. Citibank has announced to exit the Consumer Banking business in India. The retail business includes segments such as credit cards, savings bank accounts and personal loans. The bank says that this decision is part of its global strategy, under which they will consolidate their business from 13 countries. Know the effect of shutting down the retail business towards the bank in India, its account holders and employees.
Around 4000 employees in the retail segment
Citibank’s consumer banking business includes credit cards, retail banking, home loans and wealth management. It has 35 branches in the country and employs about 4,000 people in its consumer banking business. Citibank’s Global CEO Jane Fraser says that there is no environment of competition in these areas, due to which the bank has taken this decision. The bank will require regulatory approvals to exit the retail business.
Will not have an immediate effect
Citi India CEO Ashu Khullar says that there has been no immediate change in our operations and this announcement will not have any immediate impact on our colleagues. We will not cut any of our customers’ services. With this announcement, the services of the bank will be better. Apart from the institutional banking business, Citi India will continue to focus on global business from its Mumbai, Pune, Bangalore, Chennai and Gurugram centers. Citibank entered India in 1902 and in 1985 the bank started consumer banking business. Citibank will now focus on only a few developed countries.
Searching for an ongoing buyer in India!
According to media reports, Citibank is also looking for buyers to sell its retail and consumer business in India. Citibank had a net profit of Rs 4,912 crore in FY 2019-20, compared to Rs 4,185 crore in the previous financial year.
Citibank will exit the retail banking business in Australia, Indonesia, Bahrain, China, South Korea, Malaysia, Philippines, Poland, Russia, Taiwan, Thailand and Vietnam in addition to India under its new global business strategy. However, it will continue its wholesale business in these markets.
