Citibank India posted a net profit of ₹13,614 crore for FY23, which included a one-time gain of ₹8,914 crore on the sale of the consumer banking business to Axis Bank in March 2023.
Excluding the one-time gain, the underlying profit after tax for the year was ₹4,700 crore, 26 per cent higher than the previous year, led by 16 per cent growth in revenue.
Refreshed strategy
“The disciplined execution of our refreshed strategy has led to strong earnings. We are leveraging the capabilities in our Institutional Clients Group (ICG) business to support our clients’ needs,” CEO Ashu Khullar said.
He attributed the profitability to the bank leveraging its global network to provide a wide range of Corporate and Commercial banking products and services across Trade and Treasury, markets, and Securities Services businesses.
The net interest margin (NIM) for the year improved to 5.15 per cent from 4.65 per cent a year ago. The gross non-performing asset (NPA) ratio was 0.41 per cent, better than 1.07 per cent in the previous year, and the net NPA ratio was nil compared with 0.39 per cent.
The total assets of the bank stood at ₹2.2 lakh crore as of March 2023.
Citibank India is the banker to 30 per cent of India’s multinational companies. It had a market share of 4.1 per cent in electronic fund transfers and 8 per cent in merchandise and software services trade flows. Further, it manages around 35 per cent of the foreign portfolio investor flows in India, it said in a release.
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Citi Commercial Banking provides banking solutions to over 3,500 mid-sized entities, including emerging and mid-tier corporates, multinational subsidiaries, and digital disruptors.
“India is the third market for Citi in Asia Pacific after Singapore and Hong Kong to launch a new sustainable time deposit solution, designed to assist institutional clients when investing excess cash while supporting their sustainability goals, reflecting the growing interest in sustainable investment, products, and services from clients,” it said, adding that the funds will support projects identified under the Citi Social Finance Framework. The bank also offers other sustainable products, such as sustainable supply chain finance and trade loans.
As of March 2023, the bank had extended loans of ₹35,001 crore to agriculture, affordable housing, renewable energy, and MSMEs, of which ₹1,218 crore were to economically weaker sections, as part of the bank’s priority sector lending (PSL) obligations.