Citi Bank-Foreign Bank Financial Performance in India

 

Project Report on Financial Performance of Foreign Banks in India-A Case Study on Citibank

 

Financial and Strategic Analysis of Citibank in India

Ratio Analysis and Profitability Performance Evaluation of Citibank in India

SWOT Analysis of Citibank India

Strengths

Citibank India

Company Data Website: www.online.citibank.co.in Status: Foreign bank Media Contact Madhulika Gupta Tel: 91-22-5001 5050 Email: madhulika.gupta@citigroup.com

• Size and global reach. It is the largest financial institution in the world with presence in more than 100 countries.
• Diversification of products, outlets and sources of earnings.

Weaknesses

• Loss of US$27.7bn in 2008.
• Exposure to sub-prime loans and other toxic assets.
• The Lehman Brothers bankruptcy disrupted Citigroup's foreign exchange operations.
• Moody's downgraded Citibank's long-term rating from Aa3 to A1 in February 2009.

Opportunities

• Corporate restructuring into two operational units: Citicorp and Citi Holdings.
• The Public-Private Investment Programme, part of the US Treasury's Financial Stability Plan, will help Citigroup to remove its toxic assets, on top of funds invested under the Troubled Asset Relief Programme.

Threats

• The continued global economic downturn. 
• Citibank was facing a US$4bn arbitration claim filed by the Abu Dhabi Investment Authority in December 2009.

Company Overview

Citibank is part of Citigroup, the world's largest financial institution, which is a highly diversified financial services company. It operates in more than 100 countries across six continents, with 350,000 employees managing 200mn customer accounts. It is organised into four major segments: consumer banking, global cards, the institutional clients group and global wealth management. Citibank offers a range of financial services for small and large corporations, governments and institutional and individual investors.
International expansion is crucial for Citibank in order to recoup losses in the US markets. Over the past two years, the bank has been aggressively expanding products and services into Indonesia, Russia, Hong Kong and India.

Citibank's Indian operation includes a wide range of retail and corporate banking products and has 40 branches across the country. The bank's net profit rose by 20% y-o-y in the financial year ending March 2009 to INR21.73bn, with net income up by 24% y-o-y to INR104.23bn. The Indian branches' total assets rose by 26% y-o-y to INR1,052bn. The bank's figures show a quicker recovery in the Indian economy and banking sector than in any of the group's other international operations. Citibank India was able to report a healthy 15.56% capital adequacy ratio in September 2009, up from 11.66% at the same time in the previous year.

Citibank's Indian subsidiary has achieved strong growth since FY07-08. Its net profit dipped to a low of INR9bn in the financial year ending in March 2007 despite a 40% y-o-y increase in total income for the year.

In February 2009, as part of a financial rescue package, the US government took ownership of over 36% of Citigroup, which was later reduced to 27%.

Table: Key Statistics For Citibank India, 2007-2009 (INRmn)
	2007	2008	2009
Total Assets	732,559.8	1,095,664.0	1,476,972.0
Loans & Mortgages	368,764.6	594,483.6	814,699.4
Total Deposits	520,153.2	830,394.3	1,104,619.0
Source: IBA If you want Dissertations, Thesis, Case Studies on Liquidity Management , Research Proposals, Term Papers, MBA Project Report on Citibank, Research Projects, Assignments, Coursework, Essays, Articles, PowerPoint Presentations and Synopsis, than contact Mahasagar Publications, Mumbai, India by calling +91 9819650213 or +91 8081344446  or visit website www.projectspapers.com