The Hindu Business Line : Citi’s 3 new branches to help rural penetration

Plans for India expansion: (From left) Mr Stephen Bird, CEO, Asia Pacific Global Consumer Group, Citi; Mr Rajat Nag, Managing Director General, Asian Development Bank; and Mr Michael Klein, Vice-President and Chief Economist, IFC; at the Citi-FT Financial education summit, in the Capital on Thursday. –

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New Delhi, Dec. 6 CitiGroup will be opening three new bank branches in India by February 2008, taking the total number of branches in the country to 42.

“We currently have 39 branches and by February next year we will be opening three more branches. These branches will be set up in Kurnool in Andhra Pradesh, Akola and Nanded in Maharashtra,” Citigroup’s Chief Executive Officer (Global Consumer Group) Asia Pacific, Mr Stephen Bird, told reporters here on the sidelines of a seminar on financial education here on Thursday.

According to Mr P.S. Jayakumar, Country Business Manager (Global Consumer Group), the new branches would give the bank the much required rural penetration.

The global banking giant would be hiring around 30 new employees for these branches, who would be supported by existing back-office employees of the group.

The bank is also looking at making investments for technology upgradation for its India operations over the next 12-18 months.

“Though I cannot give the amount that we are looking at investing, it would be a multi-million dollar investment. The technology upgradation will be in terms of improving software, hosting and networking,” Mr Bird said.

Indian talent

Mr Bird also said that the bank develops Indian talent in the local market and later moves them to the foreign shores to help it competitively run operations there.

“The attrition rate in leading financial institutions in India is under control at about 15-20 per cent; this is much lower than the overall industry rate. Their movement is restricted to around the six to seven leading companies and it is welcome as the institutions are similar in nature and newer people come in with fresh perspectives related to the same industry,” he said.

He, however, added that a check needs to be kept on the attrition graph if it moves over 20 per cent. “If such a situation arises, then corrective actions such as training and counselling are needed. Attrition at minimal levels is accepted as it also helps in career progression of the individuals,” Mr Bird said.