The Hindu Business Line : Citi India full-year net doubles

Citibank, India, said on Tuesday that its net profits doubled to Rs 1,804 crore for the year ended March 2008, from Rs 900 crore in the previous year.

Mr Sanjay Nayar, CEO, Citi India, said profits from foreign exchange business and higher commission income enabled the bank to report a more than 100 per cent growth in profits.

Total revenues for the fiscal increased by 51 per cent to Rs 6,099 crore (Rs 4,033 crore). Operating expenses for the fiscal grew by 18 per cent to Rs 2,179 crore (Rs 1,853 crore) due to escalation of lease rentals for existing leased premises.

The ratio of net NPAs (non-performing assets) to net advances increased to 1.23 per cent from 1.02 per cent, mainly on account of higher delinquency in cards business, said Mr Nayar.

Incidentally, Citigroup Inc, the parent of Citi India, said in April when it reported a $5.1 billion loss in the first quarter, that its Indian operations suffered higher credit costs (provisions against bad debt and write-offs) and increased recovery costs. It said the Indian operations contributed to the decline in Citigroup’s net income from Asia. The group had also said that under its international consumer finance business, “The net loss of $99 million was mainly due to an increase in credit costs of 92 per cent, primarily driven by India, and a positioning charge.”

Citi group’s consolidated profit from Indian operations for the fiscal increased by 65 per ent to Rs 2,596 crore from Rs 1,575 crore.

Citi Group has infused capital worth Rs 1,500 crore — Rs 1,000 crore in the banking entity and Rs 500 crore in NBFCs — to meet Basel 2 norms and to introduce new product platforms, Mr Nayar added.

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