As interest margins go through a general contraction in the banking sector, Citigroup India conglomerate is feeling upbeat about its numbers.
Equity, debt top contributors to revenue
AH Ghani
MUMBAI: As interest margins go through a general contraction in the banking sector, Citigroup India conglomerate is feeling upbeat about its numbers.
The conglomerate, which comprises all Citigroup entities in the country, has reported a total revenue of Rs 7,315 crore for the year ended 31 March 2007. This works out to an increase of Rs 2,045 crore over the prior year revenue and is net of the revenue from disposition of holding in one of the group companies amounting to Rs 2,464 crore.
“The increase in revenues was contributed primarily by the equity, debt markets, SMEs and consumer lending businesses,” said Sanjay Nayar, Citi India CEO and area head for Sri Lanka, Bangladesh and Nepal.
On a conglomerate basis, post-tax profits rose to Rs 1,566 crore for the year ended 31 March 2007, up 39% from Rs 1,127 crore in the previous period (excluding Rs 2,188 crore from the gain on sale of holding in one of the group companies).
This upbeat mood is evident in the balance sheet size too, which grew to Rs 84,469 crore on 31 March 2007, a 46% rise from Rs 57,983 crore at the end of the previous fiscal year. This was largely due to disbursals to SMEs, mortgages and retail loans. Says Nayar: “The emphasis of the group continues to be on investing in products, distribution and people in a bid to expand our franchise organically.”
Citigroup has identified new focus areas which are aligned with the national priorities. These are infrastructure financing, financial inclusion and micro enterprises. Adds Nayar: “We envisage our future growth to be achieved through serving underbanked and underserviced sections of our population.”
Citigroup plans to focus on deepening relationships with existing customers and making itself available to serve new clients through investments in people, marketing, technology and infrastructure.
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