Citigroup To Close Retail Banking Operations In India, Know What Impact It Will Have On Customers

Photo courtesy: Bloomberg

New Delhi: Citigroup will exit its retail banking business in India and 12 other countries, it announced on Friday. The US banking group said it has already started the process to look for buyers, following which it will exit retail banking operations in India, India Today reported.

Making the announcement, the newly-appointed global CEO of Citigroup, Jane Fraser, said the decision is a part of the company’s strategy to shift resources and investments in lucrative opportunities including wealth management and institutional businesses in Asia.

On why the company is planning to exit India and the other countries, she was quoted as saying, “While the other 13 markets have excellent businesses, we don’t have the scale we need to compete.”

On why the company is planning to exit India and the other countries, she said, “While the other 13 markets have excellent businesses, we don’t have the scale we need to compete.”

“There is no immediate change to our operations and no immediate impact to our colleagues as a result of this announcement. In the interim, we will continue to serve our clients with the same care, empathy and dedication that we do today,” Citigroup India CEO Ashu Khullar was quoted as saying by India Today.

As of March 2020, Citibank India serves nearly 3 million retail customers and has over one million bank accounts and over 2 million credit cards.

Citigroup’s decision to exit India marks the end of an era as it was the first foreign bank that started operations in the country in 1985. The US banking group said it has already started the process to look for buyers, following which it will exit retail banking operations in India.