Citi Bank to shut retail banking in 13 countries including India- Here’s what you need to know!
The US banking group said the move is aimed at shifting focus to wealth management and exiting retail banking in places where it is small.
Citi Bank group has announced that it will shut consumer banking operations in 13 countries including India. The US banking group said the move is aimed at shifting focus to wealth management and exiting retail banking in places where it is small.
While it has not yet announced a timeframe for the exit, the third-largest bank in the US will exit the consumer banking market in India, China, Australia, Malaysia, Bahrain, Korea, Indonesia, Russia, Vietnam, Philippines, Thailand, Poland and Taiwan.
Citigroup will continue to focus on its global consumer banking business in Singapore, Hong Kong, London and the United Arab Emirates. The announcement was made by Citigroup’s Chief Executive Officer Jane Fraser.
Fraser, who moved into the CEO role in March, said the decision is part of an effort to “double down” on wealth management, where the growth opportunities are better. The decision was announced after Citigroup announced its first-quarter profits of $7.9 billion, which is more than three times the level in the year-ago period. However, the banking group’s revenues fell seven per cent to $19.3 billion.
CEO Jane Fraser: “Let me be clear on one very important point: Citi will continue to invest behind and serve our institutional clients in these thirteen markets.” https://t.co/VXkVhyw20o
— Citi (@Citi) April 15, 2021
It is unlikely that Citigroup’s decision to exit banking operations in India will have an immediate impact on its employees working in the country. Citi Bank is India’s largest foreign bank, and started their Indian operations in 1902 from Calcutta. As per their LinkedIn page, they employ more than 20,000 employees in India.
Now, if they are shutting down their Indian operations, then it becomes clear that the job prospects of these employees are weak. The other option can be that entire retail banking will be sold off to another bank or financial institution. Although there hasn’t been any confirmation regarding the date of the shutdown, but we are speculating that there will be high number of layoffs.
As shared earlier, Citi Bank will continue their investment management services in India, but will shut down entire retail banking operations.