Due to the sale of the retail division to Axis Bank, the net profit for the Indian operations of the American lender Citi increased to Rs 13,614 Crore in FY23. A net profit of Rs 4,700 crore, or a 26% increase over the Rs 3,727 crore it reported for FY22, was reported by the lender after deducting the unit’s one-time gain of Rs 8,914 crore.

Without providing the precise amount, a Citi statement on Tuesday stated that its revenue increased by 16% after deducting interest costs. According to the statement, the net interest margin increased to 5.15% during the reporting fiscal year from 4.65% in the prior fiscal year, proving to be a significant driver of profit growth.

The bank reported an improvement in asset quality, with the gross non-performing assets ratio falling to 0.41% from 1.07% in the same period last year. In a deal worth Rs 11,603 crore, Citi completed the sale of its consumer banking division to Axis Bank during the fiscal year. The gain of Rs. 8,914 crore, according to Citi, is an after-tax expense.

The American lender sold the consumer company as part of a global strategic decision to wind down the enterprise in numerous nations. According to the statement, the company’s total assets were Rs 2,17,302 crore as of March 31, 2023. Ashu Khullar, the chief executive of Citi India, said the company is leveraging the capabilities in our Institutional Clients Group business to support client needs and attributed the solid results to the methodical implementation of a new strategy.

To reach 29,232 employees as of March 31, 2023, Citi India added 2,061 workers during FY23. 26,994 employees, or the majority of the workforce, were working abroad in the global capability center.

It has hired 591 freshers for analyst programmes from business and graduate schools, and technical institutes who will join it through 2023. Its commercial banking unit serves over 3,500 mid-sized organisations looking to grow rapidly and expand internationally, the statement said, adding that this includes emerging and mid-tier corporates, multinational subsidiaries and digital disruptors.

As part of its priority sector lending mandate, it has extended loans of Rs 35,001 crore to agriculture, affordable housing, renewable energy, and micro, small and medium enterprises as of March 31, the statement said. The amount includes Rs 1,218 crore to economically weaker sections, it added.

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