Maximum Citi ; It has Nudged Ahead of the Competition in the Foreign Banks Arena, but There's More to Citigroup in India Than Just Banking.

Summary

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These aren't the best of times for Citigroup Inc. It may be the world's largest bank with a market capitalisation of $252 billion, but the stock price has been stagnating in the $45-50 per share region for close to two years now on the New York Stock Exchange. Recent reported cuts of over 15,000 jobs to bolster profitability at the 399 Park Avenue-headquartered bank hardly came as a surprise to analysts tracking the global giant. And when Charles O. "Chuck" Prince, Chairman & Chief Executive, took home an annual compensation of almost $26 million in 2006--a year in which Citigroup's net income fell by 12 per cent--shareholders weren't exactly nodding in approval.

Cut to Asia, where Citi it would seem is an altogether different entity, both in performance and action. Take China, for instance, where Citi has over the years acquired strategic stakes in two Chinese banks. In late 2003, it picked up 4.62 per cent in Shanghai Pudong Development Bank, and plans are to take it up to 20 per cent. Last July, Citi also bought 20 per cent in Guangdong Development Bank, which was considered a coup of sorts in the mainland's restricted banking environment. Then there's South Korea, where Citibank took over one of the largest local banks, KorAm Bank, in January 2004. Such progress in non-traditional markets would be good enough to make Chuck (as he is known within the bank) smile.

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Maximum Citi ; It has Nudged Ahead of the Competition in the Foreign Banks Arena, but There's More to Citigroup in India Than Just Banking.

The progress in India should make him beam. Chuck, CEO since 2003 and Chairman since 2006, was in India in March this year, a day after news of massive job cuts at Citi seared news wires globally. But Chuck was in high spirits, and not just because he was thousands of miles away from the heat. "The bank will focus on two or three countries outside North America, including India, for growth," revealed Chuck to Citi staffers in New Delhi.

C...

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