Citibank India’s net profit up 12% in FY17
Citibank’s net profit in India increased 12% last fiscal, paced by an improvement in net interest margins (NIMs) and a 13 per cent rise in loan disbursements.
Profit increased to Rs 3,626 crore in the fiscal year ended March 2017, from Rs 3,233 crore in the year ended March 2016. NIM -the difference between the yield a bank earns on loans and that it pays on deposits -rose to 5.4 per cent in fiscal 2017 from 5.1 per cent in fiscal 2016.
The bank disbursed Rs 2.34 lakh crore of loans in India, including those booked abroad in fiscal 2017. Total as sets in India in cluding loans to Indian clients from offshore Citibank entities remained flat at Rs 2.02 lakh crore.
“The strong momentum witnessed across our retail and institutional businesses has led to growth in NII, fees and commissions,“ chief financial officer Niraj Parekh said in response to ET’s queries on the drivers behind the profit expansion.
The bank’s net NPAs remained unchanged at 0.50 per cent. Low cost current and savings account deposits increased to 58.2 per cent of total deposits in fiscal 2017 from 49.7 per cent.
Citibank’s capital adequacy also improved to 17.6 per cent from 15.8 per cent in fiscal year 2016. It was unclear how the bank’s CASA and capital adequacy improved. No Citibank official was available for comment.
Citibank almost doubled its lending to agriculture, affordable housing, weaker sections and micro and small enterprises to Rs 13,700 crore from Rs 7,789 crore in fiscal 2016. Under the RBI’s priority sector norms, foreign banks with 20 or more branches have to lend 40 per cent of their loans to these sections on a par with local banks starting this fisca