Citibank NA India will shortly enter the asset management business either by setting up its own asset management company (AMC) or through an acquisition of an existing AMC.
Citibank chief executive officer , India and regional head Sri Lanka, Bangladesh and Nepal, Nanoo Pamnani said that with the opening up of the pension industry, "there is loaded opportunity in the AMC business, and we want to be there before it is opened up".
Citibank has also applied to the Reserve Bank of India (RBI) for a primary dealership licence in November 2001. "If we want to be serious in corporate business, we need to be in market making and warehousing as well, and we have thus applied for a PD licence," said Pamnani.
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Citibank on Wednesday unveiled its new logo. "We are evolving into a complete financial services company for any individual or corporate, and this is reflected in the new logo," said Jean-Paul Votron, group executive of the bank for Central & Eastern Europe, Middle East, Africa and Indian subcontinent. "The new logo is designed to customise brand offerings and will be a symbol of banking in the next century," he added.
The roll out of the new logo assumes significance in India which celebrates its centenary in the country, since it first opened its branch in Calcutta in 1902.
Pamnani said the AMC would not restrict its sales to its own mutual fund products. The group's AMC outfit had come down last August to review its plans for India, and intends to come down in the next few months.
The bank's managing director for India, Sri Lanka, Bangladesh and Nepal, Sanjay Nayar said that Citibank has the option of using the legal vehicles of Citicorp and converting them into a PD.
"Alternatively, we could create a new entity through additional foreign funds," he said, adding that Citibank has a government securities portfolio of around $ 1 billion.
"We have a strong appetite for investing in India, with limits set, so long as we have the right franchise opportunity," said Pamnani. India rates among the top 15 emerging markets for the international Citigroup, whose presence extends across 101 countries.
Citibank will increase its presence to 20 branches by June this year, having received five additional branch licences from the RBI. Pamnani said that for a country with the geographical size of India, "we did a strategic plan, and felt that 55 to 60 branches would give us a natural coverage in the country".