 "India needs more and also bigger banks: Citibank India CEO")
As the Reserve Bank of India (RBI) readies for licensing some niche-segment banks, global banking giant Citibank's India chief, Pramit Jhaveri, said there was not only room for a larger number of banks in the country, but it also needed ones large in size, to compete on a global stage.
"India remains under-penetrated from the perspective of our industry. If that is the case after 68 years of independence, the case for having more and different kinds of banks is very strong," Jhaveri told PTI in an interview here.
Jhaveri, chief executive officer of Citibank India, also said banks in India remained smaller than peers globally and there was a strong case for larger banks.
His comments came at a time when home-grown Kotak Mahindra Bank has announced a Rs 15,000-crore deal to merge ING Vysya Bank into it through an all-share transaction. Besides, RBI is in the process of coming out with final norms for payment banks and small banks, while some more niche-segment banks could be in the offing.
When asked whether there was room for payment banks and other niche players, Jhaveri said, "Significant changes are taking place in India, which will create very meaningful opportunities for the banking industry. Examples of drivers of change and opportunity are digitisation, urbanisation and globalisation. Given the size, complexity and potential for further penetration, there is plenty of room for different kinds of banks - small banks, payment banks, internet banks, etc."
"I do not believe all banks have to be all things to all people and that we need a one-size-fits-all formula. You can have big banks, universal banks and also niche banks," he said. On Citibank in India, Jhaveri said it had been in India for 112 years and it had significant growth opportunities.
Along with an employee strength of nearly 10,000 people, Citibank India has 42 full-service branches across nearly 30 cities. It posted profit sfter tax of Rs 2,893 crore for the financial year 2014.
It is present across all segments of banking services, including retail and wholesale banking.
Its products and services are organised mainly under two major segments - Institutional Clients Group and Global Consumer Bank.
It is a major player in the credit card market for retail consumers, while in corporate and investment banking segments it has leadership positions in areas such as M&As, equity markets and international bonds.
"India remains under-penetrated from the perspective of our industry. If that is the case after 68 years of independence, the case for having more and different kinds of banks is very strong," Jhaveri told PTI in an interview here.
Jhaveri, chief executive officer of Citibank India, also said banks in India remained smaller than peers globally and there was a strong case for larger banks.
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"At this point, sensible consolidation would be one way to achieve scale," he said.
His comments came at a time when home-grown Kotak Mahindra Bank has announced a Rs 15,000-crore deal to merge ING Vysya Bank into it through an all-share transaction. Besides, RBI is in the process of coming out with final norms for payment banks and small banks, while some more niche-segment banks could be in the offing.
When asked whether there was room for payment banks and other niche players, Jhaveri said, "Significant changes are taking place in India, which will create very meaningful opportunities for the banking industry. Examples of drivers of change and opportunity are digitisation, urbanisation and globalisation. Given the size, complexity and potential for further penetration, there is plenty of room for different kinds of banks - small banks, payment banks, internet banks, etc."
"I do not believe all banks have to be all things to all people and that we need a one-size-fits-all formula. You can have big banks, universal banks and also niche banks," he said. On Citibank in India, Jhaveri said it had been in India for 112 years and it had significant growth opportunities.
Along with an employee strength of nearly 10,000 people, Citibank India has 42 full-service branches across nearly 30 cities. It posted profit sfter tax of Rs 2,893 crore for the financial year 2014.
It is present across all segments of banking services, including retail and wholesale banking.
Its products and services are organised mainly under two major segments - Institutional Clients Group and Global Consumer Bank.
It is a major player in the credit card market for retail consumers, while in corporate and investment banking segments it has leadership positions in areas such as M&As, equity markets and international bonds.