Citi for at par treatment with local banks

Citibank today sought a level-playing field with local banks in India as it sees no alternative to physical presence to be competitive.

"There are alternative distribution channels like internet banking, phone banking et al. But there can be no substitute to physical reach. Certainly we need more branch licenses to be on a level-playing field with Indian banks," said Ajay Banga, the newly appointed US-based co-head of Citigroup's global consumer group, in his first interaction with Indian journalists via video-conferencing.

"If we can ask for any regulatory changes, it is to do with removing restrictions on branch licensing. Let the consumer make a choice," he said.

Citibank has 39 branches in India. Exploring various alternatives in distribution channels, the bank has opened a credit card centre in Mumbai and eight other cities where Citibank does not have any presence. These centers can only engage in servicing and deepening of the bank customer relationship, Banga pointed out.

"Given a choice we would like to be present in 75 to 100 cities in India and open four to five branches in each city, said Mumbai-based Sarvesh Sarup, global consumer bank head at Citibank. Citibank has 14,000 employees in India and has on its rolls 300 Indian mangers in various other countries across the globe.

Citibank wants to expand its reach to service all segments of the Indian populace as India ranks among the top five market for the global bank.The bank wants To leverage on the growing aspirational Indian middle class. "Our product suite should be complete catering to all economic strata of India," said Banga.

Besides introduction of new products and services, Banga Said he believes in replication of products and services launched in one market throughout the world. The 'thank you network', which was originally introduced in the US, was replicated in other markets.

And liability product, Suvidha, launched in India, has been replicated in the US, Russia, and Poland. Next week, Suvidha will be launched in Indonesia. Citibank has 1.1 million Suvidha accounts.