US-based Citigroup is likely to allocate more global roles to India than to any other centre it operates in due to the country’s strong talent pool, said Jane Fraser, chief executive officer of Citigroup, on Wednesday in an interaction with CNBC-TV18.
Photograph: Toby Melville/Reuters
Fraser also expressed confidence that India will remain the world’s fastest-growing economy.
She noted that while the China+1 advantage is an added benefit, India itself presents a real opportunity, given its strong domestic market and the positive steps taken by the government to boost economic growth.
“The benefit of this country is that it has an extraordinary cadre of highly technical, hardworking, and creative individuals.
“That is where the country’s competitive advantage lies, and this should give confidence to the country and everybody,” Fraser said.
“I am expecting to put more global roles here than in other centres because of the talent,” she added.
Commenting on the Indian economy, Fraser said, “India is one of the world’s bright spots. This is India’s decade.
“There is direction in the economy from the government that makes most people bullish about India,” she said, adding that China+1 is the icing, but India is the cake.
“It is the domestic opportunities here — the investment the government has made in digitisation, the investment we are seeing in infrastructure, and developments in the green economy.
“All of this is making India one of the biggest and fastest-growing economies in the world. And I do not see that changing,” Fraser emphasised.
In 2021, Citi announced that it would exit the consumer banking business in 13 countries, including Australia, Bahrain, China, India, Indonesia, South Korea, Malaysia, the Philippines, Poland, Russia, Taiwan, Thailand, and Vietnam.
In India, Citi sold its consumer banking business to Axis Bank — India’s third-largest private sector lender — for Rs 11,603 crore.
“Globally, we have focused our strategies on clients who are institutions and individuals with cross-border needs.
“We made a major global shift by exiting our consumer businesses and placing them in the hands of strong owners to ensure our clients and employees are well taken care of. This also allowed us to focus on our core strength and competitive advantage,” Fraser said.
“I am proud that we are now larger in India than we were when we owned the consumer bank. It shows that our strategy is working.
“We generate more revenue now than we did when we had our consumer franchise,” she said, adding that they have expanded their support for Indian companies operating globally and domestically, as well as for foreign investors who see India as a long-term bright spot.
Asked what makes Citi the largest global bank in the country, Fraser said, “We have the benefit of having been here for over 120 years. It is the breadth and depth of our franchise.”
“We have our investment bank, corporate bank, commercial bank, trading businesses, custody services, cash management, and more.
“The depth and breadth of our capabilities are unmatched.
“We take great pride in the role we play — connecting the world to India and India to the world, as well as supporting the country’s strong entrepreneurial spirit,” Fraser added.
On fears that the artificial intelligence (AI) revolution could put global capability centres (GCCs) in India at risk, Fraser said, “We operate in about six different cities.
“These centres have evolved from being back-office support to developing our leading-edge critical capabilities in data and AI.”
“India is central to our firm’s transformation. These technologies will create new jobs and new industries.
“I don’t think GCCs are in danger as long as they continue to adapt and evolve.”
