Citibank India renews focus on credit cards

Citibank India is once again growing its unsecured business (credit cards and personal loans), that had taken a hit following the financial crisis of 2008. Unsecured loans constitute 50 per cent of the retail book, while the remaining 50 per cent comes from mortgage loans, advance against shares and deposits.

"The new client acquisition for credit cards has grown by 50 per cent compared with last year. Going forward, we expect a growth of 20-25 per cent in credit cards. We have 2.2 million cards inforce as of December 2011," said Anand Selva, country business manager, global consumer group Citibank India.

The bank is also working on increasing its market share among the emerging affluent class to 15 per cent in the next two to three years from the existing 10 per cent. In line with its new strategy, the bank on Monday launched Citibanking, a new range of products, services and benefits for customers who maintain a relationship value of minimum Rs 2,00,000 with the bank.

Mckinsey India estimates the emerging affluent segment in India constitutes of 16 million households, with 37 per cent in the top 14 cities. This segment consists of salaried professionals and also includes 35-40 per cent of self employed individuals with an annual income ranging from Rs 3,00,000 to Rs 1,500,000. The segment is expected to grow at a CAGR of 9 per cent, while the existing Rs 25,000 crore revenue pool is expected to grow at a CAGR of 16 per cent.

"The emerging affluent segment is a top priority for Citibank in Asia. The segment is large and growing quickly as a result of urbanisation, globalisation and economic expansion. Today, we are excited that India is launching a new value proposition for the emerging affluent class," said Daniel Baranowski, head of emerging affluent segment for Citi in Asia Pacific.

For customers who maintain a relationship value of a minimum Rs 2,00,000 with the bank, there would not be any cash withdrawal charges at any ATM anywhere in the world, in addition to zero fees on a host of banking services such as draft issuance, delivery, duplicate statement, funds transfer and stop payment. The bank will provide a dedicated personal banker as the single-point-of-contact for financial planning, emergency cash services of up to $1,000 through Citibank's overseas branches.

The bank has also launched a debit card that offers evergreen reward points that can be redeemed for air-miles or cashback. Its customers can avail of a Citibank Rewards credit card with 1,500 bonus reward points, complimentary access to select airport lounges and dedicated concierge services via debit card.