Profile: Citi Bank Ltd.

Citigroup Inc. (branded Citi) is a major American financial services company based in New York Citi.
Citigroup was formed from one of the world's largest mergers in history by combining the banking
giant Citicorp and financial conglomerate Travelers Group on April 7, 1998.Citigroup Inc. has the
world's largest financial services network, spanning 140 countries with approximately 16,000 offices
worldwide. The company employs approximately 260,000 staff around the world, and holds over 200
million customer accounts in more than 140 countries. It is a primary dealer in US Treasury securities.
Citigroup suffered huge losses during the global financial crisis of 2008 and was rescued in November
2008 in a massive bailout by the U.S. government. Its largest shareholders include funds from the
Middle East and Singapore.[5] On February 27, 2009, Citigroup announced that the United States
government would take a 36% equity stake in the company by converting $25 billion in emergency aid
into common shares; the stake was reduced to 27% after Citigroup sold $21 billion of common shares
and equity in the largest single share sale in US history, surpassing Bank of America's $19 billion
share sale one month prior. Citigroup is one of the Big Four banks in the United States, along with
Bank of America, JP Morgan Chase and Wells Fargo. In over 100 countries worldwide, Citibank has
been carrying out its operations, which comprise of regular banking services along with credit card,
insurance and investment services. The bank claims to have a customer base of 15 million users
catered by its online services division alone. As Citibank was badly affected by the financial crisis of
2008, the U.S. government provided the bank with an aid of US$ 50 billion in two installments of
US$ 25 billion each.

Major types of financing

Working Capital Finance: This is a convenient and flexible form of short-term financing for routine operating
expenses and overheads of the company. Citi Bank issues a full range of Performance Guarantees, Advance
Payment Guarantees, and Financial Guarantees and Bid bonds for supporting the underlying business of its
customers.

Short Term Financing: As the responsive player in market, customer may anytime need fund to utilize for a
very short time due to either emergency or short term projects. In such case, Citi Bank is there to facilitate its
customer. This can be a Short Term Loan or a Short Term Revolving Loan. Customer can get it either for
his/her inland business or cross-border payment in foreign trade.
Mid Term Financing: - Citi Bank can also equip customer the required fund for a longer period. If any one
worries about fund requirement for a bit longer, ‘Citi Bank Term Loan’ will make him/her feel confident that,
he/she got a friend for this.

Project finance :- Citi Bank has been very active in the project finance plan.

Lease and Long Term Loans: - We can customize a Term Loan or Lease to finance the fixed assets that
customer’s business needs (such as land, new premises, equipment and machinery). It may be a greenfield
project or an expansion of an existing plant, which may be financed at competitive floating rate of interest.

Structured Finance:- A leading provider of cost-efficient, lease-based and asset-based financing solutions to
businesses in Bangladesh, The citi bank can create and tailor the right structured solutions for customer’s
business needs in order to enhance shareholders’ wealth and their market competitiveness.

Payment Services :- Citi bank can help customers save time and money by reducing processing costs while
providing a value-added service to customer’s suppliers. Citi Bank’s payment solutions can help to reduce
customers overall processing costs – for domestic and global payments – saving customers time and money
while providing a value-added service to customers suppliers. Citi bank’s comprehensive payment services will
be tailored to enhance customer’s accounts payable process. This will eliminate many manual tasks involved in
making payments, allowing customers and their staff to spend more time focusing on their core business needs.

The bank understands that customer’s effort in the payment cycle is directed towards initiation; difficulties in
the subsequent reconciliation process can jeopardize the whole process. With Citi Bank Channels customer’s
can now track the exact status of each payment through timely reports that can be uploaded seamlessly into
customer’s company’s system.

Collection Services:- Citi bank have a comprehensive branch network and the local knowledge to help its
customer with lower costs and greater efficiency. The Citi Bank Collections Solution leverages the Bank's
extensive regional knowledge and widespread branch network across the markets to specially tailor solutions for
customer’s regional and local collection needs. This Collections Solution, delivered through a standardized
international platform, has the flexibility to cater to customer’s local needs, thus enabling customer’s to meet
their objectives of reducing costs and increasing efficiency and profitability through better receivables and risk
management.

Liquidity Management: :- Let the bank help customers to get the most out of customer’s company’s cash
resources with physical sweeping, notional pooling, interest reallocation and investment.

Islamic Finance:- With over 1.5 billion Muslims in the world, the global Islamic funds market is currently
valued at USD 750 billion and is expected to grow exponentially every year.
Presence in India

In India, Citibank is present at 28 locations as of April 13, 2009. These locations include Jalandhar,
Ludhiana, Chandigarh, Noida, Delhi, Gurgaon, Faridabad, Lucknow, Jaipur, Ahmedabad, Vadodara,
Indore, Bhopal, Surat, Nashik, Aurangabad, Akola, Bhubaneshwar, Kolkata, Vapi, Mumbai, Pune,
Hyderabad, Bangalore, Chennai, Pondicherry, Cochin and Coimbatore.

Products and Services

The bank offers a variety of services and products under the Personal Banking, NRI Banking and
Corporate Banking categories. The services offered by the bank under Personal Banking are Loans and
Credit Cards, Regular Banking services such as savings account, business banking solutions including
Personal Wealth Management and investment options such as Mutual Funds and Demat Services. The
bank also offers various insurance solutions and hi-tech banking services such as Online Bill Pay, Pre-
paid Mobile Recharge, Internet Banking and CitiAlert account statements on the mobile phone.

NRI Oriented Services

For its Non-Resident Indian (NRI) customers, Citibank provides a wide range of services including
Rupee Checking Account, Money Remittance, Investment solutions and Home Loans for the NRIs.
Citibank also pays specialized attention to its corporate customers in India through its Corporate
Banking services, which comprises of an array of customized banking solutions tailor-made according
to the needs of its corporate customers in India. These services include Cash Management, Trade
Services, Loans, Securities and Fund Services, and Investment Banking services.

Global Commercial Bank Services

Apart from it, Citibank also offers Global Commercial Bank services through its Commercial
Relationship Banking wing and Global Subsidiaries Group. The Commercial Relationship Banking
services are aimed at helping the Small and Medium Enterprises (SMEs) and Mid Market Enterprises,
while the Global Subsidiaries Group provides comprehensive banking services for the top
multinational corporates and their subsidiaries in India. 
Mission of Citi Bank

Citi Bank has certain missions that they focus on achieving. These are as follows:

 To contribute to the socioeconomic development of the country

 To attain the highest level of customer satisfaction through extension of services by dedicated
and motivated team of professional

 To maintain continuous growth of market share ensuring quality

 To maximize bank’s profits by ensuring its steady growth

 To maintain the high moral and ethical standards

 To ensure participative management system and empowerment of Human Resources

 To nurture an enabling environment where innovativeness and performance is rewarded

Vision of Citi Bank

The vision of Citi Bank is to be the leading bank in the country with best practices and highest
social commitment.

Scope Of The Study

Scope of the project is very vast. The main scope of this project-:

 Comparing the Profit and Loss account and Balance Sheet of the last three years.
 Analyzing each and every item of the balance sheet and finding out the deviations.
 Finding out the differences and the competitive ratio between the figures.

Objective Of The Study

 To know the level of awareness among consumers about Citibank.

 To make people know about the various products offered by Citibank.
 To know the interest level of the consumers to get associated with Citibank.
 To collect various suggestions from consumers to make Citibank better one.
Competitors

 Bank of America
 J.P. Morgan Chase
 Wells Fargo
 Deutsche Bank

SWOT Analysis Of Citi Bank

Strength-:

 Asset leverage
 Effective communication
 High R&D
 Innovation
 Online growth
 Loyal customers
 Market share leadership
 Strong management team
 Strong brand equity
 Strong financial position
 Supply chain
 Pricing
 Real estate
 Reputation management

Weakness

 Bad communication
 Diseconomies to scale
 Over leveraged fiancial position
 Low R&D
  Low market share
 No online presence
 Not innovative
 Not diversified
 Poor supply chain
 Weak management team
 Weak real estate
 Weak, damaged brand

Opportunity

 Acquisitions
 Asset leverage
 Financial markets (raise money through debt, etc)
 Emerging markets and expansion abroad
 Innovation
 Online
 Product and services expansion
 Takeovers

Threats

 Competition
 Cheaper technology
 Economic slowdown
 External changes (government, politics, taxes, etc)
 Exchange rate fluctuations
 Lower cost competitors or imports
 Maturing categories, products, or services
 Price wars
  Product substitution

Profit and Loss Account Of Citi Bank As At 31st March 2008-2010

Particulars As at 31st March 2008 As at 31st March 2009 As at 31st March 2010
  In Rs Cr In Rs Cr In Rs Cr.
Income      
Interest Earned 601.15 804.4 956.61
Other Income 90.28 123.68 143.5
Total Income 691.43 928.08 1,100.11
       
Expenditure      
Interest Expended 396.18 561.83 678.47
Employee Cost 47.9 64.97 80.12
Selling and Admin.Expenses 57.44 70.08 98.75
Depreciation 14.8 15.94 13.58
Miscellaneous Expenses 73.38 93.12 76.42
Preoperative Exp Capitalised 0 0 0
Operating Expenses 136.76 173.02 217.34
Provisions & Contingencies 56.76 71.09 51.53
Total Expenses 589.7 805.94 947.34

Particulars March 31st,2008 March 31st 2009 March 31st 2010

       
Net profit for the year 101.73 122.13 152.76
Extra ordinary item 0 0 0
Profit brought forward 0.07 4.87 5.01
Total 101.8 127 157.77
Preference Dividend 0 0 0
Equity Dividend 16 24 30
Corporate Dividend Tax 2.72 4.08 4.98
Per share data (annualised)      
Earnings Per Share (Rs) 3.18 3.82 3.83
Equity Dividend (%) 50 75 75
Book Value (Rs) 17.71 20.65 20.68
Appropriations      
Transfer to Statutory Reserves 28.72 56.92 50.24
Transfer to Other Reserves 49.48 37 67
Proposed Dividend/Transfer to
Govt 18.72 28.08 34.98
Balance c/f to Balance Sheet 4.87 5.01 5.55
 Total 101.79 127.01 157.77

Graphically Analysis

Net profit for the year

180
160
140
120
100
80
60
40
20
0
2008 2009 2010

Interpretation

 There has been steady increase in the net profit of the Citi Bank.
 In the year 2008 the net profit is 101.73 cr. which will increase in 2009 by20.4 cr.and in the
year 2010it will increase by 30.63cr. which implies the net profit is increasing throught out the
year.
Total Income and Total Expenditure

1200

1000

800

600

400

200

0
2008 2009 2010

Interpretation

 In this graph we can see that there is a income over the expenses in each and every year.
 In 2008 expenses is 589.7 and income is 691.43, in 2009 income is 928.08 and expenses is
805.94 and in 2010 the income is 1100.11 and expenses is 947.34.
 So that we can say that the income of Citi Bank is always increasing while expenses is
increasing.

Earning Per Share

4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
2008 2009 2010
Interpretation

 The Citi Bank do have a slight increase in the Earning per share as compared to the last year.
 In 2008 EPS of the Citi Bank is 3.18, in 2009 it was 3.82 and in 2010 it was 3.83.
 EPS can be calculated for the previous year ("trailing EPS"), for the current year ("current
EPS"), or for the coming year ("forward EPS").Note that last year's EPS would be actual,
while current year and forward year EPS would be estimates.
 That’s why the investor invest in the Citi Bank.

Investment Portfolio

Borrowings from other Banks

12%

From the total borrowing of Tk. 8 50,000,000, Janata Bank Ltd. has provided TK. 7 50,000,000
and Dutch Bank Ltd has provided TK. 1 00,000,000. , which was an unsecured borrowing. The
borrowing was very short-term, which is only for one month.
 Investments based on industrial sectors

Agricultural, small & cottage

Large & medium

Commerce & trade

41%
21%
Insurance, real estate & service

0% 8%
Transportation &
29% 1% communications

Others

Again if we see from the industry sectors point of view then we can see that they have not
provided that much loans to SME business. Although they have provided 21% of its loans to
the borrowers of large and medium enterprises, they provided 41% loans to commerce and
trade sector, 8% loan to insurance, real-estate and service sector, 1% to transportation and
communication. And 29% loans they provided to other different sectors. we can say that
commerce and trade sector getting the advantage from this bank. Alarming fact is that The Citi
Bank has provided 0% of its loans in agricultural, small and cottage business. This is efficiently
damaging for our country’s long term development and well being. Because this bank
contributed nothing to this sectors, where a huge amount of people performing notably. So the
bank should invest at least some amount of loans in this sector.
 Basic Investments

7% Loans
8% Cash credits
60% Overdrafts
25% Bills purchased
& discounted

Last year the Citi Bank invested Tk. 26,788,466,138 in Private sector . Among this the biggest
share of 60% was invested in various kinds of loans, 25% was given as cash credits, 8% as
overdrafts and only 7% was spent to buy different kinds of bills as investments.

Investments based on significant concentration

Industri CEO & CEO & Directors

al Director customer groups
29% s Industrial
0% Others
Others
30%

If we see the total amount of investment invested by The Citi Bank in terms of significant
attention than we will see that the bank mainly provided their attention on consumer loans
which was 41% of the total loan that has been given. They also provide 29% loans to the
industrial sector. Conversely, one thing we notice is that they don’t have provided any amount
of credits to the company’s CEO and directors, although they could have given credits to them
easily. But as they are a customer friendly bank they have not done this. They tried to provide
as much as and big amount loans they can serve to their customer.
Balance Sheet Of Citi Bank as at 31st March 2008-2010

Particulars As at 31st March As at 31 March As at 31st March

2008 2009 2010
Capital and Liabilities In Rs Cr. In Rs Cr. In Rs Cr.
Total share capital 32 32 39.96
Equity share capital 32 32 39.96
Share Application Money 0 0 0
Preference Share capital 0 0 0
Reserves 534.86 628.92 785.68
Revaluation reserves 0 0 0
Net Worth 566.86 660.92 825.64
Deposits 6,424.96 8,206.62 10,284.59
Borrowings 2.64 0.15 40.03
Total Debt 6,427.60 8,206.77 10,324.62
Other assets and liabilities 354.51 383.32 409.15
Total liabilities 7,348.97 9,251.01 11,559.41

Mar '08 Mar '09 Mar '10

Assets
Cash and Balances with RBI 695.88 595.32 868.53
Balance with Banks, Money at 121.05 289.76 231.63
Call
Advances 4,537.06 5,645.25 6,833.46
Investments 1,717.96 2,397.46 3,210.43
Gross Block 97.46 111.23 146.56
Accumulated Depreciation 54 69.94 83.52
Net Block 43.46 41.29 63.04
Capital Work In Progress 0 0 0
Other Assets 233.56 281.91 352.31
Total Assets 7,348.97 9,250.99 11,559.40
Contingents Liabilities 3,816.33 3,848.81 2,158.85
Bills For Collection 550.08 576.42 700.79
Book Value 17.71 20.65 20.68

Analysis Of Data Graphically

Investment

3,500.00

3,000.00

2,500.00

2,000.00

1,500.00

1,000.00

500.00

0.00
2008 2009 2010

Interpretation

 Here we can see in this diagram that there is an increasing in the investment in the Citi Bank by
the investor.
 There should be increasing in the investment in the each and every year.

Total Assets
 14,000.00

12,000.00

10,000.00

8,000.00

6,000.00

4,000.00

2,000.00

0.00
2008 2009 2010

Interpretation

In this chart we can see the performance of Citi Bank regarding the total assets. The assets of this bank
is much more in 2009 compare to 2008 and it also increase in 2010 compare to 2009.

Total Liabilities

14,000.00

12,000.00

10,000.00

8,000.00

6,000.00

4,000.00

2,000.00

0.00
2008 2009 2010

Interpretation
In this chart we can see the performance of Citi Bank regarding the total liability. The liability of this
bank is much more in 2009 compare to 2008 and it also increase in 2010 compare to 2009.

Borrowings

Borrowings
6% 0%
Total Share Capital
2008
2009
2010

93%

31%
38%
2008
2009
2010

31%
This pie chart shows the total share capital of the Citi Bank ,through which we come to know that how
much is the share capital of this bank.

Total Debt

2008 2009 2010

26%

41%

33%

This pie chart shows the total debt of the bank by which we know about the all debt of the Citi Bank.
We see that the debt of this bank is continuously increased in the year from 2008 to 2010.

Findings
In the case where consumers’ exposure towards Citi Bank is the result of intentional search; Citi Bank took
numerous steps to facilitate intentional exposure. The new restructuring, include different new schemes &
services focusing on different segment of consumers & potential consumers, modernizing the total system to
give fast & efficient customer services & educate employees in extensive consumer service & finally studying
consumers’ behaviors to anticipate consumers’ needs & device strategies to meet them.

Citi Bank also focuses heavily on maximizing accidental exposures to the appropriate target groups of
consumers. Citi Bank identifies prime location for brunches & ATM booths to maximize accidental exposure.
The bank currently has 83 online branches spread across the length & breadth of the country that include a full
fledged Islami Banking branch. Besides these traditional delivery points, the bank is also very active in the
alternative delivery area. It currently has 25 ATMs of its own; and ATM sharing arrangement with a partner
bank that has 225 ATMs in place; SMS Banking; Interest Banking and so on. Soon its Customer Call Center is
going to start operation. The bank has a plan to end the current year with 50 own ATMs.

Once consumers are exposed to the marketing information, whether or through intentional or accidental
exposure, the process of attention comprehension begin. Citi Bank’s restructure of the total system new logo
along with the new pay off line facilitates the attention process. Citi Bank’s new advertises focuses on
increasing consumers’ and potential consumers’ involvements by focusing on “you first” messages. Citi Bank’s
advertises and all the other promotion vividly shows its pay of line- “making since of money”- and the meaning
it implies to the consumers.

Another step to seek the attention of consumers and meet the obligation towards the country as a part of this
society is to invest on corporate social responsibility. Citi Bank is one of the leading national bank to include
corporate social responsibility in the new restructured strategy. Citi Bank took projects on the beautification of
the Dhaka citi streets. Chiefly, the major streets to make the citi clean and beautiful. Finally, the level of
involvement a consumer feels is determined by the means-end-chains activated from memory and related active
responses. So Citi Bank engages in multiple corporate social responsibilities such as, beautification of Dhaka
citi, financing renovation and beautification of major streets, involving on charities for poor children’s and so
forth.

These aspects of the exposure situation or environment can affect consumers’ opportunity to comprehend
marketing information’s. Citi Bank also focuses on differentiating exposure for the expert and novice
consumers. Because the ability to comprehend information for different consumers varies according to their
knowledge in memory. Citi Bank to considers the characteristics of the consumers and potential consumers and
the environment in which consumers are exposed to the information of the bank, and acts accordingly which
reflects on their promotions.
Recommendation

Citi Bank’s should concentrate more on their ATM services and other consumer outlets. It is better for
them if they start their online banking system fully functional as soon as they can. Besides Citi Bank
will also have to concentrate on their marketing strategy as some people think it is not a local bank but
a multi national bank. This will lead some retailers to decide not to bank in there as against
multinational banks consumer feel inferiority complex sometimes.

Conclusion

“To enjoy the trust and confidence of the customers through cultivation of relationship banking” –is
the future plan of The Citi Bank Limited, by keeping this in front of them, they are committed to
giving real efforts. They want to secure good customer relationship with each and every customer.

The Citi Bank Limited has already introduced some new banking products like duel currency Credit
Cards, ATM and Online services which has created attraction among the clients. The Bank is going to
introduce real time Internet, SMS and Phone Banking systems with all modern delivery channels at an
early date. By doing their work properly and introducing new kind of banking tools The Citi Bank is
contributing a lot in the economy of the country.
Bibliography

 www.citibank.co.in
 www.citibank.com
 www.google.com
 www.iloveindia.com
 www.online.citibank.co.in
 www.scribd.com
Content

Sl. No. Particulars

1. Introduction
2. Objective Of Study
3. Scope of Study
4. SWOT Analysis
5. Data Analysis and Interpretation
I. Profit and Loss A/c
II. Balance Sheet
6. Findings and Recommendation
7. Conclusion
8. Bibliography