It’s business as usual, says Citibank India after US bailout (Lead)

November 25th, 2008 - 8:13 pm ICT by IANS  

New Delhi, Nov 25 (IANS) Following the $20-billion bailout package announced by the US government, the beleaguered Citigroup Tuesday said its Indian operations were on track and that it was business as usual in terms of fresh recruitment and growth plans.”Throughout these difficult markets, Citi India has maintained strong and stable operating income, unparalleled access to funding, extraordinary levels of liquidity and the best talent in the business,” Citi India’s chief executive Sanjay Nayar said.

“Our business is strong and our support for our clients has been unwavering,” he said in a statement after the US bank Monday announced the details of the bailout plan approved by the government.

“We hope it puts to rest the unfounded rumours on our financial position and brings the focus back to the fundamentals of our global franchise,” he said. “This announcement sends a strong signal to all our clients here in India about our continued commitment to serve them as we have been doing for more than 106 years.”

According to a spokesperson for the bank in India, there was also a minimal impact of Citi’s employment reduction in India.

“We continue to hire in India, especially on campuses where we remain very active,” the spokesperson told IANS.

“What the media has reported with regard to job cuts are completely speculative, and we cannot confirm any of these except to repeat that there is minimal impact in India and we continue to be strong hirers and we have many open positions.”

The spokesperson also said that Citi’s other businesses such as its retail lending arm Citi Financial was also on track and it is business as usual.

In the statement announcing the details of the bail out plan, Citigroup’s global chief executive Vikram S. Pandit said: “This weekend, the US government and Citi worked together in an unprecedented way to address market confidence and the recent decline in Citi’s stock price.”

“We reached an agreement based on an innovative market solution to further strengthen our capital ratios, reduce risk, and increase liquidity,” Pandit said, adding: “We appreciate the tremendous effort by the government to assure market stability.”

He said Citigroup was committed to streamlining its business and providing outstanding banking services to clients across the globe. “We’ll continue to focus on opportunities and alternatives to further enhance the company’s overall position and value.”

The Citi Board of Directors has unanimously approved the transaction with the US government, the statement said.

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