India-born Vikram Pandit led world's biggest bank Citigroup is planning to overhaul its bonus system, aimed to increase co-operation and minimise in-fighting among disparate parts of the conglomerate, a media report said.
"Citigroup is planning to overhaul its bonus system for hundreds of top managers in an effort to increase co-operation and minimise in-fighting among the disparate parts of the sprawling financial services conglomerate," the Financial Times reported.
Citi, which has incurred losses of about $15 billion in the past two quarters, is expected to witness further billions of dollars of write-downs, related to the subprime crisis.
Recent media reports said that Citi would slash 10 per cent of its 65,000-strong investment banking workforce globally.
According to the Financial Times, the move is part of Pandit's plan to restore the group's battered fortunes by harnessing synergies between its investment banking, commercial banking and wealth management divisions.
The Financial Times said that Pandit has rebuffed calls to break up Citi and vowed to eliminate barriers between the firm's businesses to fully exploit its universal banking model.
Quoting a Citi executive, the newspaper said, "The new compensation plan is absolutely crucial to put teeth behind Vikram Pandit's strategy," and added, "We have to put a premium on partnership-like behaviour."
Further, quoting people close to the situation, the UK daily noted that Pandit wanted to change the way bonuses were calculated to reward co-operation across different divisions and the performance of the company as a whole.
Monday, June 30, 2008
Tuesday, June 24, 2008
Citibank Launches Citigold Global Banking
Citibank today announced the launch of Citigold Global Banking, a premium Banking and wealth management service exclusive to Citigold clients. The new Citigold Global Banking program takes financial mobility to a whole new level by enhancing the banking experience for Citigold clients not just in India but also around the world. This initiative leverages on Citi's strong worldwide presence to offer cross-border banking products and services to internationally mobile Citigold clients. India is among a select group of countries in the Asia Pacific region where this service has been launched today.
Citigold is Citibank’s wealth management business for its mass affluent client segment that provides a holistic suite of both retail banking and wealth management products and solutions that include investments, insurance, mortgage, business banking, retirement planning, succession planning and wealth transfer. Today, Citibank serves over 400,000 Citigold clients in Asia Pacific (ex Japan), underscoring the global financial institution’s leadership in the wealth management space.
As the economy and business environment in India continues to grow, professionals, entrepreneurs and investors in the region have more financial interests today that span multiple countries and currencies. The trend of Indian talent taking on additional job responsibilities that result in expatriate or overseas assignments also continues to rise. Often, simple and routine transactions such as opening a bank account, remitting money, buying a house, taking a loan in case of emergencies become complicated in foreign lands. Citi has estimated that, on average, the mass affluent segment in Asia Pacific is growing at about 15% on an annual basis.
“Today we live in a global village. As the world gets smaller, the needs of affluent clients get bigger. When people travel from country to country, a big area of concern is the loss of their ‘home’ banking relationship, their credit history, and easy access to their accounts from anywhere in the world. Citi understands that situation, which is why we developed a global ‘passport” through Citigold Global Banking to address our clients’ needs anytime, anywhere,” said Mr. T. R. Ramachandran, Head, Retail Banking, Citibank N.A., India.
Citigold Global Banking provides an easy transition for clients, enabling them to open bank accounts, get credit cards, enjoy Citigold status worldwide, transfer funds conveniently and gain access to a powerful global network of branches and ATMs with emergency cash withdrawal facilities. This service is further facilitated through Global Support Centers and a Global Banking Website that allows a snapshot view of all accounts and relationships that the client has with Citi around the world.
Mr. Sameer Kaul, Head, Branch Banking, Citibank N. A., India added, “Our Citigold clients lead busy lives and they expect transactions, particularly cross-border financial transactions, to be faster, safer and more convenient than ever before. Citigold Global Banking is able to deliver on all these areas. Our clients’ local banking will now seamlessly merge with their global banking requirements. These are the advantages of Citi’s global reach, scale, and expertise.”
Citigold Global Banking Benefits
-- Pre-Arrival Account Opening – Before the Citigold client reaches a foreign country, Citi will be able to start the account opening process and in most cases even have the accounts opened before the client reaches the foreign shores, depending on the regulatory norms in the foreign country. Using a client’s credit history, Citigold relationship managers can also help them open a credit card account for immediate access to credit upon arrival.
-- Global Support - Citigold clients have access to logistical and emergency support through an unparalleled network of more than 4,000 Citibank branches in 43 countries. Citi has also established four Global Support Centers in Europe, Asia, North and South America with teams of specially-trained staff members able to offer personalized cross-border account opening assistance to Citigold customers through the entire application process.
-- Global Recognition - Citigold clients can transfer their Citigold status from country to country, whether relocating or traveling, to enjoy the privileges, recognition and status they are accustomed to.
-- Citigold Center Access – Access will be provided at over 550 Citigold Centers in 36 countries, including lounges and meeting rooms, as well as free use of telephone, fax and the Internet services.
-- Emergency Cash Withdrawal – In the event of emergencies, and subject to proper verification, Indian Citigold customers can obtain the equivalent of up to US$2,000 from their accounts, at the designated Citi branches overseas.
-- Toll-free Global Hotline (800-CITI-CODE) – Indian Citigold customers traveling abroad can contact their home Citigold Customer Service hotline via a single toll-free, global number to request assistance with their accounts.
Citigold is Citibank’s wealth management business for its mass affluent client segment that provides a holistic suite of both retail banking and wealth management products and solutions that include investments, insurance, mortgage, business banking, retirement planning, succession planning and wealth transfer. Today, Citibank serves over 400,000 Citigold clients in Asia Pacific (ex Japan), underscoring the global financial institution’s leadership in the wealth management space.
As the economy and business environment in India continues to grow, professionals, entrepreneurs and investors in the region have more financial interests today that span multiple countries and currencies. The trend of Indian talent taking on additional job responsibilities that result in expatriate or overseas assignments also continues to rise. Often, simple and routine transactions such as opening a bank account, remitting money, buying a house, taking a loan in case of emergencies become complicated in foreign lands. Citi has estimated that, on average, the mass affluent segment in Asia Pacific is growing at about 15% on an annual basis.
“Today we live in a global village. As the world gets smaller, the needs of affluent clients get bigger. When people travel from country to country, a big area of concern is the loss of their ‘home’ banking relationship, their credit history, and easy access to their accounts from anywhere in the world. Citi understands that situation, which is why we developed a global ‘passport” through Citigold Global Banking to address our clients’ needs anytime, anywhere,” said Mr. T. R. Ramachandran, Head, Retail Banking, Citibank N.A., India.
Citigold Global Banking provides an easy transition for clients, enabling them to open bank accounts, get credit cards, enjoy Citigold status worldwide, transfer funds conveniently and gain access to a powerful global network of branches and ATMs with emergency cash withdrawal facilities. This service is further facilitated through Global Support Centers and a Global Banking Website that allows a snapshot view of all accounts and relationships that the client has with Citi around the world.
Mr. Sameer Kaul, Head, Branch Banking, Citibank N. A., India added, “Our Citigold clients lead busy lives and they expect transactions, particularly cross-border financial transactions, to be faster, safer and more convenient than ever before. Citigold Global Banking is able to deliver on all these areas. Our clients’ local banking will now seamlessly merge with their global banking requirements. These are the advantages of Citi’s global reach, scale, and expertise.”
Citigold Global Banking Benefits
-- Pre-Arrival Account Opening – Before the Citigold client reaches a foreign country, Citi will be able to start the account opening process and in most cases even have the accounts opened before the client reaches the foreign shores, depending on the regulatory norms in the foreign country. Using a client’s credit history, Citigold relationship managers can also help them open a credit card account for immediate access to credit upon arrival.
-- Global Support - Citigold clients have access to logistical and emergency support through an unparalleled network of more than 4,000 Citibank branches in 43 countries. Citi has also established four Global Support Centers in Europe, Asia, North and South America with teams of specially-trained staff members able to offer personalized cross-border account opening assistance to Citigold customers through the entire application process.
-- Global Recognition - Citigold clients can transfer their Citigold status from country to country, whether relocating or traveling, to enjoy the privileges, recognition and status they are accustomed to.
-- Citigold Center Access – Access will be provided at over 550 Citigold Centers in 36 countries, including lounges and meeting rooms, as well as free use of telephone, fax and the Internet services.
-- Emergency Cash Withdrawal – In the event of emergencies, and subject to proper verification, Indian Citigold customers can obtain the equivalent of up to US$2,000 from their accounts, at the designated Citi branches overseas.
-- Toll-free Global Hotline (800-CITI-CODE) – Indian Citigold customers traveling abroad can contact their home Citigold Customer Service hotline via a single toll-free, global number to request assistance with their accounts.
Tuesday, June 17, 2008
Citibank launches Citigold Global Banking
Private sector lender Citibank on Monday announced the launch of a banking and wealth management service Citigold Global Banking for its Citigold clients.
The service would enhance the banking experience for Citigold clients not just in the country but also around the world, a release issued here said.
"When people travel from abroad, a big area of concern is the loss of their 'home' banking relationship, their credit history, and easy access to their accounts. Citigold Global Banking is a passport to address our clients' need anytime, anywhere," Citibank's Head (Retail Banking), T R Ramachandran, said.
It provides an easy transition for clients, enabling them to open bank accounts, get credit cards, enjoy Citigold status worldwide, transfer funds conveniently and gain access to a global network of branches and ATMs with emergency cash withdrawal facilities.
It is further facilitated through global support centres and a global banking website that allows a snapshot view of all accounts and relationships that the clients have with Citi around the world.
The service would enhance the banking experience for Citigold clients not just in the country but also around the world, a release issued here said.
"When people travel from abroad, a big area of concern is the loss of their 'home' banking relationship, their credit history, and easy access to their accounts. Citigold Global Banking is a passport to address our clients' need anytime, anywhere," Citibank's Head (Retail Banking), T R Ramachandran, said.
It provides an easy transition for clients, enabling them to open bank accounts, get credit cards, enjoy Citigold status worldwide, transfer funds conveniently and gain access to a global network of branches and ATMs with emergency cash withdrawal facilities.
It is further facilitated through global support centres and a global banking website that allows a snapshot view of all accounts and relationships that the clients have with Citi around the world.
Wednesday, June 4, 2008
Citi India not to sell any arm, to strengthen presence
Amidst speculations that Citi India would sell one of its subsidiaries in India, the company today ruled out closing down any of its arm and said it would rather strengthen its presence in the country."We are not closing any arm, on the contrary we will make investment in the country," said CitiIndia Country Business Manager (Global Consumer Group) P S Jayakumar.
The consumer finance business is growing at a rate of 25-30 per cent and the company has made an investment over Rs 400 crore during the year ended March 2008, he said.
Jayakumar said the group is committed and would continue to invest in the business in the country He added that reports of selling are speculative.
The statement assumes significance as there were reports that Citi India was looking at selling commercial vehicle finance business in line with its global asset sale strategy to raise capital to tide over losses posted in the first quarter.
Globally, Citigroup reported USD 5.1 billion dollar of loss for the first quarter ended March 2008 mainly due to the sub-prime related direct exposures in fixed income markets and highly leveraged finance commitments.
Last month, Citigroup Inc Chairman Win Bischoff, however, had said the group sees substantial growth opportunities in India.
"India is an important country for our international business strategy. It is one of our largest, most complex and organically grown markets but we are also committed to being a partner in the cooperative spirit of improving the lives of people in the communities where we live and work, Bischoff had said.
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