Where is Citibank headed in India?

He’s just finished a meeting with the promoter of a large Indian corporation who wants to raise half a billion dollars and is sitting in his 5th-floor office in Mumbai’s Bandra-Kurla commercial complex. “Business is flowing in for us,” says Sanjay Nayar, the dapper 46-year-old CEO of Citigroup’s Indian operations and Area Head for Bangladesh, Nepal and Sri Lanka.

The spacious room has a busy air about it and is cluttered with dozens of coffee table books but that doesn’t seem to bother Nayar, who is squeezing in meeting after meeting into his busy day. A client here, a colleague there, a couple of exit interviews… Get the latest updated citibank fixed deposit rates to select the best tenure plan for making some good profits.

Nayar’s just back from a meeting with Citigroup’s global CEO, Vikram Pandit in Citi’s New York headquarters, where things are far more down-tempo than they are here in India. There Pandit, 51, who took charge at the bank in December 2007, is grappling with the onerous task of restructuring Citi’s global balance sheet.

The biggest bank in the US has been hit hard by the subprime crisis with losses and writedowns mounting close to $50 billion since mid-2007. What’s scaring Citibankers in India and elsewhere is Pandit’s declaration that he wants to sell assets worth $400 billion over the next three years. Recently, the bank sold its German banking operations for $7.7 billion to France’s Crédit Mutuel and speculation is rife about a possible offloading of Citi’s non-core assets in Japan.

Back in India, Nayar, too, has his plate full, although Citi’s Indian operations are far better off than what its global situation looks like. Still, his troubles are irksome. Recently, three key Citi executives left the bank—Rajesh Mayani, Director of institutional sales, Ratnesh Kumar, head of research and Narayan Mulchandani, director (sales), in Hong Kong, signed up with a local Indian stockbroking firm, Anand Rathi Securities. Besides these, two others, Anil Gudibande, director and Ashish Pitale, director, global banking, moved to AIG Private Equity and Deutsche Bank, respectively.

Citigroup may sell its India HQ

The subprime mortgage market collapse of last year may have an impact on one of the landmark buildings in the Bandra Kurla Complex (BKC). According to real estate market sources, the New York-headquartered Citibank, which has been hit hard due to the crisis, is believed to be actively considering to put its eight-storey tower Citigroup Centre on the block.

When contacted, a spokesperson refused to comment and said the organisation does not discuss these issues with the media. However, reliable sources told TOI that since the past few months word is out in the property market about the imminent sale of Citigroup Centre. With close to 2 lakh sq ft of built up area, the building could fetch anywhere between Rs 500 crore to Rs 800 crore, according to a market estimate.

Those in the know said that after hiving of this prime BKC property, the bank will lease back the same premises. In February, Citigroup had completed a deal in this fashion with its building in Tokyo, Japan. The transaction was, what is called, a sale-and-lease back deal of the Citigroup Center in the Shinagawa district of Tokyo. Citigroup sold this building to its rival Morgan Stanley in a deal reportedly worth $445 million (approx Rs 1,800 crore).

It was almost a decade ago that Citibank moved its main offices from Nariman Point to the BKC. This decision to relocate led to heads rolling — two senior officials in Mumbai were sacked after top bank officials from New York found the BKC location completely desolate and inappropriate. This was in the late 1990s when BKC was yet relatively undeveloped and the top bankers from the US found it sacrilegious that their counterparts in Mumbai had thought of shifting away from Nariman Point, the numero uno commercial district.

The Citibank has been shedding its real estate (mainly apartments) all over the country. In the past one year, it has sold more than half a dozen flats in Mumbai alone.

These include a flat each in Meher Apartments (Altamount Road), Kanti on Mt Mary Road in Bandra, Hormuzd off Carter Road, NCPA Apartment at Nariman Point and as many as five apartments at Harbour Heights building, Colaba.