Citi Bank India Shuts Down Banking Operations; What About 20,000 Employees In India?
Update: We have received some insider details that no employee will be fired. Rather, Citi Bank can sell off entire retail banking operations to some other organisation. We are awaiting confirmation.
Few weeks back, we had speculated that Citi Bank may shut down their Indian retail banking operations.
Now, the news has been confirmed.
In a drastic move to plug the leaks in their profits, Citi Bank has closed down retail banking operations in 13 countries, including India.
Citi Bank Shuts Down Indian Banking Operations
In a sudden move, Citi Bank has announced that they will shut down their retail banking operations across 13 nations.
This was stated by Citigroup CEO Jane Fraser in a release.
The 13 nations where Citi Bank will quit retail banking operations are: China, Australia, Malaysia, Bahrain, Korea, Indonesia, Russia, Vietnam, the Philippines, Thailand, Poland, and Taiwan.
Explaining the reason behind this move, Citi Bank CEO said, “While the other 13 markets have excellent businesses, we don’t have the scale we need to compete,”
As per the information shared by Citi Bank, it seems that as part of their non-US operations, they will only concentrate on four wealth hubs: Dubai, Honk Kong, Singapore and London. They will focus more on the wealth management services in these regions, and completely quit retail banking operations at 13 nations, including India.
For the rest of the international market, they will only offer investment banking related services, via Institutional Clients Group.
What About 20,000 Citi Bank Employees In India?
Ciit Bank is India’s largest foreign bank, and started their Indian operations in 1902 from Calcutta.
As per their Linkedin page, they employ more than 20,000 employees in India.
Now, if they are shutting down their Indian operations, then it becomes clear that the job prospects of these employees are weak.
The other option can be that entire retail banking will be sold off to another bank or financial institution. We have already reported about this speculation.
Although there hasn’t been any confirmation regarding the date of the shutdown, but we are speculating that there will be high number of layoffs.
As shared earlier, Citi Bank will continue their investment management services in India, but will shut down entire retail banking operations.
We have tried to get in touch with Citi Bank regarding the jobs of 20,000+ employees in India.
We will keep you updated, as more details come in.