Citigroup Inc. (C) is boosting its business in Asia. The company plans to grow its card and personal loan business in India, according to a Reuters report.
Citi intends to augment its credit card customer figure by over 20% per year in the next two to three years. This comes as part of the company’s effort to expand its portfolio of unsecured business in India. Moreover, Citi expects a 30% growth per year in personal loans in the next couple of years in the country.
The move is a strategic one for Citi given the fact that even with a vast population and rising income, the number of credit card users in India is significantly low. Therefore, opportunities lie in the market and Citi plans to lever on that to build its card business in that country.
Besides Citi, HSBC Holdings Plc. (HBC) has a credit card business in India. Notably, the local lenders such as ICICI Bank Ltd. (IBN) and HDFC Bank Ltd. (HDB) have a leading presence in the card issuing market.
As a matter of fact, faced with a slowdown in the U.S. market, Citi is emphasizing on growth in the international markets. The company has an impressive overseas presence and is making every effort to expand and tap opportunities in the emerging markets.
Of late, Citi’s Chinese subsidiary Citibank (China) Co. Ltd. received approval from the China Banking Regulatory Commission to launch its own credit card business in that country. The company will launch both retail and commercial cards before the end of this year. This marks a landmark for Citi, the first U.S.-based bank to introduce its own credit card in China.
Citi’s efforts to expand its business in Asia are part of its strategy to explore its thriving economy and booming consumer and commercial market. Citi’s global network will be enhanced and its revenue base is expected to benefit by leveraging on faster-growing economies, thereby increasing its market share internationally. We expect such efforts to bear fruit in future.
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