Citigroup, Inc plans add one million new customers from India’s middle class as it expands its credit card business.
The consumer business contributed 41% of Citi India's total revenue of US$1.48 billion in the year ended March 31, 2011.
Citi India expects the unsecured credit card and personal loan segment to swell by 25% to 30% this financial year through March 2013, and the mortgage lending business to grow 15% to16%.
Improved risk assessment of customers and the rise of new credit bureaus have been cited as factors in Citi India’s renewed foray into credit cards. It previously took a large hit from massive credit card defaults following the global economic crisis of 2008.
"Though there are uncertainties, the trends are pointing toward potential opportunities, and we are focused on the right target segments," said Anand Selvakesari, who heads Citibank's India consumer banking business.
Spending through credit, debit and prepaid cards in India grew 28% between 2009 and 2011 to US27.1 billion. Some 60% of the total spending was through 17 million credit cards, while 33% came from 280 million debit cards.
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