K.J.SOMAIYA COLLEGE OF ARTS AND COMMERCE

Vidyanagar, Vidyavihar, Mumbai-400077

PROJECT ON

CITI BANK

SUBMITTED BY:

MISS. PRITI RAJENDRA PARAB

ROLL NO. 37

MCOM PART - 1

(ECONOMICS OF GLOBAL TRADE AND FINANCE)

AFFILIATED TO:

MUMBAI UNIVERSITY

PREPARED UNDER THE GUIDANCE OF

PROF. DR.C.V. HARI NARAYANAN

DECLARATION BY THE STUDENT

I, Miss. PRITI RAJENDRA PARAB student of M.Com Part-1 Roll No. 37

hereby declare that the project for the Paper “ECONOMIC OF GLOBAL TRADE AND

FINANCE ” title “CITY BANK " submitted by me for Semester-I during the academic

year 2013-14, is based on actual work carried out by me under guidance and supervision of

PROF. DR.C.V.HARI NARAYANAN.

I further state that this work is original and not submitted anywhere else for any

examination

Signature of student

CERTIFICATE

This is to certify that PRITI RAJENDRA PARAB of M.Com Part-I Semester

–I (2013-2014) has successfully completed the project “ECONOMIC OF GLOBAL TRADE

AND FINANCE ”under the guidance of PROF. DR.C.V.HARI NARAYANAN.

Course Co-ordinator Principal

Project Guide/ Internal Examiner External Examiner

ACKNOWLEDGEMENT

The Project on “ECONOMIC OF GLOBAL TRADE AND FINANCE” is a

result of co-operation, hard work and good wishes of many people. I student of

“ K.J.SOMAIYA COLLEGE OF ARTS AND COMMERCE ” would like to thank the project

guide “ PROF. DR.C.V.HARI NARAYANAN ” for his involvement in my project work and

timely assessment that provided me with valued guidance throughout my study.

I express my deep gratitude to all my college friends and my family members

whose efforts and creativity has helped me giving a final shape and structure to the project work.

I am also thankful to all those seen and unseen hands and heads , which have been

of director help in the completion of this project work.

SR.NO

TOPIC PAGE NO

INTRODUCTIONSegments

Global Consumer BankingOperating Regions

Financial StatementsGlobal Consumer

1. North America

AsiaEmea

2. Latin America3. 4. Consolidated Financial Statement

5. Vision and Mission

6. Citi’s Mission Statement and Principles

7. PEST Analysis

8. 9. Political Influence

10. Economical Influence

11. SOCIal Influence

12. .Technological Influence

13. Citi’s diversification strategy

14. Fundamentals of Citi’s Strategy

15. VALUE CHAIN

16. SWOT Analysis

17. Porter’s 5 forces – Citibank

18. Threat of New Entrants

19. Power of Suppliers

20. Power of BUYErs

21. 22. Availability of Substitutes

23. 24. Competitive Rivalry

25. HISTIRY

26. Historical Data

27. Subsidiaries

28. Joint ventures

29. CEO OF CITY BANK-Pramit Javeri

30. Programme Undertaken By City Bank

31. 1. Employee Engagement Programs

32. 2. Global Community Day

33. 3. Payroll Giving Program

34. 4.Citi India Volunteer Program

35. Global Consumer Banking Faicilities

36. 1. Credit Cards

37. 2. Retail Banking

38. 3. Institutional Clients Group

39. 4 Corporate and Investment Banking

40. 5. Capital Markets Origination

41. Corporate citizenship

42. Corporate Strategy

43. 1. Financial Inclusion

44. 2. Environmental Sustainability

45. 3. A Diverse Workforce

46. Managing Global Risk

47. 2.Risk Aggregation And Stress Testing

48. 3. Risk Capital

49. 4 Credit Risk

50. 5 Operational Risk

51. Recent Awards & Recognition

INTRODUCTION

Citi was incorporated in 1988. Citi - a diversified global financial institution.

Citi is the first financial services company in the U.S. to bring together banking,

insurance, and investments under one umbrella. It provides a broad range of financial

products and services to consumers and corporate customers globally. Citi has the

world's largest financial services network. It’s business covers 107 countries with

approximately 2,000 offices in the world. Citi - a premier local financial institution Citi

- the single largest foreign direct investor in the financial services industry in the country.

• A customer base of over

– 1500 large corporates and multinationals,

– 2500 small and medium enterprises,

– 40,000 asset based financing clients and

– 7 million retail customers.

• It offers a comprehensive suite of products and services to both commercial and retail clients across all economic segments and lifecycle stages.

Facts about Citi India

• Cash management throughputs at Citi India equal 40% of India's GDP.

• Citibank India’s e-business portal is the most visited Indian financial site.

• CFIL has financed over 130,000 trucks in India.

• Citigroup Global Services, is one of India’s largest BPO service providers and services Citi operations in 36 countries.

• Citi - the first company in India to introduce stock options for its employees.

• Citi - the first financial institution to export software services from India.

• Citi has provided core funding of Rs. 15.4 crore to the Indian School of Micro Finance – the first such school in Asia.

Segments

Citicorp

Regional Consumer Banking

Institutional Clients Group

Citi Holdings

Brokerage and Asset Management

Local Consumer Lending

Special Asset Pool

Corporate

Treasury

Other corporate expenses

GLOBAL CONSUMER BANKING

Global Consumer Banking (GCB) consists of Citigroup’s four geographical Regional Consumer Banking (RCB) businesses that provide traditional banking services to retail customers through retail banking, commercial banking, Citi-branded cards and Citi retail services. GCB is a globally diversified business with 4,008 branches in 39 countries around the world. For the year ended December 31, 2012, GCB had $387 billion of average assets and $322 billion of average deposits. Citi’s strategy is to focus on the top 150 cities globally that it believes have the highest growth potential in consumer banking. Consistent with this strategy, as announced in the fourth quarter of 2012 as part of its repositioning efforts, Citi intends to optimize its branch footprint and further concentrate its presence in major metropolitan areas. As of December 31, 2012, Citi had consumer banking operations in approximately 120, or 80%, of these cities.

Operating Regions

Regions

North America

Europe, Middle East & Africa

Latin America

Asia

Vision and Mission

Vision MISSION

• To be the leader in providing business process management services to help customers.

• Our goal for Citigroup is to be the most respected global financial services company.

Like any other public company, we're obligated to deliver profits and growth to our shareholders. Of equal

importance is to deliver those profits and generate growth

responsibly.”

MissionOur core mission is not to be a financial supermarket or a

“shadow bank.”

Our core mission is to be

the global bank

for institutions and individuals,

and to serve our clients with distinction.

We bring them

unique value through our

global reach and innovative solution

PEST Analysis

1.Political Influence 1 Citigroup – major corporate political spender

2. Citigroup operates in more than 100 countries worldwide; they obey legislation specific to country

3. Election Cycle Trends - significant donations to 527 groups4. Trade Association Activity

a. contributed approximately $8.5 million in corporate funds to political activities since 2002

2.Economical Influence1 As a multinational, Citi is subject to fiscal policies employed by governments in various countries

2 Incurred loss of $22 billion during Global downturn 2008.

3. Citi’s financial results are closely tied to the global and local economic conditionsa. liquidity of the global financial marketsb. prevailing interest rates

c. the rate of unemployment d. the level of consumer confidence e. changes in consumer spending f. the number of personal bankruptcies

3. Social Influence1. Target is Individual consumers as well as small medium businesses2. The Citi Foundation is committed to maintaining economically vibrant and

environmentally sustainable communities

4.Technological Influence1. Citigroup Works with Cisco Systems to Capitalize on Digital Media

– to help Citigroup identify appropriate intellectual capital to distribute to clients and employees

– to help the bank develop the right advanced content delivery, multicasting, and core-networking technology to disseminate it.

2. Use technology for e-Business model

Generic business level strategy

Citi follows “Differentiation Strategy”

Corporate Growth Strategy

Citi’s diversification strategy

• Diversify into related businesses under some coherent strategic theme• Potential benefits of related diversification

• Cross-business sharing of expertise, capabilities and technology

Horizontal Integration Vertical Integration

Forward or Backward

Concentration Diversification

Related or Unrelated

International

Global or Multi-domestic

Corporate

Growth

• Exploit economics of scope and capture synergy benefits from combining similar operations of different businesses

• Enable collaboration to develop new strengths and create new competitive capabilities

• Leverage use of a company’s brand name• Increase market power• Drawbacks of related diversification• Difficulties of integrating the operations of businesses with different

cultures

Fundamentals of Citi’s Strategy

• Client focus• Global strength• Constant innovation

History

• 1812 - founded as City Bank of New York. • 1894 - became the largest bank in the United States. • 1902 - began expanding internationally and became the first major U.S. bank to

establish a foreign department. • 1930 - became the largest bank in the world with 100 branches in 23 countries

outside the United States. • 1976 - changed its name to Citibank. • 1981 - purchased Diners Club.• 1994 - opening of the first fully foreign owned commercial bank in Russia • 1995 - opening of the first full service branch in China• 1998 - Citibank was merged into Citigroup

Citibank• Citibank is the consumer and corporate banking division of leading financial

services company Citigroup. • The company has operations in around 1,700 locations, in more than 140 countries

worldwide. • Citibank offers the following products and services:

– Banking services– Credit cards– Mortgages, Loans– Investments

– Insurance– Small business services– Corporate/Institutional services– Asset management– Government services– Private banking–

Value Chain

• Citibank represents both a Business-to-Consumer (B2C) and Business-to-Business (B2B) organizational model

• It creates value by • limiting the intermediaries involved with the distribution of its product, • streamlining its business and • reducing costs. • This value creation ultimately increases profits.

SWOT Analysis

Strengths

Global network

Backing of the Citigroup

Innovative product offering

Comprehensive selection of financial products and services.

Weaknesses

Tarnished brand name

Online operations are geared towards US clients

Issues of Corporate Governance - Size of company challenges clear focus across all divisions.

Opportunities

Growth markets

Chinese market

Online presence

Strengthen customer relationships by community involvement

Look for acquisitions that are

Threats

Foreign exchange fluctuations

Market conditions

Regulatory forces

Competition from brick and mortar banks, combination brick and clicks and pure play bank

Citibank Strategies

• Position itself as US leading International Bank• A Premier local financial institution• Focus on Technology• Full Fledged platform of highest quality services• Innovative products• Focus on corporate and multinationals• Banking upon an old and trusted name• Corporate Social Responsibility

Core Competencies"A core competency is an area of specialized

expertise that is the result of harmonizing

complex streams of technology and work activity."

– C.K.Prahalad

• Core Competencies:– Proprietary data– Operating in over 100 countries and as a local bank, serving growing

companies in 78 emerging-market countries and territories– Citigroup is considered a leader in online financialservices– Additionally, Citibank's technology platform supports it

customer's need for transaction efficiency and tangible business results.

Competitor Analysis• Bank of America:

– Provides a demonstration of their online banking product– Clearly defines their policy for online banking that guarantees $0 liability for

unauthorized bill pay• Wells Fargo:

– E-business aggregation

Porter’s 5 forces – Citibank

1.Threat of New Entrants • Low / high (exceptions)• Existing loyalty to major brands• Huge Investments• Incentives for using a particular buyer (such as frequent shopper programs) • High fixed costs • Scarcity of resources • High costs of switching companies • Government restrictions or legislation• There is virtually no chance of a new entrant significantly affecting the major banks'

market share. The only place that new entrants may have a chance in the industry is through Internet banking, because of its low cost.

2.Power of Suppliers • Low to medium• There are very few suppliers of particular product categories• There are almost no substitutes in some product categories• Switching to another (competitive) product is very costly • The supplying industry has a higher profitability than the buying industry .• Opportunities:

– Because of the increasing amount of technology Internet banking will begin to replace traditional banking, thus cutting personnel costs.

– Incorporating investment banking into the banking industry, as some major companies are doing.

• Threats: – An increase in interest rates causing a decline in bank activity.– A collapse of the Fed leading to bank failures, a repeat of the crash of 1929.– A decline in the US economy leading to a fall in the value of the dollar, thus

causing an instable economy.

3.Power of Buyers • Medium to High• Large number of buyers • Purchases large volumes • Concentration Ratio is medium being international• Information is easily available to the customer• Switching to another (competitive) product is simple • The product is not extremely important to buyers; they can do without the

product for a period of time • Customers are price sensitive

4.Availability of Substitutes

• Low to medium• Internet• If substitutes are similar, it can be viewed in the same light as a new entrant• Presence of companies like Western Union, PayPal and Xe.com• This is not really an issue within the banking industry, because there aren't really

any legal alternatives, except buying a safe and borrowing from a loan shark

5.Competitive Rivalry

• A highly competitive market might result from:– Many players of about the same size; there is no dominant firm – Little differentiation between competitors products and services – A mature industry with very little growth; companies can only grow by

stealing customers away from competitors– Technologically Advanced companies– Introduction of new products by competitors– The banking industry is continuing to restructure and position itself for our

changing economy as a result, many mega-mergers have occurred in recent years. Citicorp and Travelers Insurance agreed to merge in April 1998 at a value of $70 billion.Bank mergers are usually consummated as a cost-cutting measure but also to compete with non-bank providers of financial services.

Suggested Strategies

• Strengthen customer relationships by community involvement • Communicate benefits of online presence clearly• Look for acquisitions that are compelling strategically and financially• Handle major international operations from India to gain expenses benefit• Position itself as a Global bank focusing on Indian consumers benefit• Innovative products in emerging businesses like mortgage, equity, consumer finance

HISTORY

Citibank, one of the major international banks, is the consumer banking arm of financial services giant Citigroup. Citibank was founded in 1812 as the City Bank of New York, later First National City Bank of New York. As of March 2010, Citigroup is the third largest bank holding company in the United States by total assets, after Bank of America and JPMorgan Chase.

Citibank has retail banking operations in more than 160 countries and territories around the world. More than half of its 1,400 offices are in the United States, mostly in New York City, Chicago, Los Angeles, the San Francisco Bay Area, Washington, D.C. andMiami. More recently, Citibank has expanded its operations in the Boston, Philadelphia, Houston, and Dallas metropolitan areas.

In addition to the standard banking transactions, Citibank offers insurance, credit cards and investment products. Their online services division is among the most successful in the field [2] claiming about 15 million users.

As a result of the global financial crisis of 2008–2009 and huge losses in the value of its subprime mortgage assets, Citibank was rescued by the U.S. government under plans agreed for Citigroup. On November 23, 2008, in addition to initial aid of $25 billion, a further $25 billion was invested in the corporation together with guarantees for risky assets amounting to $306 billion.[3] Since this time, Citibank has repaid its government loans in full

Early history

The City Bank of New York was founded on June 16, 1812. The first president of the City Bank was the statesman and retired Colonel, Samuel Osgood, ownership and management of the bank was taken over by Moses Taylor, a protégé of John Jacob Astor and one of the giants of the business world in the 19th century. During Taylor's ascendancy, the bank functioned largely as a treasury and finance center for Taylor's own extensive business empire.[citation needed]

In 1863, the bank joined the U.S.'s new national banking system and became The National City Bank of New York. By 1868, it was considered one of the largest banks in the United States, and in 1897, it became the first major U.S. bank to establish a foreign department.

When the Federal Reserve Act allowed it,[6] National City became the first U.S. national bank to open an overseas banking office when its branch in Buenos Aires, Argentina, was opened in 1914. Many of Citi's present international offices are older; offices in London, Shanghai, Calcutta, and elsewhere were opened in 1901 and 1902 by the International Banking Corporation (IBC), a company chartered to conduct banking business outside the U.S., at that time an activity forbidden to U.S. national banks. In 1918, IBC became a wholly owned subsidiary and was subsequently merged into the bank. By 1919, the bank had become the first U.S. bank to have $1 billion in assets.

Charles E. Mitchell was elected president in 1921 and in 1929 was made chairman, a position he held until 1933. Under Mitchell the bank expanded rapidly and by 1930 had 100

branches in 23 countries outside the United States. The policies pursued by the bank under Mitchell's leadership are seen by historical economists as one of the prime causes of the stock market crash of 1929, which led ultimately to the Great Depression.[citation needed] In 1933 a Senate committee, the Pecora Commission, investigated Mitchell for his part in tens of millions dollars in losses, excessive pay, and tax avoidance. Senator Carter Glass said of him: "Mitchell more than any 50 men is responsible for this stock crash."

The name change also helped to avoid confusion in Ohio with Cleveland-based National City Bank, though the two would never have any significant overlapping areas except for Citi credit cards being issued in the latter National City territory. (In addition, at the time of the name change to Citicorp, National City of Ohio was mostly a Cleveland-area bank and had not gone on its acquisition spree that it would later go on in the 1990s and 2000s.) Any possible name confusion had Citi not changed its name from National City eventually became completely moot when PNC Financial Services acquired the National City of Ohio in 2008 as a result of the subprime mortgage crisis.

Citibank commenced business in Kenya on 15th August 1974 under the name “First National City Bank " and has since evolved to be known today as Citibank N.A. Kenya Branch (“Citi Kenya”). It is a full service branch of Citibank, N.A. headquartered in New York. Citibank is a part of Citigroup Inc, the pre-eminent financial services organization in the world formed in 1998 as a result of the merger between Citicorp and the Travelers Group divisions. Citigroup has operations in over 100 countries around the globe, with assets totalling US$1.1 trillion and 268,000 employees worldwide.” 

Citibank has two branches in Kenya. The head office is located at Citibank House in Upperhill, Nairobi. Our Mombasa branch located at Citibank House, Nkrumah Road was opened on 1st October 1989. 

Citibank Kenya is the head office of the Citibank East Africa organization, which covers Citibank branches in Kenya, Tanzania, Uganda and Zambia. This is a part of the larger South and East Africa cluster of Citibank headquartered in Johannesburg, South

Nationwide expansion

Citibank's major presence in California is fairly recent. The bank had only a handful of branches in that state before acquiring the assets of California Federal Bank in 2002 with Citicorp's purchase of Golden State Bancorp which had earlier merged with First Nationwide Mortgage Corp.

In 2001, Citibank settled a $45 million class action lawsuit for improperly assessing late fees. Following this Citibank lobbied the United States Congress to pass legislation that would limit class action lawsuits to $5 million unless they were initiated on a federal level. Some consumer advocate websites report that Citibank is still improperly assessing late fees.

In August 2004, Citibank entered the Texas market with the purchase of First American Bank of Bryan, Texas. The deal established Citi's retail banking presence in Texas,

giving Citibank over 100 branches, $3.5 billion in assets and approximately 120,000 new customers in the state. First American Bank was renamed Citibank Texas after the take-over was completed on March 31, 2005.

In 2008, Citibank was crowned Deal of the Year – Securitisation Deal of the Year at the 2008 ALB Japan Law Awards.

Historical data

Asset/Liability Ratio

Net Income

Citi Bank was the third-largest bank at the end of 2008 as an individual bank.

Subsidiaries

According to the Citigroup website, until October 2006, Citibank ran the following subsidiaries:

Citibank, N.A.(National Association) – The "original" Citibank, primarily doing business in New York State and the tri-state New York metropolitan area. Also the parent company of the other subsidiaries.

Citibank Canada  – One of Canada's longest-serving foreign banks, currently with 3,400 employees from coast to coast.

Citibank Texas, N.A. – The former First American bank. Citibank (West), F.S.B. – The former Citicorp Savings (a savings and loan operating in

California), as well as the former California Federal Bank and Golden State Bank.

Citibank, F.S.B. – The primary Citibank subsidiary serving all other states, based in Chicago. Citibank Banamex USA – Formally California Commerce Bank, Banamex's U.S. banking

division. Citibank (South Dakota), N.A. – A credit card and lending-only bank based in Sioux Falls,

South Dakota, including the former Associates National Bank. Universal Financial Corp. – A credit card bank, purchased in 1997, that manages the AT&T

Universal Card.

On October 1, 2006, a massive re-organization designed to streamline the various Citibank banking charters occurred. Citibank, N.A. absorbed the following divisions, with its headquarters for FDIC purposes being its Paradise Road Las Vegas, Nevada branch.

Citibank, FSB Citibank (West), FSB Citibank, Texas, N.A. Citibank Delaware Citibank Banamex USA Citicorp Trust, N.A. (California)

The following divisions were consolidated into Citibank (South Dakota), N.A., with its headquarters for FDIC purposes being in Sioux Falls, South Dakota.

Citibank, Nevada, N.A. Citibank USA, N.A. Universal Financial Corp. Citibank South Dakota, FSB

On March 29, 2011, Citibank, N.A. and Citibank (South Dakota), N.A. announced their intentions to further consolidate their banking charters by announcing a merger[18] which was finalized on July 1, 2011. The surviving FDIC charter was that of Citibank, N.A. which, as part of the merger, moved its headquarters to that of Citibank (South Dakota), N.A.'s in Sioux Falls.

In 2005, Macy's, Inc. under its former corporate name Federated Department Stores, sold its consumer credit portfolio to Citigroup, reissuing its cards under the Federated-Citigroup Alliance name Department Stores National Bank (DSNB) and allowing Federated to continue servicing the credit accounts from its Financial, Administrative and Credit Services Group (FACS Group Inc.). The cards involved are Macy's and Bloomingdale's.

Citibank's private-label credit card division, Citi Commerce Solutions, issues store-issued credit card for such companies as: Sears, ConocoPhillips, ExxonMobil, The Home Depot,Staples, Shell Oil, and others.

The German branch, the Citibank Privatkunden AG & Co. KGaA was sold in July 2008 to the French Crédit Mutuel Group. On February 22, 2010 it was renamed to Targobank.

Joint ventures

Mobile Money Ventures , a joint venture with SK TelecomInternational subsidiaries

 Citibank Algeria  Citibank Argentina  Citibank Australia  Citibank Belgium  Citibank Bangladesh  Citibank Brazil  Citibank Bulgaria  Citibank Canada  Citibank (China)  Citibank (Colombia)  Citibank (Dominican Republic)  Citibank Ecuador  Citibank (Egypt)  Citibank El Salvador  Citibank (Greece)  Citibank (Hong Kong)  Citibank (Honduras)  Citibank Hungary  Citibank India  Citibank Indonesia  Citibank Italy  Citibank Japan  Citibank Kazakhstan  Citibank Kenya  Citibank Korea  Citibank Malaysia  Banamex Mexico  Citibank Nicaragua  Citibank Nigeria  Citibank Pakistan  Citibank Peru  Citibank Philippines  Citi Handlowy (Poland)  Citibank Portugal  Citibank Romania

 Citibank Russia  Samba (Citibank for Saudi Arabia)  Citibank International Personal Bank Singapore/Citibank IPB Singapore  Citibank Singapore  Citibusiness Singapore  Citibank Slovakia  Citibank Spain  Citibank Taiwan  Citibank Thailand  Citibank Trinidad and Tobago  Citibank Tunisia  Citibank Türkiye  Citibank United Kingdom  Citibank Ukraine  Citibank Venezuela  Citibank Vietnam

Pramit JhaveriCEO, Citi India

Pramit Jhaveri is the CEO of Citi India and is responsible for all of Citi’s businesses in the country. Pramit joined Citi India in 1987 and has 26 years of experience across multiple functions of the bank. Prior to being appointed as CEO of Citi India, Pramit was responsible for Citi's Corporate and Investment Banking business in India. He has been instrumental in leading Citi to its current market leadership position in Investment Banking in India. Under his leadership, Citi has been involved in several landmark M&A, Equity and Debt Capital markets transactions in the country.

Citi began doing business in India in 1902 and today is a very significant foreign investor in the Indian financial market. The total capital employed in Citi’s banking and financial services operations in India including retained earnings is in excess of $3 billion. Citi employs around 7,900 professionals. Under Pramit’s stewardship, Citi operates 42 retail branches in 30 cities serving about 2 million credit card customers. Citi also banks more than 45,000 businesses, ranging from multinationals, local corporate houses, local commercial banks to SMEs.

Pramit is actively involved with the following organizations:

Director, Pratham Education Foundation - established in 1994 and the largestNGO working to provide quality education to the underprivileged children of India.

Member of the Executive Committee and Co-chair of the Banking and FI committees at FICCI – The Federation of Indian Chambers Commerce and Industry is the largest and oldest apex business organization in India.

Co-chairperson of the IndiaBuilds Advisory Committee at Habitat for Humanity, India - a not for profit organization dedicated to building affordable homes and providing low cost, interest and collateral free mortgages to the poor.

Member of the Executive Board at the Indian School of Business – an internationally acclaimed, research driven and independent premier management institution in India.

Member of the India Advisory council at the American Indian Foundation – the largest diaspora philanthropy organization based out of the US and focused on India in the areas of education, healthcare and employment.

Member of the Advisory Board at Namaste America – the Indo American Association for Art and Culture is focused to promote and foster goodwill between the people of the United States of America and India by supporting young talent from the two countries in the areas of education, media, entertainment, science and sports.

Member of the Advisory Board for Catalyst India – a leading nonprofit organization expanding opportunities for women in business.

Pramit holds a Bachelor of Commerce from Sydenham College, Mumbai, and an MBA in Finance from University of Rochester, US.

PROGRAMME UNDERTAKEN BY CITY BANK

Employee Engagement Programs

Employee Engagement is an integral part of Citi's culture and strong drivers of the Citizenship program. Every day around the world our employees put their passion, talent, and expertise to work by helping organizations and causes they believe in, ultimately helping improve the communities they live and work in. Citi provides platforms for employees to engage with local communities, through its payroll giving program, event-based volunteering opportunities and skill-based long-term engagement with NGO partners.

City Employee Cook and Serve the midday meal for children with Akshaya Patra in Banglore

More than Philanthropy Volunteering and Giving

Global Community Day

The Global Community Day is intrinsic to Citi's culture of giving back. Each year, employees across the globe come together to contribute one day of their time to local communities. Reinforcing this ongoing and long-standing commitment to supporting and nurturing communities, in 2012, over 5,000 Citi employees, friends and families, joined the Global Community Day on June 16. Citi partnered with over 50 NGOs across Mumbai, Delhi and Chennai, to host large Community Carnival Fundraiser events in partnership with Concern India Foundation, celebrating Citi's 200th anniversary. The 2013 Community Day will take place on June 22.

Global Community Day Celebrations in Mumbai

Payroll Giving Program

Employees who desire to contribute money for reputed charitable causes can do so via the Citi India Payroll Giving Program. This initiative supports six NGOs, each of which has been carefully selected basis employee interest and adherence to global best practices in due diligence. Core to the program, is Citi's in-house online Payroll Giving system which allows employees across the country to manage their donations in real time. About 350 employees contributed approximately INR 2.88 million to these NGOs, each year.

Citi India Volunteer Program

Citi employees can opt to make longer term time commitments to communities through skill-based volunteering opportunities. This more-than-philanthropy approach, matches employee skills to volunteering opportunities offered by our NGO partners, whether it be through short-term task driven assignments or long term strategic support through mentorship and board positions.

In September 2012, we launched the Citi India Volunteer Program offering 140 opportunities in in Mumbai, Delhi and Chennai. The response was overwhelming as more than half the opportunities were taken up in the first two days of launch.

We also offer employees the unique opportunity to take a sabbatical to work with communities under the Teach for India fellowship program. More than 135 employees registered for the fellowship in 2011 and the 3 finally selected for the fellowship are now part of a nationwide movement that aims to bridge the educational gap in India by placing teachers in

low-income schools to teach full-time for 2 years.

Global Consumer Banking facilities

Citi’s Global Consumer Banking (GCB) serves more than 100 million clients across the worldthrough its unique footprint and capabilities, its presence in and understanding of local markets, and the ability to deliver a consistent and enhanced banking experience. Strategically positioned in the world’s top cities with the highest consumer banking growth potential, Global ConsumerBanking operates across Citi’s four regions — Asia Pacific; Europe, the Middle East and Africa; Latin America; and North America. The primary business lines are Credit Cards, RetailBanking, Mortgage and Commercial Banking. The collective GCB businesses account for $337 billion in deposits, $295 billion in loans, $154 billion in assets under management in Retail Banking and approximately 4,0001 branches worldwide. Global Consumer Banking earnings continued to grow in 2012. Pretax operating earnings increased by 48% to $10.1 billion —nearly half of Citi overall. Net income2 grew 6% to $8.1 billion— its highest level ever. Revenues of $40 billion, over the last 12 months, reached a new milestone. Additionally, averageloans grew 5% globally, with 9% international growth and2% growth in North America.

1. Credit Cards

Citi is the world’s largest credit card issuer, with 134 million accounts, $363 billion in annual purchase sales and $150 billion in receivables across Citi Branded Cards and Citi RetailServices credit cards.1 .Approximately 4,000 total branches do not include ~600 Ban code Chile branches.

2 .Pretax earnings minus loan loss reserve releases minus fourth quarter repositioning charges.

Operating in 38 countries, with more than 55 million accounts in circulation, Citi Branded Cards provides payment and credit solutions to consumers and small businesses around theworld. The business has annual purchase sales of $292 billion and a loan portfolio of $111 billion. In 2012, Citi became the first non-domestic credit card issuer in China. New rewards credit cards were introduced in El Salvador, the Philippines, Taiwan, the United Arab Emirates and the U.S. Citi also introduced new co-brand cards for travelers with partners Hilton® H HonorsTM, American Airlines AAdvantage®, AirAsia and Thai Airways. Citi is continually expanding the ways in which card members can integrate rewards and social networking, including the ThankYou® Points sharing app, which is the first application on Facebook that enables members to share and combine points. This year, Banamex was the first financial institution in Mexico to introduce MasterCard® PayPassTM, a contactless card payment platform. Citi Retail Services provides consumer and commercial credit card products, services and retail solutions to leading national and regional retailers across the U.S. Citi Retail Servicesserves nearly 79 million accounts for a number of iconic brands, including The Home Depot, Macy’s, Sears, Shell and ExxonMobil. In 2012, Retail Services renewed its long-standingrelationship with CITGO, launched a product with ExxonMobil and announced new relationships with OfficeMax, Ford Motor Company and BrandSource. The business has purchase sales of $71.5 billion and a loan portfolio of $38.6 billion.

2. Retail Banking

Centered in the world’s top cities with high consumer banking growth potential, Citibank serves a full range of consumer banking needs, including checking and savings accounts, loans and small business services. The optimization of theCitibank branch network continued throughout 2012 to further concentrate its presence in major metropolitan areas and focus on target consumer segments. Our renowned Citi Smart Banking branches, with innovative technologies and concierge-style client services, expanded in the Philippines, Malaysia and the U.S. Citi’s Banamex franchise serves close to 21 million customers and has a leading position in consumer lending, deposit, retirement and mutual fund industries in Mexico. Citi’s wealth management business provides investment and financial advisory services, including mutual funds, managed portfolios, stocks, bonds, insurance products and retirement solutions. Citigold® combines banking with wealth management to deliver exceptional personalized service, special benefits and preferred access to Citi’s network. Citigold International is dedicated to serving the needs of globally connected clients by offering access to multicountry financial services. One of the only global housing lenders, CitiMortgage operates in 29 countries and is committed to helping clients in all stages of homeownership. With 2 million customers around the world, the business offers loans for home purchase and refinance transactions with a financing solution for almost every need. CitiMortgage in the U.S. continued to find solutions that allowed many borrowers to avoid potential foreclosure through government and other programs such as Citi’s Road to Recovery. CitiMortgage’s free SureStart® preapproves potential homeowners, allowing them to establish their price range before shopping for a home. During 2012, CitiMortgage significantly expanded sales through Citibank branches in the U.S. and select business partners, originating $58 billion in mortgages. Citi Commercial Bank provides value-added banking service

Citi® Private Pass® in the U.S. offered Citi credit and debitcard members access to more than 10,000 events acrossmusic, sports, dining and family entertainment

Additional Citi Smart Banking branches, with innovative technologies and concierge-style client services, opened in the Philippines, Malaysia and the U.S.

• Cit

3. Institutional Clients Group

Citi’s Institutional Clients Group serves multinational and local corporations, financial institutions, governments and privately held businesses in more than 160 countries and jurisdictions. Our talented professionals build enduring relationships with clients and help them achieve their goals by offering a full suite of strategic advisory and financing products, services and solutions.

4. Corporate and Investment Banking

Citi’s Corporate and Investment Banking franchises provide comprehensive relationship coverage service to ensure the Institutional Clients Group is client driven. With our strong presence in numerous countries — Citi has been in many markets for more than 100 years — we leverage our country, sector and product expertise to deliver Citi’s global capabilities to clients wherever they choose to compete. Citi’s Corporate and Investment Banking client teams are Organized by industry and by country. Each team comprises two parts: Strategic Coverage Officers, who focus on mergers and acquisitions and equity and related financing solutions; and Corporate Bankers, along with their Capital Markets product partners and with support from our Global Subsidiaries Group, who deliver corporate banking/finance services to global, regional and local clients. In 2012, Citi served as the trusted advisor for several of the financial markets’ transformational transactions, including co-advisor on Express Scripts’ $34 billion acquisition of Medco Health Solutions; Citi provided half of the $14 billion bridge loan in connection with the transaction.

5. Capital Markets Origination

Citi’s Capital Markets Origination business, focused on raising debt and equity, is the first choice among issuers for their underwriting needs due to an unmatched global footprint, diverse range of products and track record of executing transactions for its clients amid unprecedented market conditions. Issuers turn to Citi for inaugural issuances; repeat business; and their largest, landmark transactions, strongly demonstrating Citi’s structuring and execution expertise to meet client needs. In the equity capital markets over the last year, Citi led the market both in terms of proceeds raised and in innovation in the capital markets. Citi is the clear choice for debt capital markets transactions, based on its continued underwriting leadership in transactions across a broad range of currencies and markets, displaying consistent dominance and success in navigating challenging fixed income conditions.In 2012, Citi led several important transactions for our clients, including Petrobras’ $7 billion multitranche bond offering the largest-ever emerging market corporate bond offering in the international market — and was the only firm to lead thefive discrete equity transactions for the sale of AIG by the U.S.Treasury.

Corporate Citizenship

At Citi, we aim to conduct business in a manner that creates value for our clients, shareholders, people and communities. We reinforce our commitment to Responsible Finance SM and financial inclusion with innovative business endeavors, with robust philanthropic investments and by recruiting and supporting a diverse workforce — because being a good corporate citizen starts with operating responsibly.

1. Financial Inclusion

As a financial institution, Citi embraces the challenge to help reach the 2.5 billion people in the world with no access to financial services. Through Citi Microfinance, Citi Community Development and the Citi Foundation, we work across Citi business lines and with community groups, governments, institutions and networks to develop innovative, measurable and replicable initiatives that broaden access for traditionallyunderserved communities. By investing capital and expertise, we work with partners to:

• Make it possible for micro entrepreneurs and small business owners to start and sustain their businesses and to create livelihoods for their families and neighbors;

• Enable young people to receive advanced education and prepare for productive adulthood;

• Help consumers build their own financial capability by pairing financial education with access to appropriate products and services so they can save, wisely manage their money and weather setbacks; and

• Finance affordable housing and community infrastructure projects that create a solid foundation for financial mobility.

2. Environmental Sustainability

Citi’s commitment to environmental sustainability in our own operations and with our clients is based on three pillars:

• Managing the environmental footprint of our own global operations;• Evaluating environmental and social risk associated with projects we finance; and• Developing business opportunities with our clients to address critical environmental issues.

For example, in 2012, Citi provided $100 million in financing to expand Sun Power’s residential solar lease program for U.S. consumers, pioneered transactions in energy efficiency Finance and became the first bank in the world to have 200projects receive Leadership in Energy and Environmental Design (LEED) certification by the U.S. Green Building Council. We support solutions that address climate change, water scarcity, declining biodiversity, human rights and other important challenges.

3. A Diverse Workforce

Our efforts would not be possible without the strength of a diverse and skilled global workforce. Citi’s support helps our people achieve professional growth, make meaningful contributions and develop pride in their work. The distinct perspectives of our team members bring added value to our clients and customers, and Citi’s strong tradition of volunteerism ensures that our collective passion and talents are put to use outside the workplace as well.

Citibank Customer Service Sales Rep Shawn McHellon, a StaffSergeant in the U.S. Army Reserves, is one of more than 2,000Citi employees who have served in the U.S. Armed Forces

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION ANDRESULTS OF OPERATIONS

MANAGING GLOBAL RISK

1. RISK AGGREGATION AND STRESS TESTING

While Citi’s major risk areas are described individually on the following pages, these risks also need to be reviewed and managed in conjunction with one another and across the various businesses. The Chief Risk Officer, as noted above, monitors and controls major risk exposures and concentrations across the organization. This means aggregating risks, within and across businesses, as well as subjecting those risks to alternative stress scenarios in order to assess the potential economic impact they may have on Citigroup. Comprehensive stress tests are in place across Citi for mark-to-market, available-for-sale and accrual portfolios. These firm-wide stress reports measure the potential impact to Citi and its component businesses of very large changes in various types of key risk factors (e.g., interest rates, credit spreads, etc.), as well as the potential impact of a number of historical and hypothetical forward-looking systemic stress scenarios. Supplementing the stress testing described above, Citi risk management, working with input from the businesses and finance, provides periodic updates to senior management on significant potential areas of concern across Citigroup that can arise from risk concentrations, financial market participants, and other systemic issues. These areas of focus are intended to be forward-looking assessments of the potential economic impacts to Citi that may arise from these exposures. Risk management also reports to the Risk Management and Finance Committee of the Board of Directors, as well as the full Board of Directors, on these matters. The stress testing and focus position exercises are a supplement to the standard limit-setting and risk-capital exercises described below, as these processes incorporate events in the marketplace

and within Citi that impact the firm’s outlook on the form, magnitude, correlation and timing of identified risks that may arise. In addition to enhancing awareness and understanding of potential exposures, the results of these processes then serve as the starting point for developing risk management and mitigation strategies.

2. RISK CAPITAL

Risk capital is defined as the amount of capital required to absorb potential unexpected economic losses resulting from extremely severe events over a one-year time period.

• “Economic losses” include losses that are reflected on Citi’s Consolidated Income Statement and fair value adjustments to the Consolidated Financial Statements, as well as any further declines in value not captured on the Consolidated Income Statement.

• “Unexpected losses” are the difference between potential extremely severe losses and Citigroup’s expected (average) loss over a one-year time period.

• “Extremely severe” is defined as potential loss at a 99.9% and a 99.97% confidence level, based on the distribution of observed events and scenario analysis.

The drivers of economic losses are risks which, for Citi, as referenced above, are broadly categorized as credit risk, market risk and operational risk.

• Credit risk losses primarily result from a borrower’s or counterparty’s inability to meet its financial or contractual obligations.

• Market risk losses arise from fluctuations in the market value of trading and non-trading positions, including the changes in value resulting from fluctuations in rates.

• Operational risk losses result from inadequate or failed internal processes, systems or human factors or from external events.

These risks, discussed in more detail below, are measured and aggregated within businesses and across Citigroup to facilitate the understanding of Citi’s exposure to extreme downside events as described under “Risk Aggregation and Stress Testing” above. The risk capital framework is reviewed and enhanced on a regular basis in light of market developments and evolving practices.

3. CREDIT RISK

Credit risk is the potential for financial loss resulting from the failure of a borrower or counterparty to honor its financial or contractual obligations. Credit risk arises in many of Citigroup’s business activities, including:

• Lending;

• Sales And Trading;

• Derivatives;

• Securities Transactions;

• Settlement; And

• When Citigroup Acts As An Intermediary.

4. OPERATIONAL RISK

Operational risk is the risk of loss resulting from inadequate or failed internal processes, systems or human factors, or from external events. It includes the reputation and franchise risk associated with business practices or market conduct in which Citi is involved. Operational risk is inherent in Citigroup’s global business activities and, as with other risk types, is managed through an overall framework designed to balance strong corporate oversight with well-defined independent risk management. This framework includes:

• recognized ownership of the risk by the businesses

• oversight by Citi’s independent risk management

• independent review by Citi’s Audit and Risk Review (ARR)

The goal is to keep operational risk at appropriate levels relative to the characteristics of Citigroup’s businesses, the markets in which the Company operates its capital and liquidity, and the competitive, economic and regulatory environment. Notwithstanding these controls, Citigroup incurs operational losse

Celebrating 200 Years

2012 marked Citi’s 200th anniversary, an opportunity to reflect on two centuries of enabling progress. We celebrated our rich heritage of innovation in a global advertising

campaign, thanked our clients at events held around the world and joined together for a Global Community Day to give back to the communities in which we live and work

Recent Awards & Recognition

Awards in 2013

Global Finance Best Internet Bank Award 2013Best Consumer Internet Bank in India

Euromoney Awards for Excellence 2013Best Equity House and Best Investment Bank in India

FinanceAsia Country Awards 2013Best Foreign Commercial Bank and Best Foreign Investment Bank

Euromoney Foreign Exchange Survey 2013Ranked #1 amongst banks and corporates

Greenwich Associates 2013 Quality LeaderLarge Corporate Banking and Large Corporate Cash Management by Country

Global Finance World�s Best Investment Bank Award 2013Best Investment Bank in India

The Asian Banker Excellence in International Retail Financial Services Awards 2013Best Retail Banking Brand Initiative