Citi India’s institutional client-asset portfolio crossed ₹1 lakh crore in the second quarter, marking a milestone in its expansion after leaving consumer banking. In an interview published on October 25, 2026, CEO K Balasubramanian said the bank expected around 20% year-on-year growth in the portfolio, while remaining selective about funding costs and underwriting.
Key Takeaways
- The institutional client-asset portfolio exceeded ₹1 lakh crore, while the balance sheet grew 16.3% year on year.
- Citi is involved in two or three potential billion-dollar-range transactions expected before the end of 2026.
- The March 2027 expiry of an Axis Bank non-compete could open opportunities, but no new business launch was announced.
Table of Contents
- Citi India expands its institutional franchise
- IPO pipeline supports capital-markets ambitions
- AI exposure shapes the competition for foreign capital
- GIFT City grows as the non-compete deadline approaches
- Conclusion
Citi India expands its institutional franchise
Balasubramanian said the ₹1 lakh crore milestone exceeded the scale of Citi’s rupee client-asset book even when it still operated its consumer business. The bank’s balance sheet reached ₹3.14 lakh crore.
Citi’s completed sale of its India consumer business to Axis Bank on March 1, 2023, covered credit cards, retail banking, wealth management and consumer loans. Institutional client businesses were excluded, leaving them as the core of Citi’s continuing Indian operations.
Following the exit, the bank redirected capital and management attention toward institutional banking. Between March 2023 and March 2026, institutional revenue excluding consumer operations rose 76%, while net income increased 56%, Balasubramanian said.
The growth outlook remains conditional on returns. He said Citi could raise deposits and expand faster, but would not do so if funding became too expensive or underwriting standards were compromised.
| Item | Details |
|---|---|
| FY2026 net profit | ₹7,261 crore, up 17.3% |
| FY2026 total income | ₹23,176 crore, up 4.5% |
| Loan growth | 78% between March 2023 and March 2026 |
| Deposit growth | 48% between March 2023 and March 2026 |
IPO pipeline supports capital-markets ambitions
Balasubramanian said Citi was factoring in three or four transactions of around $1 billion each between late October and the end of 2026, with the bank involved in two or three. He also described a growing pipeline for 2027, with more than a dozen companies having filed draft red herring prospectuses.
Those transactions remain prospective rather than completed fundraising. He said market conditions would influence execution, although he remained optimistic about the pipeline.
On pricing, Balasubramanian said the Nifty’s forward price-to-earnings multiple had fallen from around 24–25 times to 20–21 times. In his view, those valuations could be justified if companies delivered mid-to-high-teens growth. He also highlighted mutual funds as an indirect route for retail participation in IPOs.
AI exposure shapes the competition for foreign capital
Balasubramanian argued that foreign investors compare India’s expected returns and valuations with opportunities elsewhere. He pointed to Taiwan, Korea and the United States as competing destinations, and said India had fewer visible opportunities tied to the global artificial-intelligence investment theme.
That is his assessment of investor preferences, not a demonstrated single cause of capital flows. He also identified equity capital-gains taxation and trade agreements as factors that could influence longer-term investment.
For Citi, potential UK–India and EU–India business corridors could generate services, markets and investment-banking work. Balasubramanian said the bank had at least half a dozen live discussions with multinational companies considering capital raising in India; these were discussions, not announced mandates or completed deals.
GIFT City grows as the non-compete deadline approaches
Citi’s GIFT City assets increased from about $300 million–$400 million in March 2026 to around $2.5 billion by the interview. Balasubramanian said the operation is a standalone branch of Citi New York, so those assets do not consolidate into Citibank India’s balance sheet.
He said the non-compete agreement with Axis Bank runs until March 2027. After it expires, Citi could consider foreign-currency non-resident deposit opportunities and ways to originate onshore clients for its existing offshore wealth business.
Those possibilities are not confirmed launches. Balasubramanian described the plans as being at an early stage.
Conclusion
Citi India’s next near-term test is whether the prospective year-end transactions reach execution. The March 2027 non-compete expiry is a separate confirmed milestone, but any expansion into additional businesses remains a management option rather than an announced commitment.
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