New York: Citigroup, which recently reported a net loss of $2.8 billion for the quarter ended 30 September, has said its business in India is being actively repositioned to cut the costs and offset the losses.
In a regulatory filing, Citigroup said, “Higher credit costs were mainly driven by continued deterioration in the credit environment in India, where the business is being actively repositioned to reduce costs and mitigate losses.”
Last month, Citigroup had reported a net loss of $2.8 billion for the quarter ended September, while the US financial behemoth led by Indian origin chief executive Vikram Pandit had clocked a net profit of $2.2 billion for the same period a year ago.
For the quarter under review, Citi incurred a net pre-tax write-downs in securities and banking totalling $4.4 billion, net credit losses to the tune of $4.9 billion and another $3.9 billion as net charge to increase loan loss reserves.
The regulatory filing further said that “credit costs in Asia increased 25% primarily due to a $149-million incremental pre-tax charge to increase loan loss reserves, increased credit costs, especially in India, acquisitions and portfolio growth”.
For the third quarter of 2008, provisions for credit losses, and for benefits and claims increased 24% as compared to the same period last year.