Citibank NA’s Indian unit on Wednesday said net profit in fiscal 2012-13 rose 41% to 2,718 crore from 1,922 crore in 2011-12, driven by demand for loans from small and medium companies, mortgages and trade loans for global clients.

Advances grew 10% to 52,036 crore from 47,103 crore, much slower than the 17% growth seen by the Indian banking system in 2012-13. Citibank India’s deposits rose at 3% to 66,559 crore compared with 14% in the year before.

The slower deposit growth was on account of the bank shedding high-cost deposits during the year, chief financial officer Abhijit Sen said.

“We were coming from a conservative liquidity position where we had garnered deposits but not used them due to global uncertainties and hence we had enough liquidity to deploy for advances," Sen said.

Citibank’s current and savings account (CASA) ratio remained unchanged at 53%. CASA is the cheapest source of funds for banks. Banks in India do not pay interest on current account deposits.

“We have seen growth all across our target market which includes commercial banking, mortgages, trading and custody services," Sen said.

Citibank’s mortgage book grew 16.7% to 9,949 crore as of 31 March from 8,525 crore a year earlier.

The bank’s net non-performing asset (NPA) ratio dropped to 1.47% from 1.52% in 2011-12.

“Our capital position remains robust as it supports a larger balance sheet," Sen said. Citibank’s capital adequacy ratio stood at 15.90% compared with 16.03% in the year earlier.

Citibank, with 90,270 crore in assets, overtook UK’s Standard Chartered Bank in 2011-12, to become the largest foreign bank in India by that measure. In 2012-13, assets grew to 1.28 trillion.

In banking terms, total assets include loans and investments.

Citibank is number three in India in terms of branches, with 42, behind Standard Chartered’s 99 and Hongkong and Shanghai Banking Corp. Ltd’s 50.

“The total capital employed in Citi’s banking and financial services operations in India including retained earnings is in excess of $3 billion," Citi said in a press release announcing the results.

Sen said the bank will be “judicious" in selecting clients this fiscal as India’s economy battles a slowdown.

“We would like to grow with our clients... We are confident of continuing the momentum because of income from various sources like loans, capital markets and fixed income particularly as interest rates come down," Sen said.