Citibank to acquire NBFC portfolios

Mumbai: With an intention to augment its asset base, Citibank is planning to acquire more loan portfolios of non-banking finance companies (NBFCs). Last year, the bank had picked up around Rs 800-crore worth loan portfolios of NBFCs.

Citibank MD (global corporate and investment banking) Sanjay Nayar said the bank is open to pick up portfolios in the middle market and in the top-tier corporate segment. The bank has been increasing its focus in the middle market segment over the last three years.

We focus only on some key vertical segments in the small and medium enterprise (SME) sector. We choose a particular industry and understand the whole chain from suppliers, manufacturers, dealers and end-customers. We understand the flow and the risks, and choose the segment where the bank will be a dominant player, Nayar said.

The major portion of Citibanks SME business is in the transportation sector. Citibank is presently the third largest truck financier in India. The other sectors in which the bank is focusing are in exports and branded consumer goods.