AI narrative needs to change for India: Citibank
Citibank India has focused on its institutional-banking sector after exiting the consumer loan business. Its client-asset book now exceeds ₹1 lakh crore. CEO K Balasubramanian remains optimistic about India's potential for AI-linked opportunities and foreign investments, particularly if global AI trends shift. Foreign investors are currently drawn to markets offering disproportionate returns and are comparing India's P/E ratios unfavorably.
Despite inflation and unemployment concerns, the US economy remains robust, and AI is a major player there. India's AI capabilities are lacking compared to the US and Taiwan. To attract more foreign investment, India could implement long-term capital-gains tax and trade agreements to create beneficial corridors with the UK and EU.
Citibank has seen a 76% increase in institutional revenues excluding consumer business between 2023 and 2026 and expects further growth, emphasizing robust underwriting to avoid overexpansion. GIFT City's asset base has expanded from $300-400 million to around $2.5 billion.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
