Citigroup Inc. the largest U.S. bank by assets, raised $500 million to invest in roads, ports and utilities in India, the world's second-fastest growing economy.
Citigroup agreed to start a $5 billion Indian infrastructure fund with Blackstone Group LP and two Indian finance companies in February 2007. The fund-raising is the first phase, Sanjay Nayar, chief executive officer of the bank's Indian unit, told reporters in Mumbai today.
Citigroup and Blackstone aim to tap the $1 trillion Asia's third-largest economy proposes spending on roads, railways and airports within the next 10 years.
The New York-based bank has no plans to shut or sell its consumer finance division in India, Nayar told reporters. The unit fired 400 employees and is seeking to sell almost $1 billion from its loan portfolio, the Economic Times newspaper reported on May 2.
``We are not exiting,'' Nayar said, without elaborating. ``We are changing segments a little bit.''
Citigroup operates 39 branches in 27 cities in India.
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