India needs not only more banks, but also bigger banks, says Citi India CEO

India remains under-penetrated from the perspective of banking. RBI is in the process of coming out with final norms for payment banks and small banks, while some more niche-segment banks could be in the offing.

Citibank's India chief, Pramit Jhaveri, said there was not only room for a larger number of banks in the country, but it also needed ones large in size, to compete on a global stage. At this point, sensible consolidation would be one way to achieve scale. You can have big banks, universal banks and also niche banks.

According to Jhaveri, "Significant changes are taking place in India, which will create very meaningful opportunities for the banking industry. Examples of drivers of change and opportunity are digitisation, urbanisation and globalisation. Given the size, complexity and potential for further penetration, there is plenty of room for different kinds of banks - small banks, payment banks, internet banks, etc."

Along with an employee strength of nearly 10,000 people, Citibank India has 42 full-service branches across nearly 30 cities. It posted profit sfter tax of Rs 2,893 crore for the financial year 2014. It is present across all segments of banking services, including retail and wholesale banking.

It is a major player in the credit card market for retail consumers, while in corporate and investment banking segments it has leadership positions in areas such as M&As, equity markets and international bonds.