Citibank India has reported a 46 per cent rise in net profit at Rs 571.62 crore (Rs 5.72 billion) for the fiscal ended March 31, 2004, compared to Rs 391.48 crore (Rs 3.91 billion) in the previous financial year.

Gross revenues were up 16 per cent to Rs 3,167 crore (Rs 31.67 billion) driven by growth in fee income and foreign earnings, improved spreads and new product introductions, Citigroup India CEO Sanjay Nayar said in Mumbai on Monday.

"India is one of the priority countries and as a reaffirmation of this, we will retain the entire earnings for 2003-04 as capital in India for further growth," he said.

The advances and loans portfolio grew by 21 per cent to Rs 15,259 crore (Rs 152.59 billion) while customer deposits rose by 15 per cent at Rs 20,465 crore (Rs 204.65 billion).

The capital adequacy ratio was at 11.1 per cent and net NPAs were at 1.4 per cent. Provisions for bad loans went up from Rs 130 crore (Rs 1.30 billion) to Rs 165 crore (Rs 1.65 billion) with 90-day norms.

He said the bank was expecting its revenues to grow by 30-35 per cent in FY05 even as it would increase its presence to 26 cities through 37 branches.

Nayar said Citibank was awaiting more clarity before opting for the subsidiary route and also was in discussion with the Reserve Bank of India on the same. Clarity pertains to issues like guidelines, implications on income tax, stamp duty and capital gains.

The bank was also in talks for picking up stake in Asset Reconstruction Company of India, he said.