Citibank is looking to acquire financial companies and plans to have its presence in 13 more cities in the next two years.

"We are always on the lookout with or without the regulations (allowing acquisition for banks and financial companies)," Citibank country business manager, Sarvesh Sarup said on the sidelines of a new product launch in New Delhi on Tuesday.

He said the bank had acquired Diners Club in 1990 and Nationwide Finance in 2000 to increase its reach in India.

The Citigroup may also convert the branches in the country into a subsidiary company once government comes up with the guidelines allowing 74 per cent foreign direct investment in private banking.

The government has decided to allow foreign banks to convert their branches into subsidiary company while raising the FDI ceiling from 49 to 74 per cent for private banks.

Citigroup, which is the single largest foreign direct investor in India's financial sector, has capital in excess of $800 million.

Apart from inorganic growth, Sarup said the bank plans to open branches in 13 more cities in the next two years taking its reach to 35 cities by 2006. The bank hopes to get licence from the Reserve Bank of India for opening 6-7 branches annually, he said.

Citibank now has 26 branches in 22 major cities in India and is the leading foreign bank.

Citibank started its operations in India way back in 1902 through a branch in Kolkata. Since 1985, the US financial powerhouse has undertaken expansion in consumer banking, software exports, credit cards, non-banking finance company and other activities.