We all know how desperate is Citibank to shore up its capital and owned funds on account of the significant write-offs on their sub-prime portfolio. Vikram Pandit, CEO of Citibank is working on revitalising the company by selling off non-core assets in this hour of need. During this crisis period, Citibank may also let go, few of its prized assets which has taken years for it to build.
Citi Financial, the NBFC arm of Citibank is rumoured to be on the block. Economic Times carried a front page article a week ago in this regard. Citi Financial has also fired more than 400 staff in the last couple of months. It was also looking at selling many of its US assets to raise capital.
The latest sale by Citibank is the sale of prime real estate. Today's edition of The Hindu carried an advertisement by CB Richard Ellis, property management consultant advertising about the sale of prime (really prime!!) commercial and residential properties in Chennai. Citibank is selling 5 flats ranging from 1700 to 2200 sq.ft each in posh areas of Chamiers Road, Alwarpet and Bishop Wallers Avenue, Mylapore. It is also selling more than 48,000 sq. ft of commerical space in Spencer Plaza, Phase III where the Citi's back office processing entity, e-Serve operates.
Bad times for Citi.