Citigroup has ruled out establishing a separately capitalized subsidiary in India in the light of regulatory changes allowing foreign banks to set up subsidiaries in the country. This has been done as part of wider reforms to boost competition and attract foreign participants into the country’s banking system. Pramit Jhaveri, chief executive of Citi in India, said the bank has no plans to establish one. Jhaveri said India’s current rules were sufficient to allow Citi, which is the country’s largest foreign bank by assets, to grow its retail business without taking the subsidiary route. He added that it was not sensible for the bank to become a full-scale Indian retail operation competing for deposits nationwide against dominant local participants. Instead Citi plans to invest in areas such as credit cards and home loans, he added. Citi has 43 out of 105,000 Indian bank branches, and has been permitted to open only three new locations in the past four years.