US banking giant Citigroup has temporarily halted the sale of its business process outsourcing (BPO) unit in India, according to local press reports.
India's Economic Times reports that the sale of Mumbai-based Citigroup Global Services - formerly known as e-Serve International - has been halted as Citigroup reviews its operations after being badly burned in the credit crisis.
Speculation that Citigroup was looking to sell off the Indian unit came to the fore in July when it was reported that the US bank had shortlisted three bidders - Genpact, Firstsource and WNS.
A $700 million deal with Genpact was close to completion but a fall in the stock market led to the sale being cancelled, says the Economic Times report.
Citigroup Global Services employees about 8000 people in Mumbai and Chennai. The US bank took over the BPO unit in 2004 by acquiring the 55.6% it didn't already own in the business.