But current regulations cap the equity stake by a foreign player in a local bank at 20 per cent. And this is no good for as far as Citigroup goes.

"We would like to see changes here (on equity stake)", noted Mr Rubin, while adding that regulations also did not allow the group to have a controlling interest in an insurance venture.

Be that as it may, Mr Rubin, a former US Treasury secretary is bullish on India, and said Citigroup viewed it as a key market.

"The potential is enormous, given the size and rate of growth over the last few years... there is also a large young population", observed Mr Rubin while adding that India was bigger than most emerging markets.

Mr Rubin began his career at Goldman, Sachs & Company in 1966, joined the private-sector in 1993 to join the Clinton administration as assistant to the President on economic policy. In 1995, Mr Rubin became US Treasury secretary, and played a leading role in balancing the federal budget -- "India too must address its fiscal deficit as it results in higher interest rates" -- opening trade policy and enacted a key role in resolving the economic crisis in Mexico, Asia and Russia. In 1999, Mr Rubin joined Citigroup, and along with Sandy Weill and John Reid formed a formidable triumvirate. And did Mr Rubin nurse ambitions of having the top job at Citigroup? Mr Rubin was visibly bashful.

Continuing on his what-a-great-place-India-is theme, and what it meant for Citigroup, Mr Rubin says: "There is tremendous opportunity in corporate financing, especially in the IT sector, and in investment banking. On the retail side, you have a big middle class... we have been here since 1902, and see a great opportunity to expand here". Other than 11-branch banking entity in India, Citibank has built a successful software exporting and development business. It is the third largest exporter of software in India, Citigroup is keen on acquiring Indian bank and claims a 40 per cent share of the retail market. And of late, it has made moves to expand its retail base by tapping the mid-market by offering `Suvidha', after a test-run in Bangalore. It also has a non-banking finance company called Citicorp Finance Ltd and $65 million has been infused into this entity.

Mr Rubin was categorical that the consolidation theme will continue to be played out in the banking sector. "It (mergers) will bring together large critical masses, and lead to cost-savings... but regulation, prudence amd soundness are also important", noted Mr Rubin. He also underscored another point: "Globalisation must take into consideration people and cultural issues.. and we need another to have a parallel policy on this".

In recent times, there has been a spate of mega-mergers: NationsBank-BankAm and Deustche Bank-Bankers Trust. Locally, you had StanChart-ANZ Grindlays - "two banks have come together, and they are just that (gesticulates) bigger", says Mr Rubin.

Citigroup also has an embedded acquistive culture: CitiCorp merged with Travelers Group to form Citigroup. In the past, CitiCorp had acquired Diners. Citigroup's investment banking arm -- Salomon Smith Barney -- also brings histories of many a firm. In 1997, Salomon Brothers became Salomon Smith Barney following a merger with Smith Barney Inc, a premier equity brokerage, and a subsidiary of Travelers group. Salomon Smith Barney became part of Citigroup following a merger with the Travelers group in October 1998.

Mr Rubin was also witty in his hour-long select-media interaction. Why is the Euro falling? "It is falling against every other currency". Timing a yen intervention: "We intervened at a time we thought it was appropriate and did not when it was equally appropriate... though I am sure this is not of much help to you".

On India though, the point Mr Rubin made is: it is an appropriate time to expand in India. Three cheers to that.