KARACHI, Feb 9: The Citibank N.A. has closed most of its branches in Pakistan before handing over its consumer business to a local bank, said banking sources on Saturday.

Foreign banks have lost interest in Pakistan especially after global banking crisis that started in 2007 as the crisis forced the large international banks to consolidate their operations, which resulted in closure of branches or operations in countries like Pakistan where risk is high and profit is low.

Citibank NA has closed 12 braches out of total 15 branches in Pakistan.

Now the bank is operating with three branches; one each at Islamabad, Lahore and Karachi. It also has three permanent booths working at US Consulate Karachi, Lahore and Islamabad.

The banking industry has been earning profits in Pakistan despite financial crisis since 2007 but the banking is limited to investment in government papers at least for the last four years.

A senior banker said the foreign banks have little room to expand their operations in the country particularly in the wake of poor economic growth and worst law and order situation.

Earlier, the Royal Bank of Scotland and HSBC sold out their Pakistan operations. RBS was the largest foreign bank having 79 branches across the country.

The departure of two giant banks gave a negative signal to other potential foreign investors planning to invest in Pakistan.

“Like these two banks Citibank, another giant from United States, also wanted to leave Pakistan with the same reasons like low profitability and poor law and order,” said a local banker.

Banking sources said that the State Bank is reviewing Habib Bank’s request for final acquisition of Citibank’s Consumer Business i.e. Credit Card, Personal loan and Auto loan. The Citibank had earlier announced that it will sell or significantly scale back consumer operations in Turkey, Pakistan, Paraguay, Romania and Uruguay.

The Citibank N.A earned Rs2.5 billion profit before tax in 2011.