Citigroup is bidding to attract one million new customers from India’s middle class as it expands its credit card business, according to reports.

Citi India expects the unsecured credit card and personal loan segment to swell by a quarter to 30 per cent this financial year through March 2013, and the mortgage lending business to grow 15 per cent to 16 per cent, said a report in Asian Banking & Finance. 

The consumer business contributed 41 per cent of Citi India's total revenue of $1.48 billion in the year ended March 31, 2011.

Improved risk assessment of customers and the rise of new credit bureaus have been cited as factors in Citi India’s renewed foray into credit cards. It previously took a large hit from massive credit card defaults following the global economic crisis of 2008, said the report.

"Though there are uncertainties, the trends are pointing toward potential opportunities, and we are focused on the right target segments," said Anand Selvakesari, head of Citibank's India consumer banking business.

Spending through credit, debit and prepaid cards in India grew 28 per cent between 2009 and 2011 to $27.1 billion. Some 60 per cent of the total spending was through 17 million credit cards, while 33 per cent came from 280 million debit cards.