London: As part of Citigroup's new Indian – born CEO, Vikram Pandit's, continuing efforts at  ''re-engineering'' the business, Citi could sell off its $2 billion stake in Indian mortgage lender, Housing Development Finance Corporation, or HDFC.

A report in the UK's Sunday Times had first said, ''The bank's German operation has already been put up for sale in a move expected to raise about €6 billion (£4.8 billion), and it is understood Citi may also sell its $2 billion stake in Indian bank HDFC.''

Citi has a 12.3 per cent stake in HDFC.

Vikram Pandit came to the helm of affairs at the US bank after the axing of Chuck Prince, who was largely blamed for the complex lending that saw Citi take over $40 billion in write downs in the wake of the sub-prime crisis. The venerable financial insttution is anticipated to announce $8 billion in additional write downs when it reveals its second quarter results.

Media reports suggest Citi could offload its HDFC stake to private equity firm, Oman Investment Corporation, for around $1.5 billion. These reports would appear to have been contradicted by HDFC vice chairman and managing director, Keki Mistry, who informed local media that HDFC had been in consultations with Citi and had been assured that there were no plans of a stake sale.

Recently, Citi had announced the sale of its German retail business to Credit Mutuel of France for almost $8 billion.

Pandit is reported to have committed to investors that he would shave off $15 billion in costs. The effort would kick off with the slashing of 18,000 jobs by year-end. These would include 6,500 positions at Citi's investment banking business.

Around $500 billion of assets are also reportedly on the block, the bulk of them from a planned reduction to Citi's involvement with the American mortgage business.

Citi has offloaded over $160 billion in assets since the third quarter of 2007.

Anticipation about Citi's, and Vikram Pandit's, next move has been heightened ever since the posting of a controversial email to employees last week, which eventually found its way to the internet. In the mail Pandit promises to employees that Citi would become "the greatest turnaround story of our age."