Citibank CEO and Citigroup chairman Ha Yung-ku has reportedly told the bank’s board of directors that he has decided to resign, but the bank appears to be hesitating over an official statement.

On Monday, media reports said that Ha had informed the board of his decision to step down to formally join the race for chairman of KB Financial Group, but the bank failed to confirm this. Citibank’s PR team also said it had not yet been informed about the latest development, and declined to comment further.

This has left the industry playing guessing games over Citibank’s stance regarding Ha’s intention to run for the top post at KB Financial.

Earlier, Ha’s announcement that he would be joining the contest was met with mixed responses.

Industry watchers and workers at KB Financial said the group needed a breath of fresh air, adding that Ha’s bold decision gave him a strong chance to become the next chairman.

Citibank, however, appeared to frown on the move as the CEO had not yet stepped down.

Due to such sentiment, some financial sources said Ha had no choice but to announce his resignation, adding that he had come under pressure from Citibank’s union for his lack of responsibility as the bank’s chief.

“He should have done this (announce his resignation) last week when he confirmed his candidacy for chairman of KB,” an industry watcher said, wishing to stay anonymous.

Ha became the first chief financial officer of a company to announce a bid to become president of a rival firm before resigning. He is now one of seven candidates shortlisted for the post. Four of the candidates are incumbent or former officials of KB, according to the bank.

Ha, who has served with Citibank for 14 years, is regarded as having played an instrumental role in a Korea-U.S. currency swap deal during the global financial crisis in 2008.

Insiders say his close connection with Financial Services Commission chairman Shin Je-yoon and personal connections with high-ranking officials would give him leverage in the tight race.

Citigroup is reportedly training two high-ranking officials to prepare for a possible leadership vacuum.

Citibank Korea’s senior executive vice president of corporate banking Park Jin Hei and executive vice president Joel Kornreich are rumored to be the two candidates for the bank and group’s top positions.

By Suk Gee-hyun (monicasuk@heraldcorp.com)