Citigroup Inc. cut its quarterly dividend to a penny on Tuesday under the conditions agreed with the federal government when it granted a $20 billion bailout to the bank in November.

The giant institution officially said Tuesday the dividend that will pay to investors will be paid on Feb. 27 to shareholders of record on Feb 2.

Citigroup's previous dividend was of 16 cents and in the previous quarter was of 32 cents per share.

Shares of Citigroup fell 20 percent, or 70 cents to close at $2.80 on Tuesday. However in Wednesday pre-market trading, shares were up 9.29 percent.