Citigroup, the third-largest US bank by assets, retreated from an effort to win Federal Reserve approval to boost payouts for shareholders this year.

The bank won’t seek permission to increase payouts in its 2012 proposal to regulators, and “will make decisions regarding the 2013 capital plan later this year,” it said in a statement.

The announcement ends an almost two-year push by Chief Executive Officer Vikram Pandit, 55, to boost rewards for shareholders this year. He had vowed in March to seek approval for a “meaningful” payout after the Fed objected to the New York-based firm’s initial submission for 2012.

Pandit scrapped Citigroup’s dividend in 2009 after the bank almost collapsed and took a $45 billion bailout from US taxpayers.