Business
Axis Bank To Acquire Citigroup's Retail Banking Business In India For $2.5 Billion: Report
Tarkesh Jha
Feb 15, 2022, 05:02 PM | Updated 05:02 PM IST
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Axis Bank Ltd is set to acquire Citigroup Inc’s India retail banking business for a valuation of $2.5 billion, Economic Times (ET) reports.
The deal for the consumer unit is likely to be announced in the coming few weeks. However, the agreement is contingent on the approval of the Reserve Bank of India (RBI).
Sources in the know of developments told ET that the cash component of the deal will be lesser than $2 billion. The pact will be accounting for the liabilities of the consumer business side.
The merger of Axis Bank and Citigroup’s consumer business will take place in around six months’ time.
Reported assurance of job security for the current Citigroup employees allowed Axis Bank to move ahead of other contenders in this acquisition race.
Though the talks are in advanced stages, a possible fallout or delay hasn’t been ruled out yet.
Citigroup is working towards discontinuing its retail banking operations in 13 countries across Asia and Europe. The American lender is instead trying to shift its focus on high-growth businesses such as wealth management.
Simultaneously, Axis Bank is looking to increase its retail loans to capitalise upon the pent-up demand after the two waves of the Covid-19 pandemic in the country.
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Introducing ElectionsHQ + 50 Ground Reports Project
The 2024 elections might seem easy to guess, but there are some important questions that shouldn't be missed.
Do freebies still sway voters? Do people prioritise infrastructure when voting? How will Punjab vote?
The answers to these questions provide great insights into where we, as a country, are headed in the years to come.
Swarajya is starting a project with an aim to do 50 solid ground stories and a smart commentary service on WhatsApp, a one-of-a-kind. We'd love your support during this election season.
Click below to contribute.