Axis Bank To Acquire Citigroup's Retail Banking Business In India For $2.5 Billion: Report

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.