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August 5, 2022

Axis Bank to wind down UK arm after terminating deal with OpenPayd

Indian private sector lender Axis Bank has terminated the deal to divest the entire stake in its British arm Axis Bank UK.

The bank will now start the process to wind up its UK subsidiary. 

In a bourse filing, the bank said, “We wish to inform you that both the parties have mutually decided not to go ahead with the aforesaid transaction and accordingly have terminated the above Share Purchase Agreement. The Bank will now initiate the winding-up process of Axis Bank UK Limited.”

In March 2021, the bank informed the stock exchanges regarding its plan to enter a share purchase agreement with OpenPayd Holdings, for the sale of 100% stake in Axis Bank UK.

Following a review of the international strategy in July last year, the bank decided to close the UK arm’s business, a Mint report said.

At the end of June 2022, Axis Bank’s overseas loan book was worth INR389.28bn, a fall from INR457.50bn in the March quarter.

The development comes shortly after the bank secured the competition watchdog’s nod for the proposed acquisition of Citigroup’s retail operations in India. 

The deal valued at around INR12.32bn ($1.54bn) was announced in late March this year. 

In a tweet, the Competition Commission of India said: “Commission approves acquisition of Citibank NA’s and Citicorp Finance (India) Limited’s undertakings comprising of their consumer banking activities by Axis Bank.”

The transaction covers the consumer banking businesses of Citibank India, which include credit cards, retail banking, consumer loans and wealth management.

It also covers the sale of retail operations of Citi’s non-banking financial company and the transfer of 3,600 Citi employees to Axis Bank.

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