Axis Bank is set to close the deal to acquire Citi’s consumer banking operations in India, CNBC-TV18 reported citing people familiar with the matter.
The deal, which is expected to close as early as next week, could value the business up for sale at $2.5bn at the top end, the sources said, adding that it will include a portion as cash and incentives as well.
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“We were targeting to close the deal this week itself, but there has been some delay with paperwork, so it will be announced within a week,” one of the sources was quoted by the publication as saying.
Kotak Mahindra Bank and IndusInd Bank had also placed their bids, but Axis Bank emerged as the frontrunner.
Axis Bank chose legal firm Khaitan & Co to advise it on the deal, and AZB & Partners was selected by Citi, the publication said.
The deal is part of Citi’s plan announced last year, which will see it exit several retail markets around the globe to focus on investment banking operations.
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By GlobalDataThe Indian lender will need nearly six months to integrate its retail operations with Citi’s, which is said to cater to over 2.5 million customers.
Citi is expected to continue to service its customers during the integration process, another source said.
The US lender has 35 branches across the country, employs over 4,000 people and controls nearly 4% of the country’s credit card market.
The deal will expand Axis Bank’s footprint while strengthening its high-end credit card business and mortgage business.
