Axis Bank is closing in on the deal to buy Citigroup’s retail banking operations in India, Bloomberg has reported citing sources.
A deal could be valued at around $2.5bn, including a cash component of less than $2bn for liabilities of the unit up for sale.
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The firms could announce the deal as early as the next few weeks; however, it is subject to nod from the Reserve Bank of India.
Kotak Mahindra was also among those vying for Citi’s India consumer operations, but Axis Bank left the rivals behind with factors such as job security for existing Citi staff and competition concerns.
The Indian lender will need nearly six months to integrate its retail operations with Citi’s.
Deliberations are reportedly at an advanced stage though there is no certainty of the deal materialising.
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By GlobalDataThe US banking giant’s Indian retail business caters to over 2.5 million customers.
It controls nearly 4% of the country’s credit card market and had 1.2 million bank accounts and 2.58 million credit card accounts as of October 2021.
The deal is expected to strengthen Axis Bank’s high-end credit card business and mortgage business while expanding its footprint.
This divesture is part of Citi’s plans to exit 13 retail markets across Asia and EMEA and focus more on investment banking.
Last month, Citi signed a deal to divest its Taiwanese consumer banking operations to DBS.
