Axis Bank acquires Citigroup’s Indian retailer $ 2.5 billion: Report

Axis Bank and Citigroup’s deal is likely to be announced soon.

New Delhi:

Private sector lender Axis Bank is close to acquiring Citigroup’s retail banking business in India and a deal is likely to be announced soon, sources said on Wednesday.

According to the sources, the transaction, which is valued at $ 2.5 billion (about Rs 18 000 crore), will be subject to regulatory approvals.

In April 2021, US bank chief Citigroup announced its plan to leave the consumer banking business in India as part of its global strategy.

The business consists of credit cards, retail banking services, home loans and wealth management. The bank has 35 branches in the country and employs about 4,000 people in the consumer banking business.

Once the deal was approved, the sources said the balance sheet size of Axis Bank would expand and the retail segment would see a significant jump.

An email sent to Axis Bank asking for comment on the proposed transaction did not immediately elicit a response.

Earlier this month, Axis Bank said it had yet to make a decision on the acquisition of Citigroup’s Indian retail business.

Citigroup entered India in 1902 and started the consumer banking business in 1985.

Apart from the institutional banking business, Citigroup in India will continue to focus on offshoring or global business support provided from centers in Mumbai, Pune, Bengaluru, Chennai and Gurugram.

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